THE MUNI FACTOR IN NETWORK DENSIFICATION: EFFECTIVELY WORKING WITH MUNICIPALITIES TO CREATE THE NEXT GENERATION OF WIRELESS.
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1 share: THE MUNI FACTOR IN NETWORK DENSIFICATION: EFFECTIVELY WORKING WITH MUNICIPALITIES TO CREATE THE NEXT GENERATION OF WIRELESS. INTRODUCTION As consumers increasingly look to utilize their wireless devices for high-bandwidth applications like ondemand and live-streaming video, virtual reality, photo sharing and social apps, and connected home/cars/ Internet of Things (IoT) services, carriers are densifying their networks to accommodate the greater demand for bandwidth and better user experiences. This densification includes the deployment of 4G small cells today and, ultimately, 5G nodes in the near future. Today, there are many emerging competitors in the small cell and fiber spaces; as these players navigate the ecosystem, the winners will be those that, beyond simply having a strong fiber footprint, have a superior ability to execute and a long-term outlook and that means building the right relationships with municipalities. As many industry analysts have noted, the ability to get through land use entitlements and agreements to install in rights-of-way (ROW) is essential for densification builds to succeed. This is not the same process as it is for installing fiber backhaul, but rather requires unique expertise and dexterity to work with municipalities to secure agreements and move forward. It also means negotiating pole attachment agreements with utilities, municipalities, counties and co-ops, and skill in educating and working with the community, with a long-term view. As consumers demands for connections continue to grow, so will the networks meaning companies become integrated into the community for the long term. That necessitates education and relationship-building, and the need to deliver a high-quality experience that ensures the provider will be welcomed back for the next deployment. December
2 THE ERA OF NETWORK DENSIFICATION When it comes to what s driving wireless carrier network investment, there s no doubt that we re standing at the crossroads of several consumer and business consumption trends. Bandwidth ever more of it is the lifeblood for enterprises as they embrace mobility and the cloud; it s also critical for cities as they get smarter with connected light poles, video surveillance for public safety, smart parking, waste management sensors, and other IoT efforts. And, of course, consumers are streaming entertainment to their connected devices in increasing numbers, downloading apps for everything, and embracing next-gen technologies like virtual reality gaming and augmented reality innovations like Pokemon Go and the Waze interactive traffic app. As a result, the Cisco VNI expects Internet traffic to grow an astounding 29 percent Compound Annual Growth Rate (CAGR) over the next decade, with volume growing tenfold. Video alone will represent more than 82 percent of all traffic by 2020 and most of that will be carried on wireless networks. Looking even further out, this translates into exponentially more demand for mobile connectivity in 2030 than there is today. There will be 26.3 billion total connected things globally by 2020, according to Cisco, all taking advantage of faster networks to do more bandwidth-intensive tasks. All of this is requiring carriers to embrace innovation in network topographies including boosting spectrum optimization to support this expanding growth opportunity and the future connected world. Small cells, as a complement to towers, represent the natural progression in network densification needed to address these requirements. There are also more and more devices coming online. Ericsson s Mobility Report predicts that by 2021 there will be 7.7 billion traditional mobile broadband subscriptions one for nearly every person on the planet. Also, Cisco s Visual Networking Index (VNI) Global IP Traffic Forecast notes that once IoT devices are added in, the total will far outstrip those numbers: there will be 26.3 billion total connected things globally by 2020, according to Cisco, all taking advantage of faster networks to do more bandwidth-intensive tasks. A NEW TECHNOLOGY APPROACH To accommodate the needs of the future connected world, wireless network builds are expanding from macrocell sites that cover whole neighborhoods to include small cells that cover mere blocks. Smaller than traditional towers or rooftop installations, these compact base stations are radio access nodes that typically have a coverage range from 30 feet to several hundred feet. They also are lower in height compared to traditional macrocell towers or rooftop installations (as low as feet), and are often on utility poles and streetlights. Small cell nodes are often inconspicuously installed on existing ROW infrastructure like street signs, telephone poles or streetlights. They can be used to offload mobile voice, data, and video traffic from the macro network, and, crucially, they bring December
