Small cells have evolved from a niche coverage solution into a core component of modern mobile network strategy, according to a senior network executive who outlined how operators are increasingly relying on targeted deployments to meet growing capacity demands while maintaining capital efficiency.
Speaking at SCF’s Small Cells World Summit in London, Michael Thompson, Head of Mobile Access Strategy, VMO2, argued that customer expectations, rising competition and persistent traffic growth are forcing mobile operators to rethink how and where they invest.
Capacity demand still growing
While some studies show the rate of mobile traffic growth may be slowing, Thompson pointed out that the operator is still seeing downlink traffic growing by approximately 18% annually, while uplink traffic is increasing by around 25% year-on-year. At those rates, network demand is effectively doubling every four years.
To keep pace, the operator added roughly terabit of capacity across its network in 2025 and plans to deploy an additional two terabits this year as part of a wider mobile transformation programme.
The challenge comes at a time when operators are facing intense financial pressure. Competition among mobile network operators has intensified, while the growth of MVNOs and the rise eSIMs has made it easier than ever for customers to churn. That combination has placed greater scrutiny on capital expenditure decisions.
“We have to be incredibly targeted in how we spend every pound of investment,” Thompson said.
In response, Thompson highlighted a shift toward customer-led network planning.
Rather than relying solely on traditional network performance indicators, the operator is increasingly using customer feedback, experience metrics and behavioural insights to determine where investments should be prioritised. VMO2 refers internally to identifying the “moments that matter” – locations and situations where connectivity failures generate the greatest customer frustration.
That approach is helping guide decisions on where targeted small-cell deployments can have the greatest impact. According to the operator, a poorly placed macro upgrade can sometimes deliver less tangible benefit than a strategically deployed small cell designed to address a specific customer pain point.
Planning delays drive interest in small cells
One of the biggest obstacles facing network operators remains the time required to secure planning approvals for new infrastructure. In some cases, particularly in central London, planning applications can take years to progress. By the time a traditional macro site is approved and deployed, customer demand may already have shifted elsewhere.
As a result, operators increasingly view small cells as a strategic tool for improving network agility.
“The ability to respond quickly to customer demand is absolutely key,” Thompson said.
The challenge is becoming more acute as urban environments continue to evolve. New commercial developments, regeneration projects and housing construction are constantly changing traffic patterns and creating new connectivity hotspots.
Small cells become mainstream infrastructure
The operator currently has approximately 2,500 small cells deployed across its network and plans to continue expanding that footprint. That’s a decent increase from the 2,000 small cells that VMO2 said it had in 2025.
Historically, small cells were often used to address localised spectrum constraints or solve specific coverage problems. Today, they are increasingly being deployed to support forecast traffic growth and improve customer experience in high-demand locations.
Some small-cell sites in central London now carry more than 500GB of traffic per day, according to Thompson. But the operator stressed that small cells are no longer a London-centric strategy.
“This is a UK-wide story,” he said.
Deployments now extend across cities, towns and seasonal tourist destinations. In Cornwall’s St Ives, small cells help support seasonal demand spikes where investment would be difficult to justify with full macro-cell deployments. The company’s small-cell network is carrying between 80 and 100 terabits of traffic, with 15-20 terabits of 5G traffic running outside of London across the infrastructure.
Venues and transport hubs remain key opportunities
Large venues continue to represent one of the strongest use cases for small-cell infrastructure and distributed antenna systems (DAS).
At major sporting venues including Twickenham and Wembley, network demand can surge dramatically during events. Thompson said connectivity planning now extends beyond the stadium itself to encompass the entire customer journey, including transport routes and nearby stations.
And he highlighted the importance of maintaining service levels not only inside venues but also in surrounding public spaces where thousands of users gather before and after events.
Similar strategies are being deployed in digital city initiatives, including Sunderland, where a combination of macro infrastructure, DAS and small-cell deployments is being used to improve urban connectivity.
Enterprise and indoor deployments expand the definition of small cells
The operator also highlighted growing demand for indoor small-cell solutions.
Following the retirement the 3G switch off, the company had around 50,000 home and enterprise-grade cells to replace with 4G and 5G femtocells across the UK. These self-installed systems provide businesses with dedicated indoor coverage and are increasingly being positioned as connectivity-as-a-service offerings.”
Preparing for the next phase of 5G
Alongside small-cell expansion, VMO2 continues to invest in 5G Standalone (SA), network modernisation and new spectrum assets. The company claims to have the UK’s largest 5G Standalone footprint, covering approximately 60 million people across more than 700 towns and cities.
Recent spectrum acquisitions from VodafoneThree and ongoing millimetre-wave trials are also helping shape future deployment strategies.
In trials at the O2 arena in London, the operator reported achieving download speeds of approximately 3Gbit/s using millimetre-wave technology, demonstrating the potential of combining high-frequency spectrum with dense small-cell architectures.
Meanwhile, advances in radio technology are enabling operators to deploy increasingly compact equipment capable of supporting both Non-Standalone (NSA) and Standalone 5G networks while reducing visual impact. Thompson highlighted compact designs with both Nokia and Ericsson small cells supporting multiple bands on the same site. [see main picture]
“Compressing all that capability all into one box allows for more aesthetically pleasing deployments, but it’s also getting more and more 5G spectrum out there – and both of those pieces of equipment are both NSA and SA capable – so again it’s future ready for us.”
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