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Digital City OPEX Reduction Leases & Rentals Landlords Need to Think Small Reduction = The less the better

Drive down opex leases and rentals

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Page 1: Drive down opex leases and rentals

Digital City

OPEX Reduction Leases & Rentals

Landlords Need to Think Small

Reduction=

The less

the better

Page 2: Drive down opex leases and rentals

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.

Page 3: Drive down opex leases and rentals

18th Agust 2013

USEUROPE

Page 4: Drive down opex leases and rentals

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.

Page 5: Drive down opex leases and rentals

18th Agust 2013

We need to educate the Landlords on the drivers of our industry

Less = Better

Female audience please go to last slide

Page 6: Drive down opex leases and rentals

18th Agust 2013

The past:Choose high place. Serve customers from single points

The past:Customer Happy

The past:The builder

Page 7: Drive down opex leases and rentals

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

Page 8: Drive down opex leases and rentals

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

Page 9: Drive down opex leases and rentals

18th Agust 2013

Today equipment fits in a corridor of the office

Today: Equipment Smaller than the antennas

Customer Happy

Less = Better

Page 10: Drive down opex leases and rentals

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

Page 11: Drive down opex leases and rentals

18th Agust 2013

Safaricom off loads traffic to fiber

Today: Where’s the builder?The Builder went underground

Page 12: Drive down opex leases and rentals

18th Agust 2013

All Carried by Fiber

Page 13: Drive down opex leases and rentals

18th Agust 2013

Once we hear the landlords, we need to think

Page 14: Drive down opex leases and rentals

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