Neutral hosts value

proposition:
Functions, advantages and benefits

DOCUMENT 248.11.01 | FEBRUARY 2024

SCF is a global organization whose mission is to enable and
accelerate the sustainable digital transformation of industry,
enterprises and communities.

We do this by supporting established and emerging service

providers and deployers to successfully deploy a range of agile,
cost-effective, scalable, cellular infrastructure and solutions.

We gather requirements from service providers and businesses and,

directed by our Board, these inputs shape our work program. Our
specifications, technical papers and enterprise-focused outputs are made
freely available to benefit the wider industry.

We have driven the standardization of key elements of small cell

technology including Iuh, FAPI, nFAPI, SON, services APIs, TR-069
evolution and the enhancement of the X2 interface. These specifications
enable an open, multivendor platform and lower barriers to densification
for all stakeholders.

Today our members are working on projects spanning split architectures,

private networks, neutral host requirements and business model evolution,
5G small cell products, and policy and regulation.

All content in this document including links and references are for
informational purposes only and is provided ‘as is’ with no warranties
whatsoever including any warranty of merchantability, fitness for any
particular purpose, or any warranty otherwise arising out of any proposal,
specification, or sample.

No license, express or implied, to any intellectual property rights is granted

or intended hereby.

© 2007-2024 All rights reserved in respect of articles, drawings,

photographs etc published in hardcopy form or made available in electronic
form by Small Cell Forum Ltd anywhere in the world.

SCF documents can be found here: www.scf.io

If you would like more information about Small Cell Forum or would
like to be included on our mailing list, please contact:

Email info@smallcellforum.org

Post Small Cell Forum, PO Box 23, GL11 5WA UK

Member Services memberservices@smallcellforum.org

Credits
Author Company
George G. Aguilera Crown Castle
Mike Ferris DenseAir

Reviewer Company
Small Cell Forum

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01
Scope
The Small Cell Forum’s Neutral Host Working Group addresses the problem of
identifying the value proposition neutral host organizations or networks offer their
stakeholders – from individual nations to communities and venues. Though the Small
Cell Forum has a global membership, not all countries can be represented. In this
paper we use case studies (see companion document Neutral Host Deployment Case
Studies) from member organizations to understand the local and global concepts that
create the value proposition of neutral hosts for mobile network operators, venue and
commercial property owners, municipalities, and other stakeholders.

This paper aims to provide more clarity on the actual value proposition rather than
being based on sales and marketing.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01
Contents
1. Introduction ................................................................ 1
2. What is a neutral host? ................................................ 2
3. Role of neutral hosts ................................................... 3
4. Future models ............................................................. 4
5. Who benefits from a neutral host – and how? ............. 5
5.1 Benefits for policymakers and government ......................... 5
5.2 Benefits for businesses .................................................... 6
5.3 Benefits for local communities .......................................... 6
5.4 Benefits for market competition ........................................ 6
5.5 Benefits for mobile network operators (MNOs) .................... 6
5.6 Benefits for neutral hosts ................................................. 7
6. The Value Proposition Canvas by customer group ....... 8
6.1 Customer jobs ................................................................ 8
6.2 Pain relievers ................................................................. 8
6.3 Gain creators ................................................................. 8
6.4 Creating the neutral host value proposition canvas .............. 9
6.5 Neutral host value proposition for MNOs............................. 9
6.6 Neutral host value proposition for commercial property
owners ........................................................................ 12
6.7 Neutral host value proposition for municipalities ................ 15
6.8 Neutral host value proposition for regulators..................... 18
7. Conclusion ................................................................. 22
8. Acknowledgements ................................................... 23
References ........................................................................... 24

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01
Tables

Table 6–1 Customer profile for mobile network operators that use neutral hosts
............................................................................................. 10
Table 6–3 Customer profile for commercial property owners who use neutral
hosts ..................................................................................... 12
Table 6–3 Customer profile for municipalities who use neutral hosts .............. 15
Table 6–4 Customer profile for regulators who interact with neutral hosts ...... 18

Figures

Figure 6–1 The Value Proposition Canvas ...................................................... 8

Figure 6–2 Neutral host value proposition for mobile network operators .......... 11
Figure 6–3 Neutral host value proposition for commercial property owners ...... 14
Figure 6–4 Neutral host value proposition for municipalities........................... 17
Figure 6–5 Neutral host value proposition for regulators ............................... 20

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01
1. Introduction

Seamless mobile connectivity indoor and out is a fundamental expectation for all users
of mobile services. In many cases, such as healthcare, transportation, and
manufacturing, it’s a crucial part of business or public service provision.

