PCIA’s HetNet Expo brings together mobile operators, tower companies, equipment vendors, infrastructure service providers, legal experts and industry analysts. At this year’s show, it was clear that the distinction between distributed antenna systems and small cells is blurring, as carriers look for network architectures that blend the best of both solutions. It was also clear that vendors are looking beyond traditional carrier-funded systems that support smartphone users. Enterprise customers, public safety and the “Internet of Things” are seen as growing areas of opportunity. Below are 10 key takeaways from the show.
1. IoT is a thing.
“The economic and technological impact of the ‘Internet of Things’ will be staggering on the wireless infrastructure industry and every industry,” said PCIA president Jonathan Adelstein, opening the show on the heels of news that AT&T connected 1 million new cars to the Internet during the third quarter.
“With investments taking place on both the vendor and carrier sides, hetnet opportunities are opening up,” said Adelstein. “From smart city ventures, in-building and hospitals, to public safety mandates and midtier market opportunities – it’s now at the point where many wireless businesses are probably searching for the right opportunities to pursue.”
Companies are looking beyond traditional business models when it comes to the IoT. While the revenue generated by each connection may be minuscule, that connection can be a small part of a valuable picture.
“Connecting is only one piece of the story,” said Cisco’s Steve Steinhilber. “The other piece is what do you do with the data that is generated? The data is where the value is, not the connectivity. It’s what you capture and how you use it.”
2. Verizon Wireless is currently the most active deployer of small cells and DAS.
The nation’s top wireless carrier (by subscribers) had a significant presence at the HetNet Expo. Verizon Wireless is keeping Crown Castle and other neutral-host providers busy with outdoor DAS and small cell deployments in several U.S. cities.
“Just as Verizon was the thought leader on the macro side, Verizon is the thought leader in small cells,” said wireless investor Marc Ganzi, who noted the carrier is already deploying 4,000 nodes in the U.S. and he expects another 60,000 in the months ahead.
A number of Verizon executives were present at HetNet Expo, and not all of them were exclusively focused on small cells and DAS. Eric Fitzgerald Reed, Verizon Communications’ VP of entertainment and technology, delivered a keynote on the consumer appetite for mobile data, and the need for municipalities to help meet the demand by enabling hetnet builds. Warren Westrup, director of connected solutions in Verizon’s enterprise group, participated in a panel on smart cities and highlighted Verizon Wireless’ new ThingSpace initiative.
3. Building owners are pricing in-building solutions.
The good news is that building owners are shopping for in-building solutions. The bad news is that they may not be buying unless prices come down. One apartment building owner we met at the show told us he was quoted prices ranging from 70 cents to $3 per square foot, more than he was willing to pay.
“The costs of not implementing a system are soft and hard to calculate; mainly being increased vacancy, and more showings before renting a unit,” said Jeff Wachner, principal buyer for Just Home Property. “However, vacancies are running just 3% in my markets right now, and rents are at all-time highs.”
“The [return on investment] is something that has been a challenge, both from the operator’s perspective as well as the building owner’s perspective,” said Ericsson’s Rizwan Mir, head of the company’s small cells business development effort in North America. Mir said currently it is hard to justify the cost of even passive infrastructure to building owners, but that he remains optimistic. “We are on the cusp, in my opinion, of a shift in mindset,” Mir added.
4. Getting in on the ground floor is key for backhaul.
Several speakers at the HetNet Expo said builders are more willing to shoulder the cost of conduit for fiber or cable if it is part of an initial blueprint for a building. Neutral-host providers and equipment vendors are working with the construction industry to help make sure tomorrow’s buildings are wireless-ready.
Boingo Wireless CTO Derek Peterson said the U.S. military is a Boingo customer, and that the military is currently building with network needs in mind, integrating conduit into architectural plans and builds.
The same idea has made it to the public sector. The Broadband Conduit Deployment Act of 2015 is a Congressional bill that mandates conduit for fiber as part of all federally funded highway projects. The bill has been nicknamed the “dig once” initiative.
5. Vendors want carriers to share infrastructure.
Cutting the cost of systems for venue owners and operators is imperative if DAS and small cells are to reach their potential. Vendors say that carriers can reduce their costs significantly if they are willing to relinquish some control of the network by sharing infrastructure.
“Currently, the wireless service providers require that they have control of their radio distribution,” explained Rich Grimes, COO of Insite Wireless’ DAS and small cells group. “It’s going move toward an ability for the wireless service providers to accept more shares. Because the cost is in the backhaul, this shared architecture will cut down on the backhaul cost.”
Operators already have some experience with shared DAS infrastructure. The average number of carriers per DAS is 2.2, according to Ericsson’s Mir.
When it comes to sharing small cells, several vendors have solutions that can support multiple operators, but so far there have not been many deployments. American Tower said at the show that it is still waiting and hoping for the development of a true multi-operator small cell. Most solutions developed to date are for indoor deployments.
6. Converged infrastructure for wireless and Ethernet can cut costs.
While carriers may not be sharing as much hetnet infrastructure as some vendors would like, infrastructure sharing within enterprises is a reality. Systems like Corning’s ONE platform and CommScope’s ION-E can support both wireless connectivity and Ethernet.
Bill Cune, VP of commercial technology at Corning, said that his company has been able to create significant cost savings for customers in health care and higher education by deploying a converged fiber-based infrastructure. Cune said that Texas A&M University was able to cut the cost of its planned cellular and Wi-Fi systems by 33% by changing its plan and using a converged solution.
7. The wireless workforce is not ready for hetnets.
“We have Verizon [Wireless] going strong right now, but if all four carriers ramp up it could be crunch time,” said Adelstein, noting there is a shortage of skilled workers, and that he continues to hear about installations that are not deployed correctly the first time and require technicians to return to the job site.
Small cell deployments often require IT skills and the ability to use equipment that may be unfamiliar to many tower technicians. PCIA is spearheading workforce training initiatives to bring more workers into the wireless industry, and small cells and DAS are a particular focus.
8. DAS vendors see huge opportunity in public safety.
Public safety mandates are creating new market opportunities for both DAS and small cells, and some cutting-edge technologies are showing up first in public safety deployments. One example is Dali Wireless’ digital DAS solution, which is being deployed at all five terminals of Dallas/Fort Worth International Airport.
A public safety panel sponsored by Tessco at the HetNet Expo explored the issue of multijurisdictional rescue operations, and the specific challenges they present for hetnets. The panel reached outside the industry for a broader perspective by including Kevin Nida, battalion chief of the Los Angeles Fire Department, and Professor Ken Baker of the University of Colorado at Boulder, who holds 13 patents in digital communication system technology.
9. SDN could revolutionize hetnet deployments.
“As the enhanced packet core moves to the edge, that creates exciting new opportunities for the carriers in terms of how they go to market,” said Eric Abbott, ExteNet’s director of product management and strategy. “Now you are able to offer presence, unified communication, etc. Carriers can integrate and synthesize different capabilities for not only the RAN but also the network functionality. That creates some really exciting ways to get to some of these smaller buildings.”
10. Not everyone loves hetnets.
Community concerns continue to delay outdoor deployments. Verizon’s Fitzgerald Reed encouraged his audience to speak up when they are involved with a deployment that faces protest. The American Cancer Society has said that radio emissions from small cells are not linked to cancer, he said, and that wireless infrastructure greatly improves the quality of life for most people, noting that at times he actually receives protest letters that end with the signature: “sent from my iPhone.”
What did I miss? Email me your key takeaways from HetNet Expo: [email protected].
