Business&Network Consulting

Small Cells
Big Opportunities
A Huawei White Paper by
Dr. Yan Q Bian, Deepak Rao
February, 2014
CONTENTS
1 Introduction......................................................................................1
2 The Need for Small Cells.................................................................2
2.1 Exponential traffic growth
.........................................................................................................................2
2.2 Network evolution towards
HetNet...............................................................................................................3
3 The Small Cells Strategy ................................................................3
3.1 Enhancing coverage and
capacity...............................................................................................................4
3.2 Integrated broadband networks synergising small cells and WiFi
..............................................................5
3.3 Small Cell business case
............................................................................................................................6
4 Save TCO while improving coverage and capacity ........................7
4.1 Small Cell Backhaul
....................................................................................................................................7
4.2 Site acquisition and
maintenance................................................................................................................9
5 Increase traditional revenue through prioritised rollout..................12
6 Improve customer experience through integrated broadband.......14
7 Explore new revenue streams through innovative services...........16
8 Huawei's Small Cell Solutions and product portfolio .....................19
9 Summary .......................................................................................21
10 References....................................................................................22
11 About the Authors..........................................................................23
1
1 Introduction
Mobile data traffic is experiencing an exponential growth, driven by data capable devices and
high bandwidth applications (APPs). Many operators are evaluating their options, and small cells
deployment figures high in their priorities with 60% of operators considering them to be an
important part of their 4G service[1]. Leading operators such as AT&T, Vodafone, and Softbank
have leveraged their macro networks and are creating differentiation through small cell
solutions. By 2016, small cells will service up to 25% of all mobile traffic[2] and small cells
shipments are likely to reach 36.8 million units worth $20.4 billion[3].
Industry recognized Small Cell Forum defines small cells as “ … low-power wireless access points
that operate in licensed spectrum, are operator-managed and feature edge-based intelligence.
They provide improved cellular coverage, capacity and applications for homes and enterprises as
well as metropolitan and rural public spaces. They include technologies variously described as
femtocells, picocells, microcells and metrocells.”[3]
An holistic small cell strategy addresses both the short term challenges such as cost savings in
providing service and the longer term challenges such as improving customer loyalty and
exploring new revenue streams. Most small cell strategies follow a phased approach
• Saving in TCO (Total Cost of Ownership) while enhancing coverage and capacity
• Increasing traditional revenue through prioritised rollout
• Improving customer experience through integrated broadband
• Exploring new revenue streams through innovative services
However, the challenges to small cells technology still remain, particularly
• Availability of suitable backhaul
• Acquisition and operation of small cell sites
2
• integration and monetization of small cell technology
With the additional complexity of adding and maintaining thousands of sites, operators have to
address both technical and commercial challenges, ensuring ease to deployment and
profitability.
2 The need for Small Cells
Figure 1: Data traffic forecast and industry trend
2.1 Exponential traffic growth
By 2020 there will be 50 billion connected devices across the world. Mobile traffic will grow
globally with a CAGR of 84% over next 7 years, and will overtake fixed data traffic in 2019. It is
forecast that by as early as end-2013 bandwidth demands will begin to outstrip supply from
macro networks[4], resulting in poor service quality for customers. A loss in service quality is
likely to lead to higher churn rate and hence to higher customer retention costs.
Addressing capacity needs is complicated, as mobile data traffic varies unevenly across different
locations and time:
• Locations: 80% of data traffic is generated from indoor locations, and 90% of traffic is handled
by only 10% cells that serve all dense areas[5].
• Time: Cellular data consumption is higher than WiFi during the daytime, while during night data
consumption on WiFi is higher than cellular. For example, in the UK cellular data traffic at mid-
day can be 6x more than the off-peak traffic[6]. 3
2.2 Network evolution towards HetNet
Operators have multiple options to deal with coverage and capacity issues:
• Purchase additional spectrum (up to 3x capacity gain), which can be expensive,
• Migrate 3G users to 4G so as to capitalise on 4G’s spectral efficiency (up to 6x capacity gain), or
• Deploy small cells for spatial efficiency (up to 56x capacity gain respectively, over the next 10
years[5]).
