This paper aims at determining the techno-commercial feasibility of a 4G Long Term Evolution (LTE) network deployment in India to provide high-speed broadband access to mobile subscribers. This assessment is done using the discounted cash flow (DCF) approach. We have taken into account the radio-technical parameters of the LTE network components, the expected subscriber populations forecast using the Bass model, and the coverage area matched to the service capacity using a cell dimensioning approach. We have estimated the cost of infrastructure deployment that would meet the demand, likely revenue generated from the users, and break-even period for a given average revenue per user (ARPU). With the help of three different assumed data demand scenarios, the interplay between the forecasted adoption rate and the minimum ARPU required for attaining the breakeven is explored. To understand the profitability and the present value of investments for different demand scenarios, modified internal rate of return (MIRR) and net present value (NPV) analyses are performed. The results of the study indicate that for the right mix of data-volume offerings in a product package, the annual ARPU can be both, affordable to the rural population and profitable for the operator. With the right amount of government stimulus and demand inducing initiatives, investment in the rural areas can be as profitable and attractive an option as in the urban case. Affirming this is the fact that average annual ARPUs do not differ significantly for the rural and the urban case. Moreover, the operators should explore techniques of cost reduction such as active and passive sharing of network and infrastructure resources, and cognitive femtocell deployment for maximum spectrum utilisation. Such initiatives and futuristic planning would help maximise operator utility, as well as bring about welfare for a large segment of the population.