That’s not the only commercial imperative. Without reliable in-building wireless
connectivity, busy locations such as conference centers, entertainment venues, and
large shopping centers will lose visitors – and thus business.

But guaranteeing 'always-on' mobile voice and data access is easier said than done.
Network deployment models will need to be more diverse and flexible but also less
costly. The question is: How?

Neutral host infrastructures are the answer. A single, shared network open to all
mobile network operators (MNOs) provides a cost-effective and efficient means of
significantly improving wireless coverage and capacity – both indoor and out.

Can the value proposition neutral hosts offer apply to multiple stakeholders? We
believe it can. In this document we examine this value proposition. We also break
down the requirements different stakeholders have and what they require from
telecommunication infrastructure.

Overall, this paper – and the associated case studies paper and regulation paper – will
discuss ways in which neutral hosts are providing, and will increasingly provide,
solutions to the many issues mobile network operators and communities face in
delivering modern digital infrastructure globally and by geographic regions.

But before we talk about who benefits and how, let’s answer the most basic question.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 1
2. What is a neutral host?

A neutral host is a company that invests in telecommunications infrastructure such as

cellular towers, real estate, and active network equipment. It then leases this
infrastructure to multiple tenants on a shared basis, offering each tenant access to the
same portfolio of services and shared assets without favor – maintaining a neutral
position, in other words. This does not, however, mean tenants must take the same
services or pay the same charges.

The term ‘neutral host’ describes a single or multi-unit installation, providing network-
as-a-service (NaaS), delivering single or multi-operator capability, which can be in
both the public and private domains. The system can be managed by the company
that installed it, a third-party managed service provider (MSP), a landlord or
enterprise owners. It might be a purpose-built network, or it could utilize an existing
network.

Neutral host is a relatively new concept, resulting from the opportunity to provide
service and coverage in areas where large MNOs cannot, or will not, do so. This will
often be due to the likelihood of poor return on investment (RoI). However, with
neutral hosts, costs and capital intensity for MNOs can be reduced. If multiple MNOs
use the neutral host system, RoI can be turned positive sooner and return on capital
employed (ROCE), an important measure of the profitability of a capital-intensive
industry, can be increased – especially when compared with traditional deployment
models typical of the macro network.

MNOs may also face problems getting permission from local authorities to build. This
is another important factor. Many planning authorities are reluctant to allow multiple
operators on multiple sites. Even site sharing requires multiple antennas and cabinets
at the base of the mast. Neutral hosts can address these issues by working with
planning authorities and delivering common solutions for all MNOs with reduced clutter
but maintaining a good overall footprint.

In an indoor environment, venues can give visitors access to multiple operators and
private networks – not just access to the operator that has installed the network. In
fact multi-operator solutions are becoming increasingly challenging to deliver without
the deployment of a neutral host model – a model that gives a venue a single
contractual interface to deal with, both commercially and technically.

A neutral host can deploy on macro sites or small cells. Small cells have the
advantage of being generally unobtrusive and can be positioned where the need is
greatest, including indoors. Small cells are therefore a common starting point for
MNOs to engage neutral hosts to roll out coverage and capacity on their behalf.

Neutral host networks are already becoming increasingly prevalent in venues where
multiple operator installations are difficult. However, the number of rollouts is likely to
rise significantly across many different use cases as MNOs look to find alternatives to
investing their own capital while deploying the latest technologies (such as standalone
5G).

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 2
3. Role of neutral hosts

Neutral hosts provide a set of services that, put very simply, enable MNOs to
outsource the provision and management of their infrastructure.

The main functions of a neutral host are:

• To acquire and build sites of all kinds, either speculatively or to order for an
MNO. This model may extend to structural build, fiber, edge data centres and
active networks such as base station equipment and distributed antenna
systems (DAS).
• To manage, operate and maintain the infrastructure on behalf of the tenants.
In return, tenants pay rental and fees, usually based on the service provided,
which could be defined as area served, user experience, service availability,
traffic/data volumes or a combination of these elements. “Manage” can
include alarm monitoring/fault maintenance, performance management and
capacity monitoring/planning, configuration, accounting and security.
• To provide services including:

• Negotiation of contracts with site owners and freeholders

• Provision of installation, maintenance and management of a site
including towers or poles, civil works, fences, and housings
• (In some cases) provision and management of power supply and cooling
systems
• Managing access to the site for MNO staff and other workers and
ensuring health and safety requirements are met.

