The capital investment in small cell locations--especially for 5G sites using millimeter wave frequencies--is quite sensitive to demand. Specifically, according to a new white paper by the Small Cell Forum, capex is directly related to the ability to place new small cells of this type close to areas where capacity demand is greatest.
“Where small cell placement was off by as little as half a cell radius from a given hotspot, the result – according to one operator – was that four times as many small cells were required to carry the same traffic,” the Small Cell Forum says.
Location accuracy is even more challenging when higher frequency bands are used, reducing the practical serving radius of the cells.
“A well-placed small cell has its serving area covering locations with high demand,” the paper states. “A poorly located small cell is too far away from the hotspot; its serving area does not cover an area of high demand.” And that efficiency is directly related to the number of small cells that need to be deployed, and therefore capital investment.
To maximize small cell return on investment, and minimize capex overall, small cell siting should be within 20 meters to 40 meters of the ideal theoretical placement (real estate considerations matter, in that regard).
The placement analysis begins with the existing base of 4G radio sites, as well as locations where mobile operators or tower owners have existing lease agreements. For outdoor coverage planners then have to identify intersections, areas of high demand, terrain and structures
As a business issue, 5G small cells using millimeter wave spectrum essentially represent a capacity overlay on the 4G network. As far as the 5G business model, that is a nearly-ideal initial use case: spot deployment as required to increase capacity in urban areas of high data demand.
As with the macrocell network overall, a relatively small number of geographic areas have the highest capacity requirements.
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