# Cost-Benefit Assessment of 5G Rollout: Insights from Brazil
## 4 Case Study in Southern Brazil
Although these results provide valuable information on 5G implementation in the studied region, they may not be fully applicable to all geographic and demographic contexts in Brazil, such as the Amazon region. However, they offer an important starting point for understanding deployment strategies in specific areas, paving the way for further studies in other regions with different challenges. The typology of the southern region of Brazil, as classified by the Brazilian Institute of Geography and Statistics (IBGE), divides the region into intermediary, rural, and urban areas. According to data, 64.65% of the southern region is classified as rural, 26.20% as urban, and 9.15% as intermediary (Figure 2). Considering that the rural population  
Figure 2: Typology distribution of the southern region of Brazil, classified as urban, intermediary, and rural areas according to IBGE data. represents approximately two thirds of the southern region, the population density in these areas is particularly relevant. Using IBGE data [16], a rural population of 4,879,574 was estimated to have been spread over an area of 576.774 km\({}^{2}\). This results in a density of rural population of approximately 8.46 inhabitants per km\({}^{2}\). This density figure is significant because it reflects the dispersed nature of the rural population, which has implications for strategic planning and the implementation of telecommunication infrastructures, particularly to ensure efficient coverage in low-density areas. The density of the rural population, calculated at approximately 8.46 inhabitants per km\({}^{2}\), aligns closely with the density of the rural population observed in Belgium (8 pop/km\({}^{2}\)), as discussed in the study by [14]. As Group 5 of the study, Belgium shares similar rural density characteristics, making it a pertinent reference point for evaluating cost structures. Therefore, while the cost structure used in Belgium provides useful reference points, it is important to recognize that this study applies only unitary equipment costs and does not account for other factors specific to the telecommunications sector that could impact mobile network deployment in Brazil. As such, any direct comparison or application of Belgium's cost structure to regions like southern Brazil would require further, more comprehensive analysis. The comparative analysis reveals significant differences in the cost structures between Belgium and Brazil (Figure 3). In Belgium, towers constitute 23.00% of all buildings, radio equipment 49.00%, backhaul 9.00%, and residential CPE 4.00%. In contrast, in Brazil, towers accounted for 48.32%, radio equipment for 12.91%, backhaul for 34.89%, and residential CPE for 1.23%. These discrepancies demonstrate that European cost models are not directly applicable to Brazil without a broader evaluation. A detailed assessment of the telecommunications sector is required to determine how these models could be tailored to address Brazil's specific geographic, economic, and regulatory challenges. The higher costs of the towers in Brazil suggest a greater dependence on physical infrastructure. In contrast, lower costs for radio equipment and residential CPE indicate potential opportunities for optimization and cost reduction through strategic investments and technology upgrades. Two promising avenues emerge from this comparison: understanding the discrepancies in radio and tower costs relative to the average values observed in Europe and analyzing the Belgian cost structure to evaluate its potential applicability for the Brazilian context. However, more detailed studies are needed to assess whether and how this cost structure could be adapted to Brazil's unique conditions. By examining financial models and infrastructure sharing strategies that have been successful in Belgium, we can explore potential insights that can inform strategic planning and the implementation  
Figure 3: Comparative analysis of unit cost structures for 5G deployment in Brazil and Europe (Belgium) based on the CAPEX and OPEX components.