The Importance of Connectivity for Building Owners and Property Managers
As a building owner or property manager, you may be wondering why you should care about connectivity. After all, a tenant with poor cellular coverage is Verizon or AT&T’s problem; right? Or, the tenant with only two options for broadband service is just unlucky to be in a market with little competition? Before the pandemic, these arguments may have worked, but with a change in how companies value office space and a shift in the commercial real estate industry at large, there are several compelling reasons why building owners and property managers should consider connectivity critical.
The three reasons why connectivity is essential for building owners and property managers:
Connectivity Builds Long-term Value Within the Property.
Hardware, software, and applications have a useful life of around 3 to 5 years, according to Forbes. Investing in a great connectivity infrastructure can help lessen the impact of rapidly evolving technology. Dark fiber is a good start, but having a fully active “open-access” fiber network allows buildings to plug-in solutions for cellular enhancement, Wi-Fi, Access Controls, security, and future hardware to power IoT and 5G.
Connectivity Helps Enable Tenants’ Businesses.
Connectivity is essential to a business’s core functions, whether that’s keeping in touch with clients, streamlining logistics, or enabling a remote workforce. Buildings that invest in high-quality connectivity solutions are helping their tenants succeed.
Connectivity Increases Types and Number of Services Available.
Today’s tenants expect more than just a space to house their business—they expect a full package of amenities that include connectivity. Buildings that invest in connectivity allow their tenants to take advantage of a virtually limitless number of services from any service provider. Not only are these services made readily available, but they are also easy to turn on. No delays or multi-day construction projects.
As a building owner or property manager, connectivity matters. Improving tenant broadband, cellular coverage, or security enables buildings to stay ahead of technology obsolescence with less cost, helps buildings support their tenants’ businesses, and increases the number of services and service providers in the property.
- Published in Connectivity
Why Does Improving Cellular Coverage Cost so Much?
Many building owners, property managers, and enterprises have looked at ways to improve their in-building cellular coverage. Almost all have left that hunt with sticker shock and wondered how improving their cellular coverage could cost so much.
With 5G quickly picking up momentum and business moving towards a mobile workforce, cellular coverage is becoming invaluable; understanding the costs that make up this critical connectivity is key to understanding that value. To help shed some light on the costs of cellular enhancement, this article will break down what buyers are paying for, what role the Wireless Operators play, and the value of CapEx and OpEx pricing models.
“Good solutions aren’t cheap, but cheap solutions aren’t necessarily bad.”
What are you paying for?
Understanding all the costs of building a cellular coverage solution can be challenging. It is important to remember that the design and implementation of each solution is highly-customized to the individual building. In other words, solutions are generally more costly because they aren’t easy to replicate. For instance, commercial offices will have different layouts for different tenants, MDU’s and Hotels may be timber construction or poured concrete, and hospitals especially vary widely in their layouts and construction materials. This variability must be considered carefully and the coverage designed to meet each building’s specific need.
Equipment
Equipment costs comprise a high percentage of a project’s total cost, generally around 40%. This high cost is due to the hardware and structured cabling being specific to the mobile industry and manufactured to very high standards.
Engineering Services
Quite a bit of engineering goes into cellular solutions. First, the FCC regulates cellular signals (unlike Wi-Fi which is open for everyone’s use), so the design needs to comply with the FCC standards. Secondly, Wireless Operators have control over the spectrum used for mobile communications, which means that designs must be “approved” by their engineering teams before being built. Poor system design can lead to issues in coverage, low data speeds, or in the worst cases, make the in-building coverage worse.
Installation
Unlike Wi-Fi networks, which use category cable (ethernet), traditional cellular solutions use ½-inch coaxial cabling connecting each antenna. This coaxial cable is highly specialized, requiring certifications, special tools, and extensive testing to install correctly.
Maintenance and Monitoring
Maintenance and monitoring is one of the most overlooked and underestimated costs when budgeting for cellular enhancement. As with any building system, proper care is critical to getting the longest life and highest performance out of the solution. Depending on the type and size of the network, maintenance costs can range from several hundred dollars a month to several thousand dollars a month.
Hidden Costs
When considering deploying a cellular solution, some costs (outside of the hardware, design, and installation) may get overlooked. These can range from small costs like replacement ceiling tiles to higher costs like extending new power receptacles or additional security escorts for overnight work. And the time considerations of coordinating the installation process with different tenants or departments.
The Wireless Operators
Improving coverage means working with one or more of the Wireless Operators. In the past, it was likely the Operator (or Operators) would pay for the solution and in some cases, even agree to pay rent. Times have changed, however, and today the Operators’ budgets are refocused on 5G and improving their outdoor networks, leaving little funding for in-building projects.
Understanding Funding Models
As enterprise-focused products have evolved, so too have the methods to fund them. In the past, an enterprise would be responsible for the entire cost of the solution upfront. While large enterprises and some building owners could afford this, it left a large group underserved. Today those in need of cellular solutions have several options ranging from 100% CapEx to 100% OpEx and everything in-between.
