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Ricardo Study on Cost Analysis of V2I Deployment

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Ricardo Study on Cost Analysis of V2I Deployment Cost Analysis of V2I Deployment Final Report ___________________________________________________ Report for 5GAA 7720475 ED 13276 | Issue Number 5 | Date 11/08/2020 Ricardo Energy & Environment Cost Analysis of V2I Deployment | i Customer: Contact: 5G Automotive Association E.V. Tom Nokes Ricardo Energy & Environment Customer reference: 30 Eastbourne Terrace, London, W2 6LA, United Kingdom 7720475 t: +44 (0) 1235 75 3102 Confidentiality, copyright & reproduction: e: [email protected] This report is the Copyright of Ricardo Energy & Ricardo is certificated to ISO9001, ISO14001 Environment, a trading name of Ricardo-AEA Ltd and OHSAS18001 and has been prepared by Ricardo Energy & Environment under contract to 5GAA for Authors: Analysis of V2X deployment cost of 11p RSU vs C-V2X (Uu/PC5), 06/01/2020. The contents of Tom Nokes, Ben Baxter, Harry Scammell, this report may not be reproduced in whole or in Denis Naberezhnykh (Ricardo), Leonardo part, nor passed to any organisation or person Provvedi (Roke) without the specific prior written permission of the Commercial Manager at Ricardo Energy & Approved By: Environment. Ricardo Energy & Environment accepts no liability whatsoever to any third party Denis Naberezhnykh for any loss or damage arising from any interpretation or use of the information contained Date: in this report, or reliance on any views expressed 11 August 2020 therein, other than the liability that is agreed in the said contract. Ricardo Energy & Environment reference: Ref: ED13276- Issue Number 5 Ricardo Confidential Ref: Ricardo/ED13276/Issue Number 5 Ricardo Energy & Environment Cost Analysis of V2I Deployment | 1 Table of contents 1 Executive Summary ................................................................................................... 2 2 Introduction ................................................................................................................ 5 2.1 Definitions .......................................................................................................................... 6 2.2 Current V2I landscape ....................................................................................................... 7 2.3 Key stakeholders in V2I deployment ................................................................................. 7 3 V2I Deployment Options .......................................................................................... 10 3.1 Overview .......................................................................................................................... 10 3.1.1 Complementary technologies ................................................................................. 12 3.2 Pure Uu implementation (Option A) ................................................................................ 12 3.2.1 Cost considerations ................................................................................................ 13 3.2.2 Key benefits and challenges of a pure cellular approach ...................................... 14 3.2.3 Technology evolution and developments of cellular technology ............................ 14 3.3 Deployment options with direct communication technologies (Options B, C and D) ...... 15 3.3.1 Cost considerations ................................................................................................ 16 3.3.2 Key benefits and challenges of RSU deployments ................................................ 16 3.3.3 Technology evolution of short-range communication technologies ....................... 17 4 V2I Services .............................................................................................................. 18 4.1 Selection of V2I services ................................................................................................. 19 4.2 Suitability of communication technologies to deliver V2I services .................................. 20 5 Financing Deployment and Business Models........................................................ 21 5.1 Business models and understanding motivations ........................................................... 22 5.1.1 The importance of cooperation and public-private partnerships ............................ 23 5.1.2 Cooperation and business model challenges ........................................................ 23 5.1.3 Supporting cooperation and business models ....................................................... 24 5.2 Existing deployment activities ......................................................................................... 25 5.3 Accelerating V2I deployment ........................................................................................... 28 5.3.1 Multi-use ................................................................................................................. 30 5.3.2 Joint deployment .................................................................................................... 31 6 Deployment Costs ................................................................................................... 33 6.1 Costs considered in the analysis ..................................................................................... 33 6.1.1 CAPEX – Infrastructure costs ................................................................................ 35 6.1.2 OPEX – Operation and maintenance costs ........................................................... 36 6.1.3 Joint deployment .................................................................................................... 36 7 Results of Cost Analysis ......................................................................................... 37 7.1 Cost comparison.............................................................................................................. 37 7.2 Cost sharing analysis ...................................................................................................... 37 7.3 Breaking down the deployment costs ............................................................................. 38 7.3.1 Pure cellular costs .................................................................................................. 38 7.3.2 RSU deployments .................................................................................................. 39 8 Conclusions and Recommendations ..................................................................... 39 8.1 Conclusions ..................................................................................................................... 39 8.2 Recommendations .......................................................................................................... 41 9 References ............................................................................................................... 43 Ricardo Confidential Ref: Ricardo/ED13276/Issue Number 5 Ricardo Energy & Environment Cost Analysis of V2I Deployment | 2 1 Executive Summary This is the final report of a study carried out by Ricardo, with support from our partner Roke, on behalf of the 5G Automotive Association. The purpose of the study has been to analyse different Vehicle-to- Infrastructure (V2I) deployment options from a financial, business and market point of view, while avoiding going into the technical discussion of the superiority of one technology over the other. Therefore, the objective of this report is to improve the understanding of the costs and their variability, as well as the challenges and opportunities around the four deployment options, to inform the development of business cases. The focus is on the EU and US markets and four deployment options were considered, which comprise of a combination of direct and mobile network communications technologies. Mobile network communications with the vehicle supported by the cellular network (Uu) is considered as part of the V2I system in each option, while three of the options also include direct communications (802.11p and PC5) that uses dedicated spectrum. Option A – Pure cellular network-based (Uu) system Option B – Combined system of Uu and an 802.11p-enabled RSU Option C – Combined system of Uu and a PC5-enabled RSU (i.e. C-V2X solution) Option D – Combined system of Uu and a dual radio RSU with both 802.11p and PC5 Research and development activities related to connected vehicle applications have been ongoing for over two decades, and there is now movement towards wider scale deployment of communication technologies in both vehicles and road infrastructure. However, deployment activities have been fragmented and relatively slow due to continued emphasis on research, no common vision of communication technologies and market uncertainty, making it challenging for most stakeholders to develop suitable business cases. A lack of widespread and aligned commitment by vehicle manufacturers, which in part has been caused by unclear regulatory positions, has negatively impacted other drivers and overall confidence in the wider market. In this study, we have performed an extensive literature review and engaged with 25 key stakeholders to gather both primary and secondary evidence on the financial, business and market factors that impact V2I deployment. A cost analysis has also been carried out to provide quantitative outputs that supplement the narrative and support conclusions and recommendations. The study recognises that direct and mobile network communications technologies have distinct advantages and disadvantages, in terms of their technical performance and costs – and so it
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