In general, neutral host networks are designed to propagate public wireless carrier network access across a privately deployed wireless network to provide LTE and 5G wireless connectivity to users within a set area regardless of the mobile carrier serving them. Instead of each operator/carrier building its own cell towers and wireless configurations, neutral host third-party connectivity providers invest in and maintain wireless infrastructure (cell towers, distributed antennas, small cells, fiberoptic networks, etc.) which they rent or lease to mobile network providers and MSPs on a shared-tenant basis. The neutral host also provides the access to the spectrum they already prosses, typically Citizens Broadband Radio Service (CBRS) shared spectrum in the United States. “Enterprises that are looking to deploy cellular connectivity to improve their operations are no telco experts, and they do not want to become telco experts, as they have their own strategic priorities,” analysts at ABI Research pointed out. “In this context, enterprises can hand over network management and operation to the neutral host provider, rather than dealing with it themselves.” Similar to Wi-Fi access points, neutral host systems are built upon Ethernet architecture, thereby leveraging the existing LAN switching infrastructure of a building or premises. Users can connect to carrier networks over encrypted tunnels via the internet. Due to the nature of neutral host networks, and since multiple customers use the same infrastructure concurrently, they tend to be more affordable and quicker to deploy than dedicated LTE and 5G private networks. “For enterprises and MNOs [mobile network operators], choosing a neutral host means they do not need to invest and build out their own telco infrastructure or lease spectrum,” stated ABI Research. On the other hand, while neutral host can be economical and manageable for many operations, “it’s important to understand that it comes with less control over the network, negatively affecting network integrity,” the research firm noted. This presents a challenge for verticals and operations for which connectivity is mission- or life-critical or requires the robust security provided by a dedicated network. For these reasons, ABI believes the so-called carpeted verticals – such as retail, stadium and event spaces, public venues and commercial real estate – present the significant opportunities for neutral hosts as these organizations aim to digitize in the most convenient and costeffective way possible. “For these firms, network ownership is not considered essential, and they are more interested in the cost savings generated from shared connectivity infrastructure,” said ABI, which forecasts retailers will spend $106.3 million on neutral host solutions annually by 2030. The financial services sector (including commercial real estate) will be a $69.7 million opportunity by the decade’s end, the firm predicted. Even so, mission-critical and lifecritical verticals also are expected to provide a significant revenue opportunity. “Organizations within these sectors, such as manufacturers, logistics firms and utilities, are motivated to partner with neutral hosts because they find it beneficial to have a managed services provider (MSP) handle network operations,” said ABI in a recent research note on neutral host networks. All told, ABI Research forecasts the enterprise neutral host cellular market opportunity to equate to $1.3 billion by 2030, up from about $250 million in 2024. Businesses in Asia-Pacific and North America are anticipated to adopt neutral host solutions the most. Throughout the forecast period, the manufacturing, logistics and energy generation verticals will account for between 62 percent and 67 percent of the market opportunity. Types of Neutral Host Networks Neutral host networks generally are delivered using technologies including distributed antenna systems (DAS), multi-operator small cells, Wi-Fi and private LTE/5G to provide a seamless connectivity experience for users. The Wi-Fi and private LTE/5G versions are common for retail operations and consumer experiences, allowing users to seamlessly roam on these “venueowned” network infrastructures. For a DAS-based network, multiple antennas strategically placed within a building or specified area amplify signals from a base station, the piece of equipas model building and deployment What are the main potetial benefits that you are seeking to derive from private wireless networks? Please select up to three options Source: STL Partners; Cox Private Networks Source: Telarus Increased security Increased reliability Improved manageability of the network Higher bandwidth Improved coverage/availability Improved configurability of the network Reduced downtime Accelerated speed of service deployment Reduced latency Enhanced SLAs Neutral Host in Enterprise Cellular Revenue by Enterprise Segment (World Markets: 2023 to 2030) Source: ABI Research 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% sting model Deploying a model 40% 36% 33% 29% % 2023 2024 2025 2026 2027 2028 2029 2030 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Agriculture Energy Generatio Financial Service Healthcare Logistics Manufacturing Retail Stadiums & Even Transport (US$ Billions) U.S. Wireless Data Over a Decade 37T 53T 2X 100.1T MB Data used in 2023 Increas in data use over 2021 MOBILE & WIRELESS 20 CHANNELVISION | SEPTEMBER - OCTOBER 2024
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