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"Our in-building wireless customers get excited the first time they use their wireless devices indoors, after months and sometimes years without a signal. Then they wonder how they ever worked without it."
Cathy Zatloukal
President and CEO of MobileAccess
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FAQ's
- What is In-Building Wireless?
In-building wireless enables people to communicate reliably, regardless of where they are inside a building. It helps keep the strong wireless signal enjoyed outdoors from fading or failing when going indoors. As a result, employee productivity, public safety, and customer service and satisfaction are greatly enhanced.
Despite the ever-growing need for always-on connectivity, most commercial buildings have not yet adopted wireless hookups. Without a reliable indoor signal, we are bound by cables and have to rely on wishful thinking to keep calls online.
It’s not just individual productivity that takes a hit when buildings are ill-equipped to handle the new-generation requirements. Public safety officials and first responders are also affected by inadequate people-locating services and poor emergency communication coverage, both of which could potentially lead to compromised life-saving planning and rescue operations. Building owners, too, encounter many disadvantages from staying with the wired way. They risk losing tenants who refuse to sign leases without WiFi capabilities, and they have difficulty tracking and consolidating data about in-building energy consumption, security, or other feeds that require frequent monitoring but reside on different IT platforms.
In-building wireless presents a leap forward in ubiquitous connectivity and mobility. While the effort has been mostly grass-roots until now, several prominent companies are banding together to promote in-building wireless and establish standards for the industry to adopt. The In-Building Wireless Alliance is one of the leaders of this coordinated movement.
- What is the In-Building Wireless Alliance?
The In-Building Wireless Alliance (IBWA) formed in 2004 from a few in-building wireless product providers and has since grown into a cross-industry alliance comprised of the pre-eminent commercial real estate companies, wireless carriers, infrastructure providers, and public safety providers. Since then we have steadily grown our membership and officially formed as a non-profit in 2006. The IBWA’s mission is to accelerate the adoption of in-building wireless systems as a means of unlocking the value of communications and information within a building to all stakeholders. The IBWA is a “one-stop shop” for innovative in-building wireless ideas, education, thought leadership, and intellectual property development through ongoing research, new solutions, and new partnerships.
In 2005, the IBWA conducted the most comprehensive study available in the North American market to quantify the potential return on investment for all stakeholders of in-building communications (soon to be available on the website). Current research on in-building wireless “pilot buildings” will provide actual savings and performance results and will help define standard product and service road maps and configurations and test innovative next-generation solutions. This working relationship is based on a novel business strategy: getting key players together based on financial incentives and implications. By definition, collaboration by these industry players is required for success.
- What is the future market of In-Building Wireless?
Gartner Inc. and ABI Research both predict the market for in-building wireless systems will hit or surpass $1 billion in annual sales in 2010, doubling from $500 million in 2007.
According to IBWA research of more than 70 participants from the real estate and public safety communities, the areas designated as having the greatest need for coverage improvements include parking garages, elevators, and open areas. In addition, building owners rated the ability to coordinate with local emergency responders as the most important public safety feature.
- What are the key values driving the implementation of in-building wireless in the market?
Key events have driven demand for in-building wireless solutions, and the economics of in-building wireless are proving too good to pass up. The availability and cost effectiveness of home wireless solutions is driving demand within multi-tenant commercial buildings, and competition is high among building owners for leases and renewals. Katrina and 9/11 both highlighted the need for seamless communication, and outcries from the public safety sector (police, fire, etc.) now have some listeners. Lastly, rising energy prices and a global effort to be more “green” are forcing tenants and building owners alike to question their energy usage and ability to conserve. All of these forces have created a perfect storm of sentiment demanding true in-building wireless coverage.
Real estate firms and commercial property developers are quickly getting up to speed on the advantages of having their buildings WiFi ready—and they are beginning to understand that in-building wireless network conversion can translate into big financial gains.
Analysis done by the IBWA shows additional value of $5 per square foot per year—with 5X ROI. Public safety savings is estimated at $59–103M annually for fire emergencies alone. In a traditional office, in-building wireless can reduce the number of access points needed to achieve full coverage by 50–80%, and improve throughput by more than 200%. In-building wireless reduces the incidence of dropped calls and improves reception in building “dead zones” such as elevators and garages created by newer building materials and architectures.
