The HetNet: What’s Ahead

August 5, 2015

About the HetNet Forum

• Founded in 2006, the HetNet Forum is the only national network of leaders focused on shaping the future of heterogeneous wireless networks (the HetNet). The HetNet is a wireless ecosystem, comprised of a variety of mobile and wireless technologies and infrastructure, interoperable with the macro-cellular network providing harmonious voice and data communications.

• The HetNet Forum members own and manage all of the neutral-host and

many of the carrier-owned indoor and outdoor small cell installations in the U.S.

• The HetNet Forum's membership includes all of the major indoor and outdoor small cell infrastructure providers, as well as major carriers, equipment manufacturers, and professional services firms.

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About the HetNet Forum

We also produce one event a year, HetNet Expo. This year HetNet Expo takes place Oct. 27-28 in Los Angeles.

Education and Outreach – 6 Vertical Markets

Healthcare Higher Education

Hospitality Corporate/Commercial Real Estate

Large Public Venues Public Safety

Trends

• Global mobile data traffic grew 81 percent in 2013.

• By the end of 2014, the number

of mobile-connected devices is expected to exceed the number of people on earth, and by 2018 there will be nearly 1.4 mobile devices per capita.

• There will be over 10 billion

mobile-connected devices by 2018, including machine-to-machine (M2M) modules—exceeding the world’s population at that time (7.6 billion). – Cisco VNI 2014)

People are going mobile via cellular and Wi-Fi worldwide.

Trends

• 67% of workers use personal devices in the workplace – Microsoft

• College students bring an average of 6.9 devices with them on campus – Crux Research

• People used the equivalent of 1.8 million social media posts with photos during the peak hour before the 2014 Super Bowl – AT&T

• 1 out of 3 college-age and young professionals say Internet is as important as air, food, and shelter – Cisco.

• Mobile Video accounted for 53% of all traffic in 2013 – Cisco

People expect the same broadband experience they have at home when they are on the road

Mobile Broadband Trends • Average consumer

launches mobile app 10x per day

• ‘Mobile addict’ launches app more than 60x per day

• College students (18-24) over-index by 49% in mobile addict category

Impact on the Network

• 70% of mobile voice connections take place indoors

• 80% of mobile data connections take place indoors

• Wireless Data Traffic up 1000,000% in last 8 years – AT&T

• Network needs to get closer to end user via DAS, Small Cells and Wi-Fi

• Operators solving for Capacity, not just Coverage

Operators are working to bring the network closer to the end user via Small Cells

Public Safety Considerations

• National Fire Protection Association (NFPA)

• NFPA-1 2009, Sections 13.7.2.27.2, A.13.7.2.27.2.2.2

• Annex O: In-Building Public Safety Radio Enhancement Systems

• International Code Council (ICC)

• International Fire Code (IFC) 2009, Section 510 and Appendix J

• Among other things, the codes require in-building public-safety radio coverage for new structures that are larger than 25,000 square feet and have sub-grade space such as parking garages.

Municipalities are adopting Codes designed to ensure First Responders can talk to one another in an emergency

Gov’t Recognizes Small Cells Role

• “Our actions recognize that a technological revolution has changed the wireless network landscape. The Commission’s current rules for deploying infrastructure were drafted at a time when antennas were huge and bolted to the top of enormous towers. While that kind of macrocell deployment still exists and will continue to exist, there are now a variety of complementary and alternative technologies that are far less obtrusive. Distributed antenna system (DAS) networks and other small-cell systems use components that are a fraction of the size of macrocell deployments, and can be installed—with little or no impact—on utility poles, buildings, and other existing structures. We are revising our rules to reflect this technological progress.” – FCC in October 17, 2014 Order

Americans are Cutting the Cord

• 2 in every 5 American homes (41.0%) had only wireless telephones during the second half of 2013, up from 30% in 2010. Moreover, more than half of adults in poverty live in wireless-only households. The same report found that approximately 34% of households with both landline and wireless telephones use wireless telephones for all or almost all calls. – The National Center for Health Statistics and the Centers for Disease Control and Prevention

Overall Data Consumption Trends

HetNet Technologies

Toolbox Approach can include: • DAS

Can be multi-carrier Multiple frequencies Many users Larger venues

• Small Cells Metrocells, Microcells, Picocells One operator A few frequencies Less than 100 users Smaller venues

• Wi-Fi Can be used for Cellular Off-load Unlicensed spectrum Thousands of users

• Rooftops and Towers Often the most efficient way to get coverage to greatest number of people in most economic manner

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Enterprise Perspective

Robust Coverage/Capacity an Asset

• Top 4 Operators spent a collective $34 billion on networks in 2013

• Nearly 6 million commercial office buildings in the United States.

• Most offices campuses have a square-footage of less than 50,000 square feet.

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Enterprise Perspective

Coverage no longer ‘carrier’ problem

• In corporate real estate market, insufficient wireless coverage inside a venue can result in tenants not renewing leases. Employees often bring their own devices to the office (BYOD), and use those devices rather than desk phones, making the need for robust cellular coverage even greater.

• Hoteliers may find customers choosing alternate hotels with good coverage;

• Hospitality centers may find that their venues do not meet the requirements from event planners who want their attendees to have good Wi-Fi and cellular coverage deep inside the venue;

• And in the healthcare space, physicians and clinicians are using cellular smartphones and tablets to access their information so spotty coverage is no friend.

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Enterprise Perspective

Business Models May Change

• Enterprises may be asked to help fund or completely fund in-building coverage.

• Offering the use of the premises’ fiber, facility space, power and cooling systems is another way enterprises can support the in-building equipment at a lower cost.

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Thank You

Tracy Ford

HetNet Forum Director – PCIA Tracy.Ford@pcia.com

703-535-7459

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