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Home My WebLink AboutCOR-20-004 - Wireless Communication Provider Master Small Cell AgreementsREPORT TO: Finance and Corporate Services Committee DATE OF MEETING:Mar 9, 2020 SUBMITTED BY: Dan Murray, Director, Technology Innovation and Services, 519-741- 2200 x7825 PREPARED BY:Dan Murray, Director, Technology Innovation and Services, 519-741- 2200 x7825 WARD (S) INVOLVED:All DATE OF REPORT:Feb 20,2020 REPORT NO.:COR-20-004 SUBJECT:Wireless Telecommunication Provider Master Small Cell Agreements ___________________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to execute master license agreements satisfactory to the City Solicitor with wireless telecommunications providers to permit the use of appropriate city assets to host wirelesstelecommunications equipment. B ACKGROUND: Cellular communication technologies have evolved since the first cellular network was deployed in Canada in 1992. New evolutions in cellular technology have been referred to as “generations” with acronyms such as 3G and 4G being used to signify a generation of technology.The fifth generation of cellular technology, or 5G, promises significant performanceincreases over previous generations. As with previous cellular generations, rollouts of 5G technology will occur alongside existing 3G and 4G systemsand will co-exist for several years.In the preparation for 5Grollouts, wireless communication providers are looking to install “small cells” which are low powered cellular antennaslocated in high demand areas.Forwireless telecommunication providers to meet growing demand, they need to negotiate access to both public and private assets in order to locate thesesmall cell antennas. All the wireless communication providers have expressed interest in being able to access City assets such as building,streetlightpoles andpropertysuch as parks and public spaces. In May 2017, Council authorized execution of an agreementto allow Bell Mobility Inc. to install telecommunication equipment at the Kitchener Market. Subsequently, another small cell system was installed at the Kitchener Memorial Auditorium. RE PORT: The growth in the number of mobile devices connecting to cellular networks coupled with the continually growing appetite for increased data speeds have continue toput pressure on cellular networks. Each new generation of cellular technologies improves on the previous capacity and *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 4 - 1 speed. In order to meet these new demands, two significant changes will be required for deployment of new generations of cellular technologies. Fibreoptic network connectivity – next generation cellular networks need to connect using fibre optic networkinginstead of the wireless technologies often used with previoustechnologies.Significant fibre optic cable infrastructure will need to be installed to serve cell towers, in-building systems and small cells at the street level. Increased cellular antenna density – cellularantenna density will need to increase significantly to serve the number of devices accessing the network. Many lower powered cellular antennas (5to 10 Watts)known as small cells will be installed at street level. Traditional cellular communication towers will still be usedto provide wide coverage area of the telecommunications serviceandsmall cells will be installed at street level on buildings or using streetlight, traffic lightpoles or hydro poles at strategic locations throughout the city. Each of these small cells requires its own fibre optic connectionand a powersource. Municipal Master Small Cell Agreements Across North America, wireless telecommunication providers are looking to entermaster agreements for small cell installations which allow them to be able to request access to various municipal assets under agreed uponterms and conditions.The wireless telecommunications providers are looking to enter agreements withall local municipal asset owners such as the cities, the Region of Waterloo and the local hydro utilities. As the quantity of requestsfrom all wireless telecommunications providersis expected to rise significantly in 2020 and beyond,it is in the City’sbest interest to enter master agreementswith all wireless telecommunications operators at this timein order that future requests can be managed effectively and to ensure that Kitchener is well equipped to deploy 5G wireless services. The Kitchener-Waterloo area is of great interest to the wireless providers and they are eager to invest in this area.There are currently three wireless telecommunication providers that operate their own infrastructure in Kitchenerthat we expect to execute master small cell agreements with. They are Bell Mobility Inc., Rogers Communications Inc. and Freedom Mobile. Installationof SmallCells on City Assets For each application to install telecommunication equipment on a City asset (streetlight pole, building, etc.) the City will review the details of the application submitted and will need to approve in writing before installation can proceed. For streetlight mounted telecommunication equipment, the development of appropriate installation standards in collaboration with other municipal partnerswho own similar assets will be requiredin order to maintain a consistent aesthetic approach to the installationsacross the city. Examples of typical small cellinstallation on municipal assets are shown below. 4 - 2 Figure 2- Example of existing small cell antenna installed on Figure 1 – Typical small cell installation on streetlight Kitchener Market Safety of Small Cells As with all wireless telecommunication equipment deployed in Canada, small cells must operate within the limits establish by Health Canada and Industry Canada defined by Safety Code 6. Small cell wireless equipment operates at hundreds of times less than the defined limits for safe exposure by Safety Code 6. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city’s strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: There are no direct financial implicationswith the approval of the recommendation in this report. As wireless providers install small cell equipment, there will be negotiated fees for lease of the asset used. Most municipal small cell master agreements outline feesfor various assetusage (e.g. in-building systems, building façademounting,streetlight pole) for the following aspects where applicable: Application/Permit Fee – fee paid toCity for the reviewandprocessingof application Annual License Fee – fee paid to City for license to attach equipment to city owned asset (building, streetlight) Hydro Consumption Surcharge Fee – fee paid to City to reimburse hydro consumption if equipment isconnected to building electrical system 4 - 3 For in-building systems, the fees vary depending on the type and size of facilityand whether intended service is indoor or outdoor. City staff have been researching market rates for the above feesand will negotiate fees with the providers. Typical annual license fees for an in-building system are $3000/year. A typical streetlight pole attachment license can range from $200-$1000/yeardepending on howelectrical sources are provisioned.Asthe needs and plans for the wireless telecommunication providers are not fully understood it is very difficult to estimatethe scope ofany future potential revenuefor the City at this time. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. PREVIOUS CONSIDERATION OF THIS MATTER: Council previously authorized execution of an agreement with Bell Mobility Inc. to permit the installation of a small cell systems atthe Kitchener Market and delegated authority to the Director of Facilities Management for future telecommunications equipment at all city facilities. (FCS- 017-096) ACKNOWLEDGED BY: Lesley MacDonald – Acting General Manager of Corporate Services 4 - 4