When it comes to small cells, mobile operators are learning that they can’t always get what they want. Nokia Networks wants to help operators get what they need.
“You can find a site, which can be very cheap in terms of [having] power and backhaul very close to it, but from an RF coverage point of view it may not have the best capacity and coverage specs, as opposed to a site which has a perfect coverage spec but has all these other costs associated with it,” said Asad Rizvi, Nokia’s VP of services for North America. “So at the end of the day operators can determine, based on the HetNet Engine Room, which is the site that is most useful for them.”
HetNet Engine Room is a database and service that Nokia is offering to carriers to help them densify their mobile networks with small cells and distributed antenna systems. Nokia is a major small cell vendor, but the company is learning that the equipment it sells can represent as little as 10% of the cost of a small cell project. The rest can be power, backhaul, negotiations with municipalities or landowners, and leasing costs. All of these can spiral out of control if an operator begins the process with insufficient information. Nokia’s goal with HetNet Engine Room is to deliver that information and cut those costs dramatically.
Site value index
HetNet Engine Room assigns a site value index to each potential site in the database. Locations are identified using 3-D street-level maps, taking into consideration spectral efficiency, traffic hot spots and street assets such as utility poles. The tool also identifies nearby power cabinets and evaluates access to fiber.
Deployment costs are then forecast by reviewing jurisdiction and permit requirements, including trenching costs, structural analysis and possible pole replacement. “Negative assets” that could interfere with deployment, such as traffic lights or gas pipelines, are also captured and assigned a value.
All available information is used to create a site value index and forecast a likely return on investment for operators, based on network value and cost to develop different locations.
“In a recent small cells project, we found that the majority of the sites chosen initially were not economically or practically viable to deploy small cells,” said Rizvi. He said that HetNet Engine Room has the potential to change that by delivering more details upfront.
“About $40,000 or $50,000 is on the north side of the estimate for a difficult site which requires trenching or putting power in,” said Rizvi, adding that HetNet Engine Room has the potential to bring those numbers down to $10,000 to $15,000 by helping operators choose less expensive sites.
“By using a fact-based, automated solution to identify areas needing coverage – both indoor and outdoor – installation becomes more cost efficient and deployment times are significantly reduced,” said Rizvi.
In addition to the information in the database, he said operators can leverage Nokia’s relationships with asset owners and landlords who may be able to facilitate site acquisitions in several markets. This can help make the small cell acquisition process more scalable and repeatable.
Chicago headquarters
Engine Room started as part of SAC Wireless, which Nokia acquired in 2014. The service is based in Chicago and will remain there, but Rizvi said he expects growth and hiring now that Nokia is taking the Engine Room to a new level.
“It seems like there could be positive momentum with respect to hetnet and small cells, and certainly based on that we will adjust our … resources accordingly,” said Rizvi.
SAC Wireless started hiring aggressively after the Nokia acquisition, and was a landing spot for a number of professionals who lost their jobs when other infrastructure service companies cut back.
Competitive solutions
The HetNet Engine Room is similar to a service offered by Alcatel-Lucent called Metro Cell Express Site Certification. This service could complement Nokia’s HetNet Engine Room when Nokia and Alcatel-Lucent complete their planned merger.
“From my perspective it would make a lot of sense that it would be integrated,” said Rizvi, adding that he could not comment definitively and that he believes HetNet Engine Room has some key advantages over Alcatel-Lucent’s solution.
“A lot of the things that are in the HetNet Engine Room with respect to geolocation and everything else, are not part of that mix,” he said. “A lot of the sites are already in [our] database. … When the operators use the database, operators are able to select the sites.”
