New report released around future models for securing 5G indoor
We asked Analysys Mason to examine the market dynamics around 5G indoor networks, focusing on opportunities and challenges around today's models that exist to build dedicated mobile indoor networks. Their full report can be downloaded via the link below, but here are some of the conclusions.
- With a continued assumption of high growth in 5G services, customers are making ever higher demands in their expectations of the speed and availability of connections in all locations, not the least in indoor environments. Building owners see a consistent and predictable built-in digital infrastructure as an important value proposition for their tenants, as well as being an enabler for their own digital transformation. The future expectations of 5G indoors will not be able to be met by existing outdoor networks, but instead require a new dedicated 5G indoor solution
- Despite the hype, investment in mobile indoor networks is not an easy way forward for mobile network operators (MNOs), which are already under significant financial pressure and facing constraints on their capital expenditure (capex). A true indoor 5G solution can be too expensive for an MNO to deploy alone, typically resulting in higher capex and operational costs (opex) per subscriber than macro sites. With the prospect of deteriorating return on investment (ROI) and the difficult process of finding interested building owners and MNO partners, it's no surprise that indoor coverage has taken a backseat to outdoor 5G deployment.
- Neutral infrastructure players (like Proptivity), help remove the capex barrier from MNOs. With an organization soly focused on indoor coverage, these neutral players can achieve competitive pricing for equipment and services and overcome many challenges MNOs face during the sales and implementation process. In addition, neutral infrastructure operators address an important issue for property owners by facilitating network sharing over a unified infrastructure. With the technology available today, a shared indoor network can save 40-50% of the total cost of operation (TCO) compared to an MNO building it themselves, not to mention energy savings and other sustainability benefits.
- The cost to MNOs using this approach can be close to zero, as capex and opex for the radio network are covered by neutral operators by allowing real estate owners to finally start investing in their own efficient shared infrastructure. MNOs only need to bring their spectrum assets into the shared networks. It's a risk-free way for them to unlock new business opportunities to deliver indoor services at predictable gigabit speeds with a high average revenue per user (ARPU). In addition, the "free" offloading of indoor traffic reduces the need for outside-in coverage and enables MNOs to further optimize their capex for outdoor use. Still, as with anything new, there will be a learning curve for both the MNOs and the neutral hosts to work smoothly with each other. The important thing for all parties is not to hold back and to be ahead of the curve.
Read the full report here.
https://www.analysysmason.com/rethink-approach-5g-indoor-coverage
- With a continued assumption of high growth in 5G services, customers are making ever higher demands in their expectations of the speed and availability of connections in all locations, not least in indoor environments. Building owners see a consistent, predictable and future-proof built-in digital infrastructure as an important value proposition for their tenants, as well as an enabler for their own digital transformation. The future expectations of 5G indoors will not be able to be met by existing networks, but instead require a new dedicated 5G indoor solution.
- Despite the hype, investment in mobile indoor networks is not an easy way forward for mobile network operators (MNOs), which are already under significant financial pressure and facing constraints on their capital expenditure (capex). A true indoor 5G solution can be too expensive for an MNO to deploy alone, typically resulting in higher capex and operational costs (opex) per subscriber than macro sites. With the prospect of deteriorating return on investment (ROI) and the difficult process of finding interested building owners and MNO partners, it's no surprise that indoor coverage has taken a backseat to outdoor 5G deployment.
- Neutral infrastructure players (like Proptivity), help remove the capex barrier from MNOs. With an organization focused on indoor coverage, these neutral players can achieve competitive pricing for equipment and services and overcome many challenges MNOs face during the sales and implementation process. In addition, neutral infrastructure operators address an important issue for property owners by facilitating network sharing over a unified infrastructure. With the technology available today, a shared indoor network can save 40-50% of the total cost of operation (TCO) compared to an MNO building it themselves, not to mention energy savings and other sustainability benefits.
- The cost to MNOs using this approach can be close to zero, as capex and opex for the radio network are covered by neutral operators by allowing real estate owners to finally start investing in their own efficient shared infrastructure. MNOs only need to bring their spectrum assets into the shared networks. It's a risk-free way for them to unlock new business opportunities to deliver indoor services at predictable gigabit speeds with a high average revenue per user (ARPU). In addition, the "free" offloading of indoor traffic reduces the need for outside-in coverage and enables MNOs to further optimize their capex for outdoor use. Still, as with anything new, there will be a learning curve for both the MNOs and the neutral hosts to work smoothly with each other. The important thing for all parties is not to hold back and to be ahead of the curve.
Read the report in its entirety here.
https://www.analysysmason.com/rethink-approach-5g-indoor-coverage
Mikael Lundman, CEO, +46 76 1152100
Morgan Curby, CMO, +46 763 350764
Proptivity is created to deliver the best indoor 5G service in Nordics and Baltics. We call this Gigabit 5G, to set the bar on what good looks like. Research shows that most of 5G traffic is consumed indoors but mostly covered from outdoors, since currently there are many hurdles and large investments needed to build high capacity indoor systems. Using Proptivity’s shared infrastructure service, all operators are empowered to deliver fantastic 5G for their customers when indoors and with Proptivity there is only one network deployed and this of course has significant positive environmental effects as we transition into a sustainable future.