It is financially prohibitive to build enough macro cells to service all the demand; small cells are a
cost-effective solution to plug the gap between data demand and capacity. The business case for
a high QoE (Quality of Experience) network that is “always-on, and available anywhere, any time”
is driving the network evolution towards HetNet (Heterogeneous Network) – an integrated
network consisting of macrocells, small cells and WiFi AP (Access Points). HetNet architecture
allows for capacity expansion to be based on actual, instead of forecast, values of demand in data
traffic.
Figure 2: HetNet architecture
3 The small cell strategy
The fundamental challenge for an operator is to leverage its strengths in Macro networks and
extend them to small cells. Operator’s strengths in subscriber mix (consumer vs. enterprise, fixed
vs. mobile) and in cost 4
structure of its network assets (MNO/MVNO, RAN or/and core network sharing, etc.) frequently
determine the appropriate small cell strategy.
An holistic small cell strategy addresses both the short term challenges such as savings in network
TCO and the longer term challenges such as improving customer loyalty and exploring new
revenue streams. Most small cell strategies follow a phased approach (see Figure 3).
Figure 3: Small cell rollout should focus on reducing network costs and explore new revenue
opportunities
3.1 Enhancing coverage and capacity
The key drivers for deploying small cells are to enhance coverage and capacity[7]. Small cells are
widely deployed to provide
• Coverage infill: A tall corporate tower can create a large coverage blind spot in quadrangle
area, which can be serviced by an outdoor small cell.
• Extended coverage at cell edges: To service SME (Small Medium Enterprise) offices or
apartment buildings at the cell edge.
• An alternative to cell split: Uneven and peaky demands on capacity are cost-effectively
addressed using a combination of outdoor and indoor small cells.
However, QoE improvements can only be realized by delivering the right customer experience in
the right place at the right time, similar to marketing principle of making the right product
available to the customer at the right price. Improved QoE leads to right kind of revenues focusing
on enterprise and consumers. 5
This need to deliver the right QoE is driving worldwide investments in small cells[3]. Small cells
are poised to not only supplement, but also substitute macro networks to plug the gap between
capacity and demand for data. For instance an incumbent Fixed Broadband provider with a vast
FTTX network and no spectrum assets will be interested in rolling out outdoor WiFi in hotspot
locations.
This strategy can be expanded to provide FaaS (Fibre as a Service) or SCaaS (Small Cell as a
Service) to MNOs in exchange for an MVNO deal to enter the mobile service market (with Small
Cells offloading to FTTX).
We believe the boundaries between a mobile and fixed operator will soon disappear with
prevalence of small cell enabled integrated broadband. Enterprise Public hotspots Residential •
Boost coverage and capacity. • Offload users from Macro. • Manage network efficiency and
QoE. • Improve in-building coverage • Target on high value business users. • Provide High
quality and secured service. Motivation • Improve indoor coverage. • Increase data
consumption from consumers. Small Cell solution • Pico for large buildings(in range of 200m or
less). • Femto for smaller buildings (on the order of 10m). • Pico, or • Micro/metrocell (in range
of few hundred meters), or • DAS. • Femto, or • Pico. Service examples • High quality voice and
video call • “Follow me” app • Company ID • VPN • M-advertising • M-wallet • Location based
services • Surveillance • Eldercare • Multi-devices sharing
Figure 4: Small cell solution for enterprise, public hotspot and residential home
3.2 Integrated broadband networks synergising small cells and WiFi
Integrating Wi-Fi with small cells can offer cost-effective capacity and additional coverage for
delivering seamless data services. Benefits from such integration lead to increases in revenue and
savings in TCO:
• Increased revenues
o Intelligent offload policies enable “premium” data service
and allow monetisation of WiFi
o Extend data services to non-cellular devices (e.g., laptop,
tablet, camera, etc.) increase data use 6
o Carrier-managed VAS and hosted WiFi service lead to new
revenue from venues and enterprises
• TCO savings
o WiFi can also be used as an effective wireless backhaul
o Lower site rental and CAPEX
o Improved service quality (such as voice quality, coverage,
and so on) lead to savings in SAC (Subscriber Acquisition
Cost) & SRC (Subscriber Retention Cost)
Small cells and WiFi can be integrated either in the RAN or in the Core; each integration option
presents a trade-off between the complexity of integration and the ease of monetisation. There
are three major integration options to increase revenues:
• RAN integration with automatic WiFi authentication, allows operator to bundle WiFi service
with existing 3G/4G data plan
• Core integration with Hotspot2.0 and ANDSF (Access Network Discovery and Selection
Function), allows operators to introduce innovative pricing strategies; limited by the functionality
of billing engines
• Advanced integration with policy control for selected traffic flows, allows operator to offer
carrier-managed VAS with fully capable WiFi/4G devices
3.3 Small cell business case
Our analysis indicates that small cells business case is driven in part by revenue from increased
data usage and revenues from new applications such as mFinance, and location-based apps.
