With LTE deployments now well under way across the globe, operators have already received the message loud and clear from vendors that small cells are an essential component in their LTE strategies. According to a survey from Informa Telecoms & Media released in December, 98% of mobile operators said small cells are "essential for the future of their networks". Informa also says there were 46 small cell deployments by operators globally as of December, including nine of the top 10 operators by revenue globally.
Up to now, the small cell story has primarily been an offload story - taking the mobile data load off the macro cells and increasing coverage and capacity in a way that macrocells can't do economically. And for the most part, that's still the primary focus off small cell deployments.
But awareness is growing that the potential of small cells is by no means limited to mere offload. It's also about creating opportunities for new business models and revenue streams.
For a start, says Andy Odgers, CEO of Quortus, the latest generation of small cells is increasingly adding processing and storage on the cell itself. "This opens up a world interesting possibilities and applications, including shifting some of the processes traditionally based in the network core to the edge - reducing the load of the core network and giving significant backhaul savings."
Small cells also come with the benefit of reducing churn and increasing new subscriptions, says Small Cell Forum chairman Gordon Mansfield.
"This began with femtocells that eliminate black spots in homes but is now continuing with public access small cells that bring coverage to isolated villages for the first time, as well as delivering a vital capacity boost in urban areas where users increasingly care about the quality of their data connection," he says.