3 the network much closer to the user. Networked together, they create a high-capacity framework to substantially increase throughput per user and overall network bandwidth, while allowing for spectrum reuse and efficiency. By using multiple nodes, small cells can deliver more capacity to the same geographic area than one traditional tower would normally cover on its own. More nodes create a reduced noise floor, thanks to there being less interference per device which in turn boosts capacity and offers a better overall experience for wireless users in the area. For data transfers back to a wireless carrier s long-haul network through fiber, more nodes closer to the ground create a robust signal with a greater chance that a user will get a direct line of sight from his/her phone to the node. In tandem with this, carriers are also embracing Centralized-Radio Access Network (C-RAN) architecture, which is a converged, cloud-based approach to using and managing network resources. A combination of network functions virtualization (NFV) techniques and data center processing capabilities will allow for resource pooling, scalability, layer interworking, and even greater spectral efficiency. When it comes to small cells, C-RAN architecture affords a more optimized way to orchestrate the complexity of having multiple nodes, and allows for programmability in bandwidth management. WORKING EFFECTIVELY WITH MUNICIPALITIES While the technology development is well on track, there s another, significant aspect to network densification that cannot be underestimated: the business agreements that must be in place in order to make buildouts successful. The ability to negotiate ROW use and franchise agreements is an arena that presents one of the largest challenges for wireless carriers and infrastructure providers. Needless to say, to boost one s chances of success, it is critical to have a local team in place people on the ground with the knowledge and authority needed to ensure proper planning. Having a deep level of local knowledge into how a specific city s telecom approvals/ regulatory framework operates from a business perspective provides a significant head start for negotiations. It s important to understand the very specific local requirements in setting up service within a municipality, explains Mike Kavanagh, President of Small Cell Sales at Crown Castle. Often companies may not understand all of the elements that go into ROW and what s involved in working with municipalities and their processes. We have experience with jurisdictions, municipalities, and more from working on hundreds of traditional tower deployments experience that we also bring to bear on small cell deployments. Designating a single point of contact can be a critical key to success; one project manager should oversee the planning phase and be responsible for coordinating construction, regulatory, licensing, real estate, and other resources. That also means having the right relationships with the right stakeholders for the long term. Once these networks are in place, they will be in operation for decades and will likely serve both commercial and public purposes. We have 45 real-estate professionals across the country that are assigned to maintaining and nurturing relationships with cities, explains Kirk Wampler, Vice President of Network Real Estate December
4 at Crown Castle. When you are the last owner of these assets, you have to continue to touch these jurisdictions and to keep the dialogue open. When it comes to the permitting process, Crown Castle is a Competitive Local Exchange Carrier (CLEC) in 46 states and D.C., which gives the company the right to operate in the public ROW. In densification builds, this is merely a starting point carriers also need a pole attachment agreement with the pole owner and then a ROW use agreement with the municipality in order to operate there. Both are expertise areas for Crown Castle. We approach it from a public utility perspective, says Wampler. We seek to build in public utility easements in the ROW. We develop a set of drawings for public works that lay out our fiber cable placement in an easement and a shroud on a utility pole. And then we note that there will be an antenna on top of the utility pole that s where the city will often refer us to the planning department. He adds, We start at the public works counter and seek encroachment permits for our deployments. As a CLEC working in the ROW, we seek over-thecounter permits rather than more extensive zoning approvals. safety needs that a robust network can fulfill, and determine how you can work within their existing processes. BUILDING STRONG MUNICIPAL RELATIONSHIPS Cities must balance the community s need for critical wireless services with any potential concerns from residents and city management about the network deployments themselves. And carriers must keep in mind that municipal government officials have a wide range of levels of familiarity and expertise in wireless networks. Some cities may not have run across the small cell concept before, so the starting point may be offering education on the difference between a tower and a node, how many installations they will need, and how they will need, and how the installations will help the community. Other municipalities may already have smart-city initiatives well under way and have more than a passing knowledge of wireless technology. This status is useful in disputes as well. Crown Castle has certain rights as a public utility and can choose to assert those rights via litigation. More often, it can negotiate a zoning process that is faster and less expensive than full-blown legal action. Here too, though, taking a long-term view of the network is important. There s an attitudinal aspect that s really critical, Wampler says. Once you start working in a city, you have to be aware that you will be working with them for the long term. So asserting your rights from a legal perspective and going in aggressively may not be a recipe for a harmonious long-term partnership. It may be better to approach it in a consultative way educate on the tangible benefits of the build, expand on the community and public December
