One question many people ask is, “how can I accurately predict how much a “coverage as a Service” cellular solution costs? Although there are a lot of variables, and we always like to discuss the specific needs of our customers before providing pricing, some general guidelines will help enterprises and building owners get a rough idea of the monthly service charge while in the information-gathering stage.
Through this blog, we will explore 4 of the most common factors that drive the costs in a “coverage as a service” solution. Each section will provide insight and real-life examples of typical situations and how they impact the bottom line.
Factors that always drive the total price:
- The size of the space
- Number of Cellular Carriers
- Maintenance and Monitoring
- Coverage or Capacity
Factor #1: The Size of the Project
Size of the project. This is a seemingly obvious point, but there are some nuances to deploying cellular coverage that can impact the overall value in terms of metrics that you might be measuring the project value. These metrics are usually defined as the cost per sq. ft. for building-wide deployments and cost per antenna for enterprise deployments. While it is always true that the large the project, the higher the total price, there are many times when larger projects end up having a lower cost per sq. ft. or cost per antenna. This may seem counter-intuitive, but several fixed costs are required for every project, regardless of size. These fixed costs mean that smaller projects can have a higher cost per unit vs. larger projects.
For Example: A large enterprise has two office locations where they would like to improve their cellular coverage. Office A is 25,000 sq. ft., and Office B is 100,000 sq. ft. When the management team is reviewing the cost proposals, they notice that Office A is going to cost $1,550 per month or $310/ Antenna, while Office B is going to cost $3,900 per month or $195/ Antenna. While the overall cost is greater because of the fixed costs, the smaller space has a higher per-antenna cost.
Factor #2: How Many Wireless Carriers are Needed
Simply put, the more wireless carriers (AT&T, Verizon, T-Mobile, DiSH) you have on the system, the more expensive the solution will be. Each wireless carrier has a specific requirement for coverage, equipment, and maintenance. All of this variation increases the complexity of the design, installation, and ongoing operation and increases the total cost of the project. The silver lining here is that the cost increase is incremental and not exponential. Some shared components and infrastructure allow for a multi-carrier solution to still be a reasonable prospect for most customers.
For Example: There is a large office tower in Dallas, Fort Worth, that has just “ok” cellular reception for AT&T and T-Mobile but poor reception for Verizon. The property manager and building owner want to compare the value of improving coverage for all carriers versus just improving coverage for Verizon. They notice that the cost of a single carrier solution is $3,875 per month ($0.01 /sq. ft.). For the same coverage area but improving all (3) wireless carriers’ signals, the cost goes up to $5,010 per month ($0.02). Although 1 cent per square foot may not seem like a lot, over the life of the agreement, this can add up to 10’s of thousands of dollars.
Factor #3: Maintenance and Monitoring Costs
Maintenance and monitoring for cellular coverage solutions is no trivial matter and makes up a large percentage of the monthly costs of coverage as a Service solution. The hardware and software that are needed are complex, require special training and certification to troubleshoot and repair, and normally have many network elements located all throughout the coverage area. The appeal of the coverage as a service model is that there is no need to worry about the how or who of maintenance and monitoring.
For Example: The IT Director for a large bank is evaluating options for improving the cellular coverage in their corporate office and is trying to understand the best options for maintenance and monitoring. The first option is to have one of the IT staff manage the system; however, no one on the current team has experience in this area, so they would need to hire someone or provide the needed training, tools, and test equipment. And this option would still require a third party to come and make repairs once the issue is found. Option The second option is to contract out for the ongoing maintenance and monitoring. While this can be easier and more cost-effective than handling the maintenance and monitoring internally, there are still some additional costs, like hardware replacement and onsite troubleshooting, that may need to be accounted for in the service agreement. Finally, the third option is to go with a coverage-as-a-service provider. In this model, maintenance, monitoring, hardware, and software support are covered. An additional benefit is that there are no markups on the maintenance and monitoring that you might otherwise see from a third-party management company.
Factor #4: Does the Project Need Coverage or Capacity
Similar to the need for multiple wireless carriers, there is a difference in the cost of a cellular solution needed for buildings that have coverage issues or capacity issues. Buildings that have “coverage” issues typically have a few users that are having problems making or receiving calls, no bars, and trouble streaming. Improving coverage requires antennas placed to cover the maximum amount of area with the fewest antennas. On the other hand, buildings that have “capacity” issues are buildings with a lot of users who might have full bars but still struggle to make and receive calls, texts, and access the internet. Capacity-focused solutions require more antennas and infrastructure in the same area to provide greater speeds and reliability.
For Example: A law firm has two offices; Office #1 is located in Midtown Manhattan, and Office #2 is located in downtown Kansas City. Office #2 is situated in an area where there is no nearby cell tower, and the Low-e glass blocks out almost all of the cellular signal from the outside. The four floors of office space only have around 120 people on any given day and never have more than 170 people there at any given time. In this situation, a coverage-focused coverage-as-a-service solution is the best, most cost-effective fit. Office #1 has over 300 attorneys and staff across four floors. Everyone in the office has almost full bars from the outside network, but employees still have trouble accessing the internet, missing calls, and sending texts. Deploying a capacity-focused coverage as a service solution will ensure employees have fast and reliable cellular coverage but will cost about 30% more.
Ultimately, it’s important to remember that the costs of a “coverage as a service” solution will vary depending on each different building or need. With that being said, It can be extremely helpful for enterprises and building owners to understand the four biggest cost drivers for a coverage as a service solution as they begin their research on improving their cellular coverage.