All mobile networks require spectrum (frequencies), and neutral host networks are no
different. There are multiple models for deploying spectrum in neutral host networks,
which we have explored in [1]. The neutral host can deploy spectrum owned by MNOs
or private tenants, or can acquire its own spectrum, or both.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 3
4. Future models

The value proposition for neutral hosts continues to evolve as telco architectures
evolve. For example, companies like Spotify and Netflix deliver their services on top of
hyperscalers and the cloud. Neutral hosts can move quickly to leverage the capabilities
of cloud to deliver their services in a more cost-effective and agile fashion.

Future 5G deployments will also offer network slicing. This is the ability to reserve an
end-to-end slice of the 5G network for one purpose, which could mean one operator or
one service. Slices can be defined by both network resources and service levels. The
network resources can be apportioned to slices as required, depending on traffic
requirements. This is another potential opportunity for neutral hosts.

Neutral hosts may also extend their business models to increase service offerings to
MNOs and to create new revenue opportunities via [2]:

• Adding new assets – for example, enabling telco cloud services either via
physical telco infrastructure or compute space
• Offering new (value-added) services – for example, extending the
management model to active infrastructure and taking over an MNO’s
antennas, radios, and other site equipment
• Offering power-as-a-service, provisioning data services to connect to MNOs,
and taking on a greater role in the telecom value chain.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 4
5. Who benefits from a neutral host – and how?

The functions of the neutral host model are clear enough, but what are its benefits?
The most obvious one is lower infrastructure costs. The fixed expenses of installations
can be shared, along with the infrastructure itself.

And, of course, it’s a single shared network, not four or five. That means less wastage
of resources and better use of space. As unique selling points go, this is a big one for
a wide range of stakeholders, including policymakers, government agencies,
businesses, local communities, and MNOs.

In fact, neutral host service provision delivers value to various, very diverse
stakeholder groups. A general summary of that value includes:

• Lower opex
• Fixed opex
• Capex to opex conversion
• Access to new investment capital
• Freeing up resources to focus on core business/competencies
• Infrastructure improvement
• Positive social change
• Digital enablement
• Environmental benefits (which can also bring commercial benefits)
• Diversity of ownership (both government and commercial)
• Diversity of neutral host providers (for-profit community-driven; non-profit
government; private public partnership; joint venture)

A more user-specific summary of the value neutral hosts may bring to different
stakeholders includes:

5.1 Benefits for policymakers and government

• Digital inclusion: Multiple networks aren’t a cost-effective way to bring

coverage to underserved areas. Shared infrastructure is. Neutral host
networks can help to ensure equal access to essential services across even
remote areas.
• Economic growth: Network densification can bring 4G and 5G to millions –
but the multiple network approach makes it very expensive. The neutral host
model simplifies the logistics and business model for network densification.
That means better, more affordable cellular service provision and enhanced
business efficiency. It means a boost to remote working, the digital economy
and innovation. It means manufacturing automation can more easily
integrate IIoT devices, with all that implies for remote monitoring, supply
chains, and flexible manufacturing practices. It means faster, wider economic
growth.
• Simplified solutions: Shared infrastructure means fewer site applications,
faster approvals, and more efficient coordination with regulatory bodies.
There’s also less equipment. That means less street clutter, faster
deployment, lower costs, and easier maintenance – alongside more mobile
services for more citizens.
• Efficient spectrum usage: Regulators like the idea of optimizing spectrum
usage, enabling and supporting multiple market players, ensuring fair access
to spectrum resources and fostering a competitive market environment.
Neutral hosts enable all of this.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 5
5.2 Benefits for businesses

• Indoor connectivity expertise: The current outside-in approach from

macro towers isn’t good enough: weak signals, higher frequency bands and
signal-blocking building materials aren’t going to impress businesses that
want reliable indoor connectivity. That’s where in-building neutral host
cellular networks come in – literally. Neutral hosts already have expertise in
deploying shared networks across multiple operators. They can also offer a
more efficient and cost-effective indoor coverage solution for businesses.
• Ready for challenging environments: Reliable, secure connectivity, and
excellent user experience should be non-negotiable in most places. Neutral
hosts offer specialized expertise in designing indoor and outdoor coverage
solutions tailored to challenging environments.
• Simplified deployment: How do stadiums, malls and offices provide indoor
connectivity across three or four wireless subscriptions? With one
infrastructure shared by all operators and managed by the venue owner
based on a single agreement with a neutral host. The result? Easier
deployment, less complexity, less negotiation.
• Scalability: Neutral hosts can adapt to growth, new demands, and
technological advancements; they are a future-proof connectivity solution for
business.

