"Heterogeneous network or HetNet can help operators overcome the challenge of providing high-speed data. Typically, a HetNet is a multi-layered network, which combines disparate access technologies such as macrocell, microcell, picocell, and femtocell to boost capacity and coverage." Katyayan Gupta, Analyst and Connectivity Lead-APAC, Forrester Research India Pvt. Ltd.

Globally, mobile operators are facing a phenomenon - mobile data traffic on their networks is increasing exponentially. This is primarily due to the proliferation of smart mobile devices such as smartphones and tablets, which has made consumers more prone to using data on-the-move and thus consumers expect ubiquitous network coverage.

According to Cisco's visual networking index (VNI), global mobile data traffic is expected to grow 18 times between 2011 and 2016, thereby creating a need to carry more data by the mobile operators' networks.

HetNet: The Way to Stem the Tide of Data Overload

Operators can increase coverage and capacity by deploying macro cells. But high cost and large macro site deployment time prevent operators from using this method extensively. Another way to enhance network capacity is to acquire new wireless spectrum and deploy services. However, spectrum is an expensive and scarce resource and its licensing is a long-time-intensive process. Thus, neither of the above strategies will help operators tackle the challenge of ubiquitous, high-speed data availability.

Heterogeneous network or HetNet can help operators not only overcome this challenge but also convert it into a revenue-generating opportunity. Typically, a HetNet is a multi-layered network, which combines disparate access technologies such as macrocell, microcell, picocell, and femtocell to boost capacity and coverage. In such networks, macrocell will be used to provide wide-area outdoor coverage while other smaller cells will be used to augment capacity in indoor and outdoor areas. The overall network will have intelligence so that it can integrate all disparate technologies and allow users to switch seamlessly between different access technologies within the network.

As a first step, operators have started using Wi-Fi as small cell technology to enhance data capacity. For instance, Japan's KDDI has built a Wi-Fi network comprising 100,000 hotspots to provide additional data capacity to users. Similarly, US-based Sprint has announced plans to double its femtocell deployment in homes and businesses during 2012 and 2013. In the year 2013, Sprint plans to deploy picocells on a large scale across 400 building structures such as stadiums and airports. In late 2013 and 2014, the US operator will shift its focus toward deploying small cells in outdoor areas. These early implementations provide a window into the future operator network architecture.

HetNet Benefits

HetNet will allow operators to offload their cellular network traffic to smaller cells thereby reducing macro overloads. This will help operators avoid network congestion and ensure a greater network uptime, which means less dropped calls and better network connectivity for users.

Second, small cells will enable operators to improve network coverage in areas where it lacks most - at cell edge and inside buildings or similar high-traffic places such as airports and railway stations. Consequently, operators will be able to provide robust connectivity to consumers even in areas where they have faced a challenge in traditionally doing so. This will help operators offer a consistent experience to users, which will lead to lower churn rates.

Connecting users with high-speed wireless Internet will lead to development of innovative applications that will help operators unlock new revenue opportunities. For instance, if small cells are deployed in a shopping center, operators can identify the location of the user and then push relevant advertisements and discounts. Similarly, operators can develop other innovate applications using technologies like location-based services and context-aware ads.