iain gillott (512) 263-5682 iain@igr-inc · 2016. 10. 25. · cheytec is an authorized ericsson...

Iain Gillott(512) 263-5682

[email protected]

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} Our speakers} Objectives today} Addressing the demand} Value create of In-building Wireless} EDISON Real Estate Portfolio} Today's Functional Process & Funding Models} Summary} Q&A

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} Iain Gillott, President of iGR} David Hillegas, Associate, Cushman &

Wakefield, Tenant Representation, Jacksonville, Florida

} Ed Myers, Regional VP Sales and Marketing, Cheytec Telecommunications

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} Review current demand, available technology, and value creation for In-Building Wireless systems

} Realize the challenges facing building owners/real estate managers and wireless operators

} Understand Cheytec’s EDISON Real Estate Portfolio

} Assess current funding models and choose the best course of action for your opportunity

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2015 2016 2017 2018 2019 2020

2X

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0% 10% 20% 30% 40% 50%

Not important at all

Somewhat important

Very important

Business critical

Laptop

Tablet

How important to be able to connect laptop or tablet to a

network when away from desk?

0% 10% 20% 30% 40% 50%

Cellular voice coverage and quality wherever I go in the

building/campus

Cellular data coverage and speed wherever I go in the

building/campus

Cellular texting coverage wherever I go in the

building/campus

None of these

Importance of mobile voice, data and texting coverage in-building?

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Deployed Typical Use CaseWiFi Indoor/Outdoor Home, SOHO, Medium/Large Biz, Various Venues (stadium, hotel, airport,

university, etc.)Distributed Antenna System (DAS)

Indoor/Outdoor MTUs, MDUs, Various Venues, Outdoor areas (campus, city center, etc.)

Femtocell Indoor (Residential) Home, SOHO

Picocell Primarily Indoor; couldbe Outdoor

Medium Biz, Large Biz, Various Venues (potentially)

Metrocell Outdoor City center, suburban area, large (outdoor) venues

Remote Radio Head (RRH) as Small Cell

Outdoor City center, suburban area, large (outdoor) venues; Similar deployment tometrocell but uses centralized BBU

Microcell Outdoor Short-‐range base station used for enhancing indoor and/or outdoor coverage.Might be an RRH deployed as a small cell to cover "pain points"

Signal booster Indoor/Outdoor Also referred to as a Range ExtenderCan be used indoors or outdoorsResidential solutions as well as SOHO, office, large buildingTypically used to provide coverage in dead spot

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} More “bars” of voice/data coverage in more places} Potentially improved battery life for mobile devices} Higher throughput and faster data connections for

subscribers} Improved “quality of experience” for all subscribers,

including those on the macrocells} Ability to support new / emerging technologies with

small cells – more accurate in-building location, M2M/IoT

} With respect to RRH, centralized baseband is potentially a move toward a Cloud RAN (CRAN) architecture

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2,000,000

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2015 2016 2017 2018 2019 2020

Market Overview – Jacksonville, FL

Copyright © 2016 Cheytec Telecommunications 10

§ Largest city in the country§ Downtown skyline and office park

developments§ Minimal new construction§ Anchor businesses- Bank of America, Citi Group, EverBank, CSX, Stein Mart,

Deutsche Bank, Florida Blue, Merrill Lynch BI-LO, Winn-Dixie, Web.com

§ Growing emphasis on fiber and wireless connectivity

§ Major landing point for transatlantic cables- Exchange point for Florida voice and data traffic headed to

Atlanta

Case Study – Tenant Representation§ Tenant Opportunity

- “Law Firm” searching for 20,000 SF of Class A office- Downtown location desired but not essential - Parking for fifty (50)- Ample and advanced technology conference space- Amenity-rich (gym, café, high-speed Internet and wireless)

§ Issues- Available inventory all constructed pre-1985 or 2001-2005- Poor in-building wireless coverage

§ Actions- Work with architects to optimize space - Work with Building Owner to increase and approve

“Tenant Improvement Budget” inclusive of required tech infrastructure

§ Solutions- Southside location - 2 floors – with ample surface parking- Substantial TIB based on a 5 year commitment- Femto/Micro cell on each floor - coordinated with the Tier 1 carrier


Result – Wireless Infrastructure Specific

§ Office park association to approve a camouflaged macro site (flagpole or palm tree)§ Building-owner improvements with wireless carriers for Centralized Radio Access Network§ Voice and data coverage is of paramount importance§ Building owner improvements to the point where tenant may pay more $ per SF

Lessons Learned§ Wireless connectivity is a key value-driver for tenants§ Building Owners are looking at wireless connectivity as a 4th

utility that adds value to their building§ Hesitation from Building Owners to “invest” in DAS or other

systems


Call to Action for the In-Building Wireless Industry

§ Acknowledge tenant need for service§ Bring the Wireless Carriers to the table early§ Address the Building-Owner’s reluctance to invest through:

- Education- Creative and flexible solutions (leasing, financing, technology)- On-going system and carrier management - Integrated offers (Public Safety, Smart Building integrations, LEEDs

support etc.)

