Optimal pricing strategy for 5G in rural areas with unmanned aerial vehicles and large cells

We propose a business model to compute the monthly subscription fee for users served by an innovative 5G network architecture that is designed to serve rural zones. We consider two possible options to deploy the 5G cells. In the first case, the connectivity is provided by means of small cells mounted on top of Unmanned Aerial Vehicles (UAVs). In the second case, large cells, covering wider portions of territory, are used. In both cases, we assume that the electricity can be sourced also from solar panels and batteries, which are installed on each cell site. We then propose an economic framework that, given the considered scenario and the equipment costs, is able to: i) compute the number of batteries and the solar panels power for each site, ii) estimate the number of cells to ensure coverage and to guarantee the service to the users, and iii) compute the monthly subscription fee to be charged to users, as well as the Capital Expenditures (CAPEX) and Operating Expenditures (OPEX) costs. Our results, obtained over the sampling areas of Frascati (Italy), Benevides (Brazil) and Rotorua (New Zealand), show that the proposed 5G architecture is feasible, i.e., the monthly subscription fee per user can be set less than 10 [€/month] for Frascati and Rotorua, and less than 2 [€/month] for Benevides.