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Indoor Market Driving LTE Small Cell Push

Sarah Thomas
6/26/2014
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While the public access small cell market is slowing getting off the ground, indoors -- both residential and enterprise -- remains fertile ground for small cells to fix voice and coverage issues, respectively. (See Lessons From Your Friendly Neighborhood Small Cells.)

It's not something you'll hear much about, but millions of residential femtocells are being automated worldwide as carriers lean on it for an indoor voice solution, Heavy Reading analyst Gabriel Brown said while moderating a panel of small cell heavyweights at the Big Telecom Event (BTE) last week in Chicago. The numbers aren't nearly as high as they are for WiFi -- most every home with broadband now has WiFi -- but residential femtocells have seen steady, significant growth over the past few years. (See How Heavy Reading Called Small Cells Right and Know Your Small Cell: Home, Enterprise, or Public Access?)

At the same time, the enterprise small cell market is taking off, but more so as a fix for poor indoor coverage. Ronny Haraldsvik, senior vice president and CMO of SpiderCloud Wireless , said that, after a slow start, the company has seen a "tremendous amount of demand" in the past 12-18 months. This has been helped by the entrance of big players like Ericsson AB (Nasdaq: ERIC) in the market. (See SpiderCloud Shipping LTE Biz Small Cells and Ericsson Boasts Small Cell Breakthrough.)

The vendors are finally starting to overcome operator hesitancy around protecting the macro network. ("Don't [expletive] with the macro network" was SpiderCloud's founding philosophy, after all.) They are also becoming convinced of the business case for it -- not just in keeping enterprise customers happy, but also in treating small cells as a facilitation point for enterprise services, Haraldsvik said.

"Our biggest hurdle is convincing RF engineers that the system works," he said. "It doesn't matter if anyone has done it. They have to be convinced it doesn't interfere with the macro."

Arun Bhamidimarri, business owner for small cells and WiFi solutions for Ericsson North America, agreed that the indoor environment is the primary driver for small cells, and that the market is moving in that direction. The vendor plans to start testing its Radio Dot indoor system at the end of the second quarter. (See Ericsson Expects Smooth Sailing for Radio Dot .)

The consensus among the panelists, which included Taqua LLC CTO John Hoadley and Boingo Wireless Inc. CTO Derek Peterson, was that WiFi is ubiquitous and often the first place operators look to solve indoor challenges, but fixing poor voice coverage and quality still necessitates small cells indoors. Even as voice over WiFi, which Taqua powers for Sprint Corp. (NYSE: S) and others, takes off, there is an acute need to fix the cellular voice and indoor coverage issues. (See Taqua Lets Mobile Users Talk Over WiFi and Taqua Extends VoWiFi to UMTS.)

At the same time, the need is shifting from 3G to 4G LTE -- a trend reflected in recent vendor announcements. Though 3G fallback will be around for quite some time, the demand is now for LTE small cells. (See Airvana Is Back With a 'Cloud RAN' 4G Biz Cell, NSN to Take Its Flexi Zone to Work, Vodafone Launches Small Cell Service in UK, Samsung Snags Verizon 4G Small Cell Indoor Deal, and Verizon Deploys AlcaLu's LTE Small Cells .)

"Quite a few vendors pushing on indoor LTE small cells because so many carriers want an LTE-only solution in the next few years," Brown said.

— Sarah Reedy, Senior Editor, Light Reading

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joes8888
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joes8888,
User Rank: Light Beer
9/2/2014 | 8:10:30 PM
Re: Advantage
The networks need to be abstracted one layer: ie SON. Shouldn't matter what the RAN technology is. The move to all-IP systems will support the next 20 years of of iteration.

Subject-matter experts who are tasked to build networks see the various technologies as tools in the toolbox. Different tools needed for different situations. Sometimes it's coverage, sometimes, it's capacity, sometimes it's both. And of course many other metrics, like power, cost, space, etc.
SachinEE
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SachinEE,
User Rank: Light Sabre
6/28/2014 | 5:21:31 AM
RE: The growth of Small cell market
I also agree to the fact that the indoor environment is the primary driver for small cells. As a result, the market is being driven towards that direction. The truth is that WiFi is found almost at every corner of the globe. Almost every home and office today uses WiFi applications. However, there are challenges such as poor voice coverage that requires a little contribution from the small cell indoors. Most vendors today treat small cells as facilitation point for enterprise services and this is great news.
gregwhelan
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gregwhelan,
User Rank: Lightning
6/27/2014 | 8:43:30 AM
Re: Advantage
The ideal end game is to integrate indoor small cells with Wi-Fi....  

1. Single MNO branded customer experience,

2. Enhanced traffic management, intelligent off-loading....

3. Default off-load to Wi-Fi is not always the best option.

4. MNOs need to fill their LTE network first, then worry about off loading... LTE traffic keeps the "meter" running.  

5.  The MNO's marketing depart can offer enhanced data plans that include wi-fi and add wi-fi only device (e.g., tablets, laptops) to their "family plans".

6. Eliminates the indoor trade off of "good data" or "good voice"

Thoughts?
Atlantis-dude
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Atlantis-dude,
User Rank: Light Sabre
6/26/2014 | 6:34:26 PM
Re: Advantage
WiFi calling has been around for several years, but has it really caught on ?
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
6/26/2014 | 4:55:25 PM
Re: Advantage
wanlord - Good point about handoffs. Having traveled from Columbus, Ohio, to San Diego via DFW, I am keenly aware of the inconvenience of reconnecting to multiple WiFi hotspots in succession. 

Wouldn't HotSpot 2.0 fix those problems?
wanlord
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wanlord,
User Rank: Light Sabre
6/26/2014 | 3:23:29 PM
Re: Advantage
@Sara - I tend to agree to a point but you are right, if service sucks on WiFi like everyone has experienced in busy hotels like in Chicago where they still charge you, and you are forced to use cellular and then you start getting those friendly text reminders that you have reached 75% of your bandwidth caps watching Netflix :-)
wanlord
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wanlord,
User Rank: Light Sabre
6/26/2014 | 2:31:34 PM
Re: Advantage
Sure, if you are on cellular, you are likely going to have a seemless handoff from tower to small cell or any combination, no manually re-connecting to a new hotspot SSID, etc. 
sarahthomas1011
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sarahthomas1011,
User Rank: Light Beer
6/26/2014 | 2:25:15 PM
Re: Advantage
I don't think people really care if they are on WiFi or cellular, so long as the service is good. Carriers care though, because it hurts them if the cellular is unusable. I think it'll be interesting to see if VoWiFi has an effect on indoor small cell plans. If people are making calls on WiFi instead, they have less of a need for residential femtos, even enterprise small cells.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
6/26/2014 | 2:20:30 PM
Advantage
Do small cells provide advantages over WiFi to the consumer, business customer, or carrier?
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