Nokia Networks
The HetNet Engine Room
(H.E.R.): Bringing R.O.I. and
Scalability to Ultra-Dense
Networks
Nokia Networks white paper
The HetNet Engine Room (H.E.R.)
Contents
Introduction
2
Small Cells: A New Partnership Paradigm
4
Small Cell Deployment Studies
4
Getting R.O.I. From Small Cells
5
Business Benefits of H.E.R.
6
Introduction
Mobile networks are on the cusp of tremendous transformation. Data usage
continues to soar, and the Internet of Things is expected to bring billions of new,
wireless connections to networks over the next five years. Operators must take a
Heterogeneous Network approach that includes intense densification and coordination
in order to make the most efficient use of spectrum and capital.
Small cells are already beginning to supplement the operations of the macro cellular
network and will be a central strategy by which mobile operators deal with this ongoing
growth in mobile capacity and coverage demands. These HetNets include indoor and
outdoor implementations of Distributed Antenna Systems (DAS), and the use of Wi-Fi
as well as cellular technologies.
There are three primary strategies by which operators can boost their networks’
capabilities:
1. Increase the number of cells, or densification.
2. Increase the available spectrum via spectrum purchases, utilizing unlicensed
spectrum for Wi-Fi offload or leveraging LTE-Unlicensed/License-Assisted Access.
3. Increase efficiency through network upgrades through the use of MIMO, 256 QAM,
smart antennas, and other features of LTE-Advanced.
Of these three options, densification offers advantages in time-to-market, costeffectiveness and the ability to address specific hot spots to quickly achieve improved
performance in today’s networks. Ultra-Dense Networks will also be a key feature of
5G systems. 5G is expected to be commercially available by 2020 and further boost
speed, capacity and network density through closely-sited small cells underlying
the macro layer. The anticipated use of millimeter wave spectrum in 5G will demand
that cell sites be more closely located due to the propagation characteristics of that
spectrum.
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102
101
Macro
DAS
Wi-Fi
Small cells
Centralized
RAN
103
104
Traffic growth
Network
evolution
Distributed
Radio Cloud
Centralized
Radio Cloud
Mobile operators around the world have already announced plans for large-scale small
cell roll-outs. Actual deployments, however, have thus far been much slower than
expected because of the cost, complexity and time involved in deployment. The
real-world logistics of deploying small cells on a large scale have been impacted by
three major challenges:
• Site acquisition
• Backhaul
• Power
An lnfonetics Research study has found that operators intend to shift 20% of their
macro cell traffic to small cells by 2018, but that the current cost models, as well as
site planning, power and connection sourcing have impacted deployment timelines (1).
Local regulatory processes can slow deployment, as officials must often be educated
about the benefits of small cell deployments and the improvements they can make in
existing network experiences for city residents and municipal operations.
In addition, there is no central repository for accurate, up-to-date information about
possible sources of power and backhaul infrastructure for potential sites. Patching
together the necessary information is time-consuming and must be performed for
each potential site, which translates to long lead-times and high costs.
To support more consistent, predictable capital and operating expenditures for small
cells, the industry requires a comprehensive planning and deployment solution to
enable small cells to live up to their promise.
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Small Cells: A New Partnership Paradigm
Small cells can become a central part of Ultra-Dense Networks, but only if they are
financially viable for large-scale deployment. This requires a two-pronged approach:
a new paradigm of cooperation with cities and other potential partners, and the
industrialization of small cell deployment processes.
Broadband connectivity is fuel for innovation and economic growth, connecting
businesses and individuals to the broader world and boosting productivity. A study
by Deloitte and the GSMA on the impact of mobile technology on GDP found that a
doubling of mobile data use leads to an increase of 0.5 percentage points in GDP per
capita growth rates, and in developing markets, a 10% expansion in mobile penetration
increases productivity by 4.2 percentage points. The World Economic Forum recognizes
the impact of wireless connectivity and mobile broadband subscription penetration
on human potential for innovation and factors that “technological readiness” into its
annual Global Competiveness Report (2). Cities can increase their appeal to citizens
and enterprise by having robust broadband options, both wired and wireless, that
provide easy, proximate connectivity where its citizens live and work.
There are also increasing prospects for large-scale loT and “Smart City” applications
that can provide practical benefits to municipal operations and citizens. Fleet
management, public safety and utility applications are just a few possibilities. Bundled
solutions from operators, or third party neutral-hosts, could leverage applications,
service management and small-cells-as-a-service - as well as potential revenuesharing with a host city. Packaged services can also be offered to enterprise operations
or loT OEMs. The success of these applications depends on a reliable network, which
makes the host or partner a stakeholder in how well a local wireless network performs.
This opens up the opportunity for streamlined deployment to become a collaborative
effort, where all parties have a stake in seeing an optimal network deployed rapidly.
Small
Cell Deployment
Studies
Small cell deployment
studies
Challenge is to create certainty
Benefits
40
• Outdoor small cells allow municipalities to
increase customer experience
35
Obstacles
• Legal requirements and standards based on
attachments can be costly and various.
• Approval processes for such can be time consuming
and drawn out
“There are areas within the city where calls are regularly
dropped due to poor service areas.”
– Municipality 3 Representative
2
Number of small cells sites per cost
• Increased service quality leads to savings in SAC
(Subscriber Acquisition Cost) and SRS (Subscriber
Retention Cost)
Source: Ivey Business School Study, April 2015 and Nokia Internal
30
25
20
15
10
5
0
Low
Medium
High
© Nokia Solutions and Networks 2015
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Partnerships such as these offer the potential for a faster road to a better network.
