DRAFT – HTNG CBRS Business Models – For CBRS Alliance Review – 21 Jan 2019

1 HTNG CBRS Private LTE Networks and In-Building Cellular Business Models
2

3 Introduction
4 The ability of enterprise and the public to utilize the CBRS band for wireless access is new to the
5 hospitality industry. In this document we address business models that can be utilized by the hospitality
6 industry to support the functionality and funding of a wireless network in this band. HTNG’s CBRS
7 Workgroup has previously delivered Citizens Broadband Radio Service Whitepaper to describe the Use
8 Cases and general technical attributes of a CBRS network for hospitality connectivity. Private LTE
9 business models are emerging, and as the market matures these business models may change.
10

11 Brief overview of CBRS

12 The ability to utilize this frequency band for the public is new, recently enabled through the FCC and the
13 efforts of the CBRS Alliance, companies and organizations. The ecosystem of network elements, user
14 equipment and operators is ramping at a promising rate with trial operating network deployments.
15
16 There are several network needs and drivers that can lead to a decision for a CBRS infrastructure
17 deployment to meet emerging connectivity needs. These drivers are not mutually exclusive as CBRS has
18 numerous managed channels available for network access by different providers. Which drivers are a
19 priority will vary by location and facility based on network needs and the ecosystem development of CBRS
20 solutions. Examples of network needs are drivers are:
21
22  CBRS systems may be more cost effective than DAS systems in certain circumstances
23  There are opportunities for cost recovery from service providers depending on the business
24 model
25  If Wi-Fi is insufficient, CBRS enabled systems may be a cost effective alternative
26  In Private LTE deployments, the hospitality company could own the data and control of the
27 spectrum
28  Mobile network operators can use CBRS to augment licensed bands for coverage or capacity.
29
30
31
32

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 DRAFT – HTNG CBRS Business Models – For CBRS Alliance Review – 21 Jan 2019

33

34 Business Models
35 The business models that follow describe the business aspects of deploying a CBRS Network based on the
36 Use Cases addressed in the whitepaper. Each model describes what entity is financially responsible, what
37 entity provides the upfront equipment and installation work, and what entity is responsible for ongoing
38 monitoring and management the systems.
39
40 Consider which of the following entities are involved in a small cell system:
41  Hotel Owner
42  Hotel Operator/Manager
43  CBRS Service Provider (3rd Party Operator or MNO)
44
45 The following business models take these three entities and examine their relationship to each
46 other. These relationships detail several different scenarios of who owns the CBRS Network and who
47 manages it:
48  Hotel Owner as the primary financer and maintainer with a standalone small cell
49  CBRS Service Provider as an owner and a maintainer
50  Hotel Owner as primary owner, supported by a CBRS Service Provider as manager
51  Hotel Operator/Manager as primary owner, supported by a CBRS Service Provider as manager
52  CBRS Service Provider as both owner and manager.
53
54 Essentially, all of the business models reviewed in this document strive to answer these questions:
55  Who pays the upfront capital expense (CAPEX)?
56  Who sources equipment, installs it and activates it on the cellular networks?
57  Who pays the ongoing operating expense (OPEX)?
58  Who is responsible for monitoring the equipment and fixing it if it breaks?
59  Is there a return on the network investment possible and how?
60
61

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 DRAFT – HTNG CBRS Business Models – For CBRS Alliance Review – 21 Jan 2019

62 Private LTE – Hospitality Property Owned and Operated

63
64 This business model covers both owner or 3rd party (CBRS Service Provider) financed standalone CBRS
65 networks for private LTE installations. This solution provides no connection to a macro network, or an
66 MNO and not provide cellular connectivity for guest devices. It is possible for hotel owners and operators
67 to share the investment in the network similar to Wi-Fi networks. In this Private LTE case, the user
68 devices are owned and controlled by the hotel – staff members, guests and others will not be able to use
69 this network unless the hotel allows it.
70
Hotel - Hotel – CBRS Comments
Owner Operator/ Service
Manager Provider

Legend: P – who pays; O –

who operates system or
performs the work; S –
secondary responsibility for
operation or work

System Purchase and

Deployment (CAPEX $)

Structured Wiring P P, O 8.

