Radio DOT
Radio DOT
Radio DOT
Tolaga Research
Harness the Power of Intelligence
Executive Summary
Small-cells and Distributed Antenna Systems (DAS) have
been used in mobile networks virtually since the inception of
the industry, but have always been niche solutions in radio
network environments that are dominated by macro-cells.
Within the last decade, industry players have seen massive
network traffic growth, culminating with an increased
interest in small-cells and DAS, and strategies to enable
their mass market adoption. Technology vendors have
honed their small-cell and DAS platforms, and by 2008-09
time-frame, the mobile industry had established the goal for
each small-cell deployment to cost less than USD 5000 on
average.
Today the mobile industry is still struggling in enabling the
mass market adoption of small-cells, which typically cost
between USD 40,000 and 200,000 each and take 15-18
months to deploy. Many indoor environments continue to
lack adequate coverage even in cases where the building
and venue owners or enterprise occupants are willing to pay
for the radio equipment costs. Industry pundits commonly
attribute lack-luster small-cell adoption to back-haul and site
acquisition challenges. However, we contend that the
challenges are more systemic, and a consequence of
current mobile operator processes and procedures, which
are architected primarily for macro-cells. In particular,
macro-cell deployments are driven through structured and
centralized network planning and site acquisition processes.
We believe that these processes need to be decentralized
for small-cell and DAS implementations in a similar manner
to the approaches used in the past for femto-cells. With this
approach the planning processes would focus on managing
the inventory and network parameter optimization for small-
cells and DAS systems, as they are deployed in an ad hoc
manner with opportunistic site acquisition strategies. In
addition, we believe that Centralized SON (C-SON) and
capabilities for quarantining network elements are crucial in
ensuring that small-cell and DAS deployments don’t have
an adverse affect on overall network performance.
While the industry has made tremendous progress with
small-cell and DAS platform technology innovation, we
believe that there is the need to advance modular designs,
and enable more alternatives for small-cell back-haul and
front-haul transmission solutions. Notable examples include
mesh networking, point-to-point and point-to-multi-point
microwave and millimeter wave technologies, and
innovative base-band distribution strategies, which eliminate
the need for dedicated fiber front-haul.
The notion of enabling diverse transmission technologies
and decentralized network planning and site acquisition is
disruptive to traditional operations. However, we believe that
it is necessary for small-cells and DAS to achieve
meaningful market scale.
Introduction
For more than a decade mobile industry rhetoric has
anticipated large scale small-cell and distributed antenna
system (DAS) adoption as being inevitable for mobile
operators to address localized network capacity and
coverage demands. In response to the anticipated demand
for small-cells and DAS, technology vendors have made
tremendous progress in innovating their platform
architectures to lower unit costs, improve performance and
reduce implementation complexity. However, even with
these efforts, small-cell and DAS adoption has languished
relative to market expectations. Small-cells saw initial
success for residential implementations, under the guise of
femto-cells, but have failed to achieve meaningful scale in
other environments, such as outdoors, and in public
venues. DAS solutions have been deployed in large venues
and in some cases in outdoor environments, but to date
have only captured less than 10 percent of the addressable
market.
Many of the challenges associated with small-cells have
been reported in the past. For example, in our 2010 report
entitled Repositioning femto-cells for market success – A
global perspective
(http://www.tolaga.com/Documents/Publications/2010/TolagaReportPositioningFemtoCells1
we identified the need for mobile operators to shift away
from macro-cell centric operational models that taxed small-
cells with onerous implementation complexities. At the time
the mobile industry had the lofty ambition for average small-
cell deployment costs in the order of USD 5000. This is in
stark contrast to small-cell costs today, which commonly
range between USD 40-200,000 in mature markets like the
United States, and with ground leases and back-haul costs
that commonly rival those paid for macro-cellular sites. In
addition to the cost, small-cell deployments are complex
and have protracted time-lines, commonly requiring 15-18
months for zoning approval. The prohibitive costs and
protracted implementation time-lines for small-cells must be
addressed before meaningful market scale can be
achieved.
DAS solutions are expensive and are generally
implemented in large venues, such as sports stadiums,
airports, train stations and campuses. Commonly DAS
implementations are confronted with conflicting commercial
objectives. Traditionally venue owners have favored neutral
host DAS solutions to support multiple mobile operators, but
are generally reticent to pay for cost of the DAS equipment.
Mobile operators prefer opportunities to be the sole
provider, rather than participating in neutral hosts, and are
careful to prioritize their capital resources towards venues
that are of strategic interest and provide adequate returns.
Since mobile coverage is important, a growing number of
venue owners are offering to pay for the DAS equipment
costs and seeking operator support to enable mobile
services. While operators are capitalizing on some of the
DAS investments made by venue owners, the venue owner
commitment is not always sufficient. Even when the DAS
equipment is paid for, operators are still confronted by
network planning and radio equipment costs. They are also
constrained by operational priorities and the ongoing
demands for the DAS solutions they support.
Companies including American Tower, Boingo, Crown
Castle, Extenet, Insite Wireless, and Mobilitie, which
specialize in real estate and infrastructure management, are
capitalizing on the commercial complexities of small-cell
and DAS implementations to provide outsourced neutral
host solutions. While these players are primarily focused on
large indoor venues, Crown Castle has been pursuing an
outdoor DAS (O-DAS) strategy, for which it has acquired
extensive dark-fiber resources and is deploying neutral host
radio nodes in strategic locations. Even though Crown has
spent on average in excess of USD 100,000 for each radio
node, with the lion’s share of its cost being in fiber backhaul,
it is seeing favorable financial yields to drive further
investments. While this is good for Crown Castle and
illustrates the strategic importance of small-cells, we believe
that it is cost prohibitive for mass market small-cell adoption
and illustrates the need for implementation and architectural
changes to enable lower cost deployments.
As the mobile industry grapples with strategies to improve
localized coverage and capacity using small-cells and DAS
solutions, there are a variety of activities that aim to
positively impact market progress. These include:
Efforts on the part of regulators like the FCC in the
United States and infrastructure vendors like Ericsson,
Huawei and Nokia to ease site acquisition challenges.
Conclusion
Even though small-cells and DAS have been fueled by
tremendous hype and expectation, they have only seen
modest adoption. Industry pundits commonly blame the
lack-luster performance of small-cells and DAS on back-
haul and site acquisition challenges. However, we believe
that the cause is more systemic, and attributable to
processes and procedures of mobile operators, which
continue to be essentially designed for macro-cell networks.
Until operators are successful in transforming their
processes and procedures, we believe that small-cells and
DAS will continue to languish. In particular, we believe that it
is important that operators modify their network planning
and optimization activities from current approaches which
are highly centralized, to those that allow planning to
become increasingly decentralized and adhoc. We believe
that by changing network planning in this regard, venue
owners, enterprises and business owners will become
empowered and vested in the successful deployment of
small-cells and DAS equipment. This change is not trivial
and requires increased operational automation with
techniques like C-SON to ensure that overall network
performance is maintained. It also requires standardized
and modular small-cell and DAS infrastructure form-factors
and technology changes to enable greater diversity in terms
of the back-haul and front-haul transmission solutions that
can be used.
While the operational changes proposed in this report are
challenging, we believe that they are necessary, particularly
as market demands drive the need for network densification
with mass market deployments of small-cell and DAS
infrastructure.
;