1、SMART CITIES How 5G Can Help Municipalities Become Vibrant Smart Cities How 5G Can Help Municipalities Become Vibrant Smart Cities Executive Summary For decades, the evolution of communications technology has laid the foundation for broad economic growth across the United States benefitting towns an

2、d cities large and small. The next generation of wireless network infrastructure will be built using small-cell networks employing 5G wireless technology. The connectivity and computing capacity unleashed by these high-speed wireless networks will bring the power of Smart City solutions to municipal

3、ities across the country. This can transform local economies. Research has suggested that Smart City solutions applied to the management of vehicle traffic and electrical grids could produce $160 billion in benefits and savings through reductions in energy usage, traffic congestion and fuel costs. T

4、hese 5G attributes will enable cities to reduce commute times, improve public safety and generate significant smart grid efficiencies. Beyond the benefits of pervasive Smart City technology, the potential gains from the deployment process for such technology are also significant since telecom operat

5、ors are expected to invest approximately $275 billion in infrastructure, which could create up to 3 million jobs and boost GDP by $500 billion. 5G Economic Impacts Jobs Created GDP Growth Investment 3 Million $500 Billion $275 Billion Full realization of the economic growth and cost savings from lev

6、eraging Smart City solutions built on 5G infrastructure will, however, depend on how robustly 5G networks are deployed locally, and will require different approaches from those used in the past. The network deployment build of 5G will involve 10 to 100 times more antenna locations than 4G or 3G. The

7、se cells are small the size of a shoe box and are critical not only for delivering the speed and capacity promised by this next generation of wireless, but also for supporting the increased number of devices that will be connected to the network in the future. Page 1 To support the increased density

8、 of small cells that will be required to obtain both the economic and Smart City benefits enabled by 5G wireless networks, there are a number of steps municipal leaders should take to encourage telecom operators to invest in deploying next-generation infrastructure in their municipalities. Today, ma

9、ny municipalities require approvals and fees based on the historical deployment of large towers that can be more than 250 feet tall. The shift from traditional large wireless towers to small-cell sites affixed on locations from lamp posts to utility poles will require a streamlining of the permittin

10、g process governing wireless infrastructure deployment and an appropriate adjustment in permit areas. If municipal and regulatory leaders wish to reap economic benefits, including jobs and GDP growth, and accelerate their journey to becoming a Smart City, they should strive to be among the first to

11、streamline permitting, change their fee structures, and reduce regulatory hurdles to support the new small-cell deployment model required for this next generation of wireless technology. Saratoga, CA 29,900 Pop. 300 $50M $20M $10M Jobs Created GDP Growth Network Investment Smart Grid + Transportatio

12、n Benefits Beaumont, TX 118,000 Pop. 1,000 $180M $100M $70M Metro Chicago, IL 9,472,000 Pop. 90,000 $14B $8B $5B Smart City Technology California could see as many as 375,000 long-term jobs created. Page 5 Smart City Growth Will Be Accelerated by Next-Generation Wireless The Smart City applications

13、currently leveraging todays wireless networks are already showing significant benefits to communities. Building on the foundation of 4G LTE, 5G will accelerate these Smart City benefits. The key attributes of 5G that will benefit Smart Cities include higher speeds; more connections thus enabling wir

14、eless connectivity in unprecedented locations, ranging from street lights to sewer holes; quicker, more adaptive response times that support time-sensitive applications, such as vehicle-to-vehicle communications; and ultra-low-power connections, such as sensors for leak detection in water mains, sin

15、ce, in many cases, the replacement cycle is directly related to battery life. We have picked three areas energy/utilities, transportation, and public safety to showcase what is possible when municipalities welcome next-generation wireless technology. These examples also illustrate how wireless conne

16、ctivity is already creating jobs, generating municipal efficiencies, and increasing government revenue. 5G: Technology to Meet the Growing Demands of Smart Cities Ability to connect many more sensors and devices High-speed ubiquitous connectivity Prioritization, greater reliability and redundancy Ul

17、tra-low power consumption Page 6 Energy access to public rights of way; and fee structures. Page 12 Local Permitting and Regulations Currently, applications for small-cell implementations can take up to 18 to 24 months for approval, which is similar to the time required to approve one large macro ce

18、ll tower. Recognizing that the density of small cells is up to 100 times greater than for macro towers, such an approval cycle will pose a tremendous challenge to both telecom operators and municipalities. In certain cases, slow turnaround/approval times have not only caused delay, but have resulted

19、 in approval of only part of the submitted plan. If approval for a full cluster of small cells is not supported, and fewer small cells are deployed as a result, the full benefits of this wireless technology will not be realized. In many cities, the approval cycle requires several separate tribunals

20、for approval. Committees such as a neighborhood association, a planning commission, a zoning commission, the county council and others may each require a separate decision-making process. Some cities also require a discretionary review of each installation, or else classify every small-cell installa

21、tion as a new installation that requires its own separate environmental assessments and approvals, even if the location has an existing small-cell site operated by another telecom operator. Access to Public Rights of Way One potential option for telecom operators deploying small cells on Public Righ

22、ts of Way is to work with a partner that offers a database of already-approved sites, and manages relationships with operators through efficient, mutually beneficial processes. Immediate access to these types of qualified sites and assets makes it quicker and easier to find locations to deliver 5G s

23、ervices to users and enable Smart Cities. It also shortens the time spent negotiating with site owners, and reduces the effort required to secure the necessary permissions and approvals. One example of a partner would be the local public utility which manages utility poles. The FCC has supported wir

24、eless deployment by clarifying rules related to the use of utility poles, specifying that pole attachment laws should also cover wireless attachments, thus removing any ambiguity about how wireless attachments should be treated by utility pole owners. The FCC has also specifically required that any

