How to Finance DAS Systems

What if I gave you a way to remove an obstacle in deploying DAS systems? When selling DAS, usually the price can be in the way, even though you offer your best price, you may need a way to help the customer pay for it. Maybe this will help you move ahead in your next DAS deployment. You all know that the carriers are not crazy about smaller shared DAS venues any more. T-Mobile made this very clear with their recent statements that they don’t want to pay for DAS systems. They are tired of paying for these systems and getting a limited return. They are not alone because Verizon, AT&T, and Sprint were already headed in that direction. Small cells are going to help drive the cost of DAS systems down and now that LTE is taking over, the new systems will be all digital. It also looks like they will be a mix of Wi-Fi and LTE-U. Here is a way to help the enterprise and real estate companies pay for the systems.

By the way, the carriers need to free the small cells!

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Before you start to panic, the large venues, like stadiums, will continue to be paid for by the carriers using a combination of LTE and Wi-Fi for content Tower Safety for all your safety training!delivery. As you know everyone is using their phones and tablets to see the replays and the extended coverage at these games. The NFL gets it because they offer enhanced services in most stadiums for the people who pay to see these games. They want you to appreciate the game by seeing it live and seeing every possible angle on your device. That is really cool!

Back to the smaller venues. I just watched a presentation that Iain Gillott of IGR put together to show that most users of smart phone rely on it indoors. I would say in an enterprise environment. He sells the report here if you’re interested. This is a growing area of concern but the carriers no longer want to pay for any DAS systems. So the business or building owner will need to pick a carrier and then install. Now Wi-Fi makes it easy, if you install Wi-Fi then you offer them a data solution. But what if they need to make a call or if there is an emergency and 911 becomes an issue. If there is no voice coverage in the building then the problems compound. Many work places no longer rely on landlines, so the wireless coverage is crucial!

Voice still matters! If someone collapses do you text someone for help? Just like public safety coverage in large buildings. The first responders need to stay in touch with their crews on every floor, whether it’s the roof or the basement, everywhere in between is a critical area when there is an emergency. Lately there have been many emergencies here in the US such as fires, bombings, and shootings. What about a medical emergency? If you have a heart attack you want to make sure they can do what they can on the scene so you are stable for the ride to the hospital. That’s how I see it. First responders need to have seamless coverage.

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So I see the need for DAS and not just for the carriers but for public safety’s first responders. This is becoming a requirement in most cities. I am sure that building owners will push back because of the additional cost, but when someone dies in their building they may see the need. I have an example of an ordinance for Riverside, California, which has requirements for public safety radio coverage in buildings of excess of 50,000 square feet here. City of Irvine, Ca, here. Seattle, Washington, here.

First off, I would recommend that the carriers let go of their hold on the front end, it could be a small cell or the BTS, I wrote about it here, but they need to come up with a system to allow DAS to get installed so they stop being the bottle neck of the process. They say that they don’t want to pay then they won’t let anyone else install the system. Well, which is it Verizon and AT&T? Make up your mind to let the public do this so they can help your coverage. Public safety groups are so happy when someone offers to put in a system for them. They don’t push back, they say thank you!

This is where Sentry Financial can help. They will finance the DAS system for creditworthy customers so that the installers and vendors get paid. Then the owner can make reasonable payments over time and it will be a write off for them all the same. See the win-win? The vendors all get paid, the building or business owner meets the requirements without all the upfront costs.

I had a conversation with Jenn Faber (jfaber@sentryfinancial.com ) of Sentry Financial Corporation, the director of business development, about financing these systems. I am interested because I plan to work with small cell and DAS side of the industry more and more. This is a segment that is booming. We just have to come up with ways to make it affordable.

So Jenn told me that financing is a great option for the larger DAS systems going in, why? Because it provides a model where the financing is taken care of ahead of time. Here are some questions I asked her.

  • What DAS systems would you finance?
    1. All DAS systems for creditworthy end users. Financing may include passive or active equipment as well as design and installation.
  • Who would finance these systems? Would it be enterprise, building owners, government entities, utilities, small to medium businesses, installers, or who?
    1. We will provide lease financing to all creditworthy end-users including enterprise, building owners, utilities and middle market companies (e.g., revenues >$50M and positive net income last 3 years, tangible net worth, and audited financials).
  • What price range would the DAS system be in?
    1. Minimum project cost of $250,000, no maximum if the end-user’s credit supports the transaction.
  • What OEM do you see deployed the most often?
    1. Primarily SOLiD, CommScope, TE Connectivity (now part of CommScope), Corning, and JMA in DAS.
  • Do you have a requirement for the integrators doing the DAS installation?
    1. We typically work through the OEM or integrator partner and rely on their expertise for the installation. Nevertheless, the integrators must be experienced and reputable.
  • When financing, what would the payment terms be like for time, like 5 or 10 years?
    1. For DAS the lease term generally ranges from 36 to 60 months depending on the business accounting, tax, and other objectives of the end-user. At the end of the lease term, the end-user had the option to: purchase the system, upgrade the system, or extend the lease term.
  • Do you work mostly with the DAS contractors or the end-user when finding the business?
    1. We typically work through an OEM or integrator partner (DAS contractor) to enable them to offer the lease financing solution to the end-user customer. We have also worked directly with the end-user.
  • How would a potential customer go about getting financing with your group?
    1.   An OEM, integrator, or end-user may contact Sentry directly, information below. Sentry typically starts with a high level overview of the project, project costs, and financials of the end-user (3 full years and most recent interim financials). If the end-user is a public company, we can get their financials online. The creditworthiness of the end-user must support the transaction.

 

Financing DAS Model

So there you have it, all you need to know about financing a DAS system. This is one more way you can deliver DAS to your customer, one less obstacle that the integrators have to contend with.

For more information about Sentry Financial Group contact the people below.

Jennifer FaberJenn Faber promo picture

Director, Business Development

(801) 303-1113

SBC logo

Bo White

Director, Business Development

(801) 303-1137

Scott Young

Chief Executive Officer

 (801) 303-1111

So remember that wireless deployment will have challenges but here is a way for you to remove one of them.

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

 

Merry Christmas and Happy Holidays!

Happy Holidays my friends. I appreciate all of you that supported me throughout the years. I appreciate you more than you know. I thank GOD for having such a good crew following me. I really appreciate the support. Thank you!

I work hard for all of you hoping that you find value is what I am putting together for all of you. Remember that I’m here to help you any way I can. I intend to make this valuable to the small cell and DAS teams by adding more and more information. The LTE deployments are going to ramp up in 2016 and 2017 so let’s make sure we are all prepared to do quality work.

