Verizon's rumored demands may help explain small cell slowdown

Apparently, Verizon Wireless wants to deploy small cells but only if they are inexpensive, according to a recent rumor. If true, that could help explain why the wireless industry's expected small cell ramp-up has not yet happened and, in fact, keeps being pushed out.

Jay Brown, CFO of tower company Crown Castle International, highlighted the issue of cost when it comes to small cell deployments. He stated that small cells are "incredibly expensive to do" based upon the total cost of deployment and said operators will only turn to small cells in locations where macro sites cannot fulfill their needs. Given that most wireless providers are still testing and piloting small cells, David Howson, president of sales and customer management at fiber backhaul provider Zayo Group, predicted small projects will be tested and deployed in 2014 in preparation for more mainstream deployments in 2015. That timeline is about a year later than many have been expecting, and likely reflects not just the cost but the complexity of integrating small cells into existing wireless networks.