What is a small cell in wireless networks?
A small cell is a type of low-power cellular radio access point or base station that provides wireless service within a limited geographic area. Small cells are designed to enhance network coverage, capacity and data throughput in high-traffic or densely populated environments, such as airports, stadiums, office complexes and city centers. They have a shorter operating range than cellular towers and are often deployed in clusters.
Small cells can provide scalable, high-performance connectivity and efficient spectrum reuse for both public and private networks. They can be used in the home to extend broadband coverage, and they can be used outside the home to boost network capacity and improve reliability for 4G LTE (Long-Term Evolution), 5G and enterprise wireless systems. When managed through centralized and automated platforms, clustered small cells can be deployed efficiently and maintained at scale to extend the value of an organization's existing network investments.
How do small cells work?
Small cells act as miniature cell phone towers. Each small cell has its own radio equipment, antenna and wireless backhaul connection to the carrier's core network. When a user's device enters a small cell's coverage area, it will automatically connect to the cell -- small or macro -- that provides the best signal.
If a small cell receives a user's signal, it sends the user's data through its backhaul connection to the carrier's core network. The core network then routes the data to its destination. As the user moves about, the network will seamlessly hand off the connection from one small cell to another or to a nearby microcell. The handoffs ensure uninterrupted coverage and consistent network performance.
Small cells can be deployed in licensed, shared or unlicensed spectrum bands, depending on the network design, regulatory requirements and the intended use case. This type of network access point can generally be categorized by its power output and coverage range. Femtocells have the smallest form factor and are typically used indoors to boost wireless coverage in homes and small offices. Picocells have a slightly larger form factor and are typically used in larger indoor areas, such as airports or shopping centers. Microcells are the largest, with the longest range and are often deployed outdoors.
What are small cells in telecom?
In telecommunications, small cells are used to improve the performance and efficiency of cellular networks. They provide targeted wireless coverage in areas where traditional cell towers cannot provide strong signals. Cellphone carrier network operators use small cells in 4G and 5G networks to fill coverage gaps and handle high user demand in areas such as sports arenas, metro stations and office complexes.
To improve performance, mobile operators and network designers often install numerous small cells near one another within a limited area. Although each small cell will only cover a small zone, they can work together to create a dense network capable of handling heavy traffic and maintaining high data speeds. This approach, known as network densification, enables 4G LTE and 5G networks to deliver faster data speeds, lower latency, and provide a more consistent quality of service.
In 4G LTE networks, small cells are used to enhance overall network performance in areas where traditional macrocell towers cannot meet demand. For example, in dense urban areas, they can help offload traffic from overloaded macrocells and increase total network capacity through spectrum reuse.
In 5G networks, small cells can be deployed across all frequency bands, but they play different roles depending on the spectrum. Low-band 5G offers wide-area coverage and strong signal penetration, so small cells are primarily used to fill coverage gaps or enhance indoor connectivity. Mid-band 5G offers faster speeds but shorter range, so small cells are commonly used to boost capacity and maintain performance in dense urban and suburban areas.
High band 5G depends the most on small cells. Millimeter wave (mmWave) signals can travel only a short distance and require a line-of-sight or near-line-of-sight connection. In densely populated areas, mmWave 5G deployments might use hundreds or even thousands of low-power small cells to keep 5G signals strong and fill in coverage gaps between cell towers.
Why is small cell important to 5G?
Small cells are important to 5G because they extend coverage in areas where traditional cell towers cannot provide sufficient bandwidth or capacity. Unlike previous generations of cellular technology, 5G is designed to operate across three frequency ranges: low-band, mid-band and high-band. This is also referred to as mmWave.
High-band frequencies can deliver much higher data rates, but they have shorter transmission ranges and require line-of-sight, or near-line-of-sight, data transmission paths. To overcome these limitations, network operators can deploy clusters of small cells on rooftops, utility poles, streetlights and building facades to bring 5G signals closer to users and maintain high-speed connectivity. The small cells help ensure 5G signals remain strong and consistent, even in locations where high-frequency 5G waves would normally attenuate quickly.
Small cells also allow 5G carrier networks to increase overall network capacity by reusing spectrum. Because small cells transmit at low power and cover limited geographic areas, their signals tend not to overlap with nearby cells. This enables the reuse of the same frequency channels in adjacent zones, allowing carriers to expand network capacity and performance without requiring the purchase of additional spectrum licenses for their 5G deployment.
Types of small cells
As mentioned earlier, there are three different types of small cells: femtocells, picocells and microcells. Most carriers use a multi-tiered mix of these small cells as part of a heterogeneous network strategy. This allows them to optimize coverage, capacity and performance across diverse environments.
