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EURASIP Journal on Wireless Communications and Networking
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Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?

EURASIP Journal on Wireless Communications and Networking volume 2008, Article number: 596383 (2008) Cite this article

Abstract

HAPS is a promising technology capable of providing broadband multimedia services as an alternative to the satellite communication system or terrestrial network. In this study, economic aspects of HAPS service are analyzed, HAPS services are defined, and revenues from the defined services are forecasted assuming nine scenarios. Capital expenditure as well as operating expenditure is estimated. To evaluate the profitability of HAPS service, the net present value (NPV), payback period, and the internal rate of return (IRR) are calculated. The results show that HAPS is economically justifiable in all the scenarios. Assuming that ARPU for the service is $35 per month in the average scenario, NPV is calculated as $2964 million, IRR becomes 31.9%, and payback occurs in 2017, which implies that HAPS service is profitable in Korea. In addition, the results of the sensitivity analysis show that the results are fairly robust.

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Authors and Affiliations

  1. Department of Industrial Engineering, Konkuk University, 1 Hwayang-Dong, Gwangjin-Gu, Seoul, 143-701, South Korea

    Jonghwa Kim

  2. Department of Industrial Engineering, Kyunghee University, 1 Seocheon-Dong, Kiheung-Gu, Yongin, 446-701, South Korea

    Deokjoo Lee

  3. Department of Industrial & Information Systems Engineering, Seoul National University of Technology, 172 Gongneung-Dong, Nowon-Gu, Seoul, 139-743, South Korea

    Jaekyoung Ahn

  4. Radio and Broadcasting Research Division, Electronics and Telecommunications Research Institute, 162 Gajeong-Dong, Yuseong-Gu, Daejeon, 305-350, South Korea

    Do-Seob Ahn & Bon-Jun Ku

Authors
  1. Jonghwa Kim
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  2. Deokjoo Lee
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  3. Jaekyoung Ahn
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  4. Do-Seob Ahn
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  5. Bon-Jun Ku
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Corresponding author

Correspondence to Jaekyoung Ahn.

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Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Kim, J., Lee, D., Ahn, J. et al. Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?. J Wireless Com Network 2008, 596383 (2008). https://doi.org/10.1155/2008/596383

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  • DOI: https://doi.org/10.1155/2008/596383

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