5.3 Benefits for local communities

• Ubiquitous mobile coverage: Neutral hosts ensure consistent and reliable

mobile connectivity everywhere. That means ubiquitous access to education,
healthcare, government services, and digital information. That also means
greater digital inclusion.
• Enhanced quality of life: Citizens want to stay connected with family, to
access emergency services, and to participate in the digital economy. They
want the increased social and economic opportunities that mobile coverage
offers – and that neutral hosts can deliver.

5.4 Benefits for market competition

• Promoting competition: When multiple mobile network operators share

infrastructure, competition is more likely to be based on good services and
high quality, which is good for consumers.
• Reducing barriers to entry / efficient spectrum usage: Neutral hosts
reduce barriers for new entrants in the telecommunications market. The
results? Innovation, diversity, efficient spectrum utilization, and more market
competition.

5.5 Benefits for mobile network operators (MNOs)

• Optimized network expansion: Neutral hosts provide an attractive solution

for extending networks in areas with poor coverage or insufficient capacity –
a solution that optimizes operating costs and reduces capital expenditure.
• Long-term investment value: Neutral host technology is upgradable and
scalable to meet future demands – such as LTE and 5G.
• Traffic offload: Local spectrum licenses applied to neutral host networks
mean MNOs can offload data traffic and users from their networks to nearby
private neutral host networks. This enhances customer quality of service.
MNOs can also leverage the shared infrastructure of venue owners. That cuts
costs and operational burdens and allows for more efficient network

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 6
 management and resource allocation. There’s also the potential for favorable
business arrangements between MNOs and neutral host networks. That
means cost savings, enhanced customer satisfaction, and broader network
coverage.
• Easing deployment constraints: Local rules sometimes limit the
installation of infrastructure in crowded areas or protected sites. Shared
infrastructure means all providers can cover these areas without having to
struggle for access.

5.6 Benefits for neutral hosts

• Fixed long-term revenues

• Economies of scale
• Efficiencies: These can be achieved through integrated platforms, lower
operating costs and maximized fair utilization
• Innovation: This can be achieved through collaboration, research and
development, field testing, and experience (including trial and error)
• New opportunities for revenue: This can be achieved through
consultancy/professional services and equipment retailing or wholesaling, as
well as alternative infrastructure

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 7
6. The Value Proposition Canvas by customer group

We have also framed the neutral hosts’ offer to their customers using the Value
Proposition Canvas method. The Value Proposition Canvas is often used to make value
propositions to customers more accurate, clearer, and easier to understand, to aid in
developing appropriate business models. In this case, the value proposition is mapped
from customer needs to the most value the neutral host can provide.

Figure 6–1 The Value Proposition Canvas

The neutral host maps its value proposition to the relevant customer profile to define a
good fit and make its products and services attractive to the market. Therefore, it’s
necessary first to characterize the customer profile itself.

6.1 Customer jobs

Customer jobs include all the tasks that customers are trying to complete as part of
the operation of their business and which the neutral host can facilitate. This could
involve such tasks as updating or upgrading infrastructure or enabling new services, to
name only two. Examples of municipal customer jobs are providing for public safety,
the preservation and increase of property value, or delivering long-term sustainable
infrastructure ethically and transparently.

6.2 Pain relievers

Pains are factors which prevent customers from completing a job, or negative
outcomes that they seek to avoid. They may refer to specific business challenges,
such as the need to reduce cost – for example, customer capex of new deployment
costs might need to fall by 10% over six months – or poor user experience in certain
areas, which can result in reputational damage. Alternatively, they may reflect lack of
solutions to business problems or lack of expertise and/or manpower to deliver.

