The explosive mobile traffic growth, as well as rapid deployment of innovative wireless technologiesrnand services, have all put significant strain on network capacity in the radio accessrnnetwork (RAN). Mobile network operators (MNOs) are considering Cloud-based RAN deploymentrnto address this capacity challenge while improving cost, energy usage, deploymentrnflexibility and network management. Efficient deployment of Cloud RAN requires selectingrnsuitable deployment scenarios and a thorough understanding of both its technical and economicrnaspects in the context of the RAN service area. Such techno-economic study has notrnbeen undertaken in the context of Addis Ababa, Ethiopia and it is required to scientificallyrnunderstand viable deployment of RAN architecture in Addis Ababa.rnIn this thesis work, potential Cloud RAN deployment scenarios are formulated using scenariornplanning method. For selected scenarios in the context of Addis Ababa, a thorough technoeconomicrnanalysis is performed applying a modified TERA framework that includes marketingrnforecast, network dimensioning, cost modeling, revenue modeling and economic analysis.rnThe analysis is performed using net present value (NPV), internal rate of return (IRR) and paybackrnperiod (PP) economic metrics that are obtained from its implementation in MS-Excel andrnMATLAB. For the analysis, we assume a 6 years study period and a 10% discount rate.rnAchieved results show traffic growth forecasts have a great impact on Cloud RAN economicrnbenefits that in turn affect the rate of return on investment. In scenario 1 with low trafficrnexpectation, centralized RAN architecture shows a better cost position than Cloud RAN andrndistributed RAN (D-RAN) with a payback period of 2.94, 3.04 and 3.14 years respectively.rnHowever, for small scale deployment under a high traffic growth scenario, Cloud RAN architecturernbecomes the most cost-efficient architecture with all economic indicators as shownrnby the result. In this scenario, the payback period for Cloud RAN, Centralized RAN, and DRANrnis 3.5, 3.95 and 4.16 years respectively for Addis Ababa. Regarding NPV and IRR, allrnarchitectures have positive NPV for the study periods and greater IRR value than the definedrndiscounted rate. The results indicate that Cloud RAN achieved significant cost benefits underrna high traffic growth scenario.