Cheytec Overview

Cheytec provides complete technology, real estate, and finance solutions focused on small cell and in-building wireless systems.

Cheytec is an Authorized Ericsson Distributor, and an Ericsson Portfolio Company. Cheytec can sell genuine Ericsson products and can enable Building Owners to include the Ericsson gear as part of a turnkey deployment.

Wireless Operators use Cheytec’s solutions to accelerate the deployment of in-building systems on a national basis.

When it comes to our real estate and lease models, Cheytec has partnered with top brand banking and equity firms to provide program funding.

13Copyright © 2016 Cheytec Telecommunications

EDISON Real Estate Portfolio


Search based on location (street address, latitude/longitude, radius, zip codeetc.)

It all starts with Real Estate provided by Global Real Estate Organizations

100K-‐400K SF buildings are underserved

4000 buildings in EDISON Real Estate Portfolio and growing

Technologies


§ DAS – Distributed Antenna System§ Neutral Host D-RAN§ DOT § Femto

Example: Neutral Host D-‐RAN

Business Models


CARRIER FUNDED CARRIER/BUILDING OWNER FUNDED (CapEx)

DISRUPTIVE CHEYTEC MODEL

§ Capital contribution§ Baseband units/signal§ Backhaul

§ Cheytec may manage installation and real estate component

§ Cheytec Real Estate leasing

§ Wireless Carrier licensing

§ Carrier/Building Owner/3rd party funded

§ CapEx and OpEx blend

Roles and Responsibilities – Cheytec Model(s)


Item Owner/Enterprise-Funded DRAN or DOT

Existing DRAN (Operator Colocation)

Owner/Enterprise-Funded or Existing DAS

Building Lease Cheytec Cheytec Cheytec

Design Services Cheytec/Building Owner(Operator approved)

Cheytec/Building Owner(Operator approved)

Cheytec/Building Owner(Operator approved)

Capital Contribution (for material modifications only)

Operator Operator Operator

Passive Infrastructure Cheytec/Building Ownersupplied

Cheytec/Building Ownersupplied


DRAN Hardware * Cheytec/Building Ownersupplied

Operator Not Applicable

Baseband * Cheytec/Building Ownersupplied

Operator Cheytec/Building Owner or Operator supplied

mRRU Active Antenna* Cheytec/Building Ownersupplied

Operator Not Applicable

Install Services for Operator Equipment


Operator Operator

Commissioning Operator Operator Operator

Optimization Services Operator (coordinated with Cheytec)

Operator (coordinated with Cheytec)

Operator (coordinated with Cheytec)

Active Equipment Management and Maintenance


Backhaul (OpEx) Operator Operator Operator

Monthly Power (OpEx) Cheytec/Building Ownersupplied



Fees for Lease Admin & Maintenance of Passive Infrastructure only (OpEx)


Building Rent Cheytec Cheytec Cheytec

In-‐Building Process Flow

Site Identification and Authorization Site Leasing Design /

PricingLeasing/ Licensing Construction Commissioning/

AcceptanceOperations / Maintenance


Cheytec works along with Wireless Operator to identify desirable in-market locations

(See EDISON demo)

Site walks, Heat Maps, EIP, iBwave, Hardware and Services pricing

Cheytec leverages national real estate relationships and negotiates space for In-Building systems

Cheytec has or enters into Site Lease Agreement with the Building Owner

Cheytec and Wireless Operator determine capital contribution vs lease split and enter into a site lease agreement

Landlord/Owner confirms design and installation schedule

Wireless Operator approved services provider to construct the In-Building system

In-Building system commissioned, tested, and accepted

System may be alarmed and monitored required

Cheytec bills Wireless Operator (capital and/or monthly), operates and maintains the passive system and real estate relationship for Wireless Operator

§ Design and Statement of Work (SOW)

§ Real Estate § Active Hardware and

Transport§ Infrastructure (Passive

Components + Services)§ Site License Agreement

The Blumenthal – A Cheytec / Ericsson / Wireless Operator Project


The Blumenthal Performing Arts Center

§ 5 Floor, 170K SF

§ Located in Downtown Charlotte

§ 3 Theaters with 3000+ total capacity

Next Steps

§ Contact us for access to the EDISON Real Estate Portfolio

§ Login and look§ Begin the process


Ed [email protected](434) 242-0663

David [email protected](904) 380-8343

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} Demand for in-building wireless solutions is real…and growing

} Technology to solve the problem is available today

} Challenges involve the business model and who pays for what◦ Carrier, building owner/manager, vendor◦ Business models are shifting

} Cheytec’s EDISON Real Estate Portfolio

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iain gillott (512) 263-5682 iain@igr-inc · 2016. 10. 25. · cheytec is an authorized ericsson...

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