Opportunities, Challenges Seen as DAS Operators Upgrade to 4G

Streamlining the process for access and use of infrastructure, also part of the recommendations in the National Broadband Plan, could be a key positive for Distributed Antenna System (DAS) operators, some of them large tower companies, company officials told us. But hurdles remain as operators gear up for 4G, they said.

For operators of DAS, a network of antennas attached to utility poles and similar structures, it’s all about getting better access to infrastructure, said Mike Saperstein, PCIA director of government affairs. The challenge is “it’s becoming difficult to build anything” due to local zoning laws and other regulatory requirements, said DAS company NextG CEO David Cutrer. Any regulatory changes that would help standardize pole attachment rates and technical requirements would be a big step forward, said Alex Gomato, American Tower’s DAS policy director, saying some utility companies charge cost-based rates while others charge market rates. There were encouraging signs in the National Broadband Plan, he said. Speed and cost of siting on federal property would be improved with set fees for access, according to a PCIA report from the group’s webinar on April 7. The plan would also enable master contracts to be applicable to both federal buildings and land, it said. Additionally, harmonized policy for pole attachments may prevent some states from individually regulating poles, it said. These changes proposed in the plan would result in uniform treatment of poles nationwide, but Congressional action is necessary, it said.

Still, better cooperation from the utility companies is needed, said Pedro Miraz, director of DAS Development and Implementation with Crown Castle. Each utility company could have its own process, he said, saying pole attachment projects might not be a priority for some utility companies so there could be lack of resources. There’s no required time line so the application process could be a rather lengthy one, he said, urging more visibility and standardization of the application process. “It’s a partnership environment,” he said. More education is also necessary because there’s still concern from local officials and residents, he said.

Meanwhile, more spectrum, as proposed by the plan, means more infrastructure, companies said, saying new swaths of spectrum could encourage network buildouts, aiding long-term sustainable demand for tower cell sites. The plan’s public safety proposal means potential new market entrants requiring infrastructure, the PCIA report said. But it warned of increased reporting requirements and hardening of sites.

Despite the economy, there’s been a lot of buzz about DAS in the financial community, said Connie Durcsak, executive director of the DAS Forum, part of PCIA, saying the wireless market has been a bright spot in the recession. DAS has been a niche market and carriers would use it to solve specific problems, she said. But lately, due to intensified carrier competition and smartphone expansion, operators have turned to DAS as a much-needed boost to capacity, said NextG’s Cutrer, an outdoor DAS provider. There are about nine major players in the DAS market, including NextG, ADC, Newpath Networks and major tower operators like American Tower and Crown Castle, In-Stat analysts said.

Carriers’ 4G rollout plans would have large impact on DAS businesses, Durscak said. It appears that the DAS companies are ready. NextG is deploying LTE this year, Cutrer said. The company’s system also supports WiMAX. “Networks we are installing now are 4G capable,” said Miraz. “We are LTE ready,” he said, saying the networks also have WiMAX capabilities. Switching from LTE to WiMAX could be a simple upgrade for indoor DAS while outdoor DAS would require separate antennas, depending on different WiMAX operator needs, he said. There’s a migration plan for both WiMAX and LTE, said Harry Wolle, a DAS director with American Tower. All DAS systems are aiming at 4G migration, he said.