I will do what I can to keep you informed of what is going on in the industry as well as tips to help you deploy the right way.

Happy holidays to all you and may you all be blessed with a great and prosperous New Year! May GOD bless all of you now and all year.

Wade

Don’t be afraid to tell me what you want me to talk about in 2016! The sooner the better! Besides, this will put you on my weekly newsletter to keep you in the know!

Tower Safety & Instruction

Tower Safety graduates could get a tablet with all of my books on it!

Find out more below. 

Tower Safety and Instruction, how often do you hear that as a sales pitch? Well, you know you need it to work in this industry. Even with NATE pushing NWSA certification at you, with the help of AT&T, you know that your climbers need to be trained. My sponsor, Tower Safety, (480-313-0678) is more than just someone who helps me out! They are an Arizona accredited school, which is more than most schools can say. They are approved by the state as a real school in Arizona. Yes, not a fly by Night Company but a certified school that is also currently a member of NATE. I don’t know how much longer that will last because NATE is making it clear that the schools are not as important as the NWSA certification is, but I am getting off point.

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Tower Safety is going to train you for all you need to get started in tower training. If you are getting out of the military then you can get some help here. They can help you get the help you need to get trained properly and be prepared for you new career. This is something that all tower site workers need. Not only the tower training and rescue that goes without saying, but also the OSHA 10 hour and the First Aid and CPR training.

Crane guys hanging around

Tower Safety has the facility to train you at their location, although they will come to you. They have just added 2 antenna booms for you to train on. How cool is that? They have a 150’ tower crane to let you practice on, again, really cool! This is the place to be for the training. They are co-located with a crane training facility so if you want to coordinate the training, it may be an option.

Don’t settle for less than the best, get what you need and get a well-rounded education. Remember, this is going to be your career, not your hobby. Do it right the first time!

They offer rigging class, capstan training, and ropes training by a rescue veteran that has instructed people around the world. Someone well-rounded who trains in mountain rescue, confined space, even water rescue. Someone who has trained lineman can help. This is someone you can count on for training and a few good stories.

Tower Safety isn’t going to stop or slow down, oh no! They are adding drone training because that will be a major part of inspections and the close out packages for the future, more on that below. They also are adding a crane rescue course.

The other thing that most training companies miss for the tower climber is the fiber skills. This is something that is coming to Tower Safety because they know that the carriers require fiber skills.

You see, Tower Safety understand the needs of the tower worker., It’s not just tower work you’re doing anymore, fiber work, rigging, climbing, safety, first aid, CPR, and everything needed to make sure that you can do your job and be prepared to save someone when necessary.

The training covered by Tower Safety is all about safety and doing the job right. Education is more than just reading. When working on a tower you need to prepare for the more than latest certifications, you need to have hands on experience. This training will provide the tower climber with the training needed to do their job. The certifications will provide the tower climber with the proof that they are certified. Most customers don’t just ask if you are trained but they require proof, certifications matter.

The training provided is around tower work. The Tower Safety tower and rescue training is to provide the tower climber with the skills to work on the tower safely and to rescue a fellow worker in trouble. This training is required and should be renewed annually because changes in the industry are happening on a regular basis.  The tower safety and instruction meets ANSI Z359, NATE CTS, and OSHA standards. The instructor will work with the student to insure that they have a good understanding of tower work and safety techniques.

20151202_130357 celltowercertificationscomtrain

Don’t worry, when the NWSA standards are released, this will be incorporated into the program to make sure you are prepared for the certification test.

Let’s not forget that the OSHA training will be required by most customers. Tower Safety offer both OSHA 10 hour training and OSHA 30 hour training. The requirements are different based on what you job duties will be at the tower site. The key is safety training when working at a remote tower site! Make sure you are prepared with CPR and First-Aid training. Why? Because the tower crew could be at a tower site where first aid will be needed before help arrives.

Hazards are a key factor at the tower site. There are hazards you don’t see, like RF. So make sure that tower site workers have RF Awareness training.

This school goes deeper than normal training. The introduction to new equipment and why are we not using a lineman’s favorite harness, or ANSI rated aluminum carabiners, polyester vs. nylon rope is explained at this school.  There is a pick-off stick to rescue someone off a boom, why is that not part of our rescue bag?

There is always the possibility of risking the life of a rescuer while getting to the victim. As you know It is best practice for the rescuer to get above the victim, but what if they attach a carabiner and rope to his D-ring by this rescue clip and carefully descend him to the ground.  It keeps rescuing simple and takes the thought out of rigging and pick off.

Rescue Clip with 14 foot, high strength pole. Made of 7075 extruded aluminum tubing which resists bending. Collapses to 4 feet to easily fit in a truck compartment. Comes with three stage auto lock carabiner and attachment sling. See if the is video link helps:

Just wait, there’s more that Tower Safety offers that other don’t! I now that you are thinking, is this it? There is so much more that sets this school apart! With every Climber course Tower Safety will be giving a free tablet to every student, with extras from yours truly Wade4Wireless.com, all my books will be available.  These tablets show the forward thinking of Tower Safety and the availability for a Google hangout or live on meerkat with a Tower Safety Tablet (TST).  The usefulness of the TST to have instant access to knots, ropes, safety, OSHA, ANSI will be an asset to the tower worker and contractor.

What do they offer, read below!

Training for the tower worker included:

  • Authorized Climber – 16 hours of training
  • Competent Climber – 16 hours of training
  • Authorized Rescuer/Train the Trainer-24 hours of training
  • OSHA 10-hour Construction minimum 10 hours of training
  • OSHA 30-hour Construction-minimum 30 hours of training
  • RF Awareness- 4 hours of training
  • First Aid/CPR- 5 hours of training

Tower Safety has branched out, following the lead of NATE, to offer crane and rigging training. Before NATE announced working with the NCCCO, I had moved in with Tech Testing, a NCCCO crane school and knew the two industries worked together but separate and then it was announced. Not sure how we can phrase that but I would prefer if we lead instead of followed NATE… ego J. Working with the NCCCO for crane operator training. This certified crane operator, (CCO), training is offered at Tower Safety as well.

Crane operators are offered the following courses:

  • Crane Operator Training
  • Lift Director Training
  • Rigger Training
  • Signal Person Training
  • Forklift Certification Training
  • Inspection Training
  • OSHA

Tower Safety, being an accredited school, offers career services for students to utilize. They believe that the best defense against unemployment is to provide specialized career training and professional support. This service will provide the student with a good start in finding employment. Offering an employment services will give the people who are new to the workforce or new to the tower industry a way to connect with tower companies that are looking for trained people who have the necessary certifications.

