Small Cell Challenges

and Opportunities
Understanding a key strategy
for avoiding spectrum congestion
By Sergey Batalin and Ryan Ray
Introduction
Carriers today find themselves in an untenable
situation when it comes to providing coverage and
capacity to their customers. The most prevalent
way of adding capacity is to buy more spectrum,
especially as deployment of mobile wireless devices
grows and their demand for increases accordingly.
Mobile Future, a coalition made up of mobile
vendors and consumers, notes in a recent report that
smartphones consume 24 times more data than old-
school cell phones, and tablets consume 120 times
more data than smartphones.

Use of these devices is only increasing. In
2011, according to the CTIA, the number of
mobile devices in use in the U.S. exceeded
the number of people. Not only are there
more devices, but theyre being used in
more places outside the home, when users
are on the go.
Unfortunately, obtaining spectrum
is an expensive and lengthy process,
complicated by the collective agendas of
government agencies, rural carriers, and
those who already have the spectrum
and are loath to get in the hands of
potential competitors. In the United
States alone, recent studies suggest that
at least 25 percent of mobile voice and
data traffic will need to be diverted from
the primary networks to meet demand.
What can carriers do in the short-term
to solve this problem, and still be able to
offer coverage to customers? Its not an
impossible challenge. Carriers have two
strong options available, both readily
achievable. First, they can offer service
over the unlicensed spectrum, using widely
available and reliable Wi-Fi technology.
Second, they can utilize existing licensed
spectrum more effectively by leveraging
small cell technologies to improve coverage
in previously inaccessible areas and provide
additional capacity.
These strategies only take carriers so far,
however. While these are highly viable,
carriers must consider all the associated
opportunities and challenges they face
in their desire to improve capacity and
coverage in the short-term. They need to
think about network economics and how
to best offer and manage Wi-Fi services.
The potential payoff for navigating
these possibilities: improved competitive
advantage and increased customer loyalty.

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The Opportunities for Carriers
Where are the opportunities for carriers when it
comes to deploying a mix of access technologies,
such as small cells or Wi-Fi hotspots? Lets start
with the what, and then move onto where and how.
For Wi-Fi hotspots, one technology is
common and straightforward: wireless
access points (APs) offer coverage in
limited areas. The more APs, the wider
the area of coverage. They use unlicensed
spectrum devoted to that technology
to accommodate access for and deliver
capacity to smartphones, laptops and
tablets equipped with wireless antennas.
Another increasingly popular option is small
cells and picocells (as well as microcells).
These are generally about the size of a pizza
box, but differ in their range. A typical
macro cell can cover several miles, and so
are best for larger venues; the range of a
microcell is much smaller. (These are not
to be confused with femtocells, which are
even smaller; some carriers offer these
to homeowners to boost coverage to
wireless peripherals within a home office.)
Within a particular location, these
technologies let customers who are using
mobile devices get a stronger signal for
faster Internet access and downloads.
Which locations? Carriers have multiple
target options.
Corporate campus
As increasing numbers of companies
allow employees to use their own devices,
subsidizing voice and data plans, they
can reduce networking expenses. By
installing small cells or hotspots on a
corporate campus, an enterprise could
get multiple benefits. It could not only
offload data from its corporate network
to a wireless network, but it could
also provide a wireless alternative that
would not impact its data plans.
Public venues
As social networking becomes more
prevalent, consumers are increasingly
texting, posting, and tweeting from event
venues, such as stadiums and auditoriums.
By increasing coverage in these locations,
carriers can help customers enhance
their feelings of participation without
frustration. That kind of seamless access to
social networking sites supports customer
engagement. Other public areas for potential
coverage are tunnels, so that customers
on public transportation dont lose their
connection heading to or from work.
Stores
Starbucks Corporation has made consumers
come to expect Wi-Fi coverage in coffee
shops, retail stores, and cafs. But
customers who can get Internet access
are more likely to stay longer, spend more
money, and return more frequently.
How can carriers use these technologies
to serve these venues? There is no single
answer. In fact, one of the big opportunities
for carriers is the ability to deploy what
are known as heterogeneous networks, or
hetnets, to serve customers. These consist
of a mix of access technologies hotspots,
cells and others all working together
to improve a carriers network efficiency,
capacity and range.
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The Challenges for Carriers
The opportunities are there, but so are considerable
challenges. Below the clear benefits of small cells
and hotspots are complexities relating to the
products, their deployment, and their management.
Products
Its not always clear which product is
most appropriate for the best coverage
and capacity. Carriers can deploy small
cells as an adjunct to a traditional macro
network, or where the radio signal from the
macrocells wouldnt be powerful enough
to penetrate walls. Advances in antenna
technology mean that carriers can combine
different technologies, such as Wi-Fi and
Long-Term Evolution (LTE) in the same
access point. But discerning the mix-and-
match capabilities can be confusing.
Deployment
Providing Wi-Fi service in high-density
areas is not as simple as it looks, especially
when it comes to ensuring customer
satisfaction. Beyond the increasingly
difficult challenges of dealing with
municipalities or building owners seeking
to limit installation of what they consider
to be unsightly antennas, theres also
the deployment challenge of providing
the right amount of coverage without
overprovisioning or creating interference.
Legacy hot spot installations are using
a best-effort wireless access point, but
if another user in the immediate area is
downloading a large file, that person will
impact the performance of everyone using
that access point; life was easier when
people only downloaded e-mail rather
than video files. Adding access points is a
possibility but requires engineering savvy
to ensure effective utilization of multiple
channels across frequencies.
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Carriers have options in terms of spectrum
allocation, with access to multiple bands
in certain frequencies. However they must
rationalize their spectrum holdings across
different products and market initiatives.
How much of the spectrum is being used
and by which devices?
New technologies
Carries have a variety of technology options
to choose from to enable a successful
hetnet implementation. These include
looking at technology for connections
between the cell site and the core
network that is, taking radio traffic and
transferring onto the IP network for faster
transmission and offloading of the wireless
network. These backhaul solutions include
microwave technology, among others.
Carriers should also investigate new
technology known as self-optimizing
networks (SON). This helps carriers optimize
connections within a particular region
using technology that makes other cell sites
aware of every other cell site, as well as
the network. Traditionally, engineers would
have to manually conduct this optimization
procedure, but with SONs self-awareness,
the cell sites themselves reconfigure traffic
as necessary.
Other technology advancements include
incremental work on LTE networks, which
allow carriers to use new and wider spectrum
to deliver higher data rates, lower latency and
a flat, IP-based architecture. Whats known
as LTE Advanced-based Heterogeneous
Networks focuses on improving spectrum
efficiency in any given area by using a mix
of macro, pico, femto cell sites. The result
is a heterogeneous network that enables
flexible and low-cost deployments using the
most appropriate technology for the site, and
providing a reliable broadband experience
throughout the network.
Other options include working with new
antenna technologies. For instance using
advanced technology known as adaptive
antenna array, carriers can configure the use
of radio frequencies based on demand. There
are also advancements in antenna design
that combine as many as ten radio antennas
in the space previously available for one.
Management
As with any new technology, the question
arises as to how best to manage it. That
remains a significant challenge for carriers,
especially as it relates to hetnets. They
need to take into account a variety of
issues, ranging from dealing with potential
interference with other increasingly Wi-Fi
networks to Wi-Fi roaming agreements
(covered by the new 802.11u standard).
That means for Wi-Fi transmission to
work smoothly, carriers have to make
arrangements with other carriers, with Wi-
Fi aggregators (such as Boingo Wireless, Inc.
and others), and with owners of venues such
as airports and convention centers.
Simply because of the significant increase
in the number and variety of base stations
deployed in hetnets, network management
challenges abound. Its not yet clear
whether current network management
tools and operational processes are flexible
and scalable enough to support small
cell and Wi-Fi rollouts. Current tools will
be challenged by a large number of new
network elements that are expected to
grow into the thousands. Carriers must
also determine whether their management
framework is robust enough to grow with it.
Challenges aside, carriers should
nevertheless start thinking about small
cell deployment and Wi-Fi offloads.
Although each market and region has its
own unique considerations, incorporating
these technologies could have a positive
impact on many operators overall network
capabilities. But equally important is the
question of network economics, especially
when it comes to comparing cellular
wireless to Wi-Fi. The marginal cost of
managing a Wi-Fi access point is nowhere
near the marginal cost of managing a cell
tower. Access points are not as complex
as cell towers, and Wi-Fi services can be
provided for free. Communications service
providers (CSPs) should look at marginal
profit as a critical metric to make the proper
comparisons. Overall, the lower the cost of
managing the access point, the better the
economics are for the CSP.

