BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.
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to measure demand and throughput. Te topological and physical attributes of a community must be mapped in great detail, as actual throughput varies depending on a number of potential barriers. Compiling all this information in a user-friendly format yields an integrated assessment of a community's broadband usage, resources and needs. SMALL-CELL TECHNOLOGY Small-cell wireless technology illustrates how asset mapping can attract investment and help monetize previously unused resources. Te speed and capacity of broadband directly depend on access to the nationwide broadband network, which is transmitted along two major pathways: fber cable and wireless broadcasting. Cable provides a physical connection to the network, and wireless connects via broadcasting hubs, called cells. Traditionally, these cells have been located on high-rise towers, which are scattered throughout a region. A community's broadband capacity, therefore, has depended on the number and quality of cables and towers a community can access. As demand for broadband services has increased, so has the demand for broadband infrastructure. Te need for towers, in particular, has gone up dramatically. Tis phenomenon, known as "densifcation," requires more and more towers to be built in the same area. Increasing the number of large, unsightly, obstructive towers in populated areas is often an unwanted development. Technology companies have adapted by inventing smaller and smaller cells. Today, these cells do not require large, obstructive towers; they can be placed on rooftops, steeples and other smaller-profle towers. Some microcells can even be installed within an ofce and serve an entire foor. Tis represents a dramatic shift for broadband development in both cost and availability. As densifcation pressures mount, the frequency of small cells will need to increase exponentially in concentrated areas of broadband usage to meet the demand for speed and service. Exhibit 2: Industry Forecasts of Mobile Data Trafc Source: National Broadband Plan, www.broadband.gov A second driver in the demand for small cells relates to fber cable. Tough Internet service providers have invested signifcantly in fber cables, the cost of last-mile fber is often prohibitive. Installing underground cables is very expensive, especially in the fnal leg to the end user. At that point, the number of users does not always justify the capital expenditure. Small-cell wireless has created a new option by providing an afordable link between fber cables and end users. Because of densifcation and lower costs, the usage of small cells is growing rapidly. From 2010 to 2011, small-cell usage increased by 23 percent. From 2012 to 2016, revenue from small cells is expected to climb from $100 million to $1 billion. Small-cell usage has the potential to catch up to and keep pace with the steep climb in broadband demand. Tis bodes well for both large and small communities seeking to upgrade their broadband infrastructure. Densely populated metro centers can meet the rising demand of broadband with afordable, nonintrusive cells. Small communities can extend broadband to their populations by linking inexpensive mobile platforms to the national grid. However, the degree to which a community can harness this trend depends on how well it can prepare for this technology. NOVEMBER/DECEMBER 2013 | www.broadbandcommunities.com ASSET MAPPING DRIVES NEW VALUATION Communities should immediately consider mapping their assets in light of new technology. Doing so will surely increase their ability to attract the widespread investment occurring in broadband. However, simply creating a list of assets is not enough. Assets must be evaluated within the context of market demand and supply. Asset value depends on a host of factors. Te frst is an asset's ability to access the larger broadband network. Cell sites, for example, must be installed in areas with the necessary backhaul to support data throughput. Tis backhaul includes fber line capacity and density of existing cell towers. Perhaps the most important factor in valuing an asset is its proximity to end users – the demand side of the equation. Business, health care, education and residential clusters represent signifcant but varying levels of demand for broadband usage. Tis demand, in turn, determines the volume and data rates required to support the area. In the case of small-cell technology, a public library or church steeple adjacent to a commercial district may generate greater investment interest than a rural water tower. Calculating these dynamics in conjunction with specifc locations on an asset map can powerfully | BROADBAND COMMUNITIES | 99