They are developing the Drone training program. Drones are up and coming in the tower industry. They may be used for tower inspections and close out packages. However, to use drones for professional services will require training and certification. The FAA is still putting together the requirements for workers to use drones in the tower industry. Once these details have been worked out the training should be released shortly after.

For more on Tower Safety go to https://gem.godaddy.com/p/4f2c07?fe=1&pact=1-128862005-8483621508-0192074836d5a110d8038b85708da76f3fa4ccca

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Deploy, Deploy, Deploy!

Get the Wireless Deployment Handbook today!

Get your copy of the Wireless Deployment Handbook eBook that covers professional carrier end to end deployment of LTE small cells, CRAN, and DAS to show you the proper way to plan for deployment then execute, planning and action without the mistakes.

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

New Hampshire in or out of FirstNet

Hello FirstNet fans! Guess what, a precursor to the dreaded FirstNet RFP! In case you didn’t see it, the state of New Hampshire issued a FirstNet RFP, (Request for Proposal) for a FirstNet system. The PDF link is here for all of you to see and yes, it is publicly viewable. UrgentComm did a story on this here. The Department of Safety put it out there. Why? I don’t have the inside track so let’s consider the reasons.

So here we are, less than a month away from the FirstNet RFP and look what New Hampshire’s Dept of Safety does, they have to upstage FirstNet by issuing their own RFP, how cool is that? By the way, if you need another FirstNet history lesson go ahead and jump to page 8 of the RFP, it’s all there, again. Let’s go to page 17 where New Hampshire outlines the scope for the FirstNet deployment. It looks like they used the FirstNet RFP as a model and shortened it to 56 pages so that they get an idea of who would partner with them.

First off, if you have to work on these RFPs, it is a nightmare! In this case, it seems obvious they are looking for a partner and pricing. It doesn’t look like the partner will be an integrator, my interpretation. We have to prepare for the big one in a month and now it appears that New Hampshire is covering its bases. They probably want to see who will bite, before the big FirstNet RFP, so they understand the risks of opting out and the pricing. Will they Opt Out? Probably not but now they have done their due diligence.

It seems that they are looking for someone who can design and create a system for their state or a carrier with a system already in place. It seems they want to compare pricing with this versus FirstNet. I think that it’s great they’re looking into it, but seriously, how many people will have the time to look at this? The FirstNet RFP will be released in about 3 weeks and right before a huge holiday season. I know that we are all eager for work but this should really be handled along with the existing FirstNet RFP. It will be hard to stay motivated on this knowing that they are using it to compare.

So what can you do? Wait for the large system integrators to respond or see if a carrier picks it up and then see if you can tag along as a smaller vendor. See if they will pick you up as a partner.

Remember that this may or may not be used, so for the smaller  integrators to spend time on this may be a drain on your resources. It looks like they are going to use it to compare the option of opting in or opting out. If you are the one responding then you know how long it will take to formulate a respectable response. Hopefully you can do this with the real FirstNet RFP in a few weeks. Maybe do them altogether as one. Can it be done? Will the teams be able to work together? Only you know what your teams can and will do. I know some company’s setup firewalls between teams so they can’t necessarily share resources.

So it looks like they are going to   use this for a comparison to FirstNet just in case they want to opt out. It looks as though they hope to see who the partners would be.  It looks as though they think that this can be done with the FirstNet RFP, if I am reading this right.

I hope that helps, just a quick update on FirstNet.

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Tower Safety for all your safety training!

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Get the Wireless Deployment Handbook today!

Get your copy of the Wireless Deployment Handbook eBook that covers professional carrier end to end deployment of LTE small cells, CRAN, and DAS to show you the proper way to plan for deployment then execute, planning and action without the mistakes.

Check out my credentials with a QR Reader –> http://app.qredentials.com/Credential/Index/39

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

Sprint has a Small Cell Plan!

Sprint is showing signs of life in the deployment world, can you believe it? They seem to be moving ahead, mostly through Mobilitie! This is great news. I have been learning more and more on this and I thought I would share.

Sprint is pushing for a way to streamline and improve the small cell deployment process. Specifically outlined in a letter that Charles McKee sent to the FCC, letter found here, which discusses the meeting Sprint’s Marcel Claure and Vonya McCann had with the FCC commissioner Mignon Clyburn, (who I am a fan of because she often speaks of tower workers safety). Sprint apparently shared their growth plans with the Commissioner. Mr. Claure expressed how important it would be for Sprint to cost effectively deploy the small cells without the costly delays that jurisdictions often incur by having ridiculously slow and complicated permitting processes.

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With Sprint’s massive job cuts are Mobilitie’s gain for the work. It looks like Sprint will rely on Mobilitie for the deployment. Mobilitie will boom this year when they take on the network expansion for Sprint, but they may not get paid for it until who knows when. Remember that Mobilitie will be doing the deployment work for Sprint with the small cells and mini macro deployments. Just a not, the mini macro may look like a small cell installation, but with way more power out, pay attention to that little fact! Another thing I am seeing is that Sprint & Mobilitie are looking to do as much as they can without getting the tower companies involved.

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Sprint, (Mobilitie), has a process in place for deployment, but it’s all the outside factors that get in the way causing delays and raising costs. For example the easements, permitting, zoning, and problems running backhaul. Depending on which jurisdiction you’re deploying in, things could go well or things could move at a snail’s pace. Many jurisdictions slow down the small cell installation and also the fiber runs. I am still a fan of wireless backhaul, but that takes proper planning, one thing most people don’t want to take the time to do up front, just my opinion there.

Now don’t get me wrong, there is a reason some jurisdictions are cautious, most of them don’t do it to be jerks, they are just trying to understand what will be installed and what the repercussions will be.  Most local jurisdictions don’t always want better coverage if there will be problems, I see both sides. In the past some carriers installed noisy and ugly sites causing the local residents to be up in arms. You need to have balance with aesthetics.  You need to mutually respect each other’s opinions, right? Remember that the protests can lead to the removal of a site. Since there are so many jurisdictions to deal with, streamlining, (like Mr. Claure is asking the FCC to help with), makes sense but we need to show the local residents respect.

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I am a fan of small cell deployment and Sprint is pushing for a way to improve this, I am on board! I believe they would qualify their mini macro as a small cell at this point to speed up the densification, if it happens. Let’s face it, we all want to deploy.

Let’s not overlook the fact that Mobilitie has been preparing to deploy by asking to install on poles and install new poles just like Crown Castle has been doing. I am told that they want to replace the existing poles with taller and stronger poles for the mini macro and small cells, (again like Crown Castle has been doing). They have already sent project notes of out to city offices, like the letter they sent to the California City of Ojai, document found here. The document clearly outlines a high level plan to deploy small cells.