Additionally, a significant portion of the business case relies on increased CLV (Customer Lifetime
Value) and savings in SAC & SRC from improved loyalty due to high QoE.
To reduce CAPEX and OPEX, operators are increasingly sharing their macro network
infrastructure, for instance as MORAN (Multi Operator Radio Access Network). Small cells, when
deployed judiciously, can be a great source of competitive advantage & differentiation. Thus can
provide an uplift in customer experience and revenue while simultaneously reducing TCO by 40%
or more (see Figure 5 in the next section). 7
So, the key to achieving the small cells competitive advantage and to making the business case
for the operator is to determine where, when and how to deploy small cell solutions, and aligning
them with customer requirements in the marketplace. Equally important is the pace of transition
from “reduce cost to serve” to “improve customer experience” (see Figure 3), as CLV and loyalty
drive the business case.
4 Save TCO while improving coverage and capacity
TCO savings from small cells can be highly sensitive to variations in backhaul and site rental costs.
When compared to the TCO of macro deployment, the small cell TCO is attractive due to savings
from the choice of cell sites and backhaul solution (see Figure 5).
Figure 5: TCO analysis of small cell deployments[8]
4.1 Small Cell Backhaul
Diversified deployment scenarios present unique challenges for Backhaul. It is critical to get the
right solution for each case, especially in public access small cell, where introducing a fibre
backhaul can be prohibitive. In order to reduce TCO, operators can leverage their assets by
plumbing existing backhaul technologies/capabilities together (see Figure 6):8
Figure 6: Flow chart to select the backhaul solution
• Wireline backhaul solution could be via copper or fibre. Fibre provides very high performance,
using GPON (Gigabit Passive Optical Network).
o The NG (Next-Generation) PON now attracts more
attention from operators for delivering high-speed apps.
Bandwidth requirements are targeted at 100Mbps for
residential users and 1Gbps for commercial users. The NG
PONs are divided into two phases: NG-PON1 can offer 10G
downstream and 2.5G upstream, while NG-PON2 would
achieve 40G access based on WDM (Wavelength Division
Multiplexing)[9]. Rapid small cell roll-out will facilitate the NG
PON evolution.
o Operators without existing wire line assets, such as fibre,
may elect to install or to lease. Installing any wired
infrastructure can be costly and time consuming, and leasing
fibre to carry additional bandwidth can be quite expensive, so
fibre-complementing wireless backhaul solutions can be an
attractive option for many operators.
• Wireless backhaul solution has advantages of reducing costs and reducing time to market of a
small cell roll-out.
o A number of wireless solutions (such as LoS, NLoS and
microwave) are available; each solution presents a trade-off in
propagation, frequency and topology it supports. For example,
in cases such as street level coverage with a short range,
it makes sense to use spectrum bands that either require little 9
or no licensing fees in order to reduce costs.
o ABI research predicts that, outdoor small cell units will grow
at 52.7% CAGR to reach over 3.5 million units by 2018[10].
