Mobile Ecosystem CBRS Market Opportunity for MNO 9.11 · 2020. 7. 22. · Title: Microsoft Word -...

SharedSpectrumMarketOpportunityforMobileNetworkOperators

Preparedby

MarkLowensteinManagingDirector,MobileEcosystem

September2017

[email protected]@marklowenstein

©MobileEcosystem,2017 -1-

ExecutiveSummaryMobileOperatorshaveanewanduniqueopportunitytodensifytheirnetworksandimproveindoorcoverageandcapacity,whilebeingattheforefrontofbusinessmodelinnovation.It’scalledspectrumsharing.In2016,theFCCreleaseditsSecondReportandOrdertocreatetheCitizensBroadbandRadioService(CBRS)inthe3550-3700MHzband,makingavailable150MHzofspectrumformobilebroadbandandothercommercialusers.The3.5GHzbandhashistoricallybeenusedbytheDepartmentofDefenseandfixedsatelliteserviceproviders.The3.5GHzbandrepresentsthefirstiterationofanambitiousspectrumsharingframework,whichtheFCCplanstoextendtootherbandsoverthenextseveralyears.For3.5GHz-basedservices,anoperator(MNO)willnotberequiredtobuyandpermanentlyownspectrum.Thebandwillrelyonauniqueandinnovativesharedspectrumscheme.Serviceswillbeeitherunlicensed,oranorganizationwouldpurchasea“temporary”licensethatwouldbegoodforadesignatedperiodoftime.Initialdeploymentsofspectrumsharingwillbefocusedonnetworkdensification.Thiswillalsoleadtoopportunitiesforimprovedin-buildingcoverage–similartotheusecaseforindoorsmallcells,butbasedonaneutralhostmodelpopularizedbylargerandmoreextensiveDistributedAntennaSystem(DAS)deployments.SpectrumsharinghastheadvantageofprovidingcoverageandcapacityaugmentationusingLTE,butemployingaWi-Filikebusinessframeworkandeconomicmodel.Cellulardatausageisgrowingmorethan50%peryear,andsome80%ofthatuseisindoors.1However,providingadequatecellularcoverageandcapacityindoorshasbeenachallenge.Indoorsmallcellsolutionsremainexpensiveandaretypicallytiedtoasingleoperator,whichhaslimitedtheirdeployment.Wi-Fihasitsownchallengeswithcoverageandcapacity,andreliesexclusivelyonenterprise-leddeployments.MNOslosepotentialrevenue,controloverthequalityofexperience,andinformationontheactivityoftheirsubscribers.Plus,someWi-FiserviceprovidersarenowaimingtocompetewiththeMNOs.Webelievespectrumsharingcouldbeaviablenewmodelforindoorwirelesscoverage.ForMNOs,spectrumsharingopportunitiessuchasthatenabledby3.5GHzoffersseveralpotentialbenefits:• Revenueenhancement.Eitherdirectlythroughtraditionalserviceplans,orindirectly,withmoredatastaying“on-net”.

• SpeedofDeployment.Withspectrumauctions,suchastherecentlycompleted600MHz“IncentiveAuction”,itcantakeyearsbeforethespectrumisavailable

1Sources:EricssonMobilityReport,AnalysisMason


forcommercialuse.Thismodelpresentsawayfornetworkextensiontobemuchmoreexpedient.

• Costsavings.Historically,operatorshavereliedonexpensiveDASorcarrierWi-Fisolutions.Thispresentsthepossibilityforamorecost-effective,‘on-demand’servicemodel.

• Qualitycontrol.OperatorscanextendthehighqualityofexperiencebuiltintoLTE,ratherthanrelinquishittothevagariesofWi-Fi.

• CompetitiveAdvantage.Ahighcapacity,qualitycoverageLTEnetworkthatcanbeextendedindoorsoffersMNOsacompetitiveadvantageinnetworkcapabilitiesoverothercellularoperatorswhoaren’tusingsharedspectrum,andcouldhelpgainshareintheenterprisesegment.SharedspectrumwouldhelpMNOskeeptrafficontheirnetwork,whichisimportantgivenincreasedcompetitionfromcableMSOs,cloudproviders,andsoon.