I was conversing with a friend of mine, Omar Masry, AICP, City Planner of San Francisco, about this.

Per Omar, “The City of San Francisco has signed agreements to allow Mobilitie to potentially install their facilities on City owned steel light and transit poles (which hold up electric wires for buses and light rail). However, as of yet no design has been approved.    T-Mobile and Verizon are actively collaborating with the City on the installation of Small Cells (technically C-RAN) on existing poles. The equipment primarily involves two Ericsson mRRUs (plus an external antenna for the Verizon nodes).    One challenge involves the design of the mRRUs with cabling exiting out the bottom of the enclosure then rotating back before entering the pole. Staff requested 90 degree connectors but the carrier declined. However superflex cabling was used instead to reduce the gap between the bottom of the mRRU and the pole entry point to five inches. Preferably equipment manufactures would create a variant for steel pole installations with reduced cabling visibility through alternate port locations (e.g. rear).   Another challenge with the Extenet-Verizon deployment was that the initial design proposal did not include required electronic gear (cabling and combiners). This required additional redesigns to shroud the equipment at the base of the external antenna; and ensure the design was compatible with the historic districts and streetscapes that characterize San Francisco.   AT&T Mobility had previously submitted applications to attach wireless facilities to steel transit poles, however the design was not approved as it featured bulky equipment enclosures and antennas on steel poles in primarily historic residential areas.    Staff looks forward to working with carriers on ensuring designs are compatible with the City’s streetscapes (without noisy cooling fans , flashing lights, and logos/decals typically associated with more challenging DAS nodes on some wooden poles), while providing robust and competitive broadband services.   Photo Examples of these (and other) design challenges can be found at: http://www.slideshare.net/omarmasry/slides-from-a-wireless-cellular-design-panel

So it looks like Sprint may be moving ahead through Mobilitie. I am hoping they deploy this year sometime before it’s too late! Mobilitie is the densification deployment team for Sprint, remember that. They will be the team rolling everything out. The mini-macro deployment could be referred to as small cells because, quite frankly, it’s easier to work with, just like the CRAN deployment. Those working with Verizon and T-Mobile know it’s easier to just lump it all into the small cell category. There are plenty of signs that they may do something soon!

Deploy, deploy, deploy! You can never have enough wireless deployments, am I right? Macro, small cell, CRAN, and DAS all are part of this amazing HetNet world we live in! Let’s deploy!

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

 

1099 Worker or W2 Employee

I don’t know how many of you are 1099 workers or W2 employees or hire them, but I want you to be aware of a few things. This is to help you out whether you run a business or if you are the worker. I would like to thank Lisa Hudspeth, Human Resource Specialist, contact info is hudspethld@gmail.com, for helping me put this together because I am no legal or Human Resources expert. I just thought this is something you should know and I put it together the best way I could to help the worker and the employer. I tried to remain unbiased.

A quick note, this is a very long post, so if you prefer to have a PDF of this post email me at wade4wireless@gmail.com and I will send it out to you.

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The wireless industry has had problems identifying 1099 and W2 work. Most companies want to hire 1099 workers because they feel they can get out of taxes and workman’s comp. It has been an issue in the courts or at least in arbitration. I hope this shed some light on the subject.

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Many workers look for work and the 1099 offers them a quick way to get paid. They need to understand the implications of this work as does the people hiring them. Without being properly educated then you quickly wind up in court if someone gets hurt or feels they got screwed. Remember that it’s all fun and games until someone gets injured on the job. Prepare yourself for the consequences of making the wrong choice.

First off, let me explain the difference. A full-time W2 employee will have completed a W4 upon getting hired. This needs be done immediately, for both the company and the worker to get the taxes aligned. You may have an option for insurance and you should be covered by workman’s compensation.

Log your time properly, get the logbook!

If you are a 1099 contractor, then you are an independent contractor. Being an independent contractor the company you contract with only owes you pay for the either the hours you work or the task you complete according to your contract. You are considered a contractor. This means no benefits, and no workman’s compensation provided by the company that you’re contracting with. So if someone offers to make you a 1099 employee, you are not an employee but a contractor, again not an employee. Understand, you are a contractor, not an employee, get that into your head! You do NOT get the benefits that an employee would, no insurance or workman’s comp unless you pay for it.  Are you familiar with FICA, FUTA and SUTA? Better get on top of this if you are a 1099.

As a 1099 worker, what are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated taxes quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording “self-employment tax” is used; it only refers to Social Security and Medicare taxes and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

Learn the Rules!

If you own a business, you need to be aware of the laws that surround 1099. When you hire these people they are not on the payroll and you have no income tax withholding, no employment taxes, no liability for acts of employees, no federal state discrimination laws that cover only employees, and no obligation to pay any benefits.

While this sounds good to the employer, there are disadvantages to hiring 1099 workers. For example, there is a basic understanding that independent contractors can choose whether or not they want to come to work without the fear of losing employment. They have the ability to control their own hours, and can typically get things done on their own terms without having to adhere to strict company policies – as long as the work performed has been completed and lives up to the standards that the employer has set out. It is not necessarily an “hours for wage” but it could be a “completed task for wage”.

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If you think it doesn’t matter, then guess again. There have been sizable awards for high-profile companies such as Microsoft and Time-Warner/AOL due to misclassification of employees as contractors. So, you may want to consider that the potential pitfalls of how retaining independent contractors can outweigh the short-term savings in benefits and reduced paperwork for some firms. On the other hand, if the people you are engaging do meet the criteria of the IRS regarding independent contractors and you have well-crafted professional service agreements in place with each one and you are careful in administering their contributions and status, you will be fine.

One thing that really pushes the 1099 movement in tower work is workman’s comp costs. You see it all depends on the comp rate.  Businesses gets better with age and the comp rate should drop.  What is the comp rate, it’s calculated like this. A climber’s workman’s comp rate could be $28 per $1,000 of wages, (assuming $1,000/month wage). Let’s assume that for 10 climbers the payroll is $40,000 a month so the comp part would be $1,120 per month. Get it, $28×40=$1,120. I don’t know the exact wage so you will need to know it for your business.

Why does getting out of paying workman’s comp insurance sound to appealing? In the tower industry the workman’s comp insurance is really high, almost as high as scaffolding workers. I believe they may be the highest, but I couldn’t find proof to back that up.

Why go one way or the other?

Why would an employee want to be a 1099 worker? Freedom to work with many customers and set their own schedules. Maybe it could be the only option they have to get work. It may be something where the worker wants to come and go as they please, and set their own schedule, and maybe they have a bunch of customers. They also have the right to walk away when they feel they have to.