As outdoor small cells emerge, much of the focus will be on
the unlicensed 60GHz (V-band) which could be an optimal
micro/metro solution at a street level. The benefits of V-band
backhaul are
– Low TCO per Mbps[11] (compared to sub 6GHz band)
– Low skilled labour for installation
– Environment-friendly (low power, zero-footprint)
– High capacity
– Low latency
Therefore it is clear that a combination of wired and wireless solutions could be needed for both
outdoor and indoor public hotspots. Using existing fibre can serve as local aggregation points,
although some technologies allow “self-backhaul” capability such as WiFi APs.
4.2 Site acquisition and maintenance
In order to achieve small cells’ potential lower cost per bit, operators need to be very precise
about where capacity is deployed. A number of options exist to address the demand for data
services, and for each of these a number of operational deployment pain-points exists.
Unlike macro site acquisition and installation/commissioning, small cell deployments have to
manage an order-of-magnitude increase in number of cell sites, hence are required to follow a
different flow of events (see Figure 7). Deploying large number of small cells creates new
challenges in interference management, handover configurations, and operation/maintenance
processes. Interference and handover issues can be solved using technological solutions such as
SON (Self Organizing Network) and CoMP (Coordinated Multi-Point), so as to reduce OPEX and
ease the commissioning processes.
We believe most of the operational risks can be mitigated with clever contract management with
third party installation & commissioning companies. 10
The key focus for an operator is to amend existing deployment processes and to determine the
set of activities that create differentiation in QoE, such activities should ideally be in-sourced
while the remaining activities could be out-sourced to a third-party. Below, we focus on more
practical and non-technological deployment challenges.
For commercial buildings in downtown areas (i.e. tall towers), working with landlords to deploy
small cells that can be activated on demand is an effective way to provide high speed data
connectivity. Commissioning and maintenance activities need extended access to building
premises such as secure areas of the building and access out of business hours, these additional
access requirements must be carefully negotiated if the vendor is to meet strict SLAs (Service
Level Agreements) – in many cases having a single vendor for end-to-end commissioning and
maintenance is the simplest option.
For non-enterprise customers, site acquisition challenges vary depending on micro-population
densities in that location and on whether the deployment needs to be indoors or outdoors:
• Public indoors (e.g., shopping malls, airports): Local authorities and owners should be
persuaded to expand and maintain in-building backhaul. Operators can purchase backhaul
capacity from, and enter into maintenance contracts with local authorities to close the business
case. SCaaS and DAS (Distributed Antenna System) sharing among operators help the business
case and operations of small cells in such hotspot locations. In-source? Out-source? 1.Where to
deploy? • Heat map • Coverage hole 2.Choice of transmission. (plumbing the backhaul needs a
big tool box with many option). 3.Model cost of backhaul and deployment scenario. 1. New site
market (service differentiation vs. ease of site acquisition). • City authority • Estate agent to
negotiate with landlords. • New business landlord. 2. Model the sensitivity of rental costs. 1.
Simplify deployment process. • Similar to cable TV/satellite dish. 2. Consider outsourcing
installation and commissioning process. 1. Optimize and control transmission and rental costs.
2. Maintain high QoE. 3. Network assessment and Business planning. OperationsDeployment
Site acquisition Engineering planning
Figure 7
Flow of events for installation and commissioning of Small Cells 11
• Public outdoor (e.g., downtown, university campus): Two main options exist for an operator,
either self-deployment or contract out, both present their own pros-cons. While contracting out
combined FaaS/SCaaS agreements with a fixed broadband operator provides easy access to sites
and backhaul/power, it creates little competitive advantage.
o Sites selection is the main driver for market penetration,
and these need to be negotiated with municipalities for
access to street furniture (such as lampposts). Multiple
“backup” options need to be planned, such as engaging
a real estate agency to gain agreements for installing
on outer walls of buildings, or billboards at street
intersections etc. such agreements should include
access to both power and in-building fibre to service
the small cells.
