Quarterly Connection June 2022.pdf

Intenna Systems

Connection June 2022

The Dollars of DAS

SHOW ME THE MONEY

How Can Building Owners Find the Right Funding for In-Building Wireless?

Intenna Newsletter Norristown Council Awards Municipal Hall Communications System Contract to Intenna Systems Children's Hospital of Philadelphia Case Study

Table of Contents

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The Dollars of DAS Funding Your In-Building Cellular Solution

How Can Building Owners Find the Right Funding for In-Building Wireless?

Navigating the different types of financing and how enhanced cellular connections can accommodate post-pandemic needs.

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Norristown council awards Municipal Hall communications system contract to Intenna Systems

Wireless that Works Christopher Lange President & CEO William Shouldis VP Engineering

Sales Jeff Reale Director, Enterprise and Carrier Solutions

Contract for $69K passes in 6-0 unanimous vote

Eric McCarthy Solutions Manager-Enterprise Sales Central and South Regions

Children's Hospital of Philadelphia

Eclipse Rattanavong Solutions Manager - Enterprise Sales West Region

A Case Study

Intenna Systems designs, builds and maintains some of the most complex in-building wireless solutions available in the enterprise and service provider segments of the industry. The Intenna DAS that you deploy now will immediately enable 4G technology while laying the foundation for future 5G services.

Marketing Robin Lange Marketing Manager

E sales@intennasystems.com T 609.714.8268

The Dollars of DAS How to Finance Your InBuilding Cellular Solution What's your master plan?

It used to be a luxury, or a perk, but reliable inbuilding mobile coverage is now an essential service in any and every environment.

INTENNA SYSTEMS: Robin Lange

The pandemic awakened new thinking about IT infrastructure and the role wireless will play in the future of the office, healthcare facilities and even apartment buildings. Cost, performance, time to market, not to mention public safety requirements, should all factor in to preparing for comprehensive in-building signal which is increasingly built into the master plan of any new construction.

But what about older buildings and legacy systems? Who pays to install a cellular DAS or upgrade any of these networks and why?

Building owners with either residential, commercial or mixed use, no matter the size of the building, will not find a coverage solution paid for by mobile network operators like AT&T, Verizon or T-Mobile. Mobile network operators (MNOs), increasingly see indoor wireless networks as the responsibility of the owner or enterprise. Previously, the MNOs would carry the cost of providing signal to their customers but they cannot continue to finance in-building systems.

With the build out of 5G infrastructure, the focus for construction dollars is on their core networks. Installing these networks is expensive and they simply don’t have the funds to extend their networks inbuilding.

Additionally, major mobile network operators have come to realize that in-building wireless is much more valuable for the building owner in having indoor signal than it is for the network operator in delivering that signal. In other words, building and property owners have lost their leverage in the argument for MNOs to carry the cost of installing these networks inside.

This means building owners must create and implement their own plan that includes affordability, ease-of-ownership, return on investment and flexible/futureready technologies. There is also a growing need for financial solutions to support public safety DAS infrastructure to meet emerging requirements.

If you don’t have in-building wireless, chances are you’re having cellular connectivity issues in your building. How can you budget for or even acquire MNO support to help implement indoor wireless infrastructure? Well, the good news is that fortunately, a wide range of financing options is available.

So how do you deal with the cost? What’s the plan?

Finance Models and Solutions for the DAS Industry Get ahead of the game and start your wireless solution plan by considering financing up front.

Addressing financing early will streamline the process so that customized financial solutions can be determined, making the process as seamless and simple as possible.

There are many familiar sources of capital available for companies that now have to pay for and acquire their own in-building wireless solutions that ultimately will improve the value and reputation of any building or venue for both new construction and existing structures.

Self-Funded Self-funded is exactly that.

Building owners carry 100% cost, own and manage the network on their own, maintain the network and take responsibility for upgrades. The plus side here is that you manage your own relationships with the MNOs and are not required to enter into any long-term contract.

Your infrastructure is flexible to allow additional tech like 2-way radio or other IT and is built to a much higher standard. You install on your timeline to your budget while your network remains “neutral”, supporting a consistent and optimal signal

Self-funded gives you the highest success rate for engaging multiple MNOs on the network.

throughout the building for a single or for multiple operators.

PAGE 2

The downside is the dollars. You are responsible for deployment costs, as well as monitoring, service and maintenance costs for the life of the system.

Many building owners will realize that allotment for this type of necessary technology is not in their budget for this year or even the next, but there are ways to off-set that issue and find the dollars you need now to implement cellular DAS sooner rather than later giving wireless technology a forwardthinking slot in your portfolio of assets.

