In the ever-evolving landscape of in-building wireless connectivity, the role of Distributed Antenna Systems (DAS) is being re-evaluated. Traditionally favored for their ability to enhance cellular coverage within large buildings and venues like stadiums, DAS is now seen as less viable for smaller, less complex environments due to high costs and inflexibility. Emerging technologies such as small cells, Citizens Broadband Radio Service (CBRS), and private LTE networks are stepping up as the new champions of indoor connectivity, promising more scalable, cost-effective solutions especially as we move into the era of 5G. To stay competitive, businesses must modernize their infrastructure to support applications like automation and asset connectivity, enabling optimized 4G/LTE performance, expanded 5G capabilities, and a smooth transition to 6G networks. 

“To further the scale and cost challenges, Mobile Network Operators are making decisions to no longer finance DAS. The carriers are pushing for a business or venue funded model, shifting the financial burden to the venue, building owner, or business decision-maker.” Compass Intelligence

Four key factors contribute to DAS shutdown or DAS replacement needs: 

DAS Limitations & Financially Attractive Alternatives

DAS systems, once the standard for large-scale cellular coverage, are increasingly becoming impractical to maintain and manage. Their complexity, reliance on extensive cabling, and high installation and maintenance costs limit their scalability and adaptability for modern needs. DAS setups require custom designs tailored to each building, further driving up costs per deployment. Additionally, with mobile network operators (MNOs) withdrawing funding for DAS installations, the financial burden has shifted to businesses and venue owners. This, along with their limited flexibility in accommodating multiple carriers, challenges the sustainability of DAS in today’s cost-conscious and rapidly evolving connectivity landscape

Push Towards Cost-Efficient Multi-Carrier

Modern networks embrace Multi-Operator Core Networks (MOCN i.e., neutral host) because they enable multiple carriers to share a common infrastructure, which reduces costs, increases efficiency, and accelerates deployment in areas with limited coverage. In a MOCN setup, operators share base stations while maintaining independent core networks, simplifying physical infrastructure requirements, and reducing equipment duplication. This is particularly beneficial in locations where building separate networks would be financially or logistically challenging, such as dense urban areas and high-traffic indoor spaces like multi-floor buildings, venues, and hotels. 
 
Compass Intelligence believes DAS solutions initially cost on average between $2-$4 per square foot, and ongoing maintenance, upgrades, and servicing increases that investment. These solutions also require significant infrastructure and can be more challenging for ongoing maintenance and upgrades, especially as the industry transitions to 5G.

Costly Infrastructure Upgrades

Upgrading DAS requires significant infrastructure investments, driven by factors such as the system’s complexity, scalability challenges, and evolving technology demands. These upgrades are often necessary every 2 to 4 years, depending on the infrastructure, configuration, and demand. Each DAS system is customized for specific venues, requiring tailored cabling, antennas, amplifiers, and base stations, which may need to be replaced or heavily modified to support new network technologies. In contrast to small cells, which are modular and designed for easy scaling and updating, DAS installations typically demand substantial physical modifications to accommodate increased data speeds, bandwidth, and user capacity required by new standards. Furthermore, each upgrade cycle often involves specialized labor for re-engineering coverage zones, rerouting cabling, and adding new hardware, all of which drive up installation and maintenance costs.

Funding Shifting from MNOs to Businesses

As mobile network operators (MNOs) withdraw funding for DAS installations, the financial burden is shifting to businesses and venue owners, raising concerns about the sustainability of DAS in an increasingly cost-conscious market. This shift is expected to accelerate, reshaping the landscape of in-building wireless connectivity. 
 
AT&T, for example, is moving toward replacing DAS with small cells as part of its transition to 5G, while Verizon is also moving away from DAS as part of its expansion strategy. AT&T sees small cells as ideal for dense urban areas, where wireless networks face a range of challenges. Meanwhile, T-Mobile continues to support DAS installations for large venues, such as buildings over 500,000 square feet, but is also investing in more modern solutions like small cells and other in-building wireless systems. All three carriers are planning to phase out DAS and replace it over the next 2 to 5 years. 
 
As cellular networks advance, several factors support the case for small cell solutions as a replacement for DAS. Below we dive a bit deeper.

1. Support of 4G/LTE with Flexibility of 5G Transition

The integration of 5G technology into in-building wireless strategies is perhaps the most significant factor driving the shift away from traditional DAS. While updated DAS systems can support 5G, the high costs and extensive retrofitting required to upgrade existing DAS for 5G compatibility are prompting a shift toward alternative technologies. Small cells, designed to support 4G/LTE today, are inherently more adaptable to 5G. They offer a cost-effective solution for managing higher data speeds and increased connectivity demands. Unlike DAS, small cells can be quickly deployed in much larger numbers and positioned closer together to handle the increased data load that accompanies 5G, while still supporting 4G/LTE. This results in better performance, lower latency, and improved coverage, which are crucial as 5G continues to roll out. 
 