o Physical deployment of small cells can be contracted
out to a utility maintenance company who has access
to the relevant installation facilities
• Suburban and Rural: The business case for small cells in suburban and rural areas can be
challenging due to low data demand, therefore horizontal pico-cell solution is an attractive
option as long as there is no regulatory mandate for wider coverage. In general, providing rural
broadband in small towns and villages with low population densities changes the nature of the
problem from reach-constrained to capacity-constrained, i.e. backhaul is often the bottle-neck in
providing service to a village[12].
o Low demand and mandatory coverage edicts make
RAN sharing a key contender for remote areas, in
some extreme scenarios do-nothing can be an option!
o Lack of street furniture in sub-urban areas can be
overcome by use of Telescopic towers such as RDS
(Rapid Deployment Sites) to provide a small footprint for
outdoor coverage[14].
o A number of technology options exist to mix and match
access infrastructure, such as fibre, copper, wireless and
satellite (for coverage), however the economics of using
such access technologies can be difficult to absorb. 12
o Sparse cell sites mandate contracting the installation
and maintenance to utility companies (such as power
company technicians) and encourage increased stock
keeping at field support centres closer to the villages,
especially in areas where adverse weather conditions exist.
5 Increase traditional revenue through prioritised rollout
Operators can increase traditional revenue streams by:
• Increasing gross adds and reducing churn through
enhanced coverage
• Increasing data usage through enhanced capacity and
smart tariff plans
Our analysis shows an increase in outdoor data use (by around 30%) when QoE is improved with
small cells solutions. Improved customer experience also leads to better loyalty (increase CLV,
reduced SRC) and to easier new subscriber acquisitions (reduced SAC). Hence the decision on
“which segment to target” is of paramount importance.
Enterprise (corporate, SME) is an attractive market to operators due to its higher ARPU, with
growing smartphone use and the growing trend in BYOD (Bring Your Own Device). A good service
experience in the enterprises influences the employees to switch their personal contracts (and
those of their family members with family bundle offers) to the operator. Hence the enterprise
segment should be a primary target for small cell rollout.
• Corporate offices with poor in-building voice coverage strengthen the business case for small
cells, as they offer an excellent voice quality and advanced voice/presence/video services for
corporate users. Business premises vary widely in terms of building sizes, 39%- 61% of offices
suffer from poor in-building coverage and 87% of businesses would switch provider to guarantee
coverage[13]. To match varying building sizes, operators can deploy Picocells in large buildings,
and Femtocells in smaller buildings.
• SME is a vast market, and SME businesses are looking for a ‘single solution’ to address their
communication needs[7]. In cases where 13
small businesses have fixed broadband, the operator strategy should integrate the WiFi access
point and the small cell in a single compact box. Operators should further sub-segment the SMEs
to identify businesses where consumers spend their idle time and subsidise small cell solutions
to these businesses, for example, laundrettes and hairdressings.
Public hotspots (e.g., shopping mall, airport, transport hub, etc.) have regular ‘peaky’ traffic; this
higher demand for data is expected to continue in the future, and over 500,000 public small cells
are expected to be deployed worldwide by 2015[10]. Improved data access in the public areas
contribute to better QoE and to longer term CLV for all segments, thus making the public small
cells rollout the second most important priority.
User (i.e. smartphone) densities and data demand in hotspots determine the type of small cell
deployment in public areas. Deploying Picocells or Micro/Metrocells in such areas can alleviate
capacity bottlenecks as well as provide cellular coverage in places that suffer from poor macro
coverage. DAS can be jointly deployed by multiple operators to service malls and other public
indoor spaces.
• Data demand analysis helps operators to identify places with regular ‘peaky’ traffic. Such places
allow operators to optimise the use of shared resources such as backhaul and macro coverage.
For instance, macro beam-forming technologies can be configured to focus on the street during
rush hour and on the buildings during office hours.