Electronics (LAN, Small P P, O User devices can

Cells, User Devices) be allowed on
the network at
the owner’s
discretion.

Design & Deployment P P, O

System Operation and

Maintenance (OPEX $)

Backhaul P,O

Operation and P,O

Management (NOC)

Maintenance P,O Maintenance is

simplified in this
case

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 DRAFT – HTNG CBRS Business Models – For CBRS Alliance Review – 21 Jan 2019

Manage MNOs

71
72
73 Benefits for the hotel (needs to be updated):
74  Self-deployable (and self-organizing, plug and play functionality with an internet connection)
75  Scalable based on need and size of the property
76  No MNO dependencies (backhaul, handsets)
77  Control of the system, quality, and costs (hotel is essentially the MNO)
78  Staff communications flexibility and control
79  Capex recovery is possible through improved operational efficiencies
80  User data owned by the hospitality company
81
82 Considerations for the hotel (needs to be updated):
83  Requires GPS connectivity, potentially requiring additional cabling (or line of sight)
84  Emergency responder communications are not supported (e.g. 911)
85  The hotel is responsible for inside and outside connectivity
86  The hotel is responsible for managing devices, SIMs, privacy and other issues
87  No roaming to a cellular network (you are restricted to your premises)
88  You need to subscribe to a Spectrum Access System

89 Private LTE – CBRS as a Service

90
91 Since CBRS is shared spectrum (not the traditionally owned and operated licensed spectrum by the
92 MNOs), parties other than the MNOs can own and operate the end to end connectivity system much like
93 Wi-Fi. With a Private LTE over CBRS property or brand can operate a private service for specific or
94 exclusive users, applications and devices. See {white paper name for HTNG CBRS Overview} for
95 description of Private LTE. A Private LTE system requires a connection to dedicated LTE core
96 infrastructure called an EPC which will likely be cloud based (not on premise). In this business model, the
97 Service Provider owns and operates the EPC core and also owns and operates the premise edge
98 infrastructure. The Hotel Owner/Operator then pays for the complete LTE service. There is no MNO
99 requirement or role in this model unless specific roaming arrangements or capacity sharing are
100 established. In this case, the CBRS service provider could be an MNO or 3rd Party Operator.
101
Hotel - Hotel – CBRS Comments
Owner Operator/ Service
Manager Provider

Legend: P – who pays; O – who

operates system or performs the
work; S – secondary responsibility
for operation or work

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 DRAFT – HTNG CBRS Business Models – For CBRS Alliance Review – 21 Jan 2019

System Purchase and

Deployment (CAPEX $)

Structured Wiring P, O

Electronics (LAN, Small Cells, P, O

User Devices)

Design & Deployment P, O

System Operation and

Maintenance (OPEX $)

Backhaul P P O

Operation and Management P P O

(NOC, EPC)

Maintenance P P O

Manage MNOs O Optional

102
103 Benefits for the hotel (needs to be updated):
104  No upfront CAP-EX for the hospitality company
105  Network management and operation is outsourced
106  Scalable based on need and size of the property
107  No MNO dependencies (backhaul, handsets)
108  Staff communications control and flexibility (e.g. location-based services, business analytics)
109  The hospitality company may be able to contract lease agreements based on space requirements
110  Capex recovery is possible through improved operational efficiencies
111  User data owned by the hospitality company
112
113 Considerations for the hotel (needs to be updated):
114  Requires GPS connectivity, potentially requiring additional cabling (or line of sight)
115  Emergency responder communications are not supported (e.g. 911)
116  The hotel is responsible for managing devices, SIMs, privacy and other issues
117  No roaming to a cellular network (you are restricted to your premises)
118

