The Break-Even Premium Is Only Half the Decision

The Break-Even Premium Is Only Half the Decision

Ada re-derives this chapter’s own numbers step by step, at full precision

foundations
math-foundations
calculation-audit
cellular-iot
Ada ADA · CALCULATION AUDIT

The Break-Even Premium Is Only Half the Decision

An automotive supplier weighs private 5G URLLC against industrial Wi-Fi for 120 AGVs across 3 factory buildings, and the five-year totals land at EUR 435,000 versus EUR 193,000 — a EUR 242,000 premium for choosing 5G. It is tempting to read that premium as the whole decision. This audit rebuilds both totals line by line and asks whether the EUR 242,000 gap settles the choice, or only measures the cost side of it.

Companion to the chapter 5G URLLC and 6G Vision for IoT — every number here comes from that chapter.

See the relationship before changing it

The figure reads from left to right. The blue card is factory buildings. The middle card applies this page's rule. The green card is five-year 5g premium. Walk the arrows once: set the input, apply the rule, then read the result with its unit.

The retained audit below checks several chapter fixtures. This model keeps those stated values fixed and changes only factory buildings, so the numeric fixture does not switch without explanation.

Factory buildings changes five-year 5g premium An input card leads through the rule premium = 242 thousand EUR / 3 buildings x buildings to the five-year 5g premium result. INPUT PAGE INPUT APPLY THE RULE predict calculate check units OUTPUT RESULT
Walk the arrows. Scaling the same site pattern repeats the cost premium; avoided downtime remains a separate decision.

Derive the baseline in four named moves

  1. 1

    Name the input. The chapter baseline is 3 buildings.

  2. 2

    Name the relationship. premium = 242 thousand EUR / 3 buildings x buildings

  3. 3

    Substitute with units. 242 / 3 x 3 = 242 thousand EUR

  4. 4

    Read the result. Keep the unit beside the value. Use it only inside the technical boundary on this page.

Predict, then change factory buildings

Try Predict the direction of premium = 242 thousand EUR / 3 buildings x buildings. Test another factory buildings, then compare five-year 5g premium.

3 buildings
Chapter baseline
Five-year 5G premium

Observe Scaling the same site pattern repeats the cost premium; avoided downtime remains a separate decision. Reset factory buildings to 3 and compare five-year 5g premium.

Explain Scaling the same site pattern repeats the cost premium; avoided downtime remains a separate decision.

Check yourself

What should you do before trusting a moved-control result?
Answer: Predict its direction, apply the shown relationship, keep the units, and reset to the worked baseline.
What does this small model leave out?
Answer: Only factory buildings moves here. Field effects named in the technical boundary stay fixed.

Ada: Step 3 hands me two five-year totals and a premium, so let me rebuild them line by line from the automotive-supplier scenario (120 AGVs, 3 buildings) before anyone treats EUR 242,000 as the answer.

Private 5G, five-year total:

  • Radios: 6 gNBs x EUR 35,000 = EUR 210,000
  • MEC server: EUR 45,000
  • Licence over five years: 5 x EUR 36,000 = EUR 180,000
  • Total: 210,000 + 45,000 + 180,000 = EUR 435,000

Industrial Wi-Fi, five-year total:

  • Access points: 90 x EUR 1,200 = EUR 108,000
  • Controller: EUR 25,000
  • Licence over five years: 5 x EUR 12,000 = EUR 60,000
  • Total: 108,000 + 25,000 + 60,000 = EUR 193,000

The premium is therefore 435,000 - 193,000 = EUR 242,000, exactly as stated. But that figure is only the cost side of the ledger, and it decides nothing on its own. The release is justified only when the avoided loss, which is collision damage and downtime multiplied by the reduction in incident probability over five years, clears that EUR 242,000, which is why the chapter sends the reviewer back to measured roaming, interference, and safety-sensor evidence rather than to the price tag alone.

Every number above is taken from the chapter’s own material and re-derived step by step.

TryRe-add the private-5G and Wi-Fi five-year line items before revealing the check.
ObserveCompare EUR 435,000 and EUR 193,000, then isolate the EUR 242,000 premium.
ExplainThe premium is a cost threshold; deployment evidence must show avoided loss above it.
Technical boundaries. This audit holds equipment counts, prices, licences, and the five-year horizon fixed. It does not model financing, maintenance, downtime probability, safety benefit, roaming performance, interference, or residual value.
Audit result

EUR 435,000 - EUR 193,000 = EUR 242,000; this verifies cost difference only, not the value of avoided incidents.