Here is how each type of small cell works and what it is used for:
Femtocell
A femtocell is a plug-and-play cellular base station that connects to the user's broadband service. When a cellular-enabled device comes within range of the femtocell, it connects just as it would to a macrocell tower. The femtocell manages radio access, encryption and authentication, and then converts the radio signals into network packets, sending them through the user's broadband backhaul to the carrier's network. Once there, the carrier routes the traffic to its destination.
Overall, femtocells are best suited for homes and small businesses that need reliable indoor coverage for a limited number of users. This type of small cell is designed for end users to purchase and install themselves. They are commercially available from carriers like AT&T or Verizon and typically cost less than $300.
Picocell
A picocell is a low-power cellular base station that provides localized mobile coverage over a few hundred feet. It connects directly to a carrier’s core network through a dedicated backhaul link -- typically fiber or Ethernet -- rather than relying on a user's broadband. When a device enters its coverage area, the picocell manages radio access, encryption and handoffs just like a macrocell tower, but on a smaller scale.
Picocells are designed to handle more users and higher data transfer rates than a femtocell. They are commonly deployed in malls, airports, hospitals and office buildings to strengthen indoor coverage and boost network capacity. Picocells typically cost around $2,000 and are considered carrier-grade equipment. This means that service providers buy and deploy them as part of their network infrastructure.
Microcell
A microcell is a medium-power cellular base station that can provide coverage over a few miles. It connects to the carrier's core network through a dedicated backhaul link and operates on the same licensed spectrum as the rest of the network. When mobile devices enter its range, the microcell manages radio access, encryption and seamless handoffs between nearby cells to maintain continuous service. Microcells are commonly deployed in dense urban areas, on campuses, and in suburban neighborhoods. Like picocells, microcells are considered carrier-grade equipment. Microcells are larger and more expensive, however, and can cost $10,000 or more.
Use cases of small cells
Due to their small size and low power consumption, small cells are suitable for a wide range of deployment scenarios across both public and private networks. For example, they can be found in the following places:
- Densely populated urban areas with a high demand for wireless connectivity.
- Indoor environments that experience heavy user traffic and require strong signal strength and reliable coverage.
- Rural or remote areas where macro cells offer patchy coverage.
- Enterprise campuses that need to provide additional capacity to specific user bases.
- Healthcare organizations that need to provide staff with private 4G or 5G network connectivity to meet compliance regulations.
- Commercial properties that get a lot of foot traffic.
- Sports and entertainment venues that experience periodic spikes in network demand.
- Countries that are trying to close the digital divide and provide internet connectivity to communities that have limited access to mobile services.
How to choose a small cell vendor
Selecting the right small cell vendor is a strategic decision that affects not only network performance but also scalability, operating costs and vendor risk management. Whether an organization is deploying public-facing 5G, enhancing 4G LTE coverage or building a private enterprise network, the right vendor should provide hardware, software and management tools that integrate smoothly with the organization's existing infrastructure.
According to Mordor Intelligence, the top small cell vendors include Cisco Systems, Ericsson, Huawei Technologies, Nokia Corp. and Qualcomm Technologies Inc. The market is valued at $6.51 billion and is projected to reach $26.63 billion by 2030.
Here are six things to consider when choosing a small cell vendor:
- Validate network compatibility and standards compliance.
Ideally, a small cell should integrate seamlessly with an organization's current radio access network (RAN) and core network architecture. Confirm that the vendor's products comply with the 3rd Generation Partnership Project (3GPP) standards and support open interfaces such as those defined by the O-RAN Alliance. Standards-based systems can help prevent vendor lock-in and make it easier to scale or switch suppliers as technology evolves.
- Look for a flexible, comprehensive portfolio.
Choose a vendor that offers a complete range of small cell options -- femtocells, picocells and microcells -- for both indoor and outdoor environments. Indoor models should support Power over Ethernet and coexist with enterprise Wi-Fi systems. Outdoor models will need ruggedized enclosures, integrated antennas and flexible backhaul options. Vendors that offer small cell systems with distributed antennas can simplify deployments in large venues such as stadiums or airports.
- Prioritize centralized management and automation.
Managing thousands of small cells manually is inefficient and costly. Leading vendors offer centralized orchestration platforms that automate configuration, monitoring and performance optimization. Look for support for self-organizing network features, AI-driven analytics and xHaul management for coordinating fronthaul, midhaul and backhaul links. Automation lowers operational costs and ensures consistent performance across distributed sites.
- Verify security and compliance.