119 Private LTE – Hospitality Property Owned, 3rd Party Operated

120
121 Juan Santiago, Kurt Jacobs will draft an intro.
122 Jay will review

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123 KJ Intro draft….”Like Private LTE - CBRS as a Service described above, both the edge and core of the
124 system are dedicated for private use. In this business model the edge of the CBRS network (equipment on
125 premises) is owned by the property. An outside party is providing the core infrastructure and operating
126 the end to end system as a service for the property owner. There is also the potential for franchises or
127 brands to host or own the core EPC services and the edge equipment with the 3rd party operating the
128 edge network elements integrating into the common core. In this case, the CBRS service provider could be
129 an MNO.
130
Hotel - Hotel – 3rd Party Comments
Owner Operator/ Operator
Manager (CBRS
Enabled)

Legend: P – who pays; O – who

operates system or performs the
work; S – secondary
responsibility for operation or
work

System Purchase and

Deployment (CAPEX $)

Structured Wiring P O

Electronics (LAN, Small Cells, P O

User Devices)

Design & Deployment P O

System Operation and

Maintenance (OPEX $)

Backhaul P O

Operation and Management P O

(NOC, EPC)

Maintenance P O

Manage MNOs O Optional

131
132 Benefits for the hotel (needs to be updated):
133  Scalable based on need and size of the property
134  No MNO dependencies (backhaul, handsets)

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135  Staff communications flexibility (e.g. location-based services, business analytics)

136  The hospitality company does not need any expertise to operate the system or devices
137  User data owned by the hospitality company
138  Capex recovery is possible through improved operational efficiencies
139
140 Considerations for the hotel (needs to be updated):
141  Significant upfront CAPEX
142  Emergency responder communications are not supported (e.g. 911)
143  No roaming to a cellular network (you are restricted to your premises)
144

145 Carrier Offload and Roaming Utilizing CBRS

146 To enable inter-operability with MNOs, carrier offload and roaming agreements are required, however
147 this not common today (outside of MNO to MNO or MVNO to MNO relationships). Where they exist, they
148 have been driven by very large/multiple venue site deployments or high-traffic areas. These MNO inter-
149 operability agreements may not be feasible until CBRS is widely available in handsets. Once these
150 agreements, and the necessary interconnections to the MNO network cores are in place, the CBRS network
151 will act an extension of the MNOs’ networks - In-building Cellular. This essentially results in the MNOs
152 paying ongoing fees to the venue or hospitality company to support their subscribers.
153
154 Like several cases above, this case could result in an MNO be the CBRS service provider. Further, each of
155 the previous business models could be utilized for carrier offload and roaming, with the appropriate
156 agreements and carrier interfaces.
157
158 Generating revenue as a result of a CBRS network is possible, but depends on:
159
160  Location of the property
161  Foot traffic
162  Size of property
163  Amount of properties included as part of a package
164  Ability and willingness to negotiate with an MNO
165
166 Agreements generally cover revenue sharing between the MNO and the owner of the technology system.
167

168 Summary @Russell V update for CBRS

169 Conclusion
170 Hospitality property owners, managers and brands have for decades strived to develop, manage and
171 control their wireless networks. Cellular connectivity has been the default wireless access technology;
172 yet, coverage, control of the licensed carriers and network expense challenges limit their application to
173 larger marquee properties. The introduction of license-free Wi-Fi networks have largely revolutionized

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174 the ability to provide high speed Internet access to guests and in supporting workflow; within Wi-Fi’s
175 weak security and mobility capabilities.
176
177
178 CBRS networks will be the first to provide a secure Private LTE network supporting IP (data) access to
179 users with complete mobility and within the property’s control. These networks will also enable inter-
180 operability with the licensed carriers’ networks, once the interconnect agreements are in place, extending
181 cellular functionality at the property - all from the CBRS network.
182 The business models addressed in this document detail responsibilities, capital recovery and potential
183 revenue models for the two applicable use cases. Similarities to Wi-Fi networks are strong given the
184 property’s control of the assets, frequency band uses, as well as the network elements structure and
185 services from third party experts. The CBRS network and its operation are payed for by the property with
186 cost recovery through operational efficiencies (saving costs) and potential revenue from cellular carriers
187 for providing their subscribers access and service.
188
189 The CBRS Workgroup is pleased to present this Business Model and the companion CBRS Whitepaper,
190 under the aegis of HTNG, to support the needs of the hospitality industry.