$ Buy Out Leasing Commonly, budgeted capital investment is issued to departments on an annual basis. Capital budgets are issued each year but are planned and allocated multiple years out.

Using a $ Buy Out Lease vehicle allows you to span out the payment over multiple capital budgets.

So, when there are not enough funds available in the budget in a single year, then a $ Buy Out Lease provides a solution to build the entire project now and pay 1/3 this year, next year and the year after that.

Capital Expenditure (CapEx) financing results in ownership of a capital asset.

OpEx Leasing

They can purchase the equipment for the Fair Market

If the network is to be a monthly

Value (FMV), they can extend

expense for business operations and

the lease, or they can return

there is a long-term need for the

the equipment without

technology, then an Op-X Lease/FMV

penalty.

Lease would be an appropriate solution.

Op-X Leases are often used with technology that changes often and are normally refreshed in short time periods. These solutions assume a residual value that does not have to be paid if the customer elects to upgrade at the end of the term. The residual value allows for a lower monthly payment, and typically, very aggressive interest rates.

In an OpEx lease structure, the customer pays for the right to use the equipment for the agreed upon term.

At the end of that term, they have options.

Subscription Based Subscription-based technology is technology as a service. This offering provides a monthly fee over an

Technical risk and responsibility are assumed by

agreed upon term. However, at the end of the term

the MNO as

the customer has to renew or return the equipment.

well as the

Building owners do not have a right to ownership of

operational

the equipment.

costs but these

Mobile Network Operator Funded (MNO)

situations can

There is that increasingly rare situation where an MNO may still fully fund installation of an in-building DAS network but you’ll have to bring a hefty platform of users with you to justify that value.

If you are an enterprise with a large corporate mobile device contract, you may be able to leverage those contracts to secure MNO funding.

become what is often referred to as “golden handcuffs”, says Chris Lange, President and CEO of Intenna Systems, Inc.

The MNO may fund some or all of a mobile coverage solution but remember, this is a single operator solution.

Similarly, large stadiums and crowd venues still retain their value to the MNOs for providing their signal indoors.

The MNO may fund some or all of a mobile coverage solution but remember, this is a single operator solution. Their interests and your interests may not align. You may have to relent to an unacceptable timetable or undesirable design resulting in the MNO providing limited scope such as prioritizing public space over private space where you really need coverage.

As well, operators tend to demand unreasonable asks when looking to include additional providers to the network. In other words, the operator (let’s say AT&T) paying for the network has no real incentive to allow additional operators (let’s say Verizon) access unless they are paid a high price.

Without the others buying in, the venue is restricted to, for example, only Verizon users while leaving AT&T or T-Mobile users without an indoor connection.

Third Party Neutral Host You can still find a way to fund your DAS network without any personal or company investment by taking advantage of a third-party neutral host (3PO). These deals are 100% funded and operated by an independent third party but require large MNO CapEx contribution and ongoing monthly rent.

With one MNO in charge, this rarely develops into a multi-MNO situation.

3POs make money two ways – by charging MNOs large CapEx contributions and also collecting monthly “rent”. 3POs seek commitment from MNOs prior to deploying implementation which can cause considerable delays.

The 3PO model presents a high financial cost of entry to the MNOs, causing delays and reducing participation. This could potentially hold your building or venue hostage while the 3PO holds out for higher contributions and monthly rent.

True, 3POs will sometimes offer building owners a revenue share of the monthly rent charged to the MNOs but is often not worth the delays or potential loss of MNO participation.

This is a difficult model for achieving the best long-term outcome.

Intenna Systems designs, builds and maintains some of the most complex inbuilding wireless solutions available in the enterprise and service provider segments of the industry. The Intenna DAS that you deploy now will immediately enable 4G technology while laying the foundation for future 5G services.

Commercial developers of hospitals, high-rise residential and other large commercial structures have begun to recognize that a strong in-building cellular connection is an absolute necessity. Additionally, owners are increasingly aware that the quality of a wireless signal has a direct correlation to their rental and occupancy rates.

As a result, distributed antenna systems are becoming the fourth utility required in commercial real estate. Connection and communication are now considered as important as water, gas and electricity. Despite this reality, some building owners still neglect to design and plan for a DAS as part of their initial capital budgeting.

Christopher Lange, CEO of Intenna Systems, which specializes in creating in-building wireless solutions, said that building owners should not avoid the task of providing tenants and guests with a strong, reliable cellular connection. Instead, they should look into the different types of financing available that can help fund the cost of these systems.

In a conversation with Bisnow, Lange talked about these different types of financing and how enhanced cellular connections can accommodate post-pandemic needs.