Why would an employee want to be a W2 employee? Benefits and stable work, in theory anyway. Layoffs are very common in North America and the companies can do it with little or no notice.

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Why would you want a W2 employee over 1099? You want a valuable part of the team that can be an asset. This is someone you don’t want to share with the competition. You see, under IRS rules they are an employee if you direct their entire day, tasks, and training. Do you direct their daily tasks? If so then you need to consider making them an employee or risking a lawsuit.

Why would an employer want a 1099 worker? Maybe to complete a temporary task or to help in a work crunch or to complete a project. It would be a temporary need or it may be to call in an expert for a project. This way they don’t need to pay all the taxes and insurance required for a W2 when they only need temporary help for a project or task.

What you need to know.

If you are a W2 employee, you should have agreements between you and the company you are working for.  Make sure to review the employee handbook with the company policies. You may have a contract that includes scope of work, a non-compete/compete clause in your favor, and compensation.  You should fill out a W-4 IRS form, an I-9 immigration form (if needed), and an application.

If you are an independent company, then you should carry a plethora of insurance, if you have more than yourself working then you should hire an HR professional to complete your own handbooks, applications, I-9’s, job descriptions, business license, contracts, employee files, background checks, drug screens.  It is important to everything you hold dear about your income to do due diligence in providing the proper insurance and documentation.

If you are a 1099 then what you should have a contract between you and your employer, (using the word employer or 1099 makes my life easy!) The peril of using the word and accepting the word employer or employee ~we have entered a verbal employment agreement that I can make supersede the original agreement and collect on any benefits due, payments for WC, Fines for the Company if you cause me grief in the form of SSI- FICA, FUTA, SUTA.  I would chew them up spew them out! ) should be a contract. This will protect the company and the worker, but most people on both sides don’t bother or they are afraid to fill one out. Why? You may think it’s so that you have work, but in the end you may look really stupid when you don’t get paid or the business gets ripped off. It is a 2 way street that hurts both parties both ways.

Get the Scope of Work training you need before you get burned!

I talked to so many people that say there is a real problem here in the US and it’s in the Southeast but I have nothing to back that up other than people telling me how bad things are. I think it’s important that both workers and businesses need to know the rules around this.

  • When does the worker become an employee even though he is a 1099? Will the worker get any benefits then?
    • If the contract is ignored and you are told to do something that is out of the scope according to the paperwork (SOW). (Remember my Scope of Work training and all the talk about it being part of the contract?) You are given additional assignments.  You are asked to stay or show up, do a company chore, train employees that are not yours.  A good attorney can bring a co-employment issue in, meaning while you had good faith that you were your own boss…you were not.  Is any of this sinking in?
  • What if the company won’t pay the 1099 worker, what can the worker do?
    • Take his contract to an arbitration hearing. If a check is missing from the payment schedule then the contractor should stop all work and collect all employees as to cease and desist until his contract is resigned or continued. So this means you will miss work if you are the worker and that the company must go to hear your side of the story! It’s not a win for anyone but it proves a point if you are the worker that you won’t be pushed around.
  • What if a 1099 worker gets hurt on the job?
    • Then surely he has his own insurance…. Right?

Why they put “Contract” in Contract Work.

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What do you need to know about contract work? Well, let me explain, straight from Lisa Hudspeth, (Human Resource Specialist, contact info is hudspethld@gmail.com ), first off make sure you have a contract. What is a contract? It is an offer of work and compensation based on the needs of 1) the company and 2) the contractor.   The contract can be handwritten. It should be signed by both parties. This contract is the “be all” of deals.  It’s could keep you from being “let go” or be good tender for exchange of goods helping insure you are paid at the appointed contract times.  This could be a scope of work, and I have a tutorial here on how to write and read one. Make sure that if you use the SOW, it is signed by both parties!

The contract could allow you to stop working if you’re told your check is lost or “messed up”. Be sure if you call yourself a contract worker, you have a contract.  Business owners should beware if you call yourself a contract employee or employer then the word “employee” holds strong issues with the courts. Reminder to the business owners and the contractors out there, don’t be afraid to dot your I’s and cross your T’s. Prevention is the best cure, and in this case the contract may prevent a lawsuit going forward.

Classifying a Contract Worker.

QuickBooks has a good round of questions that ask businesses if they are workers or 1099, let’s look it over. It can be found here. I will sum it up:

  1. How regularly does someone work for you? In other words, are they working for you daily? Are they working for you part-time, occasionally, or just for specific projects? See the difference? Full time, W2 is likely, even if it’s full time for a month. Part time could go either way. Part time or every Friday is very different from daily, get it?
  2. Do you as the boss set the persons schedule? Do you, seriously, do you tell the person when and where to be on a daily or weekly basis? If the worker sets his own schedule, then things lean towards a contractor. If you set the schedule, then leaning towards W2.
  3. Do you, as a business owner, instruct or supervise the worker? If yes, then you are training and providing direct supervision, W2. If the worker is doing all of that on their own then it would lean towards 1099.
  4. If additional workers are hired, who does it? The business or the worker? Business leans towards W2, worker leans towards 1099.
  5. Who provides the tools? I believe this is obvious.
  6. How is the worker paid? Hourly or weekly or monthly or a fixed schedule, leaning towards W2. On a project basis or commission, then it would lean towards 1099.
  7. Is your worker economically dependent on your business? Yes leans towards W2, No leans towards 1099.
  8. Does the worker make decisions that impact personal profits, or losses? Yes leans towards W2. No leads towards 1099.
  9. Is the worker working for you indefinitely or for a specific period? Indefinitely leans towards W2. Specific time leans towards 1099.
  10. Are the workers a core part of your business? Do you need this person to increase profits and is he critical? Yes leans to W2 and no leans to 1099.

Be aware of the SS-8 IRS form!

By the way, if you are a 1099 worker or have them work for you then you need to be aware of the SS-8 form, found here. Why? This form keeps both parties honest. You heard me, education is the key. Many workers can make the transition either way, from W2 to 1099 or 1099 to W2. Just look at the form for more information,

So what can you do business owner or worker? Did you ever hear the term “prevention is the best cure”? The plan ahead! Make a contract prior if the partnership is a 1099. Why, to protect both parties so that when something bad happens the court or the arbitration goes well. If you think it won’t happen to you, then you are rolling the dice. In Vegas they didn’t build the casinos because they lose a lot, they got the money because rolling the dice and losing. Are you willing to take that chance? If you’re a business owner you have a lot to lose and if you’re a worker you could lose everything with no chance for help. Write a handwritten contract if you have to, just get something in writing. Many of you know I have SOW tutorial found here. Did you know that the SOW can be a legal contract? Find a way to protect yourself.

