Mobile Backhaul - Global Market Analysis and Forecast

CAPEX and Lease Revenue Opportunities for Carrier Ethernet, Microwave, MPLS-TE, PBB-TE, TDM, and Cable Backhaul Solutions

Ethernet is the layer 2 technology choice for backhaul whether it is delivered over microwave, fiber, or copper. Efforts by organizations such as the Metro Ethernet Forum strengthen operators’ confidence in Ethernet as a carrier class backhaul technology. By 2014, microwave backhaul penetration will increase in several markets but operators will switch from PDH microwave to high capacity Ethernet microwave solutions. Ethernet over fiber will gain significant traction in developed markets such as North America and some Asian countries, as operators upgrade their backhaul networks to meet the capacity demands of 3G and 4G traffic. Growing mobile capacity demands, reliability, and low-cost solutions are key factors for mobile backhaul evolution.

This study provides a comprehensive analysis of the global mobile backhaul market and provides insight into the opportunities and trends it presents. Market segmented data is provided to show the similarities and differences by region and technologies. ABI Research data shows that T1/E1 is still the dominant backhaul technology in markets such as Latin America, North America, and Eastern Europe. However by 2014, the use of T1/E1 for backhaul will disappear in most markets and will be significantly reduced in the rest.

What Questions Does This Report Answer?

  • What are mobile operators’ requirements?
  • What are the global backhaul opportunities?
  • What are the potential opportunities in different regions?
  • What are the regional differences in backhaul growth?
  • What are the technical challenges with some of the proposed solutions?
  • What is driving backhaul deployments?
  • What is the average cost per Megabit, by backhaul technology?
  • What is the forecast lease revenue for backhaul, by technology?
  • What is the total addressable market by region?
  • What is the total number of base stations supported by each backhaul technology?
  • What is the total operational expenditure by technology?
  • Which solutions are operators most interested in deploying?

Who Needs This Report?

  • Backhaul equipment vendors
  • Backhaul providers
  • Cabinet vendors
  • Cable MSOs
  • Carrier Ethernet vendors
  • CATV solution vendors
  • Chipset vendors
  • DSL service providers
  • Investment companies
  • Local exchange carriers
  • Microwave equipment vendors
  • Mobile operators
  • Operators planning network migration
  • Pseudowire vendors
  • Tower operators



Section 1.
EXECUTIVE SUMMARY

1.1. Wireless Backhaul Overview
1.2. Key Findings
1.2.1. Asia-Pacific Will Show Strongest Growth for New Base Stations
1.2.2. Leased Backhaul Revenue Growth Will Be Strongest in Western Europe
1.2.3. Most Wireless Subscribers in Eastern Europe Are Still on 2G Networks
1.2.4. North America Market Is Primed for Backhaul Upgrade
1.2.5. High T1/E1 Usage Will Drive Leased Backhaul Revenue in Latin America
1.2.6. Microwave Is Still the Dominant Backhaul Technology in the Middle East and Africa
1.3. Summary

Section 2.
TECHNOLOGY ISSUES

2.1. Backhaul Definition
2.2. Backhaul Evolution
2.2.1. Metro Ethernet Forum (MEF)/Carrier Ethernet
2.2.2. E-Line/E-LAN
2.2.3. PBB-TE
2.2.4. Solving Backhaul Synchronization Issues
2.2.5. Leveraging IP/MPLS-TP
2.2.6. T1/E1/DS3/E3/Copper Backhaul
2.2.7. Ethernet over Copper Backhaul/ADSL2+
2.2.8. CATV Backhaul
2.2.9. Microwave Radio Backhaul (6 GHz to 38 GHz Spectrum)
2.2.10. Microwave Radio Backhaul (60 GHz to 90 GHz Spectrum)
2.2.11. Satellite Backhaul for Remote Regions and Rural Markets

Section 3.
MARKET ISSUES

3.1. Backhaul Drivers
3.1.1. 3G Data Services
3.1.2. 4G Data Services
3.1.3. LTE
3.1.4. Rural Expansion
3.1.5. Video
3.1.6. Emerging Markets
3.2. Backhaul Technology Considerations
3.2.1. T1/E1/DS3/E3/Copper Backhaul
3.2.2. Ethernet over Copper Backhaul
3.2.3. Ethernet over Fiber Backhaul
3.3. Managed Backhaul Services
3.3.1. BT Managed Backhaul Services
3.3.2. Embarq
3.4. Implications of Femtocells for Mobile Operator Backhaul Costs

