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Digital City
OPEX Reduction Leases & Rentals
Landlords Need to Think Small
Reduction=
The less
the better
18th Agust 2013
When equipment costs exceeded $450.000, it was acceptable for the annual site rent to be $20.000. At that time, the rent represented a fraction of the total cost of the site. But take that $20.000 in 1990, apply a typical 3% escalator that brings the rent to $35.000 in 2010, and you’ve got an operator questioning why the cell site lease costs as much as the equipment.
18th Agust 2013
USEUROPE
18th Agust 2013
Networks become denser Massive deployment of picocells.
Less small cells and 3G sites Solutions go indoor
We will need the landlords more than ever as equipment become smaller.
FTTB is Trojan Horse for Indoor Solutions
Connection of picocell is Ethernet in-building wiring. Same as FTTB.
Safaricom need to off load traffic to fiber to save spectrum
Alcatel Lucent Research estimates that by 2014, total capital and operating expense savings (as % of revenue) from using smaller cells will be 117% for U.S. carriers. Alcatel also projects that by 2017, 80 % of U.S. households with mobile users will install femtocells.
18th Agust 2013
We need to educate the Landlords on the drivers of our industry
Less = Better
Female audience please go to last slide
18th Agust 2013
The past:Choose high place. Serve customers from single points
The past:Customer Happy
The past:The builder
18th Agust 2013
The past:Serve customer across the cityscape roof tops
The past:Many dishes at the roofConnectivity and the builder
The past:Customer Happy
Less = Better
18th Agust 2013
The Future is Less
The past big opportunity in BTS sites is about to get
small Landlords have to think small
Not only the mobile phones got smaller
The whole equipment follows the trend
18th Agust 2013
Today equipment fits in a corridor of the office
Today: Equipment Smaller than the antennas
Customer Happy
Less = Better
18th Agust 2013
Today Can be placed anywhere:Your own home network.
Light and small installed in airplanes
Lamp post Installation
Hanging on fiber junction boxes
18th Agust 2013
Safaricom off loads traffic to fiber
Today: Where’s the builder?The Builder went underground
18th Agust 2013
All Carried by Fiber
18th Agust 2013
Once we hear the landlords, we need to think
18th Agust 2013
Just in case the female audience still doubts about The less the better
Needed to show some biceps
Else they’ll accuse me of being sexist