A quick note, this is a very long post, so if you prefer to have a PDF of this post email me at wade4wireless@gmail.com and I will send it out to you.

References:

Lisa Hudspeth, Human Resource Specialist, contact info is hudspethld@gmail.com

http://tentiltwo.com/running-your-business-blog/1099-vs-employee-you-need-to-know-the-difference/

http://quickbooks.intuit.com/r/1099-w2-employee-calculator/

https://www.irs.gov/pub/irs-pdf/fss8.pdf

https://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Interest,-Dividends,-Other-Types-of-Income/1099-MISC,-Independent-Contractors,-and-Self-Employed/1099-MISC,-Independent-Contractors,-and-Self-Employed-1

https://en.wikipedia.org/wiki/Workers%27_compensation

http://www.dol.gov/owcp/regs/compliance/feca810m.htm

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

Maybe Sprint is moving ahead!

I got an email, also seen here, from Telecom Careers telling me that Mobilitie is looking for several positions! I have them listed below but could this mean that perhaps the Sprint Densification plan is going to move ahead? I hope so. I mean look at the jobs listed below. I got this right from the email. Send those applications in people!

I smell a deployment about to happen! What do you think? I hope this means more work for the deployment teams everywhere. I don’t know what it will be like to work with Mobilitie but it can’t be any worse that dealing with Sprint, right?

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(You know you want to!)

Look at my Wireless Deployment post, found here, and see that these are all the positions that are generally used in a carrier deployment.

Remember that it all starts with site acquisition and RF design. Then you move into low-level design and site design. It doesn’t take long to get things rolling but there are always delays.

I am hoping that by looking at this hiring schedule that Sprint may finally be ramping up to move ahead with the densification project as well as the 2.5GHz expansion.

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Now, I am not saying things are all peaches and cream at Sprint, for instance, the layoffs are already starting even though the bulk will hit in January, article here, where an 11% reduction in the workforce. According to the article there are about 31,000 people work there today. So over 3,300 people will be leaving. Now all of this comes after Marcelo Claure announced that he would be promoting a few people to regional presidents.

One more thing, Sprint will no longer sponsor NASCAR, that is over and done with. So Sprint will survive for another year.

Another question that lingers, should Comcast take over Sprint or T-Mobile? Why not, it makes sense. Even though Comcast has a deal with Verizon Wireless to sell carrier services, then maybe they would jump in with both feet. They have the money and they have motivation. It would help them put AT&T in its place by competing on the TV delivery and in wireless. Comcast said they were going to move into the wireless market and run trials with Verizon.

Now, let’s get back to the Sprint deployment. I still believe nothing will happen until mid-2016 and that will probably just be the densification project. I don’t’ know when the 2.5GHz expansion will take place but maybe not until 2017. Sprint just can’t seem to handle the expenses right now. I hope that the deployment is good for the deployment teams, but anyone that has dealt with Sprint knows that they will try to get as much as they can for as little as they can. So beware of losing money on the venture. Remember that deployment should be win-win, not “win then suck the life out of my deployment teams leaving them broke”. Let’s be fair, to do this work at a loss means that you should not do the work at all! Don’t underbid unless you are prepared to lose money.

Why do I bring up the bidding? Because in a Light Reading article, found here, they mention how Sprint/SoftBank is going to do small cells differently. They already awarded the hardware to Nokia and Airspan, which most of you know about, and Ericsson may get a chuck. They passed over the small cell leader, Alcatel-Lucent, maybe because Nokia is about to swallow them up or they wanted cheaper small cells. The real reason is mainly because the backhaul had to be something easy and cheap. They don’t want to pay for fiber unless absolutely necessary, enter Airspan. A smaller player and yet one that has a complete solution and is probably able to undercut the big boys to gain a small percentage of the market share. Can’t blame them unless they lose money, then it all looks stupid.

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Now the other player for indoor, from what Dan Jones of Light Reading says, looks to be a player for indoor. This should make CommScope very happy since the own Airvana.

Remember that this is Sprint, and they may change everything and that they put out so many RFPs in the last year that your head would spin if you had to keep up with all of them. I admire the people working at Sprint for burning through the cycles and I hope those loyal people get to keep their jobs after the massive layoff that Sprint has planned. I know that many of them worked through holidays just to make sure that Sprint would have the pricing. By the way, if you ever have worked through the RFP process with Sprint then you will see that it is not easy and it usually is about price, my observation and opinion.

When will they deploy the small cells? Who knows, I hope the mini macro happens soon, but the reality is that they won’t be ready until mid 2016 from what I am seeing. Maybe they will surprise me by deploying sooner, but I doubt it. If anything they may push it out to 2017.

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Sprint versus T-Mobile

If anyone is following the battle for #3 you see that T-Mobile got the position. Can they hold it? Who is going to make the long-term difference? Let me tell you what I see from a deployment stance.

Don’t get me wrong, the marketing plays a big part. I think that Marcelo Claure of Sprint and John Legere of T-Mobile are geniuses at marketing, although I think Legere has the edge. They both see to be able to build marketing programs that reach out to the smartphone user. The difference I see is that Sprint’s message is “we are cheap and will give you a cheap plan” versus T-Mobile who says “We have a reasonable plan with free video and our LTE coverage is great”. I think we all see the difference but in the end the customer wants a working system for a reasonable price.

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Business wise T-Mobile seems stronger at this moment in time.  T-dog-tags_clearbackgrondMobile wins here if we just look at the stock price, When I wrote this, Sunday December 6, 2015, T-Mobile came in at $35.45 versus Sprint at $3.53. It is obvious that we hear about all the problems at Sprint and all the cool stuff T-Mobile is doing  that T-Mobile is moving up while Sprint seems to be standing still. Some would say Sprint is moving backwards, which, in this industry is what happens when you stand still. Let’s move on shall we?

So from a deployment stance I see that Sprint has built, ever so slowly, very little out this year. They are expanding their 2.5GHz footprint at a snail’s pace. The good news is that they  have been optimizing what they have to the point that they really are improving the network coverage. From what I hear they are actually making improvements and pushing the LTE that they have built. In my opinion it is too slow.

T-Mobile on the other hand is aggressively building out with an impressive steady build plan that will improve their densification in major population areas. I am really impressed by what they are doing and the move to VoLTE. WOW! This is impressive to me and it shows that T-Mobile is not only committed to changing the industry by becoming the anti-carrier and plans but they are really improving their network. They seem to be boosting the network by leaps and bounds.

