Extending Wireline Revenue Streams

As customers transition to wireless devices and services, wireless service providers need far more points of presence in order to serve demand for higher data rates and more ubiquitous coverage. It means wireline carriers are in an ideal position to provide infrastructure for wireless providers; by incorporating Distributed Antenna Systems (DAS) with their FTTx or PON networks, wireline carriers can host wireless operator traffic and participate in the rapidly growing wireless revenue stream.

Wireline carriers have invested billions in bringing fibre to the node and fibre to the premises in cities and suburban neighbourhoods, but the payback from these investments is being stretched out because of the competitive landscape and the convergence of technologies, resulting in subscriber churn to wireless services. One carrier reported wireless subscriber growth of 12% from 2009 to 2010. In the same period, the carrier’s wireline business realised a subscriber loss of 9.9%.

At the same time, wireless service providers are building out 4G networks to deliver higher data capacity and more reliable services. Due to the need for capacity and high data rate services, cell site coverage continues to shrink. The only way to deliver high-performing, ubiquitous 4G services is to increase the capacity in the network by 300-500%. That amount of capacity strains the service providers’ limited spectral assets, requiring greater levels of frequency re-use. It isn’t practical or cost-effective to add that many traditional cell sites to the network to achieve the required level of sectorisation. Wireless service providers will look for alternative small-cell solutions to fill in gaps in macro coverage and capacity.

Small Cell Solution

DAS is a primary solution for creating small cells. With a DAS, the service provider can extend the wireless signal out from a base station over distances of several miles through a series of distributed antenna systems connected via fibre. For the wireless service provider, however, deploying the fibre to support DAS is tangential to their business. Wireless carriers can speed time to market by using existing fibre assets in the environment and minimise zoning and construction time by deploying smaller cell site solutions that can be blended into the environment by using the public right-of-ways.

Wireline carriers hold the key to this problem. By leveraging their fibre networks to support DAS, wireline carriers can lease capacity on their fibre infrastructure or act as a neutral host. This incremental and sustainable revenue stream improves the business model for building out FTTx while addressing the wireless service provider’s need to bring service to market quickly, simply, and reliably.

A DAS is an efficient means to distribute RF spectrum from a common RF source, where the BTS signals are connected to a host, which distributes the BTS’ signal to multiple remote antenna locations via a fibre network.


Figure 1: A DAS network overlaid on an FTTx infrastructure

Carriers can participate in this model most easily, by offering ‘a la carte’ services to the wireless service provider that either provide access to fibre or offer optical efficiencies, and/or provide leased physical space for the network infrastructure and gear.

DAS overlays nicely onto an FTTx network. The fibre origination in an FTTx network is typically in a serving office with great access to necessary facilities to host or ‘hotel’ BTS resources. Access to electrical, backhaul, HVAC and importantly fibre to the remote nodes creates an environment where the wireline operator can lease space, eliminating the need for the wireless operator to develop a new site to locate the BTS resources. The wireline operator then has the fibre from this serving office running deep into the network serving their FTTx investment.

By either leasing spare dark fibres or offering wavelength services, the wireline carrier can recognise recurring revenues leasing these fibres to the wireless operators for their use to distribute the BTS capacity to remote DAS nodes. DAS nodes can be housed on lamp posts, telephone poles, street cabinets or other street furniture. In this scenario the wireline carrier has the opportunity to further monetise their investment while the wireless operator has a cost effective and time-to-market efficient solution to deliver wireless services.

To overlay a DAS on an FTTx network, the wireline carrier can:

Monetise spare or dark fibres that may be available as reserved for spares or expansion of wireline network;

Use optical splitters that link the wireless signal from the base station to the FTTx network for distribution to the remote units;

Offer wavelength services where dark fibres are not available;

Use a CWDM or DWDM to split out wavelengths for use in the DAS, minimising fibre usage;

Offer a simple, connectorised demarcation point between the networks via an MST solution;

Speed time to market by using existing fibre assets take advantage of zoning approvals already completed;

Utilise space within a Central Office, basement, enclosure or hut to house wireless carrier base stations that will provide the signals for the DAS, and;

Utilise common backhaul, power and HVAC to minimise cost and environmental impact.

For the wireless carrier, using DAS solutions improves wireless coverage and capacity by placing the signal sources in greater proximity to user, resulting in superior voice quality and the ability to offer higher data rate services. Figure 2 shows a DAS antenna deployed in a neighbourhood.


Figure 2: A DAS antenna mounted in a neighbourhood

Carrier Benefits

By utilising FTTx networks to overlay a DAS solution, carriers receive several key benefits:

Maximised usage of the FTTx fibre plant;

Faster payback on FTTx investments;

Participation in the wireless market revenue stream;

The ability to market wireline and wireless services to a common customer base;

Bundled enhanced wireline and wireless service on one bill;

Ability to add a provider without disrupting the community, .i.e. new construction, and;

Minimise time-to-service with easy-to-zone, non-aesthetically disruptive solutions overlaid on the existing infrastructure and real estate.

While the ROI period may vary based on the type of fibre network architecture, the level of leased services offered (i.e. dark fibre or neutral host) and the number of wireless service providers participating in these leased services, it can be as little as six months.

When used as an overlay in FTTx networks, DAS products provide a robust, easily deployable solution for distributing wireless signals in a manner perfectly suited to deliver 3G and 4G services. Wireless service providers can support 2G, 3G, and 4G services over DAS. The systems are easily upgraded to support future frequencies within a common hardware platform, making DAS an investment that continues to return revenues for many years.


Author Profile: Tony Lefebvre is the Director of Product Management at TE Connectivity. During his tenure with TE, Tony Lefebvre has held a variety of business development and product management positions with the company including Program Manager for Distributed Antenna System (DAS) products, Senior Manager for IP Cable products, and Director of Product Management for Outdoor Wireless products, his current position. In this role, he is responsible for product development initiatives for TE’s outdoor wireless products and the business expansion into global markets. Tony holds a Bachelor of Science degree in Business from the University of Minnesota, Carlson School of Management, and an MBA degree from the University of St. Thomas, Saint Paul, MN.