- What are the challenges the IBWA is tackling today?
There are many. The top priority for the IBWA is to expand upon, improve, and validate its research, which includes several cost- and revenue-sharing models as well as optimized product and service configurations. The second challenge that the IBWA is addressing is a generally fragmented market that does not allow an easy exchange of current thoughts, trends, and business models—which is sorely needed. In addition, the IBWA and its member organizations continue to combat the perception that in-building wireless lacks value or is too risky to devote scarce capital to. Two years ago, industry players weren’t willing to pay anything up front. Today, the acceptable cost of in-building wireless averages $0.40/sq. ft. and in some cases is as high as $0.57/sq. ft. —a testament to the increased return on investment seen in buildings that have implemented an in-building wireless solution. Lastly, the IBWA is currently working with federal, state, and local lawmakers and public safety officials to act as a mechanism to adopt standards and encourage investment.
The IBWA continues to test and challenge the value proposition of true in-building wireless and to ultimately define “standard” in-building wireless configurations (by industry, class of facility, and the nature of the information and communication desired).
- Can In-Building Wireless improve my bottom line?
A typical building will realize an annual benefit of $4–16M from an investment of approximately a quarter of a million dollars. This will be achieved through improved productivity and operational efficiency combined with lower capital costs. Just as important, in-building wireless can impact an organization’s top line as well. For those commercial building owners who make the investment and create a services relationship with the wireless infrastructure providers and their tenants, all parties win.
- How does In-Building Wireless specifically help commercial real estate owners?
In-building wireless creates a competitive advantage and differentiation by delivering superior value to current and future tenants, improving vacancy rates and tenant retention, driving down operating and maintenance costs, reducing energy costs, and greatly improving security and safety
- What is the value to the wireless carriers?
Higher MOU's, lower churn, better macro-network traffic loading and capacity optimization, and significantly lower CAPEX.
- How can the value be unlocked and what are some options for implementation?
What you do with In-Building Wireless depends on who you are, and what your building characteristics, demographics, and communications usage patterns are. Some options include:
- Strong financial returns. While the installation of wireless capabilities comes with a price tag ranging between 40 cents to $2 per square foot depending on the system’s complexity, the return on investment stands to be substantial. Initial estimates suggest a 5x to 10x ROI, falling somewhere between $5 and $26 per square foot.
- Fewer dropped calls and mobile device interruptions. A decade ago, a majority of mobile calls placed on cellular networks originated or terminated from vehicles. Now, the majority of calls come from office buildings. Improved in-building wireless networks provide seamless car-to-office coverage and keep the mobile workforce rolling.
- Happier tenants mean happier property owners. According to Black’s Guide, a leading real estate trends journal, WiFi is one of the most popular building amenities requested by tenants. Logic holds, then, if building owners make this service available, they may be able to carve out more favorable lease terms and longer rental contracts.
- Improved public safety operations. The faster first responders can assess an emergency situation, the faster lives and property can be saved. Having a reliable and comprehensive communication system makes it easier for public safety officials to quickly assign safety resources and follow through with evacuation efforts.
- Reduced energy costs and better monitoring functions. With energy costs accounting for about 38% of building expenses, knowing how to best light, heat, or cool a property could yield significant savings. For example, sensors could link to wireless networks and automatically determine if heating, cooling, or lighting systems should be adjusted. The same concept can be applied to other monitoring systems, and information can be bundled into one feed, which ultimately reduces overall IT costs.
- Enhanced multi-device communication capability. With in-building wireless technology, users can access cell phones, pagers, PDAs, two-way radios, or anything else that can run on an IP network
- What if Wi-Fi leapfrogs this or my carrier goes out of business?
WiFi can be part of in-building wireless. If executed strategically, your infrastructure investment will accommodate future modifications and additions—and by starting out carrier-agnostic, you mitigate the risk.
- Who can provide me with objective information in making strategic business decisions?
The In-Building Wireless Alliance represents various players and interests in the in-building wireless space, including organizations that may compete directly with one another. It will also include decision makers in the real estate community so that you have a voice and the opportunity to influence future product and service road maps. With multiple players from different industries in the Alliance, there are no hidden agendas. The objective is to educate all communities on the opportunities and benefits of a collaborative approach to in-building wireless.