InadditiontobeinganimportantelementofanMNO’snetworkdensificationstrategy,webelievespectrumsharingoffersthepotentialforanentirelynewnetworkframework,basedontheideaof‘networkasaservice’.Networkcapacityorcoveragecouldbeacquiredonanas-neededbasis,similartocloud-basedservicesweareseeingacrossthebusinesslandscape.Thisisconsistentwithoperatormovestowardvirtualized,software-definednetworkservices.WebelievethiscouldresultinpotentiallydramaticsavingsinCapEx.Spectrumsharinghasgrowingregulatoryandindustrysupport.It’salynchpinoftheFCC’sefforttoreleasesubstantiallymorespectrumforwirelessbroadband,whilealsoencouragingasharedspectrumapproach.Allofthemajorequipmentvendorshavecommittedtomakingequipmentavailablefor3.5GHz,andweareencouragedbywhatwe’veseenfromthedeviceOEMs.InAugust2016,sixwirelesstechnologyleaders—AccessTechnologies(Alphabet),FederatedWireless,Intel,Nokia,QualcommandRuckusWireless(nowpartofArris)—announcedthelaunchoftheCBRSAlliance,topromoteLTE-basedsolutionsutilizingthesharedspectrumoftheU.S.3.5GHzband.TheAlliancenowboastsmorethan70members.Webelievespectrumsharingisagame-changingapproachtosolvingwirelesscoverageandcapacitychallenges,providingMNOswithrevenueenhancement,costsavings,andcompetitiveadvantageopportunitiesinthecomingyears.ThisWhitePaperwilldiscussopportunitiesinspectrumsharing,withafocuson3.5GHz-relatedopportunitiesforMobileNetworkOperators(MNOs).Webeginwithanoverviewofhowthe3.5GHzspectrumsharingstructurewillwork,currentstatus,andthetimelineformarketreadiness.Thebulkofthisreportisfocusedontheadvantagesofspectrumsharing,usecases,thebusiness/economicframework,andourrecommendationsforasuccessfulgo-to-market.


1. BriefOverviewofthe3.5GHzBandThe3.5GHzbandhashistoricallybeenusedbytheDepartmentofDefenseandfixedsatelliteserviceproviders.Therehasbeenamovementoverthepastseveralyearstoopenupthebandandmakeitavailableforsharedusebetweengovernmentandcommercialinterests,providedtheincumbentsaregiventheproperprotection.OnApril28,2016,theFCCreleaseditsSecondReportandOrdertocreatetheCitizensBroadbandRadioService(CBRS)inthe3550-3700MHzband,makingavailable150MHzofspectrumformobilebroadbandandothercommercialusers.The3.5GHzbandwillbeprimarilyunlicensedor‘lightlylicensed’,inthatanoperatorwillnotberequiredtobuyandpermanentlyownspectrum.Rather,theywillrelyonauniqueandinnovativesharedspectrumscheme(moredetailsbelow).SpectrumsharingdeploymentswillallowMNOstodensifynetworks.Thiswillalsoleadtoopportunitiesforimprovedin-buildingcoverage–similartotheusecaseforindoorsmallcells,butbasedonaneutralhostmodelpopularizedbylargerandmoreexpensiveDASdeployments.ThiswouldprovidetheadvantageofcoverageandcapacityaugmentationusingLTE,butemployingaWi-Filikebusinessframeworkandeconomicmodel.TheFCC’sproposalisforathree-tieredaccesssystem,showninthediagrambelow.UsersineachtierwillbeprotectedbyanewandinnovativespectrumsharingstructurecalledtheSpectrumAccessSystem(SAS).


SpectrumAccessSystem(SAS)andEnvironmentalSensingCapability(ESC)ThemostuniqueandinnovativeelementofthespectrumsharingconceptisthedevelopmentoftheSpectrumAccessSystem(SAS).TheSASadministratorswillserveasadvanced,highlyautomatedfrequencycoordinatorsacrosstheband,protectinghighertierusers(i.e.incumbentandPALlayer)frominterferencefromlowertierusers(GAAlayer).Theywillcheck availability of spectrum resources, assign channel(s), provide a certificate, and coordinate and ensure interference-free operation. NotethattheFCCiscurrentlyreviewingpetitionstobothincreasethegeographicareascoveredbyaPALlicensebeyondcensustracts(i.e.maketheareaslarger)andtomakethePALlicensetermslonger.Decisionsontheserequestedchangesareexpectedbytheendof2017.