6.3 Gain creators

Gains, on the other hand, are about the “positive experiences or desires that the
customers wish to achieve” [3] by adopting a neutral host provider. They are not
simply the opposite of pains. They are the outcomes that the customer seeks by
getting their jobs done. These gains can be cultural, reputational, or responsibility-

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 8
based; they don’t need to be tied down to a specific problem. An example of a gain is
selecting a neutral host provider that understands and delivers creative solutions to
the customer – even changing its own business model if necessary.

6.4 Creating the neutral host value proposition canvas

Because the value proposition starts with a focus on customer needs (i.e., to
address major pains and to offer major gains), we first develop the customer
profile for each stakeholder type (MNOs, commercial property owners,
municipalities and regulators). Then we present the neutral host value
proposition for each stakeholder type. It matches the neutral host value map
to the customer profile pains and gains.
The Value Proposition Canvas methodology is normally used to aid in
developing a value proposition specific to a customer segment. The same
product can map to different target customer segments in different ways, and
the value proposition is subtly different in each case. We have applied the
methodology here to map the existing neutral host value proposition to a
number of different beneficiaries, or customer segments.

6.5 Neutral host value proposition for MNOs

Though neutral hosting is a relatively new business model, the value proposition to
MNOs is the oldest, and probably the most well understood, because it builds on the
work tower companies have been doing with MNOs for many years.

MNOs face increasing challenges in evolving and updating their communications

technology, e.g. building out their 5G networks, and providing coverage and capacity
enhancements for 4G. Their margins are continually squeezed, and they are under
pressure to reduce their capital intensity. They need to make their own capital go as
far as it can, and this does not equate to making the massive capital investments
needed to modernize their networks and complete their rollouts. Spectrum auctions
put available capital under even more pressure. Neutral hosts are willing investment
partners who can supplement the MNOs own budget for network rollout and
technology evolution, in the process reducing deployment times and enabling new
revenue sources.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 9
Table 6–1 Customer profile for mobile network operators that use neutral hosts

Other major problems MNOs face include customer churn, which relates to brand
recognition, service differentiation and competition. Neutral host models can free up
MNOs to focus more on service differentiation and, by working in particular
deployment scenarios, such as real estate or transport corridors, Neutral Hosts can
bring deployment expertise beyond that of the MNO and help enable new use cases.

MNOs are also interested in keeping operational and management complexity low;
therefore, following standards and industry norms can be important. They have to
work within the constraints of the local regulatory framework.

Neutral hosts offer infrastructure as a service which can support MNO customers by
extending their network reach and capacity via a simplified design and operation
(compared to multiple individual MNO deployments). They provide coordination and
relationship management at the local level, dealing with real estate owners,
municipalities and other asset owners. They enable an alternative path to increasing
coverage and capacity, which allows MNOs to extend their brand presence and
improve the user experience.

However, neutral hosts offer additional value that would not only address the
immediate needs (or pains), but would potentially further enhance and promote
(gains) the MNO’s business. An example of this is the way in which, by cutting through
costs and complexity, a neutral host can help improve an MNO’s return on capital
employed (ROCE).

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 10
Figure 6–2 Neutral host value proposition for mobile network operators

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 11
6.6 Neutral host value proposition for commercial property owners

An example of a business model that brings neutral host capabilities to commercial

property owners is a Swedish company called Proptivity. Here, commercial property
owners formed a neutral hosting company to attract MNOs and offer private wireless
to the very same commercial property owners. As novel as this business model may
seem, it highlights the key needs and desires commercial property owners have –
which can be fulfilled by a neutral host.

In the UK the MNOs have issued a Joint Operator Technical Specification (JOTS) for
Neutral Host In-Building (NHIB) in order to standardize and promote the neutral host
model and hence target delivery of indoor coverage to commercial property owners.

Commercial property owners are concerned with managing their existing property
effectively, developing their property portfolio, offering modern communications for
digital enablement, and providing strong public wireless signals on their properties.
WiredScore is a company operating in several markets which assesses and certifies
commercial properties based on the level of digital enablement offered to tenants,
underlining the value this brings.

Table 6–2 Customer profile for commercial property owners who use neutral hosts

In optimizing their operational efficiency, property owners seek to deliver smart

buildings, with intelligent infrastructure that relies on connectivity. Commercial
property owners may not have the experience, or the appropriate skillset, to install
and operate a 5G network; therefore, they may need to leverage the experience
neutral hosts offer.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 12
Neutral hosts offer infrastructure as a service which can support commercial property
owners in enhancing their property portfolio to provide great user experience and
hence maximise marketability, portfolio revenue and property brand recognition. They
solve the problem of engagement with MNOs at a collective level with standardized
and proven technology and they bring the necessary expertise to deploy and operate
the solutions.