• Small cells not only supplement macros by enhancing capacity, but also can substitute macros
to address sparse & peaky traffic. Crowd-sourcing can be used to determine the potential
revenue increase from small cell deployment. For instance, BBC was able to map 3G coverage
across the UK[15], a similar crowd-sourced data demand cross referenced with average spend in
the area will create heatmaps that maximize small cell ROI in different ‘postcode’ areas.
Residential properties (both in urban and rural areas) with poor macro coverage could be
enhanced using Femtocells. However, deployment of residential Femtocells has failed to address
capacity concerns in the mobile industry, due to the high dependence on existing backhaul
solutions and lack of sustainable business model (i.e. lacking new revenue streams). 14
6 Improve customer experience through integrated broadband
With the proliferation of OTT APPs in mobile market, operators must think about network
capability beyond coverage and capacity. We believe improvements in QoE will encourage
consumers to pay for services such as combined WiFi & cellular broadband, mobile TV and
uploading/downloading UGC (User Generated Content).
Monetise WiFi services: Integrating WiFi network with Small and Macro cells enables operators
to monetise WiFi in conjunction with 3G and 4G services. Operators can choose a wide range of
integration options, but often the go-to-market strategy and policy controls determine the extent
of integration. Operators can set up seamless WiFi offload policies based on user segment, type
of APPs, network congestion or QoS.
Intelligent policy controls such as Hotspot 2.0, Next Generation Hotspot and ANDSF improve the
overall end user experience, allowing users to automatically connect to WiFi, wherever &
whenever available. Such integrated broadband solutions bundle WiFi data services with the
existing 3G/4G data plans for smartphone and dongle packages.
Figure 8: Hotspot 2.0 and Next Generation Hotspot enables seamless WiFi experience at both
the access and the core15
Core network integration, for separate small cells & WiFi access networks, allows data from WiFi
and cellular to be monetised separately; for instance through packages such as pay-as-you-go
WiFi, prepaid pass, etc. This approach to WiFi monetisation requires extensive WiFi rollout
strategies, so the nomadic-WiFi network is able to compete with full mobility 3G/4G cellular
network. Besides the revenue from ‘pure’ WiFi packages, the improved data service experience
will make it easier to attract new customers and reduce subscriber churn (by 15%[16]). To realise
this benefit, operators can also offload to partner or federated WiFi networks that provide the
desired service quality, for instances where a highly resilient connection (acting as a single large
pipe) is needed for HD media.
Mobile TV subscription: With improved broadband speed and coverage, live mobile TV
consumption is forecast to grow aggressively. Technologies such as eMBMS (enhanced
Multimedia Broadcast Multicast Service) and DMB (Digital Multimedia Broadcast) that help
deliver rich media services to masses are once again eliciting operators’ interest.
South Korean operators (KT, SKT and LGU+) are one of the early adopters of DMB technology,
and these companies are in a race to increase their mobile TV subscriber base to rival the
traditional IPTV. South Korean market, with better network, large screen tablets / devices and
content solutions (YoY growth of 16.17% between 2012 & 2013), has seen significant shift in user
behaviour. Mobile TV consumption is very popular, with catch-up TV constituting more than half
of total viewing[18].
KT’s ABC (Always Best Connectivity) solution intelligently switches between WiFi and 3G/LTE to
access the Internet; ABC solution selects optimal network to service video including buffering the
video while a second bearer is used to continue download. ABC solution enhances QoE, users no
longer need to check the access speed to watch a video, and improves battery usage by 40%
while reducing cellular data charges by 80%[17].