Both the cost of deployment and the benefits of an improved network are shared.
The second piece of a new HetNet strategy is to radically streamline small cell
deployment processes. Small cell equipment typically accounts for 10% or less of a
site’s total cost of ownership. The bulk of investment goes to the services through
which a site is selected, assessed, acquired, permitted and connected. Those costs
must be reduced, and the development time shortened, in order to make small cells
financially viable and scalable.
HetNet Engine Room:
Getting the R.O.I. from Small Cells
Nokia can deliver a SVI based on cost factors & ROI
10%
10%
30%
Backhaul
Acquisition
Rent & Power
Hardware
Deployment
30%
20%
Multiple options
ROI
Candidate 1
ROI
Candidate 2
ROI
Candidate 2
Access
No
Ability to manage through the build stages
Yes
Yes
Yes
Power
No
Yes
RF
Back-haul
No
No
Construction
DONE
No
Maximize coverage & capacity. Minimize CAPEX
3
© Nokia Solutions and Networks 2015
Nokia has developed the HetNet Engine Room service solution ( or H.E.R. for short)
to address this market need. H.E.R. combines innovative planning tools and GIS
applications exclusive to Nokia with the expertise of network engineering specialists
who utilize those tools to identify the best possible site locations. Street-level 3D
mapping is blended with the capabilities of the SAC Wireless Engine Room to provide
permitting information and master lease agreements, as well as detailed data on
existing critical infrastructure including pole location and type, fiber routes and power
access. H.E.R. joins comprehensive site development services and real-world site
information into a single, holistic solution. It provides granular details on jurisdictional
requirements, initial site research, and insight into the radio and physical environment
in order to minimize the time, effort and personnel required for small cell network
planning and deployment.
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Site Value Index (SVI)
A way to evaluate ‘virtually’
every location in terms of:
• total network impact
• cost of deployment
• cost of maintenance
34
65
78
Considers:
• spectral efficiency
• traffic hotspots
• Positive and negative
assets
Providing a Site Value Index
or “SVI” (1-100) quantifies ROI
4
© Nokia Solutions and Networks 2015
A Nokia network engineer can examine a detailed map and street-level view of a city
block to scan for potential site locations, then add layers showing all nearby existing
power and backhaul options. With a few clicks, the pole’s height can be accurately
measured along with distance from the site to nearby power cabinets or manholes,
and the nearest fiber access point: all without visiting the location. Pole-type details
and jurisdictional information are included, along with potential barriers that lie
between the site and backhaul or power sources. Social media-based information can
be added as a layer that illuminates network hot spots.
In addition, H.E.R. simplifies site assessment and prioritization by providing a
composite score for each potential site: a Site Value Index (SVI) score. This score, which
ranges from 0-100, is based on proprietary algorithms that take into consideration the
radio environment and spectral efficiency with regards to the macro layer, including
details such as nearby physical barriers; site development costs; and operating costs.
Business Benefits H.E.R.
Business
Benefits of H.E.R.
Benefit
Total Costs (Capex / Opex), Return of Investment, Time to Market
Time
Benefit*
ROI
10% more Users & Traffic
TCO
20% more cost efficient
T2M
30% faster deployment
Cost
* Benefits depends on market environment
 Lower Investment
 Faster Break-even
 Higher ROI
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5
Business Aspect
© Nokia Solutions and Networks 2015
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High-value sites are easily identified by a high SVI score and can be prioritized
in site acquisition plans. Through the inclusion of social media heat maps,
H.E.R. has the ability to both identify overloaded network locations and offer a
clear hierarchy of possible solutions.
With the detailed street-level maps, new sites can be easily added and
explored in a virtual environment that reflects the real world. H.E.R.’s
comprehensive deployment data for cities nationwide includes:
• Route information for more than 500 backhaul providers, including dark
fiber, microwave and alternative access vendors (AAVs)
• Power sources including local utilities, local jurisdictions and secondary
sources
• Documentation on more than 600,000 fiber-lit buildings
H.E.R. supports a new ecosystem of smart city and enterprise partnerships
by making initial site assessment and selection swift, easily repeatable and
flexible, and by keeping costs predictable. It helps operators avoid sinking time
and effort into a site that later turns out to be unsustainable and must be
abandoned. H.E.R. can provide documentation for local officials and regulator
as to why particular sites were selected and on the benefits that any single
site or network of sites provides. A list of potential sites and their relative
SVI scores can start a stakeholder conversation on deployment with minimal
investment of resources and time, and that list can be easily expanded or
changed on the fly with little delay or further investment.
H.E.R. represents the innovation in small cell enablement that will finally
support a large-scale small cell ecosystem that can enable loT, smart city
applications and new revenues and efficiencies for operators, municipalities
and enterprises.
For more information on leveraging the H.E.R. service in network planning,
please visit:
4. Infonetics Research, 2014 Small Cell Backhaul Strategies: Global Service
Provider Survey
http://www.infonetics.com/pr/2013/Small-Cell-and-LTE-BackhaulStrategies-Survey-Highlights.asp
5. World Economic Forum, 2014-2015 Global Competitive Report
http://www.weforum.org/reports/global-competitivenessreport-2014-2015
6. You can learn more about HetNet Engine Room at
http://networks.nokia.com/hetNet-engine-room
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respective owners.
Nokia
Nokia Solutions and Networks Oy
P.O. Box 1
FI-02022
Finland
Visiting address:
Karaportti 3,
ESPOO,
Finland
Switchboard +358 71 400 4000
Product code C401-011921-WP-201509-1-EN
© Nokia Solutions and Networks 2015
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