Digital Colony extends their capabilities and footprint in DAS, Wi-Fi and outdoor small cells

Digital Colony has extended their investments in neutral hosts offering small cell, DAS and Wi-Fi solutions with the acquisition of UK-based iWireless Solutions. TowerXchange spoke to the iWireless Solutions and Digital Colony’s UK Infrastructure Platform leadership team to learn how their union extends Digital Colony’s digital infrastructure service proposition.

TowerXchange: Please introduce iWireless Solutions, and re-introduce Digital Colony, to our readers.

iWireless Solutions is a leading UK wireless system integrator and service provider established in 2006, developing high-capacity wireless networks within the most complex environments, we facilitate the convergence of multiple technologies including IoT, HD Wi-Fi, 4G, 5G and small cells. Our services are tailored to support clients from conception through to deployment and maintenance for large scale DAS, outdoor small cells and Wi-Fi solutions. With a strong track record of 13 years’ experience in the UK market, iWireless Solutions has deployed thousands of systems which have been consistently proven under high demand conditions. From our involvement in the Olympics 2012, where we were world leaders in creating one of the first 50 sector stadia DAS systems, to our most recent projects, including 5G testbeds and smart cities, innovation and technical assurance are part of our DNA.

Digital Colony is a global investment firm dedicated to strategic opportunities in digital infrastructure. The firm was launched in 2018 by Digital Bridge Holdings, LLC, a leading investor in and operator of companies enabling the next generation of mobile and internet connectivity, and Colony Capital, Inc. (NYSE: CLNY), a leading global real estate and investment management firm. The firm brings together Digital Bridge’s industry, operational and investment expertise in the telecommunications sector with Colony Capital’s 26 years of experience as a global investment manager.

Stratto and Opencell were acquired by Digital Colony and merged in 2018 to form StrattoOpencell, combining the power of small cells with distributed antenna products and architecture to enable true neutral host in-building connectivity as a service. The business works with many of the UK’s leading enterprise, hospitality, specialty workplace and large-scale developer businesses, providing carrier-grade multi-operator indoor mobile coverage anywhere that people work, live and play. StrattoOpencell is Digital Colony’s first investment in the UK, and is part of its broader plan to create an integrated digital infrastructure platform with towers, small cells, fibre networks and data centres.

TowerXchange: Please also introduce Ravi and his team.

Ravi founded iWireless Solutions 13 years ago and has built a fantastic team of radio experts.

I’m very proud of our team - made up of highly experienced in-house radio engineering and project staff, we have a proven track record of delivering in challenging circumstances and environments. Our embedded senior team are industry experts with experience spanning: spectrum regulation, smart cities, transmission and transport, adoption of new technologies, product development, programme management and delivery. Currently the team is deep into 5G rollout territory for leading operators in the UK as well as end of year operations.

I have worked solely within the wireless industry for 25 years and developed a trusted reputation for successfully managing the delivery of large scale programmes for UK and wider European based operators. 

TowerXchange: To what extent is this acquisition additive to the investments in Opencell and Stratto? How does it expand your portfolio and footprint in the UK, and are the contracts essentially more of the same, or are you acquiring new capabilities?

Yes, the acquisition is mainly about adding new capabilities including services on larger DAS sites that StrattoOpencell outsourced. The expert in-building services capability together with the addition of Wi-Fi design, deployment and operation is complementary.

iWireless Solutions have been leading the way in small cells outdoors. While others have done some small pilots and trial areas, iWireless Solutions designed, deployed and maintain the City of London small cell network. Our aim is very much to continue to provide excellent service for iWireless customers, then work with the team (who will remain separate from StrattoOpencell) to further invest and develop outdoor small cell infrastructure. 

All three business are complementary of one another, with a neutral host strategy at the centre of all the individual propositions.  Now, with the addition of iWireless Solutions’ multiple technologies (Wi-Fi, IoT, outdoor small cells and PMR), it’s important to note that research along with our accredited delivery and health and safety procedures have been added to the portfolio mix.

TowerXchange: Do you plan to integrate the Opencell, Stratto and iWireless teams?

For the short to medium term we will keep the businesses separate but including all services in sales and marketing proposals to customers and suppliers.

TowerXchange: How do the unit economics of digital indoor and enterprise wireless compare to the economics of macro towers and rooftops?

The unit economics of indoor and enterprise wireless (indoor and outdoor small cells) are different to the economics of “traditional” macro towers. Different, but as compelling.

First off, outdoor small cells cover a smaller area, so you need more small cells than you would need macros to cover the same area – your unit economics need to reflect that.  This also means that MNOs need a larger volume of small cells than macros to provide the coverage and capacity needed for 5G.

The traditional grass and steel model also doesn’t work in small cells – you need to provide more than just real estate; you need to provide the fibre and the antenna – which means a different service model and hence different economics.

And a fundamental difference for indoor small cells is that in many cases, the MNOs don’t pay; the tenant, landlord or building owner often pays for the in-building connectivity on the basis that is an amenity for their building and is just as necessary as power, water or heating.

TowerXchange: Why are Digital Colony among the first movers to integrate the indoor/enterprise and the outdoor/macro wireless coverage propositions?

We see great synergies in the skills and capabilities needed to serve these propositions, and this is reinforced by our experience in serving these markets under Digital Bridge in the USA and LatAm.

TowerXchange: Are Digital Colony’s UK Digital Infrastructure Platform creating a roadmap for the aggregation of similar wireless connectivity service providers and contracts beyond the UK?

As noted, we expect to deploy significant capital through the Digital Colony UK Digital Infrastructure Platform and are working closely with the broader Digital Colony team to do just that. We have a runway of organic growth in front of us to execute on which is very exciting, especially with the added opportunities that come with our new partners from iWireless Solutions.

We are also constantly monitoring M&A opportunities, whether that be bolstering our portfolio of high quality wireless and other telecom infrastructure assets, or bringing in new deployment capabilities and broader expertise. We very much expect to make additional announcements in time and are always open to partnering with experienced founders and management teams, as Ravi and I can attest.

TowerXchange: Please sum up your vision for creating and sharing seamless indoor and outdoor wireless coverage for the 5G era.

We are extremely excited about the future for digital infrastructure. We see more use of shared infrastructure in order to reduce costs. 5G rollout is going to take a lot of funding, with no clear path at present to incremental revenues to justify the investment. So lowering costs through innovation and by sharing infrastructure is key.

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TowerXchange: In the light of BT recently returning concessions, what is your view on the merits of the UK’s concession model – wherein each local authority appoints a partner to unlock the value of street furniture for 4G and 5G connectivity?

We applaud BT for returning these concessions. Our view is that the concession model was flawed in two main ways:

(a) The concessions were too expensive, and this meant that small cells simply did not cost in against macro site rollout.

(b) The exclusive nature is anti-competitive and unnecessary as there are more than enough structures available, and competition would encourage greater use as well as improved networks and overall connectivity.

I agree, and we’ve just written a blog on this very topic – we hope that the open access model becomes the norm and ultimately brings an end to concession, as many local councils want to see this happen.  iWireless Solutions has been actively pursuing the open access model since 2017, and we’re already in conversation with a number of UK councils government bodies such as DCMS. With over ten years of experience deploying hundreds of wireless networks in UK urban environments, our view is based on deployment and management experience.

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