User generated content: The instant nature of most user generated content creates the ripple-
effect of multiple downloads on mobile devices, anywhere, anytime. 16
At the core of revenue opportunities in consumer segment is the amount of information created
and shared by consumers, typically in the age group of 16-34 years. It is forecast that content
generated by these users will double in the next two years, continuing the growing trend in video
uploads, for instance YouTube uploads have increased 10x in the last 6 years[19]. Owing to the
trends below, we surmise that QoS guarantees for UGC could be a source of revenue in not too
distant future:
• Capture and upload of real-time video in concerts and events, (In 2010 the Economist reported
the worldwide number of camera phones totalled more than a billion)
• Social sites such as Instagram and Facebook note a growing trend in “selfies”, with growing
uplink bandwidth this trend will extend to videos
• Platforms such as Snapchat allow users to chat using multimedia (pictures and videos) and
‘expired’ messages encourage users to post new selfie videos
7 Explore new revenue streams through innovative services
The future without ubiquitous high speed data connectivity is as difficult to imagine as today’s
life without mobile phones. Growing consumption of multimedia on mobile devices and
increasing interest in personalised sales present new revenue opportunities for quicker small cell
ROI. However consumers will expect businesses to offer & sponsor services such as video
conferences, video phone-ins that blend into consumer’s usage & context.
Video sousveillance1, phone-ins and conference calls: Sectors such as education, insurance,
health and news media are increasingly adopting mobile technologies to improve QoE and reduce
cost. Operators can establish a two-sided business model to increase data revenues; widespread
deployment of small cells and enterprise sponsored data packages encourage users to upload
recorded video and to use video call services:
1 “Personal sousveillance is the art, science, and technology of personal experience capture,
processing, storage, retrieval, and transmission, such as lifelong audiovisual recording by way of
cybernetic prosthetics, such as seeing-aids, visual memory aids, and the like”17
• Insurance: Dashcams (cameras mounted on dashboards
in a car) are very popular in Russia and their recorded footage of traffic accidents is permissible
(and often preferred) witness in Russian courts. Widespread use of dashcams is enabling
insurance companies to fight insurance scamsters.
• Smart connected homes: Small cells enable home automation to improve living with location
sensitive features. Furthermore, small cells enable use cases such as home surveillance, eldercare
and for parents to monitor their children.
• Education: Blended learning, a combination of classroom, online and mobile learning, is set to
revolutionise classroom education. The traditional model of learning in class with supplemental
exercises at home will be inverted: watch lecture online or on mobile (anytime & anywhere),
while the classroom will focus on activities and discussions from the lecture. Younger generations
not only learn through multimedia, but also interact with teachers using video phone-ins and
conferences.
• Health and emergency services: Micro location information from small cells allows emergency
and health services to locate the emergency. Simple applications include a ‘panic button’ that
patients with dementia can press to call for help. For mass consumers, video phone-ins for doctor
consultations can improve efficiency and convenience of health services.
• Automated news feeds can sponsor users to report (i.e. upload) news at no cost. For instance
operators can charge CNN for every iReport uploaded using cellular network.
• Customer service over video call for products and services lead to quicker resolution of
problems and improve the QoE of end customers.
Personalised services: Increasingly, customers are demanding personalised experience from
their products and services. Location and presence information is a critical part of enabling
personalized services, which has to blend into user’s context, i.e. the activity the user is
performing or is thinking of. Providing personalisation requires operators to secure the best sites
to deploy small cells and introduce position/location and presence aware solutions, for instance:
• Enterprises: Real-time location services can enable employees to use their smartphone as ID
to access office, or have video conferences on the device of their choosing (i.e. BYOD).18
• SME: Small cells in SME premises can alert the SME of frequently visited customers. For
instance, commuters can order a coffee on their mobile, when they are close to the coffee shop,
small-cells will flag this proximity information to the shop assistant, who then prepares the
customer order, which the commuter picks up as they ‘swing by’ their coffee shop.
• Wearable devices: New AR (Augmented Reality) applications on wearable devices such as
Google Goggles and Samsung Gear need micro-location information that small cells provide; such
applications should not only use location information, but also the wearer’s interests, place
(tourist places such as museums) and context (i.e. activity) to present the right information of
interest.
Figure 9: Apple's iBeacon uses Bluetooth Low Energy to detect presence of and transmit data
to iPhones
• Presence APIs: Coupons, offers and mobile advertising can be better targeted to users entering
or leaving a retail environment. Presence APIs allow third parties (such as L'Oréal) to personalise
product advertisements and deliver these mAds as zero-rated content to the users.
