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Small cells bring big opportunity, big challenges

Fiber deployments are needed to support small cell networks

LONDON, England – Vendors and operators from around the telecom world gathered at Small Cells World Summit to discuss the challenges and opportunities presented by small cell deployments.

At this point, network infrastructure planning software solutions are in place that allow operators to effectively place small cells with an eye on return on customer service and return on investment. Now key challenges reside in the physical layer.

Mok Pak Lum, CTO for Singapore-based communications service provider StarHub, told conference attendees that perpetuation of fiber optic cable deployments will be integral to the success of small cells.

He said that in order “to deploy capacity where we need it, we will need many, many fibers. I think today, only Korea,” has pervasive enough fiber to support full-scale small cell networks.

“If we want to have a virtualized environment, I think having fiber connectivity everywhere in the city is very, very important,” he said.

Lum emphasized the reduction in capital expenditures as key to the small cell business case. He gave the example of a mall in Singapore that StarHub has outfitted with small cell-based connectivity.

“In the mall itself, there are some areas where people congregate. In those areas we put a small cell there, MIMO, to soak up the capacity,” he said. “We found that with this, we were able to save 30% capex. Small cell is a gap filler. In areas where there are hot spots, where people congregate, you need to have capacity there. I think we as operators, this really helps us manage our capex challenges.

“Small cells actually allow us to manage our capex better,” Lum continued. “The demand for wireless just keeps going up and up and up as people use smartphones. Their lives revolve around their phones and everything goes through an app on the phone. This increase in mobile broadband will never go down.”

But as consumer demand for capacity increases at such a high rate, operator revenues will never keep up. So to remain profitable, operators must cut other expenses to realize the same level of return.

“As operators, we’re not able to have the same increase in mobile revenue,” Lum said. “Managing capex is very important. Small cells is one way to be able to be more targeted in where we put our infrastructure.”

Martin Guthrie, head of business development for NEC, laid out small cell as a solution for in-building connectivity, particularly in an age of dense concrete and metal urban buildings wrapped in reflective glass.

He said that network plan and design teams consider city buildings their “worst nightmares and the problem is getting worse all the time.”

Guthrie mentioned that, in many cases, even macro penetration into buildings is a struggle.

“The demand for this type of solution is often initiated by CXO to CXO complaints,” he said. “There’s no easy way to ignore the complaint. They say the problem with this sort of issues is it takes precious engineering resources away from looking after the macro network.”

But that challenge can be turned into an opportunity with deployment of small cell, it just will take forward-leaning planning based on conditions as projected in the future, not just the network conditions of today.

“The coverage itself is not really the issue,” Guthrie said. “Having sufficient capacity and throughput, enough so that everyone wants it has enough, is the issue. Trying to cope with demand now is already too late.”

For continuing coverage of Small Cell World Summit, stay tuned to RCR Wireless News.

ABOUT AUTHOR

Sean Kinney, Editor in Chief
Sean Kinney, Editor in Chief
Sean focuses on multiple subject areas including 5G, Open RAN, hybrid cloud, edge computing, and Industry 4.0. He also hosts Arden Media's podcast Will 5G Change the World? Prior to his work at RCR, Sean studied journalism and literature at the University of Mississippi then spent six years based in Key West, Florida, working as a reporter for the Miami Herald Media Company. He currently lives in Fayetteville, Arkansas.