TherewillalsobeEnvironmentalSensingCapability(ESC)operators.TheESCswillconsistofnetworksofsensorsthatwilldetectthepresenceofsignalsfromfederalsystemsinthebandandcommunicatethatinformationtooneormoreSASstofacilitateprotectionoffederaloperationsintheband.TheESCswillalsoprotectincumbentuserswithina

certainradius,particularlyaround‘exclusionzones’,whichareprincipallywithin200kmofthecoast.InDecember2016,theFCCconditionallyapprovedsevenentitiesthathavemettherulestobeSASadministrators:Google,FederatedWireless,Amdocs,Comsearch,CTIA,Keybridge,andSony.InMay2017,additionalapplicationsweresubmittedbyRivadaNetworks,Nokia,FairspectrumandREDTechnologies.WebelieveGoogleandFederatedWirelessarethetwomostseriouscandidatesatthistime.Itisgenerallybelievedtherewillbebetweentwoandfour(2-4)SASs.Overthenextfewmonths,theFCCwillcertifytheapprovedapplicantsthroughtesting,withfullcertificationexpectedinearly2018.AfewoftheorganizationswhosubmittedapplicationstobeaSASadministratorhavealsoappliedtobeESCadministrators,includingGoogleandFederatedWireless.


HowSpectrumSharingMightBeUsedTheseserviceswillprimarilyemploysmallcells,foroutdoorandindoornetworkdensification.Themajordifferenceisthatthesecellscouldsupportmultipleoperators,inawaythatneutralhostDASdotoday.Thecellsneedonlyoneantenna,anddonotneedtocoordinatewiththeoutdoor/macronetworkinthesamewayasatraditionalsmallcelldeployment.Thisovercomeswhathasbeenoneofthemajorinhibitorsoftheindoorsmallcellmarkettodate.TheFCCconstructedthe3.5GHzbandrulessuchthatwhoevercontrolsthevenuecancontrolthespectruminthatbuildingforthatband.Withthisnewframework,itislikelierthatanenterprise,abuildingowner,orasystemsintegratormightdeployequipment,usinganeutralhostmodel.Theywilldodealswithanyoneofanumberofserviceproviders,eitheratthePALorGAAtier.Privateenterprises,venuesandfixedoperators,forexample,couldautonomouslydeployhigh-qualityin-buildingLTEnetworksintowhichallmobilenetworksubscriberscanroam.MNOswouldbenefitfromanexpandedfootprintandcapacityonnewspectrumwhiletheirsubscriberscouldgetaconsistentwirelessbroadbandexperience,atindoorlocations,includingintheenterprise.Theequipmentbeingdevelopedusesthesameformfactorastoday’sindoorandoutdoorsmallcellsbutatanewfrequencyandwithnewsoftware.TheindoorversionswilllooklikeWi-FiaccesspointsbutwithLTEcapabilities,andsomevendorsaresimplyadding3.5GHzradiostoW-FiAPs.Weexpectthatmuchofthenetworkadministration,control,authentication,andsoon,willbemanagedinthecloud.NotethattheFCChasalsomodifieditsoriginalproposaltocreateanewcategoryofCBRSdevicesthatallowforincreasedoutputpowerof3.5GHzcells,extendingtheirradiustopotentiallyasmuchasonemile.Thismeansthattherearealsooutdoorapplicationsbeingplannedfor3.5GHzservices.Compellingopportunitiesherecouldincludeuniversitycampuses,businesscampuses,andvenuessuchasstadiums.StatusandTimingSpectrumsharinghasbeengatheringmomentum.MajorinfrastructureOEMsandchipsetmanufacturershaveindicatedsupportforspectrumsharingandthe3.5GHzband,includingcommittingtotimelinesforequipmentsupport.Ayearago,sixwirelesstechnologyleaders—AccessTechnologies(Alphabet),FederatedWireless,Intel,Nokia,QualcommandRuckusWireless(nowpartofArris)—announcedthelaunchoftheCBRSAlliance,topromoteLTE-basedsolutionsutilizingthesharedspectrumoftheU.S.3.5GHzband.TheCBRSAlliancehassinceballoonedto70members.


