Equipment miniaturization has decreased site foot print. Lease costs must come down.

1. Digital City
OPEX Reduction Leases & Rentals
Landlords
Need
to
Think
Small
Reduction
=
The
less
the
better

2. 18th Agust 2013
When equipment costs exceeded
$450.000, it was acceptable for the
annual site rent to be $20.000. At that
time, the rent represented a fraction of
the total cost of the site. But take that
$20.000 in 1990, apply a typical 3%
escalator that brings the rent to $35.000
in 2010, and you’ve got an operator
questioning why the cell site lease costs
as much as the equipment.

3. 18th Agust 2013
US
EUROPE

4. 18th Agust 2013
Networks become denser Massive deployment of picocells.
Less small cells and 3G sites Solutions go indoor
We will need the landlords more than ever as equipment become smaller.
FTTB is Trojan Horse for Indoor Solutions
Connection of picocell is Ethernet in-building wiring. Same as FTTB.
Safaricom need to off load traffic to fiber to save spectrum
Alcatel Lucent Research estimates that by 2014, total capital and operating
expense savings (as % of revenue) from using smaller cells will be 117% for
U.S. carriers.
Alcatel also projects that by 2017, 80 % of U.S. households with mobile users
will install femtocells.

5. 18th Agust 2013
We need to educate the Landlords on the
drivers of our industry
Less = Better
Female audience please go to last slide

6. 18th Agust 2013
The past:
Choose high place.
Serve customers from single points
The past:
Customer Happy
The past:
The builder

7. 18th Agust 2013
The past:
Serve customer across the cityscape
roof tops
The past:
Many dishes at the roof
Connectivity and the builder
The past:
Customer Happy
Less = Better

8. 18th Agust 2013
The Future is Less
The past big opportunity in BTS
sites is about to get small
Landlords have to think small
Not only the mobile phones got smaller
The whole equipment follows the trend

9. 18th Agust 2013
Today equipment fits in a corridor of the office
Today: Equipment Smaller than the antennas
Customer Happy
Less = Better

10. 18th Agust 2013
Today Can be placed anywhere:
Your own home network.
Light and small installed in airplanes
Lamp post Installation
Hanging on fiber junction boxes

11. 18th Agust 2013
Safaricom off
loads traffic
to fiber
Today: Where’s the builder?
The Builder went underground

12. 18th Agust 2013
All Carried by Fiber

13. 18th Agust 2013
Once we hear the landlords, we need to think

14. 18th Agust 2013
Just in case the female audience still doubts about
The less the better
Needed to show some biceps
Else they’ll accuse me of being sexist