Private LTE is a major MulteFire opportunity
With the coming release of its 1.1 specification, the MulteFire Alliance has focused on the internet of things (IoT) as the market entry point for the emerging technology, which deploys LTE solely in unlicensed 5 GHz spectrum. Nokia has developed a small cell that supports MulteFire, and consensus dictates the first wave of supporting devices will be the sensors and other assets that make up the IoT.
In a recent white paper developed by the MulteFire Alliance and analyst firm Wireless 20/20, author Randall Schwarz examines the business case for MulteFire in an industrial and an enterprise use case. Click here to download the report.
In the unlimited era, mobile networks are strained to meet the constantly increasing demands for mobile data. Carriers are constantly investing in equipment and spectrum needed to improve network efficiency and performance. For operators, MulteFire opens up access to spectrum that doesn’t cost billions of dollars to license. For enterprise and industrial stakeholders, MulteFire creates the opportunity to deploy a private, purpose-built LTE network.
Schwarz sums it up in his white paper: “New players can find innovative ways to create new opportunities and business models, and existing mobile operators can find ways to use the new spectrum to support their existing customers with even more capacity. With these unique capabilities, MulteFire can play a key role to meet the ever-expanding demand for new mobile capacity and capabilities.”
The Port of Singapore
Schwarz explores a potential MulteFire deployment in support of a private IoT network for the Port of Singapore. Primary use cases are asset tracking for shipping containers; transportation, potentially autonomous, of cargo in the port; environmental sensing; ship-to-shore communications; and video surveillance. He estimates 181,000 devices and a coverage area of 20 kilometers.
While this model doesn’t contemplate any network-based revenue streams, the return on investment is based on operational efficiencies realized through connectivity. Schwarz found the costs of a MulteFire deployment would be similar to a Wi-Fi network based on the 802.11ac standard. The LTE scenario would require around 257 small cells, whereas a Wi-Fi network would need more than 1,000 access points.
“Although some of the MulteFire controllers are more expensive than those needed for Wi-Fi, and the units themselves are more expensive, the cost savings in the initial deployment adds up to more than 40% over a Wi-Fi deployment,” Schwarz found.
590 Madison Avenue
In addition to the industrial port use case, the white paper explores an in-building wireless network deployment at the 40-story 590 Madison Avenue building, which provides office space for around 6,250 people spread across more than 300,000-square-feet. Schwarz compares a MulteFire network to a more traditional distributed antenna system (DAS) or a multi-carrier small cell network, which could require one unit for each carrier.
He acknowledges that DAS is a good, albeit expensive solution, and notes the small cell path, in order to support the four major operators, “would need to be deployed and wired throughout the building, with the capex needed for four equipment sets, and installation cost for each of the MNOs. The capability of MulteFire technology to support all subscribers means that one infrastructure can be deployed throughout the building leading to the most cost-efficient means to provide full in-building coverage.”
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