Exhibit1 UpdateonNetworkandDeviceReadinessfor3.5GHz

Category EquipmentOEMs&

Operators• Verizonleadingfirstend-to-endcarriergradeCBRStrial,partneringwithEricsson,Qualcomm,&FederatedWireless.VerizonhassaidthatallnewVerizonsmallcellswillbeequippedw/CBRScapability.

• Numerousdemonstrationsandtrials:Ericssondemonstrated3.5GHzsmallcellsatMWC2017;Alphabet,NokiaandQualcommcompletedalivetestof3.5GHztechnologyoveraprivate4GnetworkataLasVegasracetrackinFeb.2017.

• FederatedWirelessandAlphabetdemonstratedSAS-SASinteroperabilityinDec.2016.

• FederatedWirelesshasannouncedinteroperabilitywithallkey3.5GHzradiovendors,includingEricsson,Nokia,Ruckus,Samsung,andSpiderCloudWireless.

ChipsetOEMs • Qualcommannouncedsupportfor3.5GHzintheirSnapdragon™X20LTEchipset/modeminFeb.2017

• Intelannouncedsupportfor3.5GHzintheirXMM™7560modeminFeb.2017

IndustryOrganizations • CBRSAlliance.FormedAugust2016byAccessTechnologies(Alphabet),FederatedWireless,Intel,Nokia,QualcommandRuckusWireless(nowpartofArris),nowhasover70members,includingCharter,Comcast,andall4U.S.MobileOperators.Involvedincommercializing3.5GHzthroughcertificationprograms.HasconductedlivetrialsatCBRSevents.

• WirelessInnovationForum(WInnForum).Involvedinsettingstandardsfor3.5GHzbasedontherulessetbytheFCC.HaspublishedRelease1specs.

Therehasalsobeenasignificantamountoftrialactivity.Thisfall,Verizonwillbeleadingthefirstend-to-endcarriergradeCBRStrial,partneringwithEricsson,Qualcomm,&FederatedWireless.Verizonhassaidthatallnewsmallcellswillbeequippedw/CBRScapability.CharterandAmericanTowerarealsoengagedinCBRSfieldtrials.Webelievethefirstcommercialspectrumsharingservicesofthe3.5GHzbandcouldbelaunchedby2018,initiallyattheGAAlayer.ItislikelythattheMNOswillleadcommercialavailabilityofthemarket.Theprincipalmilestonesthatneedtobereachedare:

• FinalizingrulesfortheSASandselectingthevendors.TheFCCissettingtherulesofhowtheSASswilloperate.TheFCChasconditionallycertifiedsevenvendors,withfinalcertificationexpectedinearly2018.

• Determiningtheauctionprocessandschedulingtheauction.TherewillbeanauctionprocessfortemporaryspectrumatthePALlayer.TheFCChasissuedaframeworkforthisbutstillhastofinalizerulesandannounceaschedule.WeexpectaPALauctionduringthesecondhalfof2018.


• EquipmentAvailability.AsshowninExhibit1,equipmentandchipsetsupporthasfallenintoplace.Thereshouldbedevicesupportbytheendof2017andintoearly2018.

MobileEcosystembelievesthatmobilenetworkoperatorswillleadtheearlyCBRSdeployments,startingin2018.MNOswillalsoplayanimportantroleinpushingthedevelopmentofthedeviceecosystem.2. SpectrumSharingBenefitstoMNOsTheseservicesallowanMNOtoprovidemuchgreaterLTEcoverageandcapacity,butwitheconomicsmoreakintoWi-Fi.Itislowercost,andeasiertoinstallandmaintainthantraditionalindoorsolutions.TrafficstaysontheLTEnetwork,ratherthanmigratingtoWi-Fioracompetitor’snetwork.By2020,webelieveCBRSandotherspectrumsharingopportunitiescouldbecomeaviablecomplementto,orsubstitutefortraditionalindoorsmallcells,DAS,andcarrierWi-Fiinmanycontexts.Exhibit2 SummaryofKeyBenefitsof3.5GHztoMNOs

Benefit NotesReducedComplexity

• Lessneedforsituationalevaluationofalternatives(i.e.DAS,Wi-Fi,etc.)• MNOingreatercontrolofin-buildingsolution• MNOingreatercontrolofhowspectrumisutilized