5 Thus, in terms of best practices, providers need to determine what the municipality s experience has been to date, and then be able to explain how a small cell build is differentiated from other requests the municipalities may be used to. A key piece of the conversation is explaining why cities need these investments to stay current and prepare for the future. Fortunately, there are several real-world examples that can illustrate this. For instance, New York City installed a smallcell network in Central Park to meet the wireless demands of the many visitors who frequent the park as well as diverse stakeholders like the Department of Transportation, the Central Park Conservancy, the Landmarks Preservation Commission, and the Department of Parks and Recreation. With a need to support 200,000 daily summer visitors (with that number expanding every year), Crown Castle installed a fiber-based back-haul solution to offer essentially unlimited capacity. It s a forwardlooking solution, since future upgrades won t require installing additional cable, and because Crown Castle is a neutral host provider, all present and future wireless carriers can take advantage of the new system without unnecessary infrastructure. The result is a more connected, safer, and attractive New York City that s ready to support today s wireless needs and tomorrow s advanced services, like selfdriving cars. Despite the case studies available, conceptually understanding the coverage vs. capacity question is difficult for nontechnical stakeholders, Kavanagh noted. The purpose of building out these networks is to get ahead of the needs that carriers know are coming, he says. But the average user may not have experienced any issues with their service if they mainly use voice and texting. Heavy-data users will be more aware of any degradation of service. But generally, if users don t feel an absence of quality, then they don t understand what s at stake. This is where skill in educating and working with the community and with elected officials becomes critical. THE POLITICAL FACTOR AND RESIDENT CONCERNS Aside from the technology conversation, it s important to remember that elected officials will be unwilling to place their positions at risk for an unpopular wireless build, making it an absolute requirement to get the community on board with the buildout when it comes to aesthetics and health and safety. While better wireless coverage is generally a winning slogan, and most public officials want more investment to upgrade amenities, the reality is that many within a given population may not know what a small cell is and will question how many are going in and what effect they will have on the community. For instance, there could be concern about the proliferation of new boxes on every street corner, both from a health-and-safety perspective as well as from an aesthetic standpoint. To the latter point, addressing any concerns about the impact on the cityscape should be a priority. The idea of a wireless tower often conjures up an image of a large piece of metal that can mar the view. It s important to explain that small cells can avoid the eyesore factor, and that it s possible to select a discreet node style that blends in to the existing infrastructure. It s also important to educate city contacts as well as residents on the facts about safety. Residents are often concerned about the effects of heightened electromagnetic fields and additional radio waves, but the consensus among the FCC and the scientific and medical community is that the technology is safe. In fact, the safety of radio waves has been extensively studied for more than 60 years and the research is subject to constant review by government health agencies and standards-setting bodies. The GSMA (formerly the GSM Association), the global wireless technical standards body, points out that in the extensive and ongoing reviews of Radio Frequency (RF) research by expert panels, health agencies and standard-setting organizations around the world, there have been no established health December
6 hazards from exposure to radio waves below the limits applicable to wireless communications systems. Aside from addressing aesthetics and health and safety, creating models that offer cities specific benefits can often go a long way to ensuring success. Oftentimes, reaching agreement with various community groups and city staff involves creating a partnership, says Wampler. We think about how our build could be used for the community s good and, when we can, we support broadband access for public safety and education initiatives. CASE STUDY: PHILLY PREPARES FOR THE POPE An example of how a successful small cell deployment plays out in practice can be seen in how Philadelphia prepared for the Papal Visit in The city understood that it would need to accommodate the anticipated wireless demand stemming from the event and it wanted to invest in a solution that would be useful for future needs. But there were several challenges that needed to be overcome, which Crown Castle was able to resolve. For one, any installation needed to be unobtrusive to preserve the views and the aesthetics of the space. From the Philadelphia Museum of Art to the Franklin Institute to Rodin s The Thinker statue, Philadelphia s tree-lined Benjamin Franklin Parkway is home to some of the nation s most famous icons. Also, each piece of infrastructure needed to be fully utilized as