Small cells must meet the same security and privacy standards as the rest of the mobile network. Confirm compliance with 3GPP security specifications for authentication and encryption, and ensure the vendor provides end-to-end encryption for both data and control traffic. For enterprise and government networks, look for support for zero-trust architectures and granular access-policy controls.
- Compare total cost of ownership and support.
Evaluate costs beyond the initial hardware price. A good vendor should be transparent about installation, software licensing and maintenance expenses. Ask whether they offer cloud-hosted management platforms or network-as-a-service models to reduce Capex. Also assess the vendor's support network and service-level agreements. Local technical support can make a significant difference in operational uptime.
- Ask for proof of performance.
At this stage of the procurement process, buyers should expect to be provided with evidence of success. If not, request access to case studies and showcase reference deployments that match your environment. Proven results will help confirm the vendor's technical competence, deployment experience and ability to deliver reliable outcomes in the real world.
What are the key benefits of small cells?
Small cells provide the following key benefits:
- Support multiple frequency bands.
- Are engineered to blend into their surroundings.
- Fill coverage gaps and enhance signal strength in both indoor and outdoor environments.
- Reduce latency and enhance the user experience by shortening the distance between devices and the network.
- Can be clustered to improve coverage and signal quality in dead zones.
- Allow carriers to increase network capacity by reusing spectrum across coverage zones.
- Enable carriers to meet growing data demands without having to purchase additional spectrum or deploy additional macrocell towers.
What are some drawbacks of small cells?
Notwithstanding their many benefits, small cells also have some drawbacks. While these limitations might not directly affect users, mobile operators should be aware of them so they can make informed decisions regarding network design, small cell placement and backhaul implementation.
Key drawbacks of small cells include the following:
- Large-scale picocell and microcell rollouts require significant planning. Carriers might need to negotiate rental agreements with municipalities and business owners for rooftop and pole access.
- Each small cell needs its own power supply and backhaul connection. If these two things are not available, engineering teams will need to coordinate installations with power and fiber providers.
- Large deployments can create maintenance complexity. Each small cell will require periodic software updates, backhaul monitoring and potential physical service. Even when small cells are managed through a centralized platform, this still requires careful coordination and investment in automation to maintain consistent network performance at scale.
- While small cells are less expensive than macrocells, large deployments that require hundreds or thousands of nodes can result in high Capex and Opex costs. The ROI can take longer to realize, especially in areas that are slow to adopt 5G.
- Each small cell is a potential entry point to the network. Compromised small cells can expose user data or disrupt local service.
What is a small cell in LTE?
LTE is a 4G wireless communication standard mobile carriers use to deliver high-speed data, voice and video services over cellular networks. Technically, LTE is part of the 3GPP family of standards and represents a major upgrade from 3G networks. LTE uses an all-Internet Protocol architecture, transmitting voice and data traffic in digital packets rather than through traditional circuit-switched connections.
In the context of LTE, femtocells, picocells and microcells operate as part of the LTE radio access network. Each small cell functions as a low-power eNodeB, connecting user devices to the Evolved Packet Core. Essentially, they extend coverage and increase capacity within the overall LTE architecture, just like they do for 5G deployments.
What is a small cell backhaul?
A small cell backhaul refers to the network connection that links a small cell to the mobile operator's core network and ultimately to the internet. It's the pathway that carries all the voice, data and signaling traffic between the small cell and the broader cellular system. Technically, each small cell must connect to the carrier's core network through reliable transport links. To facilitate this, operators often use xHaul architectures that integrate fronthaul, midhaul and backhaul connections into a unified transport layer. This allows distributed small-cell network to be managed centrally through a single network operations center or cloud platform.
How to manage small cell deployments efficiently
The efficient management of small cell deployments requires a combination of strategic planning, automation and centralized control.
The first step operators need to take is to determine the optimal small cell placement based on population density, traffic demand, and existing macrocell coverage. This process typically involves the use of radio frequency planning tools and predictive modeling algorithms. The goal is to avoid interference and ensure seamless handovers between cells.
Once small cells are deployed, operators can use virtualization, software-defined networking (SDN) and automation to manage them from a central location. Virtualization allows mobile operators to move baseband processing functions from individual small cells into software that runs on centralized or cloud-based servers. SDN allows operators to dynamically control network traffic, allocate bandwidth and reconfigure connections through software.
Automation enables operators to remotely configure, monitor, and update hundreds or thousands of small cells through software. AI-driven analytics can further improve efficiency by enabling self-organizing network functions that automatically adjust power levels, balance traffic loads and detect faults in real time.
Here are some more ideas for how network teams can use automation to make their jobs easier.