LowerCosts • CapexmorefavorablethantraditionalDAS,Wi-Fi• Opexcostreductions–billing,customercare,backhaul• Moreefficientuseofspectrumresources(i.e.macrooffload)• Lowerchurn

RevenueEnhancement

• HigherARPUpotential• Lowerchurn• Increaseshareinenterprisesegment• Customeracquisitionpotential(3.5GHzadifferentiator)• Keepingusageoncellularismoreconvenientforguests,ifcoverage/speed/capacityissufficient

• PossiblepremiumserviceSubscriberExperience

• Bettercoverage• Capacity,speedimprovements• Moreseamlessexperience

2016 2017 2018

• FCCNPRM• GoogleK.C.trial• Trialsincoastalcities• FinalizerulesforSAS

• FCCconditionalcertificationoffirstSASvendors

• Somenetworkequipmentavail.• Chipsetavailability• DeviceOEMannouncements• Severalfieldtrialsunderway• SchedulePALauction•

• FinalcertificationofSASvendors

• GAofconsumerdevices• SelectGAAmarketlaunches1H,broaderlaunch2H

• PALauctions,likely2H


A. NetworkDensificationNetworkdensificationisaleadingusecaseforsharedspectrumforMNOs.Thestructureproposedforthe3.5GHzbandpresentsanadded,andimportanttoolforMNOstoimproveoutdoorcoverageandcapacity.Theyareabletodoatfarlowercostthantraditionalspectrumauctions,orexpensivealternativessuchasDASandcarrierWi-Fi.TheFCC’srulesallowingforincreasedpoweroutputfor3.5GHzdevicesimprovesthedensificationbusinesscasestillfurther.B. ImprovedIn-BuildingCoverageandCapacityImprovingcoverageandcapacityforindoorwirelessisoneofthekeystrategicprioritiesofoperatornetworkexecutives.Providinggoodin-buildingwirelesscoverageandadequatecapacitycontinuetobeachallengeinmanysituations.Despitetheneedtoimprovein-buildingcoverage,therehavebeenfewsolutionsthathavefoundsignificantscale.They’reeithertooexpensive,complextodeploy,orthebusinessmodelisnotworkableinlargenumbers.Andbecauseindoorsmallcellsaretiedtoaparticularoperator,itisdifficulttogetenterprisesorbuilding/venueownerstofundthesedeployments.DistributedAntennaSystems,whichprovideaneutralhostsolution,areeffectiveforoutdoorcoverageandcapacity,andalsomakesenseforcertainlargevenues,suchasstadiums.However,theycanbeanoverkillsolutionincertaincontexts,bothintermsofcostandtimetodeploy,atanenterpriselevel.OnecouldviewspectrumsharingastheopeningupofanewmarketopportunityforthetraditionalDAS/neutralhostmodel.Itismorecosteffective,andcanbedeployedmorequicklythantraditionalDAS.Additionally,theon-demandnatureofsharedspectrummeansthatMNOscanacquirewhatevernetworkcapacitytheyneed.Today,everyindoordeploymentissituationalforanoperator.Dependingonthetypeofcustomerandbuildingsize/type,anMNOmustevaluatethreeoptions:indoorsmallcell,carrierWi-Fi,orDAS.Sharedspectrumisanappropriatesolutionformostofthesecontexts,makingthedecision-makingprocesssimpler.C. QualityofExperienceAcommonargumentagainsttraditionalin-buildingsolutionsisthatWi-Fiprovidesasuitablealternative.Wi-Fioffersacompellingsolution,butadditionalin-buildingwirelesscoveragewouldbeagoodcomplement.Somekeyareasofvalue-addinclude:


• Improvedcapacity.2.4and5GHzWi-Fichannelscangetcongestedinmanyin-buildingenvironments.MobileEcosystemresearchindicatesthatinpublicorquasi-publicvenuessuchashotels,conventioncenters,stadiums,andrestaurants/cafes,theaverageLTEspeedsexperiencedbytheuserexceedthatofWi-Fi50%ofthetime.ThisisahugechangefromseveralyearsagowhereWi-Fiwasthedefaultforin-building.