• Proximity APIs: Businesses will be interested to know whether their (potential) customers are
close to their shops. For instance, a simple Evernote grocery list on a user’s device could trigger
the department store to send coupons to the user, when the user walks past the store.19
• Location tracking APIs: Operators can combine the positioning information from small cells to
make a wide range of positioning APIs available to retail businesses. Bluetooth based
technologies such as iBeacon[20] allow much precise tracking of user’s location, however their
range is limited to few tens of meters. Small cells could provide a more contiguous ability to track
user location, handing over to Bluetooth based tracking in closer range. Integrated APIs can
provide user’s identity and location within the store; such information will help retailers to offer
products and services depending on the aisle the shopper is in.
• Social APIs: The presence information from small cells can help users to find their contacts in
nearby places. Local businesses can combine nearby contacts with user interests to target offers,
for instance a nearby sports bar can advertise early-bird offers to two friends interested in
football.
8 Huawei’s Small Cell
solutions and product portfolio
Huawei’s small cell solution has been deployed globally in more than 40 networks. We provide a
full range of small cell products including micro BTs/RRU and Pico BTs/RRU with SingleSON and
HetNet CA (Carrier Aggregation) solutions. The product portfolio comprises of:
• DAS for targeted in-building coverage, as well as for streets, squares and other outdoor hot
zones to eliminate macro coverage blind spots and increase overall network capacity. Huawei’s
SingleDAS solution is suitable for multiple operator and multiple vendor deployments.
• AtomCell was designed to meet challenges stemming from limited spectrum resources and
complex network environments, and to realize HetNet evolution. This solution maximizes
spectrum resource efficiency in indoor/outdoor hotspot and enterprise, and provides a smoother
user experience even in weak macro coverage areas.20
• LampSite is a multi-mode, easy-to-install deep indoor coverage solution that provides flexible
capacity expansions while sharing BBU resources with a macro network. 2*60W @ 12L/15kg
Outdoor Penetration TCO Saving, especially for large building Macro+DAS • 2*125mw • MIMO
• POE • Support 3 freq. bands In-Building System For large building,Easilydeployed by reusing
IP cable, Wifi integrated Lampsite 1 pRRU 1 1 4 4 2 3 3 Outdoor Penetration Easy installation
and disguise BTS3202E/BTS3902E ( support external antenna) BTS3203E/BTS3803E ( internal
antenna /external antenna for trail) Outdoor AtomCell PnP and integrated with WiFi Indoor
AtomCell BTS3202B 2*125mW @2.6L/2kg (support external antenna) BTS3203E/BTS3803E (
internal antenna /external antenna for trail) 2 3 Smaller Tx Power & integrate WiFi Small size
and support AAS
Figure 10: Huawei’s Small Cell Portfolio 21
9 Summary
The future of small cells looks promising, and the opportunities will favour those operators who
understand how, where and when to deploy them. Small cells not only address coverage infill
and capacity boost scenarios, but also improve user’s QoE. We believe there are four phases to
small cell rollouts: reduce network TCO, increase traditional data revenues, improve customer
experience (QoE), and explore new revenues beyond connectivity.
Today, successful small cells business cases rely on increase in CLV and savings from SAC and SRC
due to improved customer loyalty. Such loyalty can only be achieved by delivering the right QoE
to customers at the right place and the right time. This means operators need a different
approach to deploying small cells, i.e. understand how to amend & manage the deployment
process and address the lack of pervasive fibre backhaul. Small cells site selection and operation
& maintenance models will be the key to competitive advantage.
Operators would gain indirect revenue from improved churn and loyalty. Better service
experience will drive up traffic usage and increase data revenue. Operators can further enrich
the user experience by offering new VAS (Value Added Services) based on location and presence
information; new VAS will boost traffic usage and new VAS revenue will help faster investment
return.22