Like deciding whether to purchase or lease a vehicle, choosing the best way to fund a cellular solution depends on several factors. Suppose the enterprise or building intends to occupy a space for a long period of time or has an internal IT group that can maintain the cellular solution. In that case, it may make the most sense to go with a CapEx funding method. On the other hand, if a solution is highly complex or a third-party maintenance agreement is needed, it may make the most sense to go with a more OpEx-focused funding method. Regardless of which approach an organization takes, it is essential to understand all costs and clearly identify needs and goals.
Understanding the costs of designing, building, and maintaining the cellular enhancement solutions, understanding the Wireless Operators’ role, and evaluating different funding methods; is crucial to identifying the value of the cellular solution to an organization.
NPN is here to help! Our team is well versed in the design, installation, and financancial models needed for best in class cellular solutions. Connect with us to talk through your cellular project.
NPN is here to help! Our team is well versed in the design, installation, and financancial models needed for best in class cellular solutions. Connect with us to talk through your cellular project.
- Published in Connectivity
A New Era in Indoor Cellular Coverage
For decades building owners and tenants have faced challenges improving in-building cellular coverage. The options they had to choose from were limited, and none were very appealing. One option was to partner with a Wireless Operator and have them foot the bill, but it often left building owners and tenants with only a single mobile provider. Another way was to sign up with one of the large neutral host providers who would agree to build out the cellular system for free as Wireless Operators agreed to join. This approach saw building owners stuck in multi-year contracts with no solution in sight and no recourse. Finally, building owners
and tenants could install a solution on their own. This option stuck owners and tenants with a high-cost, highly-complex solution that was hard to operate and upgrade.
The new age of in-building connectivity aims to solve the need for quality coverage without traditional solutions’ high cost, high complexity, and long wait times.
In-Building Solutions
The Traditional Solutions
Traditionally cellular coverage in-building has been achieved using a DAS (Distributed Antenna System). DAS relies on a passive network of antennas and cabling with a few active components which distribute the coverage. While this network design works well for large venues and very dense areas, it lacks the flexibility needed to meet the demands of the enterprise.
The NPN Approach
While there is still a place for DAS in large venues and projects requiring a lot of bandwidth, we focus on bringing a simple and scalable infrastructure to the enterprise. Our networks rely on a combination of fiber and CAT6e, which delivers LTE and 5G speeds while being capable of meeting the connectivity needs of the building for decades to come.
Coverage Where you Need it
The Traditional Solution
One significant drawback to the traditional DAS is that only covering a single tenant or a small portion of a building results in a significantly higher per square foot cost when compared to installing DAS across an entire building. This cost disparity means the most practical way of installing DAS is to cover the entire property even if it’s not needed.
The NPN Approach
NPN aims to drive the cost of cellular coverage down by focusing on only the areas where coverage is needed. Whether that’s amenities areas, parking garages, or individual tenants, NPN’s approach allows for a lower cost to the overall solution. It will enable the building and tenants to select only areas that matter.
The Problem with Renovations
The Traditional Solution
Most buildings don’t remain in the same configuration for long. Between tenants moving in and out and building initiatives, floor layouts and areas where coverage is critical can change frequently. Those familiar with DAS in their property know the cost of damaging a traditional DAS can range anywhere from a few thousand dollars to tens of thousands of dollars in repairs. And once the system is damaged, coverage can be affected across many floors.
The NPN Approach
The flexibility of NPN’s network has the added benefit of being extremely easy to move, extend, and reconfigure. This flexibility allows new tenants to customize service in their space quickly and easily. It enables building owners to scale coverage anywhere in their property at a moment’s notice. And last of all, no more worrying about the high cost of potential damage during renovations.
The Upgrade Path
Traditional Solutions
Traditional DAS solutions do a great job of providing a high-performance “carrier” neutral platform. This performance, however, comes with a tradeoff. The passive cabling and antenna infrastructure that makes up the DAS is not very upgradable. Meaning, adding new frequencies or technologies to the DAS often requires a rip and replace or the installation of parallel infrastructure.
The NPN Approach
NPN focuses on creating solutions that are ready for 5G and beyond. By using fiber end to end, our networks allow the easy expansion of coverage and upgrades to technology; whether that is 5G, 6G, or something yet to be invented.
What it Costs
Traditional Solutions
Because DAS is an all-or-nothing solution, the current financial models reflect this. The typical CapEx and OpEx models for DAS are structured to provide the best value when the entire DAS is installed on Day 1. Additionally, these models get considerably more expensive as time passes since the maintenance costs grow exponentially as the system ages.
The NPN Approach
NPN’s coverage solutions have a lower total cost to own, a longer lifespan, and a significantly smaller initial investment, opening the door for several new funding models. These models can range from; shared cost models, to opt-in models, to partnership models with wireless service providers and ISPs.
- Published in Connectivity
Redefining the Network as a Service for the Enterprise
In today’s landscape providing cellular connectivity within buildings and inside large venues continues to present challenges for building owners, property managers, and even the wireless operators. Two issues inevitably arise in every discussion; how to provide the best experience for the users (whether tenants, staff, guests, or fans) and who will pay for the services. With the wireless operators becoming more selective in the projects they are willing to fund, it has left many enterprises responsible for the total cost of deploying connectivity solutions.
- Published in Connectivity