Bisnow: What are the challenges commercial building owners may face when it comes to financing in-building wireless?

The biggest problem is that the technology for in-building wireless is not yet completely mainstream, so it’s not always implemented into the design plans of a new facility, and owners forget to budget for it.

When this happens, building owners are stuck with the challenge of financing these systems without access to capital.

Left with only the operational budget to work with, building owners would need to finance in-building wireless using a payment structure.

That way, they can tap the operational budget over a number of years, which can vary depending on the building owner’s needs.

Bisnow: What are some of the different payment structures that buildings could use to finance a DAS?

They can go with a few different options. A capital expenditure option, or capex, for instance, allows them to use multiple capital budgets spanning payments out over a couple of years in order to acquire the system now and retain ownership once the system is fully funded.

They can also use an operating expenditure structure, in which monthly payments can be made to cover the cost of implementation over an agreedupon term. This option may take a few years, but once the payments have been completed, the building will have the option to purchase the DAS based on residual value.

Some accounting structures require the system be financed as a service, which would constitute a subscription-based structure that can be created to pay monthly for the system as a service. However, the building will not gain ownership of the system and will have to eventually renew the service or return the equipment.

Bisnow: How do you predict wireless solutions will change post-pandemic?

As people are returning to the office, they’re adopting a more hybrid workstyle. This is highly dependent on wireless technology, allowing people to work from the coffee shop in the lobby, from comfortable couches in the lounge or from a communal desk. If people are working from different places, their dependency on wireless will be much higher. Seamless wireless coverage in commercial buildings is rarely accomplished, but this is where DAS comes in. It brings wireless cellular networks to the interior of the building, guaranteeing seamless wireless coverage throughout the structure.

When finding the right financing option for the DAS, the ability to fund in-building cellular networks can be simple. Intenna Systems designs, builds and maintains some of the most complex in-building wireless solutions available in the enterprise and service provider segments of the industry.

Getting ahead of the game and addressing financing early with your client will streamline the process so that customized financial solutions can be determined that meet financial and technology needs.

This article was produced in collaboration between Intenna Systems and Studio B. Bisnow news staff was not involved in the production of this content.

June 2022

Intenna Targets the Dollars of DAS

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From the CEO

“Nice to see quarantine behind us and the country open again.

Thanks to our team that stuck with us through it all.”

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"Verizon customers at the Indy 500 used more than 17 terabytes of data."

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Norristown council awards Municipal Hall communications system contract to Intenna Systems "The agreement read more here will enhance communications for the municipality’s police officers, firefighters and first responders," https://bit.ly/39eG89X

Sharon Rashbaum

Loves having all of her numbers match up.

One thing she has learned lately: "The importance of self-care. I’m finally learning that I’m no good to anyone if I don’t take care of myself."

NORRISTOWN COUNCIL AWARDS MUNICIPAL HALL COMMUNICATIONS SYSTEM CONTRACT TO INTENNA SYSTEMS

Contract for $69K passes in 6-0 unanimous vote

Norristown Municipal Hall

By Rachel Ravina | rravina@thereporteronline.com | The Times Herald PUBLISHED: April 22, 2022 at 1:45 p.m. | UPDATED: April 22, 2022 at 1:46 p.m.

NORRISTOWN — Members of the Norristown Municipal Council authorized a nearly $70,000 contract earlier this week to revamp its public safety communications system as renovations continue on Municipal Hall.

The roughly $69,786 agreement with Intenna Systems, Inc, of Medford, New Jersey, would enhance communications for the municipality’s police officers, firefighters and first responders, according to Norristown Fire Chief Tom O’Donnell.

O’Donnell identified the police department as the main local public safety entity currently experiencing communication issues specifically, the law enforcement agency’s “inability to communicate outside of municipal hall.” O’Donnell noted the department is situated on the ground floor and the basement levels of the building on Airy Street.

“What we had implemented was an analog repeater system,” he said. “When the county switched from its analog radio system, to its digital radio system, that repeater became inoperable.”

O’Donnell said two bids were considered for the work to implement the 700/800MHz public safety communications network antenna system. He cited cost in the decision to endorse the New Jerseybased business over another firm. The other contender was proposed through the Commonwealth of Pennsylvania’s cooperative purchasing program, according to O’Donnell, which was about $3,000 more money.

Funds were sourced through the municipality’s capital improvement plan budget, according to Municipal Administrator Crandall Jones.

The initiative passed unanimously in a 6-0 vote as Norristown Municipal Councilman Rashaad Bates was absent from the April 19 work session.

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