Section 4.
KEY INDUSTRY PLAYERS

4.1. Service Providers
4.1.1. Asia-Pacific Overview
4.1.1.1. China Mobile
4.1.1.2. NTT DoCoMo
4.1.2. North America
4.1.2.1. AT&T
4.1.2.2. Clearwire
4.1.2.3. Sprint Nextel
4.1.2.4. T-Mobile USA
4.1.2.5. Verizon Wireless
4.1.3. Latin America/Caribbean
4.1.3.1. American Movil
4.1.3.2. Digicel
4.1.4. Europe
4.1.4.1. British Telecom
4.1.4.2. Vodafone
4.1.5. Middle East and Africa
4.2. Infrastructure Vendors
4.2.1. Alcatel-Lucent
4.2.2. Cambridge Broadband Networks (CBNL)
4.2.3. Ceragon
4.2.4. Ciena
4.2.5. DragonWave
4.2.6. Ericsson
4.2.7. Exalt Communications
4.2.8. Harris Stratex
4.2.9. Hatteras
4.2.10. NEC
4.2.11. Nokia Siemens Networks
4.2.12. RAD
4.2.13. Tellabs
4.2.14. ZTE
4.3. Backhaul Solutions Providers
4.3.1. DesignArt
4.3.2. PMC Sierra

Section 5.
MARKET FORECASTS

5.1. Forecast Methodology
5.1.1. Mobile Backhaul Costs
5.1.2. Backhaul Opportunities
5.1.3. Leased Backhaul Revenue
5.1.4. Cost per Megabit
5.2. Global Backhaul Opportunities
5.2.1. Global Leased Backhaul Revenue Will Reach $11.8 Billion by 2014
5.2.2. Global Microwave CAPEX Will Reach $8.9 Billion in 2009
5.3. Asia-Pacific - Fiber and Microwave Are the Dominant Backhaul Technologies
5.4. North America ??? Ethernet over Fiber Will Be the Primary Backhaul by 2014
5.4.1. Ethernet over Fiber Backhaul
5.5. Latin America ??? T1/E1 Will Continue to Be the Primary Backhaul Technology
5.6. Western Europe ??? Leased Backhaul Revenue Will Increase to $4 Billion by 2014
5.7. Eastern Europe - E1s Are Still the Primary Backhaul Technology
5.8. Middle East and Africa - Microwave Is the Dominant Backhaul Solution
5.9. Summary