• EnhancedCoverage.EvenwhereenterpriseWi-Fiisdeployed,itcan’tbeeverywhere.LTEmightbeagoodcomplementtoWi-Fiincertaincontexts.

• Qualityofexperience.KeepingusersontheLTEnetworkoffersaseamlessandconsistentqualityofexperience.Forexample,theremightbesituationswhereanenterpriseorvenueownermightpreferthatusers,suchasvisitors,stayoncellular,ratherthanhavingtoprovisionextraWi-Ficapacity,guestaccess,andsoon.

• Anadditionaloptionforcoverageandcapacity.Deployingadditional

accesspointstoimproveWi-Ficoverageandcapacitymakessenseincertaincontexts.LTEcanbeacomplementorsubstituteincertainvenues.Forexample,ahospitalmightpreferthatvisitorsstayonLTEratherthanuseWi-Fiinthebuilding.

D. KeepingTheSubscriberontheNetworkWiththeaddedcapacitygainedthroughspectrumsharing,operatorscankeepcustomersonthenetwork.Notonlydoesthissavethecostofelaboratenetworkoffloadstrategies,butifcellularnetworkqualityandcoveragearegood,thecustomerwouldmuchratherstayonthenetwork.ThisalsoprovidesrevenueenhancementopportunitiesfortheMNO:thesubscribermightchoosealarger‘databucket,’whichincreasesARPU;and/ortheMNOmightbeabletochargeseparatelyforsharedspectruminsomecontexts.E. CompetitionFinally,MNOsmightneedtoconsiderasharedspectrummodelforcompetitivereasons.Therearetwoangleshere.First,improvedcoverageandcapacitycancertainlybeacompetitiveadvantagevisavisotherMNOsinthemarket.ThiscouldbeareasontochooseMNOAoverMNOB.Second,webelievethatovertime,thenumberandtypeofcompetitorstotheMNOswillcontinuetointensify.Thiscouldincludecablecompanies,InternetcompaniessuchasGoogle,MVNOs,Wi-Fiplayers,andotherentitieswhowereinvolvedinthe600MHzauctions,exploringLTEUnlicensed,orareintheearlystagesofconsidering5G.Asthecompetitivelandscapeexpandsandintensifies,thisisanopportunityfortheMNOstopreventcustomermigrationtoalternativeserviceproviders.


F. ComplementtoOtherCombinedServicesSuchasLAAandMulteFire

Therearenumerousoptionsemerginginunlicensedservicesasacomplementtotraditionallicensedspectrum.MNOsarelookingatLAAasawayofexpandingcapacity,usingchannelaggregationwiththeirlicensedspectrum.TherearealsooptionsemergingforWi-Ficentriccompaniesthatdonotrequirealicensedanchor,suchasLWAandMulteFire.TheindustryismovingforwardonwaystobetterleverageWLANinfrastructure.Sharedspectrumcouldbeasuitablecomplementtotheseinitiatives.3. BusinessUseCasesMobileEcosystembelievestherearefourprimaryusecasesforsharedspectrumformobilenetworkoperators,asoutlinedbelow.A. EnterprisesWebelievethattheenterprisemarketpresentsthemostcompellingnear-termopportunity.Thisiswheretheneedforgreatercoverageandexpandedcapacityismostacute.Asdescribedearlier,enterpriseshavebeenlookingforindoorsmallcellsolutionforyears,buttheeconomicsandbusinessframeworkhaveprovenchallenging.Spectrumsharingpresentstheopportunityforaneutralhostsmallcell/DASnetworkforenterprises.Webelievethattheeconomicsaredifferentenoughfromtraditionalsmallcellsthatenterprisesorbuilding/venueownerscouldbeinvolvedwithsomeofthesedeployments.Itisalsopossiblethatatowercompanyorsystemsintegratorwholesalethesolutionusinganeutralhostmodel,andthentheMNOwouldpurchasecapacityonthatsystem.Buildingandvenueownerswouldviewprovidingsuperiorwirelesscoverageandsignificantnetworkcapacityoverabuildingenvelopeasoneofthefeatures/benefitsofthatvenueinordertoattracttenants—muchlikeutilities,LEED/greeninitiatives,andsoon.ThiscouldalsotaketheloadoffenterpriseshavingtodeployWi-Fiasextensively.