Neutral hosts bring a more scalable technical alternative to distributed antenna

systems (DAS) which have very high up front investment cost and don’t represent
value for money in all but the highest capacity and demand density environments.
Just as neutral hosts offer MNOs additional value, they can do the same for
commercial property owners – further enhancing their business. Because neutral hosts
serve both the commercial property owners and MNOs, they can offer economical
solutions, attract public operators, and even boost funding.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 13
Figure 6–3 Neutral host value proposition for commercial property owners

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 14
6.7 Neutral host value proposition for municipalities

Municipalities are charged with efficiently managing public utilities and assets, as well
as providing enhanced public services, such as health and education. Particular
challenges include digital levelling up, improving infrastructure connectivity, such as
for transport and municipal buildings, environmental stewardship and increasing
regional economic value. Their civil planning may require them to provide network
coverage and capacity for rural, underserved, or even unserved areas, which are
areas MNOs may not see as a viable investment. Here neutral hosts can deliver
services and may offer creative investment.

Table 6–3 Customer profile for municipalities who use neutral hosts

Municipalities are concerned with increasing regional economic value, offering modern
communications, and bringing public wireless to their residents. They may seek to
deliver enhanced community services such as connected health and education
applications which rely on reliable and ubiquitous communications technology
throughout their jurisdiction, regardless of MNO appetite to invest. Often there is keen
focus on digital levelling up, seeking to ensure that the same digital services can be
made available across all tiers of wealth and social status.

Providing infrastructure as a service, neutral hosts are willing investment partners

with established MNO relations who can help municipalities solve their connectivity
challenges. The multi-MNO co-location and consolidation achieved by deploying via a
neutral host helps to reduce visual pollution and improve energy efficiency, part of the
environmental stewardship with which municipalities are typically charged. Neutral
hosts can help municipalities to create the right environment via enhanced
connectivity to attract new regional business investment and thereby enhance regional
economic value.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 15
As with commercial property owners, municipalities, may not have the expertise nor
the skillset needed to install and operate a 5G network; therefore, they should
leverage the experience and established partnerships neutral hosts can offer.
Municipalities bring a number of key street assets which neutral hosts can help them
to leverage in achieving minimal footprint solutions.

Neutral hosts provide needed products and services to municipalities. In fact just as
neutral hosts offer MNOs additional value, they can do the same for municipalities –
leading to long-term regional economic growth.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 16
Figure 6–4 Neutral host value proposition for municipalities

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 17
6.8 Neutral host value proposition for regulators

The role of regulators includes driving innovation, maintaining competition and both
making and enforcing policy to ensure that consumer interests are protected. In the
current climate, given market consolidation has resulted in there typically being only
two large vendors not considered “high risk”, there is a focus on ensuring supplier
diversity and security. They also have responsibility for the allocation and
management of radio spectrum.

Regulators play a unique role in the infrastructure value chain. For example, Ofcom in
the UK describes itself as “Driving innovation that will deliver improved public services,
create new better-paid jobs and grow the economy.”

With respect to neutral hosts, regulators seek to empower digital ambitions on a

regional scale for national and local communities as well as enterprises. In some
cases, regulators facilitate government and commercial investment to seed
infrastructure expansion as well as upgrading old infrastructure in dire need of
overhaul. Many regulators or the government departments which oversee such
investment believe that the supplier landscape can be increased in diversity by the
adoption of Open RAN technologies, which neutral hosts can readily deploy because
their knowledge and expertise are not already heavily invested in the traditional RAN
vendors.

Table 6–4 Customer profile for regulators who interact with neutral hosts

They are typically charged with providing a healthy and transparent competitive
environment, securing consumer choice, as well as providing frameworks for
agreements at different levels of government and business. Regulators receive

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 18
feedback about the experiences of neutral hosts, MNOs, and other stakeholders to
make better policies that are fair, transparent, agile, and flexible for all stakeholders.

Regulators are concerned with increasing regional socio-economic value, offering

modern communications, and bringing both public and private wireless to their
constituencies.

