Spending on in-building wireless networks to rise

Tough competition and the battle for network supremacy are two drivers that will push the market for in-building cellular networks north of US$1 billion by the end of this decade, according to a new study by research firm ABI. However, limiting further growth in this market are two other factors, perhaps equally as strong: operator control and deployment costs. The most cost-efficient in-building wireless networks sometimes require an operator to give up control of the infrastructure, in a so-called "neutral-host" model.

Wireless carriers initially balked at the early demands of neutral host providers and began to consider alternative solutions by deploying their own in-building networks. High deployment costs -- primarily labor costs -- have made the decision to deploy carrier-owned in-building networks a hard-sell. Further complicating the matter was the difficulty in calculating the operators' return on investment after deployment. Recently, however, success for the neutral host model has lured operators back to this thinking, as exemplified by InnerWireless' deployment within New York's Rockefeller Center Concourse.

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