The integration of 5G technology into in-building wireless strategies is perhaps the most significant factor influencing the shift away from traditional DAS. The updated DAS systems can support 5G; however, the high costs associated with upgrading existing DAS to be 5G-compatible are prompting a reconsideration of alternative technologies. Small cells and CBRS are inherently more adaptable to 5G, offering a cost-effective way to manage higher data speeds and increased connectivity demands without the extensive retrofitting required by DAS.

2. Smarter Economics, Modern Solutions

Small cells offer a modular, cost-effective, and quick-to-deploy solution for expanding cellular coverage. Their incremental deployment makes them ideal for managing the growing demand for mobile data, especially in dense urban environments. Designed for easy updates, small cells align well with the rapid rollout of new cellular standards, including 5G. Similarly, CBRS has emerged as a powerful tool, offering secure, reliable connectivity that is particularly attractive for enterprise applications. With its flexibility and capacity to support a wide range of applications—from IoT to tailored business services—CBRS is a future-proof technology that could replace DAS in many scenarios. 

Modern systems require modern solutions, and small cells are the ideal choice. Easier to install and scale than DAS, small cells can be deployed incrementally, allowing coverage to expand as demand increases without the extensive infrastructure needed by DAS. This capability is especially crucial for 5G, which requires dense coverage with smaller cells distributed across urban areas, multi-floor buildings, and high-rise commercial properties. Enterprises and mobile network operators (MNOs) are embracing small cells for their affordability, quicker deployment timelines, and ability to support long-term cellular use cases. As the industry continues to modernize, small cells will play a central role in enhancing both indoor and outdoor connectivity.

3. In-Building Wireless Requires Flexible Options

As multi-carrier connectivity becomes the norm for enterprises and multi-use buildings, the need for flexible options to support diverse user needs—whether for patrons, office workers, or residents—has never been more critical.

Below, we explore key trends and developments that underscore the shift away from traditional DAS and highlight the growing adoption of solutions like small cells, open networks, and ORAN (Open Radio Access Networks). 

• ECONOMICS: Dense Air is experiencing increased demand for small cell due to the driver of lower costs and faster deployment times, with successful trials with AT&T and T-Mobile. (See more on Millenium Garages partnership.) 
• DEMAND DROP-OFF: CommScope in 2024 sold off their DAS business to Amphenol after experiencing 24% drop in sales year-over-year for their business unit that includes DAS solutions. 
• REPLACEMENT TRENDS: Companies such as Airspan looking at private wireless and small cell as a replacement for DAS as discussed by their CEO in 2023 driven by the economic indicators shared previously. 
• ADVANCEMENT: Future and expected capabilities allowing operators to port and reproduce APIs will add additional features to embrace neutral host and quality of cellular services (Open Network and Network API initiatives) 
• TRANSITION: Corning earlier this year announces a solution to help existing DAS customers transition to small cell through its announcement of the “Everon 5G enterprise radio access network.” 

The Future Landscape

As we look to the future, the trajectory is clear: the dominance of DAS is waning in favor of more agile, economically viable technologies. Small cells and CBRS are not only addressing the current limitations of DAS but are also setting the stage for a more connected future. With MNOs and businesses focusing on reducing costs and increasing efficiency, the shift towards these newer technologies is likely to accelerate, reshaping the landscape of in-building wireless connectivity. 

This transition from DAS to technologies like small cells and CBRS underscores a broader movement towards more dynamic, scalable wireless solutions that can adapt to the rapid technological advancements defining the telecommunications industry today. As we continue to advance, the focus will undoubtedly remain on solutions that combine cost efficiency with robust performance to meet the ever-growing expectations of a connected world. 

As enterprises and property owners plan their connectivity strategies, the small cell neutral host model offers a path to future-proofing networks with flexibility, cost-efficiency, and operational simplicity. Embracing this technology now will ensure businesses are equipped to meet the demands of an increasingly connected and data-driven world. Those who start planning now will be well-positioned to provide seamless, reliable service that meets the needs of today’s increasingly connected world. The transition from DAS to newer technologies marks a pivotal step in creating a connected enterprise, ensuring both resilience and scalability for years to come.

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Written by Stephanie Atkinson, CEO of Compass Intelligence 

About Compass Intelligence
Compass Intelligence is a market research and advisory firm specializing in metrics-driven market intelligence and insights for the mobile, IoT, and high-tech industries serving tech clients for more than 18 years. Compass Intelligence offers executive insights, market sizing/forecasting and modeling, competitive analysis, strategic consulting, advisory services, trending analysis, and survey research services. Compass Intelligence helps guide strategic business decisions and supports the success of our clients through delivering content engagement, go-to-market planning, competitive positioning, and strategic advisory.  

For more information, please visit https://www.compassintel.com.