Value Creation for Airport Operators from Private Wireless Networks – A Novel Vision for Profitable Growth.
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February 4, 2025 In Article

Value Creation for Airport Operators from Private Wireless Networks – A Novel Vision for Profitable Growth.

At the 2024 Mobile World Congress conference in Las Vegas, Imagine Wireless co-organized and co-sponsored the Connection Aviation Summit – a series of sessions that explored the dynamics of digital transformation in the aviation industry, the industry’s progress to date towards its vision for driving positive change through wireless technologies, and the challenges and opportunities that lay ahead in the path towards achieving that vision.

Norman Fekrat, Managing Partner of Imagine Wireless, delivered a presentation at the summit on the topic “The Future of Flight: Exploring the Importance of Connected Aviation.” In his remarks, he described how the advent of Citizens Broadband Radio Service (CBRS) spectrum catalyzed growth of private wireless networks (PWN) – high-bandwidth networks that commercial and public sector entities own and/or operate – as an alternative to obtaining wireless connectivity from mobile network operators (MNOs).

He went on to introduce the concept of placing a financial valuation on CBRS spectrum that enterprises and public sector entities (e.g., airports) own and/or operate, both at the aggregate level and at a unit economics level. Whereas the traditional model for valuing spectrum is predicated on “cost per megahertz per point-of-presence (POP)”, PWN operating on CBRS spectrum reframes the valuation equation as “value created per megahertz per connected device”.

This reframed definition encompasses the key value proposition of PWN-on-CBRS: removing barriers to value creation by substantially reducing costs for enabling and operating business and technical use cases, while simultaneously enabling revenue generation from these use cases. This cost efficiency, combined with net-new revenue generation, together create a value creation flywheel anchored on profitable growth. This concept is particularly compelling for airports, which have historically tended to regard network connectivity as a cost center, sunk cost, and mere “infrastructure plumbing” rather than as critical infrastructure. With PWN operating on CBRS, airports, other types of public sector entities, and commercial entities can unlock the “stranded value” inherent to the traditional IT-centric model and reimagine the value creation opportunity aligned with capital efficiency, cost efficiency, and revenue generation. PWN quickly becomes critical infrastructure.

He also touched on a critical related point, namely, that many of the use cases that hold the greatest value creation potential simply are not technically feasible or economically viable to enable with WiFi – a ubiquitous but bandwidth-constrained wireless technology, or with wired alternatives (Ethernet or Fiber-Optic cabling), which can be prohibitively expensive to procure, deploy, and maintain over time. PWN-based connectivity offers superior value creation potential because of its cost efficiency, deployment and maintenance agility, and support for even the highest-bandwidth use cases.

Mr. Fekrat closed by offering his perspectives on the size of the value creation opportunity for airports and other industry verticals based on his years of experience as a management consultant and practitioner in the telecommunications and technology industries.

To view a video recording of the presentation, click here. To download a transcript of the presentation, click here.

About Imagine Wireless

Founded in 2017, Imagine Wireless is a professional services firm dedicated to optimizing the value creation opportunity for commercial enterprises and public sector entities through wireless network technologies.

We partner with our clients to shape, validate, enable, and evolve their strategic visions, technology capabilities, and business models to help them maximize tangible business value from wireless and enterprise technologies across their operations. Our services include strategic advisory, go-to-market advisory and enablement, technology advisory and enablement, program management, and vendor assessment.

Our team consists of seasoned professionals from the telecommunications, technology, and professional services industries. With a presence in major cities across the Western, Central, and Eastern United States, we can readily serve our domestic and international clients. Learn more at www.imaginewireless.com or contact us for more information.