a shared solution across multiple carriers in a permanent way to support future events. Further, the solution needed to be fiber-based to provide the data capacity necessary to support large crowds. And perhaps most challenging, the design, approval, fiber and equipment installation, testing, and calibration all had to be completed in less than nine months. Crown Castle coordinated with the planner of the event and obtained approvals from six separate departments: the Philadelphia Streets Department, the Parks Department, the Permitting Department, the Office of Emergency Management, Philadelphia Electric (PECO), and Philadelphia Gas Works (PGW), in addition to obtaining permits from the Pennsylvania State Historic Preservation Office (SHPO). In all, 37 new small cell nodes were installed on poles in the public ROW, designed to blend in with the existing streetlights. As with other Crown Castle installations in historical areas, like Central Park in New York or the French Quarter in New Orleans, the installation was visually unobtrusive and met the high standards of the Parks Department. Nearly 900,000 people greeted the Pope when he arrived in Philadelphia for his public mass during the 2015 World Meeting of Families, all needing access to high-bandwidth wireless for video streaming, photo sharing, and social-media posting. One carrier reported over 12.6 terabytes of data usage on its network almost 7.5 times as much as it reported for 2015 s biggest NFL game. Wireless customers were able to share their experiences with friends and family around the world and access to essential emergency services remained available. In addition to the success of the event, it s an upgrade that served the city and carriers into the future. The installation went on to accommodate large crowds at events such as the 2016 Democratic National Convention, concerts, Fourth of July fireworks, and more. December
7 The streamlined deployment is indicative of how local knowledge makes all the difference for wireless carriers when it comes to densification efforts. We offer carriers speed-to-market, and those relationships are critical to that effort, says Kavanagh. We have a team dedicated to utility relationships, which is a specialized group of people that speak the utility language. It s not the kind of expertise that you can develop overnight. CONCLUSION The United States is at the forefront of a new, connected era of opportunity and growth. Innovation in wireless architecture will support massive advancements in what applications and networks can do. Consider smart-city applications like connected grids that produce happier citizens and reduce costs; remote telemedicine and surgery that improve health outcomes; factory management and predictive maintenance that boost profit; or smart homes and the Internet of Things that streamline people s lives and encourage productivity for business users. All of that and more will give rise to a new paradigm that the McKinsey Global Institute predicts will contribute $3.9 trillion to $11.1 trillion a year to the global economy by To make it happen, the network densification process is inevitable. The rise of a converged architecture ahead of 5G standards coming to fruition is the first step in an inexorable topographical evolution. Densification and C-RAN are also requirements for supporting the next generation of wireless standards. In 5G, networks will have 10 to 100 times faster throughput than LTE; there will be data rates of several gigabits per second supported for tens of thousands of users; 1Gbps will be offered simultaneously to many workers on the same office floor; and we ll see an increase in capacity of a factor of 100X over today s networks. With this sea change on the horizon, building relationships with municipalities and utilities and starting rollouts today are necessary steps in order to stay competitive against the demand. But when it comes to planning, working effectively with municipalities is a linchpin, and too often neglected. This means taking the time to educate stakeholders and the public, address concerns, and understand their specific processes and culture. There are multiple paths that all need to be followed in order to achieve success. Navigating the processes of permissions, project management, local politics, and community education is not linear or stepby-step, but rather requires working with different departments all at once. Crown Castle offers wireless carriers a way to build out their networks effectively and efficiently. The company has 15 years of experience in the small cell space, has worked with 460+ municipalities, and has deployed thousands of small cells. It also has 450 agreements with utilities that allow attachments of facilities on their poles. Analogies about spinning plates and walking tightropes are appropriate here, Wampler says. Nailing down these agreements is a process of trying to keep a lot of parties engaged and working in concert. You have to manage all of the components at the same time meaning all the constituencies are brought in at the right time and in the right place. This takes specific experience and skill. l Crown Castle provides wireless carriers with the infrastructure they need to keep people connected and businesses running. With approximately 40,000 towers and 17,000 miles of fiber supporting small cells, Crown Castle is the nation s largest provider of shared wireless infrastructure with a significant presence in the top 100 US markets. December
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