• ABI Research delves deep into the sustainable and cost benefits of network sharing models
• Boldyn Networks is leading the global shift towards more efficient and environmentally friendly network infrastructures

21November 2024

New research revealed that Neutral Host Networks (NHNs) are 38% greener and up to 47% more cost-effective than traditional standalone 5G deployments. Neutral Host Networks: A Solution to Greener and Cost-Effective Deployments, authored by ABI Research and commissioned by Boldyn Networks (Boldyn), modelled NHNs against traditional standalone 5G deployments across New York City and Rome. A first-of-its-kind research.

At a time when carriers and communications service providers are held accountable for how they are delivering on their ESG commitments, these findings demonstrate that the network sharing concept of NHNs significantly lessens the environmental–and cost–challenges associated with 5G densification.

Increased network demand and higher frequencies used for 5G technology mean a higher densification of base station sites is required to support 5G network rollouts. And those requirements result in additional costs incurred from building and maintaining new 5G sites, as well as a negative impact on national power grids. As telco players continue their efforts to deliver an interconnected future, models of network sharing present new opportunities. By delving deeper into network sharing models, ABI Research aimed to understand the benefits that such models bring to operators and to the planet.

Key research takeaways

Benefits of network sharing: energy consumption and cost

• In dense urban environments, ABI Research expects net energy savings of 20% and cost savings of 40% from 5G small cell deployments via NHN when compared with individual standalone deployments
• In urban environments, expected net energy savings range from 27-33% and cost savings reach 47%
• In suburban areas expected net energy savings range from 35-38% and cost savings remain 47% cheaper than traditional 5G small cell deployments

Drivers behind CAPEX and OPEX reductions

• Costs and energy savings are driven by the consolidation of telecom equipment and the sharing of site installation costs, including but not limited to small cell radios, fibre and power trenching, site maintenance, and site leases
• Small cell equipment needs are significantly reduced in NHN environments, ranging from ~40% fewer small cells deployed in dense urban areas, to ~47% fewer in suburban areas
• Total savings increase in Greenfield deployment scenarios over Brownfield is significant and primarily driven by the consolidation of CAPEX costs to deploy fibre backhaul and power equipment

“ABI Research’s industry proven network model indicates that there are significant cost, energy and efficiency benefits when considering a neutral host over a traditional network deployment,” said Dimitris Mavrakis, Senior Research Director at ABI Research. “Network modelling in New York and Rome shows costs and energy savings as high as 40%, providing a substantial improvement to 5G expansion operator efforts. ABI Research expects neutral host operators, such as Boldyn, will play an increasing role in network densification efforts in the next few years.”

“Advances in 5G will enable new possibilities in the way we live, work, and play. But as an industry we have the responsibility to roll out new networks in a way that is both cost-effective and sustainable,” said Brendan O’Reilly, Group Chief Operating Officer at Boldyn Networks. “The neutral host model is an elegant, practical solution to reducing capital and operating expenditure for MNOs. It is also critical to accelerating the adoption of 5G and ensuring the delivery of transformative connectivity services for businesses, people and communities worldwide.

“If the telecoms industry is to truly deliver on the promise of a sustainable, inclusive, interconnected future then mobile operators must consider neutral host a real alternative to delivering future networks.”

The research simulated two real-world environments where 5G NHNs are being deployed. Based on ABI Research’s understanding of the NHN market, the model assumes an average tenancy rate of 2.4 large operators through to 2028 and a Multi-Operator Core Network (MOCN) sharing model as the preferred mode of network sharing. Additional parameters including network traffic dimensioning, network architecture comparison and accounting for both Greenfield and existing Brownfield sites were factored in to ensure a realistic simulation of real-world circumstances.

With a strong commitment to sustainable telecom practices, Boldyn is leading the global shift towards more efficient and environmentally friendly network infrastructures. As O’Reilly highlights, "Our goal is not only to support the expansion of 5G but to do so responsibly and sustainably. Boldyn’s efforts worldwide underscore our belief that neutral host models are the key to unlocking affordable, sustainable connectivity for people, businesses, and communities."

Through its leadership, Boldyn is betting on a future where network densification aligns with global sustainability goals, enabling carriers and CSPs to achieve their ESG objectives while benefiting from the cost and energy efficiencies of NHN models.

To read the full report, Neutral Host Networks: A Solution to Greener and Cost-Effective Deployments, click here.