Report talks up eco-credentials of neutral host networks

This is according to a report by ABI Research that was commissioned, funnily enough, by a neutral host provider – Boldyn Networks.

ABI modelled traditional 5G standalone (SA) deployments in New York and Rome and compared the costs and energy consumption to a neutral host model.

Unsurprisingly, the results are a resounding victory for neutral host networks (NHNs).

For dense urban environments, ABI's NHN model achieves energy and cost savings of 20% and 40% respectively. In urban environments, energy savings increase to 27%-33%, and cost savings reach 47%. In suburban environments, energy savings range from 35%-38%, while cost reduction remain stable at 47%.

For a telco like BT, for example, which had a capex budget in 2023 of nearly £5.1 billion and operating costs north of £500 million, that's a considerable chunk of change.

"ABI Research's industry proven network model indicates that there are significant cost, energy and efficiency benefits when considering a neutral host over a traditional network deployment," said Dimitris Mavrakis, senior research director at ABI Research. "Network modelling in New York and Rome shows costs and energy savings as high as 40 percent, providing a substantial improvement to 5G expansion operator efforts. ABI Research expects neutral host operators, such as Boldyn, will play an increasing role in network densification efforts in the next few years."

ABI said the savings are driven by the consolidation of kit and the sharing of site installation costs, including small cell radios, power and fibre trenching, as well as maintenance and leases.

Adopting an NHN also results in roughly a 40% reduction in the number small cells in dense urban areas, and a 47% reduction in suburban areas. This is not only good for bank balances and the planet, but also means those who live there have less clutter to look at.

Indeed, after a slow start, operators are increasingly looking to small cells to add capacity in high-traffic areas.

Earlier this month, Virgin Media O2 (VMO2) deployed what it claims is the UK's first 5G SA small cells, rolling them out in Birmingham city centre. It is also working with neutral host provider Freshwave on a small cell deployment in Manchester. It is even deploying small cells onto some of its fibre cabinets.

Rival EE is similarly keen on small cells – it has rolled out 1,000 and counting in various parts of the country. Meanwhile, Three in February launched an urban small cell trial in Glasgow.

This is just in the UK, of course. According to the Small Cell Forum (SCF), there were 4.8 million small cells in operation worldwide by the end of 2023, a figure that is expected to rise to 5.7 million this year, and peak at 9.5 million in 2028.

"Advances in 5G will enable new possibilities in the way we live, work, and play. But as an industry we have the responsibility to roll out new networks in a way that is both cost-effective and sustainable," said Brendan O’Reilly, chief operating officer at Boldyn. "The neutral host model is an elegant, practical solution to reducing capital and operating expenditure for MNOs. It is also critical to accelerating the adoption of 5G and ensuring the delivery of transformative connectivity services for businesses, people and communities worldwide."

While this piece of research from Boldyn is undeniably self-serving, that doesn't inherently invalidate its conclusions. With small cell deployments on the rise, and energy costs under increasing scrutiny, sharing is undoubtedly caring.

"If the telecoms industry is to truly deliver on the promise of a sustainable, inclusive, interconnected future then mobile operators must consider neutral host a real alternative to delivering future networks," O'Reilly said.