Neutral Host Networks for 5G & Beyond – Thoughts on the future of Indoor connectivity

I recently had the privilege to work with a diverse group of industry stakeholders to produce an important update on the current state of art for neutral host networks. This update took the form of a 5G America’s White Paper entitled “Neutral Host Networks for 5G & Beyond” and covered a range of topics from the market opportunity, the supporting technologies, and the commercial and operational models.

It is clear from this work that neutral host networks, or NHNs, presents real and tangible opportunities for mobile network operators, real estate owners, enterprises and consumers alike. I fully recommend reading the white paper if you haven’t already!

One challenge with creating such a paper is distilling the material down to a solution set that works for you and your business needs. In this blog I will attempt to add an Ericsson view on the aspects we feel are most critical and the areas worth exploring in deeper detail. Read on to find out how Ericsson can help you navigate analysis-paralysis and quickly cut to a neutral host solution that maximizes your firm’s competitive advantage!

The market opportunity

In the first section we discuss the evolving neutral host market opportunity. By opening up investment options, it is now possible for enterprises, building owners, and real-estate investment trusts to benefit from these solutions in even the smallest of buildings. Research and Markets forecast that this new opportunity is going to yield an $8.7Bn market by 2028, a sentiment echoed by many other analysts.

Find out more about what is driving this demand by reading our “Wireless connectivity in real estate” report, written in collaboration with ABI Research.

Indoor NHNs present a significant opportunity, built on a range of technology solutions, to a varied array of use-cases. At the center of the use-cases is the demand for robust and high performing cellular connectivity – something better than Wi-Fi®. Check out our neutral host page for more details on verticals, use-cases and the mobile-first workforce.

The technology

The opportunity for neutral host networks can only be realized if the correct technological solutions are accessible and available at an affordable price. Historically, such solutions have been based on Distributed Antenna Systems (DAS). DAS has been around a very long time and is well proven. It has evolved over the decades and found its way into a large amount of commercial buildings globally.

That said, DAS is a legacy approach to solving modern challenges. At Ericsson, we believe there are better ways. And by better we mean lower cost, better performing, easier to install, simpler to maintain, greener, and more flexible. 

Ericsson’s technology answer is the Radio Dot System (RDS).

In my first-ever Ericsson blog I discussed the economic and sustainability aspects of neutral host solutions in the context of your Triple Bottom Line – a valuable tool when assessing indoor connectivity investments in the context of your companies bottom-line.

The commercial models

This section of the white paper, in my opinion, represents the biggest change to the neutral host market for many, many years. Traditional solutions have been funded, owned, and operated by mobile network operators (MNOs) making it largely inaccessible to enterprises that do not net a viable investment business case or possess the skillsets to design, install, and manage these systems. These barriers all but irradicates serving building spaces below 100,000 square feet, which accounts for 97.4% of commercial building space in the US. Serving this floor space category has demanded innovations that support tighter commercial and operational constraints.

1. Technology Innovation

   The technology discussed in this paper has different applicability to varying building sizes. The only technology category capable of serving the smallest and the biggest of these spaces is 
   “Small Cell”. Ericsson Radio Dot System (RDS) is the pinnacle of this category and is being deployed today in all building types.

2. Operational Innovation

   Simply put, if an enterprise cannot buy the technology, deploy it within their environments, and operate it efficiently it offers no value. Thankfully, in the US, we have seen enterprise funded programs from AT&T, T-Mobile, and Verizon immerge. An enterprise now has options it never had before and that enables an entirely new market of opportunity and value to be captured. 

These two innovation types are inter-dependent. They ensure that the technology and operational aspects work for you and your environment.

But who should pay?

This is a question that comes up time and time again when talking with enterprises. There are two main schools of thought on this. Firstly, enterprises see that these investments are providing value to the mobile network operators. It serves their public customers and therefore they are reaping much of the return on investment, especially as the enterprise may be purchasing their cellular services from the same supplier. Secondly, mobile network operators see that the enterprise is gaining value through access to a more robust and higher-performing service than might ordinarily be available to them.

The balance between these arguments has been simplified over the years into a minimum floor space requirement. The larger the building, the more people are covered and the more attractive the investment is for the mobile network operator. The smaller the building the fewer people are covered and the less attractive it is to MNOs. Contrastingly, enterprises see much the same value regardless of the size of the building.

By offering these enterprise-funded models, CSP are helping companies to invest in themselves. In most cases, this creates real value for both stakeholders.
For enterprises to maximize their ROI it is important to ensure that the capital and operational costs are minimized. Thankfully, this is another area where Radio Dot System (RDS) excels. With up to 70% less power, 50% lower total cost of ownership, and a multi-gigabit experience enterprises do not need to compromise!

The future

If the past tells us anything it is that change is inevitable. New spectrum, new technologies, new use-cases, and higher performance expectations will drive the need to update and upgrade neutral host investments in the future. Having a clear understanding of these trends and a flexible, future-ready solution are essential in order to prevent the historical need for costly upgrades.

One constant over the last several decades is the addition of new spectrum with each “G”. This spectrum is getting evermore harder to supply to indoor spaces from outdoor assets (ie. Cell towers and pole mounted small cells). Being able to quickly and easily add these new bands is crucial.  This will drive the maintenance investments 5 or even 10 years down the line. And yes, you guessed it, Radio Dot System excels with an easy path for future upgrades.

Conclusion

Neutral Host Networks offer a real opportunity for a diverse consumer base and are becoming an essential tool for businesses to remain competitive in the connected world. These systems are now available for enterprises to self-fund with the access barrier of building size being removed. Accessibility to these technologies and viable commercial models make it easier than ever to ensure you have access to 4-bars of coverage wherever you need it.
I would love to hear what you could do with 4-bars!

Learn more:

Read the 5G Americas White Paper
In-building wireless in the real estate market
Discover Ericsson’s Neutral Host portfolio
How 5G indoor solutions can help your Triple Bottom Line and boost sustainability