B. ParticularVerticalsMobileEcosystembelievesthattherearecertaintypesofbuildingsorvenuesforwhichsharedspectrumisparticularlysuited.Someexamplesareinthetablebelow.


Exhibit2 TargetVerticals

Vertical BenefitsofSharedSpectrumHospitals • ComplementWi-Finetwork

• Secure,dedicatednetworktomanagecompetinginterferingdevices• Largenumberofoutsideusers/visitors

UniversityCampuses

• Largenumberofusersmovinginandoutofbuildings• Wi-Ficoveragecanbeachallengeforeverybuilding• Extracapacityneededformultimedia• DiversityofMNOrelationshipsspeakstoneedforhostedsolution

Hospitality/Hotel • Improveindoorwirelesscoverageandcapacity• BalancetrafficbetweenWi-Fiandcellular,andpossiblychargeforpremiumservice

• KeepingcustomersonLTEmightbepreferabletosomebuilding/venueowners

SportingVenues • ComplementWi-Finetwork• HighcapacityLTEservicesmorecost-effectivethanDAS• Elastic,event-drivennetwork(addcapacityasneeded)• Premiumfanservicessuchasin-gamehighlights,statistics,andotherfeaturedcontent

Retail • Subscribercontinuityofcellular• TraditionalDASsolutionsnotsuitableformostretaillocations

C. Coverage/CapacityBoostTherecentFCCrulingallowinghigheroutputpowerfor3.5GHzsmallcellsaddsanopportunitytoprovidecoverageandcapacityaugmentationincertainoutdoorlocations/contexts.Historically,thesesituationshavebeenaddressedbyDAS,orcarrierWi-Fisolutions.Now,wehaveanewandpotentiallysuperioroptionincertaincontexts:neutralhost,lessexpensive,andfastertodeploy.Additionally,trafficdemandinthesesortsofscenariosisdynamicandchangeable,whichlendsitselftoamoreflexiblespectrumsharingframework.D. LastMileAccessWealsoseethepotentialforlast-mileaccess.ThiscouldbeusedforbackhaulpurposesinNon-Line-of-Sight(NLOS)situations,orasalessexpensivealternativeforshortrangebackhaul.ForMNOs,thisprovidesalessexpensivewaytoincreasecapacity,andopensuprevenueopportunitiesforfixedwirelesstypeservices.4. Framework/EconomicsTheapproachbeingtakenforthe3.5GHzbandplacestheUnitedStatesattheforefrontofhownetworkserviceswillevolve.Relyingonaspectrumsharingschemeandacloud-basedhostingmodel,MNOswillacquirenetworkresourceson


anas-neededbasis.SharedspectrumprovidesthebenefitsofaneutralhostDASforonlyaslightpricepremiumoverWi-Fi.ThebusinessframeworkbeingproposedbycertainpotentialSASvendorsisforacloud-basedsubscriptionmodel.TheenterpriseorMNOacquiresthespectrumonanas-neededbasis.

AdvantagesofaNeutralHostModel• Allowsformulti-operatorframeworktobeused,muchlikeDAS,forindoorand

enterprisemarket• ImprovesthecustomerexperiencecomparedtoWi-FibymaintainingQoSof

LTEandreducingissuesassociatedwithWi-Fi,suchasinterference• Increasesopportunitiesforcostsharing–enterprises,building/venueowners• Greaterlikelihoodthatotherpartieswilldeployaccesspoints:systemsintegrators,towercompanies,buildingowners,enterprises

• SignificantlylowercostofservicethaninasingleoperatorenvironmentThecloud-basedapproachisnecessaryforeffectivenationwideoperationofthesharedspectrumnetwork,providingscale(upordown),elasticity,processingpoweranddatastorage–alldynamically.Fortheoperators,itallowsforasubscription-basedpricingmodel,alaAWS,sotheMNOcanbuyonlywhattheyneedonahighlyflexiblebasis.Asaresult,MNOscanincreasethevarietyoftheirserviceofferingsbyputtingtogetherefficientpricingstructures,suchasa“payforwhatyouuse”model,fortheircustomers.5. Go-to-MarketMNOsaregoingtohavetogetcomfortablewiththreegame-changingelementsenabledbyspectrumsharing:theideaofaneutralhostsolution(whichtheyhavealreadydoneforDAS);anexpandedecosystemofpotentialpartners,suchasSIsandbuildingowners;andnew/alternativebusinessmodelsformobileservices(cloud/subscriptionbased).CBRSshouldbeanimportantpartofanoperator’sbroadstrategytoleverageunlicensedspectrum.Deployingspectrumsharingisnotakintoaddinganothersetofchannels,suchasinacarrieraggregationscenario.Itrequiresaspecificgo-to-marketstrategy,likeanynewproductorservice.WebelievethefollowingarethekeyingredientstoasuccessfulMNOgo-to-marketstrategy:

• Test/Trialspectrumsharing.MNOs,MSOs,andotherorganizationsareactivelyengagedintrialactivity.Webelievethesetrialsshouldinclude:


o Workingwithenterprisecustomers,and/orbuildingorvenueowners.Pickakeytargetvertical,suchashospitalorhospitality

o IncooperationwithotherMNOs,testthefeasibilityofaneutralhostsolution

• Determineprimaryusecaseonaperopportunitybasis.Whatisthemix

ofcoveragevs.capacity?

• Buildasalesandbusinessdevelopmentorganization.Determinewhichtypesofcustomerswillbeacquiredviadirectsalesandwhichwillbethroughpartners,suchastowercompaniesandsystemsintegrators.ThepartnerdevelopmentorganizationwillforgerelationshipswithSIs,venueowners,andsoon.Thisorganizationwillneedtobeknowledgeableabouttheeconomicsandhavebusinessmodelsattheready.

• WhataresituationswherespectrumsharingwillbeMNOspecificvs.shared/neutralhost?

• Buildbusinesscases,todeterminewhichtypesofopportunitiesareappropriateforsharedspectrumvs.alternatives,suchasWi-Fi,LAA,DAS,conventionalsmallcell,etc.

• Businesscasesandmodelsshouldalsodelineatehowcost

responsibilitiesshallbeshared,dependingontheopportunity,betweenMNO/enterprise/venueowner?

• Developbusinessmodels/casestoclassifytypeofopportunity

(internal)o Customerretention?o Revenueenhancement?

• Developapricingmodelfordifferentsituations/customers/contexts

o Asanextensionoflicensedservices—noextrachargeo Premiumchargeforenhancedcapacity/coverage,wherecustomer

sharesinthecostofdeploymento Areanychargesforhardwarepassedon,orarechargesonlyfor

services?ItwillalsotakesometimeandexperiencewithspectrumsharingtodeterminewhattypesofopportunitiesarePALvs.GAA,andhowtovaluethespectrumandtemporarylicenses.


ConclusionWeareparticularlyexcitedaboutthesharedspectrumand3.5GHzbandopportunity,forthreereasons.First,itunleashesagame-changingamountofspectrum,allowingforanewwayofthinkingaboutcapacityandcoverage.Second,itprovidesapotentiallyviablesolutiontowhathasheretoforebeenanintractableproblem:in-buildingwirelesscoverage.Third,thisrepresentstruebusinessmodelinnovation,vauntingtheU.S.toagloballeadershipposition.Webelievethespectrumsharingmarketwillbeled,particularlyattheoutset,bymobilenetworkoperators.Thereisopportunitytohelpsolvethein-buildingchallenge,inaneconomicallyfavorablemanner,whileopeningupnewopportunitiesintheenterpriseandatvenues.

Disclaimer:ThisWhitePaperisauthoredbyMobileEcosystem,withtheobjectiveofpromotingthoughtleadershipwithregardtosharedspectrumopportunities.TheWhitePaperisunderwrittenbyFederatedWireless,Inc.Inno

waydoesthisWhitePaperrepresentanendorsementofanyparticularvendor'sproductsorsolutions.

PleasecontactMarkLowenstein,ManagingDirector,MobileEcosystem,[email protected]@marklowenstein

Mobile Ecosystem CBRS Market Opportunity for MNO 9.11 · 2020. 7. 22. · Title: Microsoft Word -...

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Transcript of Mobile Ecosystem CBRS Market Opportunity for MNO 9.11 · 2020. 7. 22. · Title: Microsoft Word -...