25、denial must be on a “case-by-case” basis.16 While many owners of public utilities poles have embraced small-cell attachments from the beginning, others remain less enthusiastic. Without Public Rights of Way, the deployment of next-generation small-cell technology will continue to suffer and communit

26、ies will not be able to enjoy its benefits. Fee Structures In many instances, fees imposed on small cells are comparable to those imposed on macro cells without regard to their differences. The application fees and other acquisition fees (including rental) of macro- cell sites are applied to each of

27、 the 50 to 100 small cells required resulting in costs being multiplied and deployment becoming financially unfeasible. Communities that apply previously used processes and regulations to small-cell rollouts, rather than updating their approach, can end up discouraging small-cell deployments. Such c

28、hallenges, coupled with concerns about return on investment, will cause delays for the deployment of wireless infrastructure, potentially leading to the loss of projected benefits in the affected communities, and shifting those benefits, including economic development and increased competitiveness,

29、towards communities that have developed plans to support faster deployment of next-generation technology. Such delays are also likely to have consequences for certain types of Smart City benefits that depend on having the 5G infrastructure in place. Cost is one of the most significant challenges tha

30、t telecom operators face when deploying small cells. Small-cell equipment itself typically accounts for 10% or less of a sites total cost of ownership, with a much larger part of the investment instead going to the services through which each site is selected, assessed, acquired and approved for imp

31、lementation. Considering the large number of small cells required, the cost structure makes the total cost of installing small cells many times higher than the costs for existing infrastructure. These regulatory and operational challenges are just a fraction of the issues telecom operators will face

32、 when implementing the small-cell technologies. There are other challenges they need to handle in parallel, such as acquiring new frequency spectrum; making sure there is high-capacity connectivity, such as fiber optics, to each of the small cells, and development of 5G know-how and expertise. Page

33、13 Next Steps to Unlock Economic Growth To build a 21st Century Smart City and reap the resulting economic benefits, municipal leaders must support an environment that cultivates smart innovations for all of their citizens. By facilitating 5G infrastructure deployment, they can make their communitie

34、s more efficient and attractive to investments by telecom operators as well as other industries. Keeping in mind the telecom operators expected infrastructure investment of $275 billion for 5G deployment over seven years, and the opportunity to create up to 3 million new jobs, there are a number of

35、steps that municipal leadership can take to improve the rollout process and save time, thus helping the prompt evolution of their community towards a Smart City and reaping the associated economic benefits. These steps address three main areas of challenge previously outlined: streamlined permitting

36、 and processes, right- of-way applications, and fee structures. Streamlined permitting and processes: Batch approvals By pre-approving cell antenna types and providing approval for specific areas, as opposed to pole by pole, approval processes can be streamlined, saving the city significant time and

37、 resources that would otherwise be spent processing repetitive permits. Accelerated timelines To allow for efficient deployment of small cells, permits should have a reasonable approval time. Right-of-way applications: Given the pervasive yet non-intrusive nature of small- cell technologys footprint

38、, municipalities would benefit from providing access to sites or assets such as government-owned utility poles, streetlights and other street fixtures, wherever possible. Page 14 Fee structure update: The fees typically charged for macro towers, when applied to small cells, will deter telecom operat

39、or investment. Given the increased number of cells required for a 5G deployment, a new, rational fee structure one that does not compromise revenues of the city should be considered in light of the economic opportunity such a deployment represents. A city will benefit much more from the increased jo

40、bs and prosperity that 5G Smart City technology brings, than from the revenue the city generates from pole fees or permits. Additionally, municipalities should consider more efficient fee administration. Rather than establishing a different price for each type of lamp post or streetlight, cities cou

41、ld create simple asset classes based on location, power requirements, maintenance requirements and engineering charges, thus providing optimal terms and conditions for each small-cell deployment, while reducing unnecessary paperwork. In addition to specific policy recommendations, municipalities sho

42、uld consider ways to ensure departmental coordination on decision-making. Given some of the time-consuming situations that telecom operators have faced as a result of piecemeal approval from the required city departments, it is clear that providing operators with a single point of contact for inter-

43、departmental approvals would save time for both operators and city officials. The evolution of 5G wireless technology, which will create the advanced infrastructure needed for Smart Cities, has reached a very promising juncture yet also a critical one. The Smart City concept is real, and is starting

44、 to take shape in a number of municipalities in the U.S. and abroad. To reach its full potential, and unlock the full benefits of Smart Cities, communities now need to support small-cell deployments to enable a 5th generation of communications infrastructure. Cities and towns which are first to faci

45、litate the wireless infrastructure evolution will see the greatest benefit, while slow adopters may be the equivalent of turn- of-the-century towns that were not supported by infrastructure, and slowly became less competitive and lost jobs while their populations shrank. Given the large investment t

46、hat telecom operators plan to make in the coming decade, and the 5G trials that are expected to start in early 2017,17 municipal leaders should position their communities to take advantage of this investment and all of the other benefits that accompany it, including improving citizens lives, creatin

47、g jobs and increasing their economic competitiveness. Page 15 Appendix Methodology, Assumptions and Caveats Around Estimated Economic and Other Impacts Network investment costs are based on our knowledge of current estimates of expected costs, and assume adoption and coverage requirements will be si

48、milar to previous generations of technology. Technological advances, regulatory frameworks, and the availability and cost of wireless spectrum are examples of factors that may impact these estimates. Construction jobs directly created from the network investment were calculated using industry averag

49、e costs.18 Indirect and induced employment figures as a result of construction were calculated using industry- specific employment multipliers.19 The impact of next-generation wireless technology on employment was estimated using research that studied the impact of previous generational shifts in wireless technology specifically, the economic impact of 3G technology in the U.S.20 The number of jobs created increased over time as the technology is adopted and the figures in this document represent the numb