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So when I look at the 2 competitors I see T-Mobile actually making a real difference in the network and growth. Meanwhile Sprint seems to be falling farther and farther behind. I know that we all expect dog-tags_clearbackgrondthem to do something big in 2016, but will it be enough or will it be too little too late. I will give Sprint and Softbank for the most creative financing. That deal they pulled off to get $1.1B of cash was amazing. WOW! Then they will be cutting out $2.5B of costs by cutting the workforce, meaning huge layoffs. Then they have to deploy the network they promised in their densification plan. Then they will have Mobilitie finance most of it for them. So will Sprint become a shell where the network is owned by Mobilitie and the devices will be owned by Mobile Leasing Solutions. So Sprint is finding a way to deploy a network and sell devices with little financial outlay. Let’s hope they can stay afloat long enough to make it happen.

T-Mobile on the other hand has been making investments that really look great from a system perspective. They have all the marketing savvy but they have the network to back it up. The video offering they have now is really impressive and the fact they have the vision to go complete LTE, for data and voice, is amazing. The way they offered VoWiFi before any other carrier did was awesome. They are pushing all the other carriers into a position they weren’t ready for yet. They seem to have an impressive vision for their future.

The funny thing is that Sprint has all the 2.5GHz spectrum that any other carrier would love to have, but they are moving so slowly because they apparently don’t’ have the money to do anything with it. They have a plan to densify, but they have been putting all of their vendors through the ringer and trying to cut the prices down to the point where most deployment teams wont’ want to work with them. I know that I have talked to many people who have participated in several RFPs that it is hard to take Sprint seriously any more. They have personally made so many vendors back down and say “don’t call us until you’re serious”. Do you remember when the rumor was that they were going to deploy over 70,000 small cells, then it was mini macros, for the densification program. What has been done since then? Not much. They seem to be slowly adding 2.5GHz to the towers, which really is an extension of the Network Vision plan. Sprint has such potential but they can’t seem to get out of their own way. All the money seems to be going somewhere, but where? I mean, I don’t see it going into the network, do you? They are cutting an already overworked workforce. They just don’t seem to be a company that the vendors I have talked to really want to work with anymore. The best thing they could do it allow the vendors to deploy the small cells and DAS systems for them. “Free the Indoor Small Cells”. They could allow them to deploy the system for them. It would just take building a process then they could get out-of-the-way, just wishful thinking on my part.

From what I see, T-Mobile is making all the right moves to win this war. I think that they are positioning themselves to push AT&T and Verizon. They might not win on coverage but they can give them a run for their money. While coverage is an  issue, they have a good overall plan and they are sending a consistent message. Meanwhile, Sprint seems to be  sending a message that they are the cheap guy and the margins are bleeding for it. But hey, what do I know, I just want to see all the deployment teams busy again.

I am reading Lessons in Life and Business” by Elon Musk and he has a quote that I think would apply here. “Focus on signal over noise. A lot of companies get confused. They spend money on things that don’t actually make the product better.”

Deploy, deploy, deploy!

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LTE MIMO Deployment Notes

I found a video that is interesting, if you are into massive MIMO, which is being proposed for outdoor work. I think this is interesting because Professor Dr. Wolfgang Utschick talks about how MIMO works. He gives a long and detail explanation (snooze). I listened to it because I really find it interesting. This is how I spend my Saturday mornings, seriously.

The video, https://youtu.be/zhncADqR9rg, goes into great detail about the complexities of how the MIMO works down to the signal level. This is a really smart guy giving a boring delivery, so I will break it down for you, if you listen to my podcast you may find it more interesting than the video. Let me tell you my version, lots of antennas = better signal propagation both ways, with better noise rejection and more throughput. Multiple signals going in and out simultaneously allows for the device and BTS to work better, clean up the noise and errors so that the customer can get some kick ass bandwidth. That is the name of the game. Then he talks about the multi user MIMO works y using the same signal. Then he sums it up by going over the beam forming properties of the antennas.

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What does this mean to you? Well deployment teams, it means that dog-tags_clearbackgrondthe RF designers will be working with multiple antenna systems. It means that the site designers and the site acquisition teams now have to work with MIMO antenna systems wither on a building or on an antenna or small cell or DAS. Yes, they will be deploying these for DAS. Don’t think it’s something new, look at what Wi-Fi has been doing for a few years, and they are big into MIMO. Now they want LTE to do more than 2 antennas, up to 8 or even 24. This will have to balance with practical installations to what your device, (smartphone) can support. They have to work together after all.

Let’s not forget the installation teams will be dealing with larger or heavier antennas and more cables on the tower. That’s right, bigger and heavier. What about the remote radio units, they were just starting to get smaller and now they will be bigger or they will add more. You will find out soon with 4T4R and 8T8R.

Then there is optimization, the drive teams will need to get new devices to test with. So this will add complexity not only to the system but the testing as well. Just like with carrier aggregation, the MIMO upgrades will make things more complicated.

What will the carriers say? Well, they are already deploying 4T4R, 4 dog-tags_clearbackgrondtransmit and 4 receive MIMO, and some are doing 8T8R. They are working their way to 16T16R. How cool is that? I believe they will push to do more if it is cost-effective. Some carriers saw this as a ploy for the OEMs and antenna companies to sell more equipment, until they saw the payback. Yes, the payback of efficiency and bandwidth. They are going to do all that they can to improve the pipe, like this and carrier aggregation. All ways to get the biggest bang out of the bandwidth they have.

To get the most out of this, they need to shrink coverage areas as well. So in doing this they may not really need to maximize MIMO. I think to find a balance between the cost for MIMO and the cost to deploy a site will maximize the investment. They want a reasonable coverage area based on loading. In the old days it was based on population but now in the world of data it’s a balance of population and usage. Now the carrier’s system is becoming more and more of a pipe. They know they can’t do it all, but they can provide quality coverage to the mobile masses. They have to do this within a budget.

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The goal is to make sure the user has a great quality of experience, (QoE), for the right budget. Of course it could be better but at what cost? The equipment and the services start to run up the CapEx and to maintain something like that may run up the OpEx although I am not sure how. The only thing I see is backhaul will be bigger, equipment maintenance, and maybe tower rental. There may be more that I am missing.

How does CapEx go up? Let me tell you the obvious, the hardware goes up. The antennas cost more, the radio heads cost more, chances are the BBU and the hybriflex cable costs more. It all adds up. They to install it, extra weight, extra testing, extra optimization, and all the little things all add up. It ain’t free! All those nickels and dimes add up to hundreds or thousands a site.

So when looking at the new LTE systems, now you see the complexity that is in a simple design. You also see that budgets play a part. Not every carrier can throw money at these issues but they will do what they can to serve the user and to have bragging rights. Going to LTE gives them bragging rights, doing VoLTE also really helps.