Simply put, these technologies can bring

increased coverage and capacity at lower
cost than spectrum acquisition. Increased
coverage and capacity are the foundation
of increasing customer satisfaction and
reducing churn, the bane of carriers.

4
Finding the Right Partners
To ensure their Wi-Fi/small-cell strategy pays off,
carriers should consider how third parties can help
them fill in the gaps in their capabilities, coverage,
and even experience. For instance, they can work
with utility companies that have access to poles and
other venues for cell site deployment.

Another option: working with a service- Within network management, Accentures

enabling partner such as Accenture.
Accenture has extensive expertise and
experience in the telecommunications
field, especially in the cutting-edge
technologies used in Wi-Fi and small-
cell rollouts. Its already been working
with multiple leading carriers on
implementations of small-cell and Wi-Fi
technology. As a result, Accenture already
has begun assessing the portfolio of hetnet
products, piloting the latest generation
of Wi-Fi solutions, such as 802.11u, as
well as new antenna technologies.
Accenture also has a broad background
in network deployment and network
management. It can help carriers be more
effective in its deployment strategy and
apply analytics tools to gauge network
usage and most likely candidates for
locations of new Wi-Fi hotspots, small
cells, and hetnets. It can also help carriers
analyze its existing spectrum and license
assets to harness their value.
engineers have a strong understanding of
both existing network management tools
and what new capabilities upcoming tools
should incorporate. Accenture can provide
low-cost management capabilities through
its global delivery network. That helps CSPs
minimize costs of managing its extensive
networks of access points around the world.
They can take advantage of our vast delivery
network and leverage our less-expensive
offshore delivery models to save money
and keep costs down.
Overall, Accenture can help carriers
understand the ramifications of both
small cell technology and hetnets and find
ways for them to serve customers without
overloading current budgets or resources.

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6
Contact Us
To find out more about how Accenture
Network Services can help your business
make the most of its opportunities, please
visit www.accenture.com/network-services.
About the Authors
Sergey Batalin is a Managing Director
with Accenture Infrastructure Consulting
Wireless Practice. He can be reached at
Sergey.Batalin@accenture.com.
Ryan Ray is a Manager within Accentures
Communications, Media, and Technology
group, specializing in wireless networks. He
can be reached at Ryan.Ray@accenture.com.
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