An economic systems analysis of land mobile radio telephone services

This paper deals with the economic interaction of the terrestrial and satellite land-mobile radio service systems. The cellular, trunked and satellite land-mobile systems are described. Parametric equations are formulated to allow examination of necessary user thresholds and growth rates as functions of system costs. Conversely, first order allowable systems costs are found as a function of user thresholds and growth rates. Transitions between satellite and terrestrial service systems are examined. User growth rate density (user/year/km squared) is shown to be a key parameter in the analysis of systems compatibility. The concept of system design matching the price demand curves is introduced and examples are given. The role of satellite systems is critically examined and the economic conditions necessary for the introduction of satellite service are identified.