# Cost-Benefit Assessment of 5G Rollout: Insights from Brazil
## 2 Technical Enablers and Related Work
#### Costs Analysis  
In the past, TEA used spreadsheets for modeling. However, currently software-based methods are preferred due to their flexibility and precision, especially with advanced techniques such as sensitivity analysis and Monte Carlo simulations [9]. Economic analysis involves modeling production costs and potential demand for the goods and services evaluated. Production costs are generally analyzed by combining capital and operational expenses, providing a comprehensive view of the TCO throughout the life cycle of the asset [7].  
Discounted cash flow (DCF) analysis is based on the principle that funds available in the present are more valuable than the same amount in the future due to the potential for earnings. Therefore, future cash flows are discounted to reflect this present value by using a discount rate that typically corresponds to the weighted average cost of capital (WACC). These costs can then be related to potential revenue streams from the demand side, providing simultaneous insights into the net present value (NPV), return on investment (RoI), and internal rate of return (IRR) [3].  
According to [10], the techno-economic assessment process follows three main steps. In the first step, engineering designs representing different cellular technologies are defined. Many analyses focus on modeling the capacity and coverage of a cellular system for various levels of service quality. For example, these assessments can focus on the spectral efficiency of a technology, the available bandwidth for an operator, the cell density of existing sites, and the level of sectorization. Some studies also consider energy consumption by quantifying the electricity usage of specific technologies [11].  
In the second step, the resources needed to achieve the level of service quality established in the first step are quantified. This includes evaluating network components such as towers, antennas, and other essential equipment, as well as calculating the quantity of each item required to build and maintain the network [3]. In the third step, a set of corporate finance techniques is applied to assess the capital and operational expenditures necessary to build and operate a wireless network. TCO is ideally used to capture the range of CAPEX and OPEX payments incurred over the asset's and network's lifecycle.  
CAPEX refers to the investments needed to establish the network, including acquiring essential equipment, building network infrastructure, installing base stations, and acquiring the spectrum. These costs are typically incurred at the project's outset and capitalized on the company's balance sheet, being amortized over time. CAPEX is crucial for the planning phase as it represents the amount of financial resources that need to be allocated to build the physical infrastructure required for network operation.  
However, OPEX encompasses the recurring costs associated with managing and maintaining the telecommunications network. This includes expenses for equipment maintenance, the rental of sites for technical installations, energy consumption to operate the infrastructure, and the salaries of employees involved in network operation and maintenance. Unlike CAPEX, OPEX reflects the ongoing cost of operating and maintaining the network, directly affecting the company's operational profitability.