Neutral hosts bring an innovative multi-MNO business model that regulators should sit
up and take notice of. Their unified frameworks and solutions enable trusted MNO
relationships to be formed and bring new investment to the rollout and enhancement
of MNO networks and technology refresh. Solving these problems can help advance
digital enablement on a national scale and hence attract more global investment.

As is the case with commercial property owners and municipalities, regulators may not
have the expertise nor the telecommunication domain knowledge needed to develop
good policies that can impact an entire region over the long term. Therefore,
regulators should also leverage the experience and established partnerships neutral
hosts offer.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 19
Figure 6–5 Neutral host value proposition for regulators

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 20
The neutral host value proposition for multiple stakeholders and customers is not only
represented by products and services offered, but also by the way business is
conducted. Reducing complexity, increasing operational efficiency, lowering capex and
opex, offering shared knowledge and experience, and reducing visual pollution, all are
among the many benefits offered by neutral hosts. Also important, however, are
established and trusted technology partnerships, the conduct of business in a
transparent manner, and the ability to invest where others cannot.Conclusion

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 21
7. Conclusion

Neutral hosts are already playing a pivotal role in advancing the interests of various
stakeholders in the realm of telecommunications. For national governments, these
service providers offer a powerful tool to expedite the achievement of their digital
transformation ambitions. By facilitating ubiquitous mobile coverage, neutral hosts
promote inclusivity, bridging the digital divide and ensuring that even remote and
underserved areas gain access to essential services. This, in turn, stimulates economic
growth and enhances the quality of life for citizens. Moreover, neutral hosts simplify
regulatory compliance by streamlining infrastructure sharing and licensing processes,
which encourages competition and innovation in the telecom sector.

Mobile operators stand to benefit significantly from the neutral host model. They can,
for example, rely on shared infrastructure to extend their networks more efficiently.
Through cooperation with neutral hosts, they can also avoid redundant deployments,
reduce capital expenditure, and optimize operational costs. This fosters a more
collaborative approach to network expansion, which, in turn, leads to better services
for consumers.

For commercial property owners and other businesses, neutral hosts offer an all-in-
one solution for improved in-building coverage, eliminating the need to accommodate
equipment from multiple providers. This streamlines maintenance, reduces visual
clutter, and enhances the overall attractiveness of properties while ensuring modern
connectivity for tenants, clients, and visitors.

Municipalities and communities of interest benefit from neutral hosts through

consistent and reliable mobile coverage, improving their quality of life and enabling
participation in the digital economy. The deployment of shared infrastructure reduces
urban clutter and speeds up the expansion of network coverage, thereby contributing
to a more connected and accessible environment. Ultimately, the value of neutral
hosts lies in their ability to align the interests of governments, businesses, and
citizens, fostering economic growth, technological innovation, and inclusive
connectivity.

Finally, regulators stand to benefit from neutral hosts through shared experience in
permitting, deployments and economic environment, and by the part neutral hosts can
play in helping regulators to identify the challenges that can be addressed by policy.

The neutral host value proposition applies to multiple types of stakeholders, whether it
is by building, operating or managing infrastructure and related services. The
stakeholders covered in this document were mobile network operators, property
owners such as commercial real estate, municipalities and and regulators, but they are
far from the only potential beneficiaries of a truly compelling value proposition.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 22
8. Acknowledgements

SCF would like to thank the following companies that have contributed to this work:
DenseAir, British Telecom, Crown Castle, Cellnex, Lockheed Martin, Proptivity, and
Wireless Infrastructure Group.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 23
References

[1 Small Cell Forum, “Neutral Host Requirements: Pt 2 Hosted RAN high-level

] design,” 29 June 2022. [Online]. Available:
https://www.scf.io/en/documents/245_Neutral_Host_Requirements_Pt_2_Hosted
_RAN_high-level_design.php. [Accessed 2023].

[2 “Infrastructure Sharing: An Overview,” 18 June 2019. [Online]. Available:

] https://www.gsma.com/futurenetworks/wiki/infrastructure-sharing-an-overview.

[3 A. P. Y. B. G. S. A. Osterwalder, “What is the Value Proposition Canvas?,” 2014.

] [Online]. Available:
https://www.b2binternational.com/research/methods/faq/what-is-the-value-
proposition-canvas.

Report title: Neutral Hosts Value Proposition

Issue date: 14 February 2024
Version: 248.11.01 24