The evolution of DAS and the rise of small cell technology mark a significant shift in the industry. Building owners should weigh the long-term benefits and flexibility of small cell solutions against the traditional DAS approach, especially considering changing carrier funding models.
In the early days of Distributed Antenna Systems (DAS), carriers often covered the cost of both the signal source and the DAS itself, or at least made significant contributions. The carriers would fund a DAS system and look to their competitors to join the system and help offset the cost. This approach did not work well as each carrier had different priorities in different markets often leading the funder (or anchor) paying the full cost of a multi-carrier capable solution.
Over the last decade, there has been a noticeable shift: carriers are no longer willing to pay for DAS, although they would still cover the cost of signal source. This change has propelled traditional active DAS solutions, such as JMA Teko, Corning One, and CommScope Era, to the forefront of the market. These systems, which rely on carrier-funded signal sources, have kept total project costs relatively low. However, traditional DAS has its downsides, such as higher installation and maintenance costs, limited scalability, and potential for signal interference.
In the class A office environment, DAS are becoming a utility as the expectation for cellular connectivity from occupiers has increased dramatically over the years. A 2019 survey by CommScope found that 80% of office workers consider cellular connectivity to be "extremely important" in their workplace. Additionally, the Small Cell Forum reported that in 2023, more than 90% of commercial buildings in urban environments would require some form of in-building wireless system to meet the demand for mobile connectivity. With increased demand for DAS from building owners, and limited funding for in-building solutions from the carriers, the landscape of DAS is beginning to change yet again.
Today, the industry appears to be at another tipping point. Carriers no longer want to, nor have the funding to, support signal source contributions for office venues. It's important to remember that their primary reason for providing a signal source was to offload users in a building from their nearby macro network, not to satisfy building owners or tenants. With this lack of carrier funding, a major emerging trend is the shift towards small cell technology.
Small cell architecture has been on the radar of building owners with the promise of a better solution for some time. While early generations of small cells, such as Corning SpiderCloud, were limited to single-carrier capabilities, newer platforms like the Ericsson Radio Dot now support multiple bands and carriers.
The Ericsson Radio Dot offers numerous benefits, including the promise of a Carrier-grade, neutral host system, bundling the OEM with MNO/Carrier signal source coordination—a process dreaded by building owners across the country. Other benefits include better flexibility for future technologies, adjustable DOTs that can be tailored to specific coverage needs, and overall simpler and faster deployment.
Despite these advantages, the biggest challenge with the Ericsson Radio Dot has been its cost. Initially, the high-cost relative to traditional DAS systems deterred many building owners. However, the cost of deploying the Ericsson Radio Dot has now dropped to the low to mid $3 per square foot range, depending on the inclusion of C-Band (essential for achieving 5G DAS). LEDG partner Aspen Venues has recently been able to procure Ericsson radio DOT deployments in the Greater Boston area at $2.93/ psf (LTE only, 5G not included) for multiple institutional clients. In comparison, traditional DAS has been hovering around $1.75 per square foot, assuming carriers provide a financial contribution for the signal source. Without this carrier contribution, the cost of a DAS, including an owner-funded signal source, can reach up to $3 per square foot.
Ultimately, the shift in carrier behavior has created a scenario where small cell technology is now comparable in cost to traditional DAS but offers additional benefits and future flexibility. While paying slightly more for a solution that provides the same experience today might seem frustrating, it's important to consider the long-term advantages. Small cell technology can adapt to future carrier generations, potentially reducing long-term costs and avoiding the infamous carrier signal source waiting periods.
Questions on Small Cell? Reach out to LEDG's Dave Miller at dsm@ledesigngroup.com or connect on LinkedIn.