There is a long-term goal as well. If they can get the LTE system up and running then they can start to decommission 2G and 3G systems saving on maintenance and service 2 systems as well as freeing up that bandwidth for 4G. Get the old systems out, maintain the current system, and save money while increasing the QoE for the user. It all makes sense to me.

What about 5G? Well, from what I have been reading is that the 5G will be an extension of what they have now. I know that the carriers do not want to start swapping out gear so soon, especially in 2020 if they don’t have to. They want to just add-on to what they have or they want to do it all through software upgrades. Why spend the massive amounts of money if they don’t have to. After all, we went from 3G to 4G in a very short time. Why not use MIMO and other ways to improve the system? It all makes send to me to have the hardware ready for software updates. Let’s decommission the 3G system before we replace the 4G equipment.

I am hoping that 5G will change the IOT, meaning machine to machine where we can get real-time readings for our power meters, gas meters, and water meters. I know that they have this in some parts of the country but not where I live. Hell, they don’t even read the power meter every month so if I have something in my house that is sucking down power I don’t know about it for 2 months! Just venting here but I see great things happening soon. I know the utility companies are waiting for federal grants to move ahead, but come on! I can see my bank statements and credit card bills in real-time. Let’s get started on making the meter reading happen in real-time.

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Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

 

 

Dedicated DAS Spectrum?

I know what you’re thinking, DAS spectrum is not dedicated, but what if it were? Now that the carriers don’t want to pay for a shared DAS system in venues, we should come up with alternatives to getting them into large venues. DAS is needed in the industry for coverage. We can play favorites for coverage, but how do we provide coverage for all carriers? Let’s explore some options.

DAS is still booming, in fact, I found a really cool website, http://www.daspedia.com/ where you can find some DAS information. I really think its good stuff. DAS for LTE will continue to boom. Yet, the carriers no longer want to pay for a shared DAS system. What will we do? Will the work go away?

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NO! I don’t think so and I will tell you why. The coverage is still dog-tags_clearbackgrondneeded and while we all love Wi-Fi, the voice handoff from VoLTE to VoWi-Fi is still not as clean as anyone would like it to be, it may get better but this is why LTE-U is taking off. So this leads to my question, “will LTE-U become the new shared system for carriers?”

Well, Verizon is pushing things in that direction along with Qualcomm. It seems like all the OEMs are joining the party because they are providing solutions with carrier aggregation and LET-U, so it seems to be moving ahead.

I know that the debate between a safe coexistence between Wi-Fi and LTE-U is still up in the air. In fact ask anyone that is associated with the cable companies or Wi-Fi groups and they think that LTE-U is just one step down from the Antichrist, at least it feels that way. Cablelabs did some tests, http://www.cablelabs.com/fair-lte-u-coexistence-far-from-proven-in-cablelabs-qualcomm-testing/ where they have undeniable proof that LTE-U will devastate Wi-Fi. But then we can look at Qualcomm’s letter to the FCC, http://apps.fcc.gov/ecfs/comment/view?id=60001084962 and see that Wi-Fi and LTE-U can live happily together and thrive in this new world that is coming. Actually Qualcomm said LTE-U is less of a problem to Wi-Fi that Wi-Fi is to itself, which I believe, because I have been places where there are 5 hotspots and coverage is not so great. To be fair, RCR did a segment on it here, http://www.rcrwireless.com/20150701/test-and-measurement/lte-u-testing-5-studies-and-their-results-tag6 which does a good job at pointing out all arguments.

Can’t we all get along? Seriously? Should let them fight it out? It looks like LTE-U will be a new opportunity for deployment. It looks like the FCC will allow LTE-U and LTE in the 3.5GHz lightly licensed band, so that means we can deploy CRAN and small cells with carrier bands, Wi-Fi, LTE-U, and 3.5GHz! Let’s go and deploy. LTE-U is coming in one form or another, and it should allow the carriers to share the bands. That means the design, engineering, and deployment teams will get a new wave of work! That’s where I am interested, the next phase of DAS may not only include Wi-Fi and carriers, but LTE-U.

Just think if you have a new player that uses LTE in 3.5GHz for access to the devices? Or it could be used as backhaul. Is that cool or what? Who would do 3.5GHz as a carrier would? Well it has been done, http://www.gtigroup.org/35ghz/overview/2015-03-20/5820.html in Japan and China. Wouldn’t it be cool if the lightly licensed band here in the US would be a step up from Wi-Fi but a step down from the billion dollar carrier bands? I am just dreaming here but the band works, so why not see if we can deploy it here in North America?

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It’s funny you would ask, because 2 small companies you may have heard of, Google and Nokia, are already working towards a test, http://www.fiercewireless.com/tech/story/nokia-teaming-google-lte-u-35-ghz-spectrum/2015-09-14. This is big news, to me at least, because it will open up new venues for deployment. I see this as a great way for the carriers to pay a third-party to share in a DAS system that is cost-effective to deploy. All they need to do is roam onto this system. Easy peasey lemon squeezy, if the FCC adopts that band for testing with enough bandwidth!  Oh, that’s right, they did, http://www.fiercewireless.com/tech/story/fcc-votes-adopt-new-35-ghz-spectrum-sharing-plan-innovation-band/2015-04-17 back in April! So what are we waiting for? The OEMs to make something, it takes a long time, then someone needs to deploy it and test it, like Google. Then the carriers need to do interoperability testing, IoT, into their networks. Then we will have 150MHz of bandwidth to play with, lightly licensed bandwidth for the small business to build and be deployed. Oh boy, it’s always exciting to see something like this happen, innovation! I would like to thank the DOD, department of defense, for freeing the bandwidth! Free with only the threat of radar interfering with it, and radar is high power so that may be a problem. All the more reason to put it indoors for DAS and small cells. Thank you FCC chairman Tom Wheeler!

I know that it would also be a great backhaul technology, which now that there is 150MHz. Having that much is a start so we could use it effectively. I see an opportunity here.

Something to think about!

Be smart, be safe, and pay attention!

Sign up for my newsletter and tell me what you think! 

Be smart, be safe, and pay attention!

Learn about QRedentials

QR Reader –> http://app.qredentials.com/Credential/Index/39

official logo

Give to the Hubble Foundation because if you don’t help these families, who will? Who supports Hubble? The wireless workers and the tower climbers, that’s who! With no support from the carriers or NATE, so it’s up to you! What if it were you? Would you want help? Who would help you if you were hurt? Who would help your family, your spouse, your children if something happened to you? Do you see the people who are hurt?

 

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