Almost 20 months ago the world’s largest radio access network company proclaimed the arrival of the Ericsson small cell, except it was, and is, a distributed antenna system. Since then, many of the world’s largest DAS vendors have followed suit and have started to position existing distributed antenna systems or Wi-Fi as “small cells.” Why is that?
Very simply, this is “marketing 101” sort of speak. If you’re late to market, or if you do not have a competitive product, you mirror the momentum marketing messages and reposition existing product lines to gain or retain the interest of your customers, Wall Street and the media.
Last week I got a “chuckle” when I read an industry blog written by a DAS infrastructure vendor’s marketing strategist positioning DAS as “the original small cell,” and today’s small cells as a capacity supplement, only while describing “four viable small cell paths for wireless operators.” Except, of the four deployment options, the “right” answer for three of the scenarios was DAS. Seriously?
Yes, seriously. And furthermore, the author proclaimed to know the definition of a small cell by defining it so that an antenna could be a small cell. Coverage does not constitute access to needed capacity.
The Small Cell Forum defines a small cell as “an umbrella term for operator-controlled, low-powered radio access nodes” and “small cells can be based on ‘femtocell technology’ – i.e. the collection of standards, software, open interfaces, chips and know-how that have powered the growth of femtocells.” Thus, small cells are nothing like “spatially separated antenna nodes connected to a common source via a transport medium that provides wireless service within a geographic area or structure.” (Gotta love Wikipedia.)
Why the urgency to position DAS as a small cell, or to deposition small cells vs. DAS? Very simply, DAS as we knew it is D.E.A.D.
D is for DAS (or Duck)
“If it looks like a duck and smells like a duck, it’s a duck.” Distributed antenna systems is just that. An antenna connected to coax, fiber or other special cabling that requires cable pulls through the risers, and racks and racks of equipment in the basement or the telco closet. See our DAS review blog for details, and if you have time, read a 100-page DAS installation manual or the 10-page long price list with necessary equipment to power the “small cell” antenna.
E is for end of life
Yes, the DAS market will continue to grow as predicted by leading analyst firms. No right-minded person would dispute that. However, DAS as we knew it last year or the year before, is done and over with. Why are hundreds of system integrators working hard to get up to speed on small cells, and how to install them? Mobile operators, enterprise, venue or building-owner customers do not care if it’s DAS, Wi-Fi and/or small cells that are fixing their problem with in-building coverage and capacity. They just want the problem fixed, and for the business case – payback – to work. Long gone are the days of seven 10-year payback periods, or securing rights to a location only to charge back operating expense fees to mobile operators, even after they have deployed their own $150,000 baseband. Easy to install single or multi-operator small cells and small cell systems over Ethernet, with payback periods measured in weeks or months, made the old DAS obsolete. Yes, there I said it. Obsolete. But, there’s reason to celebrate.
A is for acknowledgement
Because of the rise in tide for small cell vendors, DAS and RAN vendors alike went back to the drawing board to simplify single- and multi-operator DAS systems, making them easier and cheaper to deploy. Is this enough? Time will tell, but for now the in-building coverage and capacity market is smoking hot and the DAS vendors do not want to be pushed out in the cold. Big venues and buildings need any and all spectrum and capacity. The pragmatic solution, where DAS already exists, is to supplement with Wi-Fi and small cells. After all, adding LTE DAS is just like adding an entire new DAS system installation at $4 to $6 per square foot.
D is for demarcation
New DAS systems will find their place where old DAS once were deployed, but in competition with scalable small cell systems that add capacity wherever a small cell is mounted. Whereas DAS systems for big venues and buildings would deploy capacity for 40 sectors with hundreds of special antenna pulls, a small cell system could easily add 200 sectors of 3G/4G capacity for 25% of the cost, as compared to DAS – not counting yearly operating expense, that is closer to 50 to 100 times different. The DAS business case makes good sense for 1 million to 10 million square feet. Below a million, the business case now favors small cell systems.
It’s a brave new world out there, and the winners are the end-customers. Mobile operators, enterprise, building and venue customers are the beneficiaries of free-market competition where the best solution deployed in the shortest amount of time, for the best price wins!
Let’s not confuse the customers. If they want a duck, they’ll buy one.
Editor’s Note: The RCR Wireless News Reality Check section is where C-level executives and advisory firms from across the mobile industry share unique insights and experiences.
