Although, traditional macro methods are addressing capacity shortages today, small cells will play an essential role in meeting the capacity demands of the future.  According to the latest forecast report published by Dell' (News - Alert)Oro Group, the public access small cells market, which includes RAN, backhaul and Wi-Fi, will quadruple in next five years.

In a statement, commented Stefan Pongratz, analyst with the Dell'Oro Group, "We believe that the traditional macro methods for addressing capacity shortages will play an essential role going forward. But since there is limited licensed spectrum available, leveraging the unlicensed spectrum, re-using the licensed spectrum, and optimizing spectral efficiency per unit area will sooner or later be required to expand capacity – and equally important, to create a more uniform performance throughout the cell."

The analyst believes that as the base stations move from ground level to rooftops and towers, it will present new opportunities to new entrants because incumbent vendors are not equipped for this change.

According to market watcher Dell'Oro, the report provides a five-year unit and revenue forecast of the RAN (WCDMA/LTE (News - Alert)), backhaul (LOS/NLOS microwave and fiber/copper), and SP Wi-Fi (enterprise-class devices and outdoor mesh nodes that ship to service providers).  Amongst the small cell solutions, the report shows that SP Wi-Fi will be the fastest growing small cell segment in the next five years.

The current leading vendors in this space are Ruckus, Ericsson, and Cisco (News - Alert), according to the market research firm.

In a recent statement, Gordon Mansfield, the Small Cell Forum's newly appointed chairman, said, "Small cells are no longer a new mobile technology on the horizon, they are now an essential tool in an operator's toolkit."  

While the Forum’s new CEO Graham Wright, stated, "Small cells are dramatically changing the shape of mobile networks and over the coming years this is only set to accelerate. The reason for this is simple – mobile networks need improved coverage, vastly increased capacity and new services. Small cells deliver these in a simple, open and cost effective manner.”