Business Issues
Like most decisions about building technology systems, in-building wireless is
less about the technology and more about the business case. The business
issues surrounding in-building wireless involve several parties: the building
owner, cell phone carriers, and third-party companies that install and facilitate
the improved cell services.
Carriers are interested in in-building systems because they can increase
billable cell minutes, reduce subscriber dissatisfaction due to poor coverage
and help retain customers. A carrier will pay for deploying an in-building sys-
tem depending on the estimated increase in business. The carrier will consider
the installation cost, customer base, the projected increase in sales and the time
for return on investment.
In commercial real estate, large tenants may demand cell coverage in their
space or a property manager may install a DAS to improve their competitive-
ness with other properties or to support their leasing rates.
Third-party companies providing in-building cellular service will partner
with or manage the relationship with the cell carrier.
The key business issues are who “owns” the customer, who is making the
capital investment in an in-building system, and how revenues from the system
are distributed. Cellular carriers want to control their networks and their cus-
tomers. Some of that control may be lost depending on how an in-building sys-
tem is deployed. Other business issues that arise include revenue sharing
between carriers and third parties and who’s responsible for the customers’
primary contact.
Emerging Technology Trends
The convergence of cell service and Wi-Fi will change business dynamics.
Handsets capable of cell and Wi-Fi are available, allowing users to get voice,
data and video service from a single handset through two different networks.
Users can now choose whether to make a call via cell services or a VoIP
service, such as Skype, if within Wi-Fi coverage.
The most logical approach for most building owners would be to deploy a
single in-building wireless system that could at minimum handle cellular,
Wi-Fi, and public safety. Such a system would improve tenant amenities and
public safety capabilities while possibly avoiding operational issues resulting
in added value for the building.
120 Smart Building Systems for Architects, Owners, and Builders