Report: Neutral host networks more cost-effective than standalone 5G

A report authored by ABI Research and commissioned by Boldyn Networks, has revealed that Neutral Host Networks (NHNs) are 38 percent greener and up to 47 percent more cost-effective than traditional standalone 5G deployments.

Delving deep into the sustainable and cost benefits of network sharing models, the research detailed in the report modelled NHNs against traditional standalone 5G deployments across New York City and Rome.

At a time when carriers and communications service providers are held accountable for how they are delivering on their ESG commitments, these findings demonstrate that the network sharing concept of NHNs significantly lessens the environmental–and cost–challenges associated with 5G densification.

“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, Group Chief Operating Officer at Boldyn Networks. “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.

“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.”

Key benefits of network sharing according to the report in terms of energy consumption and cost include:

• In dense urban environments, ABI Research expects net energy savings of 20% and cost savings of 40% from 5G small cell deployments via NHN when compared with individual standalone deployments.
• In urban environments, expected net energy savings range from 27 to 33% and cost savings reach 47%.
• In suburban areas expected net energy savings range from 35-38% and cost savings remain 47% cheaper than traditional 5G small cell deployments.

Key drivers behind CAPEX and OPEX reductions are:

• Costs and energy savings are driven by the consolidation of telecom equipment and the sharing of site installation costs, including but not limited to small cell radios, fibre and power trenching, site maintenance, and site leases.
• Small cell equipment needs are significantly reduced in NHN environments, ranging from approximately 40% fewer small cells deployed in dense urban areas, to around 47% fewer in suburban areas.
• Total savings increase in Greenfield deployment scenarios over Brownfield is significant and primarily driven by the consolidation of CAPEX costs to deploy fibre backhaul and power equipment.

“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, Group Chief Operating Officer at Boldyn Networks. “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.

“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.”

The research simulated two real-world environments where 5G NHNs are being deployed. Based on ABI Research’s understanding of the NHN market, the model assumes an average tenancy rate of 2.4 large operators through to 2028 and a Multi-Operator Core Network (MOCN) sharing model as the preferred mode of network sharing. Additional parameters including network traffic dimensioning, network architecture comparison and accounting for both Greenfield and existing Brownfield sites were factored in to ensure a realistic simulation of real-world circumstances.

O’Reilly adds, “Our goal is not only to support the expansion of 5G but to do so responsibly and sustainably. Boldyn’s efforts worldwide underscore our belief that neutral host models are the key to unlocking affordable, sustainable connectivity for people, businesses, and communities.”

The full report, Neutral Host Networks: A Solution to Greener and Cost-Effective Deployments, is available here.