Section 6.
COMPANY DIRECTORY


Section 7.
ACRONYMS



SOURCES AND METHODOLOGY
NOTES

Tables
  • Wireless Subscribers, Cumulative, World Market, Forecast: 2008 to 2014
  • Wireless Subscribers, Annual Adds, World Market, Forecast: 2008 to 2014
  • Wireless Data Subscribers, World Market, Forecast: 2008 to 2014
  • Wireless Video Subscribers, World Market, Forecast: 2008 to 2014
  • Annual Base Station Shipments by Region, World Market, Forecast: 2008 to 2014
  • Spending on Backhaul Services by Mobile Operators, World Market, Forecast: 2008 to 2014
  • Bandwidth Demand for Wireless Services
  • Theoretical Peak Data Transfer Limits on Selected Mobile Technologies
  • Data Services Revenue, North America, Forecast: 2008 to 2014
  • Data Services Revenue, Asia-Pacific, Forecast: 2008 to 2014
  • Data Services Revenue, Latin America, Forecast: 2008 to 2014
  • Data Services Revenue, Middle East and Africa, Forecast: 2008 to 2014
  • Data Services Revenue, Europe, Forecast: 2008 to 2014
  • Total Data Services Revenue by Region, World Market, Forecast: 2008 to 2014
  • Total Aggregate Services Revenue by Region, World Market, Forecast: 2008 to 2014
  • Total Voice Services Revenue by Region, World Market, Forecast: 2008 to 2014
  • Percentage of Total Revenue Attributed to Voice by Region, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul T1/E1/DS3/E3 Copper Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul Ethernet Copper Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul Fiber Ethernet Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul CATV Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul Microwave/Radio Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul WiMAX Networks, World Market, Forecast: 2008 to 2014
  • Bandwidth Capacity for Backhaul Networks by Type, World Market, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, Asia-Pacific, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, Asia-Pacific, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, North America, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, North America, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, Latin America, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, Latin America, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, Western Europe, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, Western Europe, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, Eastern Europe, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, Eastern Europe, Forecast: 2008 to 2014
  • Wireless Traffic Bandwidth Demand, Middle East and Africa, Forecast: 2008 to 2014
  • Bandwidth Capacity of Backhaul Networks by Type, Middle East and Africa, Forecast: 2008 to 2014
  • Total Annual Base Station Net Additions by Region, World Market, Forecast: 2008 to 2014
  • Microwave/Radio Penetration by Region, World Market, Forecast: 2008 to 2014
  • Total Cumulative Base Station Shipments by Region, World Market, Forecast: 2008 to 2014
  • Total Microwave CAPEX by Region, World Market, Forecast: 2008 to 2014
  • Annual Microwave CAPEX by Region, World Market, Forecast: 2008 to 2014
  • Total Microwave Base Stations by Region, World Market, Forecast: 2008 to 2014
  • Cost per Megabit for Backhaul by Network Type, World Market Averages, 2009
  • Backhaul OPEX, T1/E1/DS3/E3 Copper, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, Ethernet Copper, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, Fiber Ethernet, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, CATV, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, Microwave/Radio, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, WiMAX, World Market, Forecast: 2008 to 2014
  • Backhaul OPEX, All Types, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, T1/E1/DS3/E3 Copper, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, Ethernet Copper, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, Fiber Ethernet, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, CATV, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, Microwave/Radio, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, WiMAX, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue, All Types, World Market, Forecast: 2008 to 2014

Charts
  • Voice and Data Percentage of Total Operator Revenue by Region, World Market: 2008
  • Data Services Revenue by Country, World Market, Forecast: 2008 to 2014
  • Leased Backhaul Revenue , Asia-Pacific, Forecast: 2008 to 2014
  • Leased Backhaul Revenue , Western Europe, Forecast: 2008 to 2014
  • Cost per Megabit for Copper E1/T1 by Region, World Market, Forecast: 2009
  • Backhaul Networks by Technology, North America, Forecast: 2009
  • Leased Backhaul Revenue , Latin America, Forecast: 2008 to 2014
  • Mobile Subscribers by Country, World Market, Forecast: 2008 to 2014
  • Total Aggregate Services Revenue, World Market, Forecast: 2008 to 2014
  • Data Services Revenue vs. Voice Services Revenue, World Market, Forecast: 2008 to 2014
  • Total Wireless Data Revenue by Region, World Market, Forecast: 2008 to 2014
  • Annual Microwave CAPEX (New Base Stations Added) by Region, World Market, Forecast: 2008 to 2014
  • Total Microwave CAPEX by Region, World Market, Forecast: 2008 to 2014
  • New Base Station Additions by Region, World Market, Forecast: 2008 to 2014
  • Global Leased Backhaul Revenue, World Market, Forecast: 2008 to 2014
  • Global Leased Backhaul Revenue by Technology, World Market, Forecast: 2009
  • Global Leased Backhaul Revenue Opportunity by Technology, World Market, Forecast: 2014
  • Annual Microwave CAPEX (New Base Stations Added) by Region, Global Market: 2008 to 2014
  • Subscriber Distribution, Asia-Pacific, Forecast: 2009
  • Subscriber Distribution, Asia-Pacific, Forecast: 2014
  • Cost per Megabit by Technology, Asia-Pacific, Forecast: 2008 to 2014
  • Backhaul Network Distribution by Technology, North America, Forecast: 2009
  • Backhaul Network Distribution by Technology, North America, Forecast: 2014
  • Cost per Megabit by Technology, North America, Forecast: 2008 to 2014
  • Backhaul Network Distribution by Technology, Latin America, Forecast: 2009
  • Backhaul Network Distribution by Technology, Latin America, Forecast: 2014
  • Leased Backhaul Revenue, Western Europe, Forecast: 2008 to 2014
  • Backhaul Network Distribution by Technology, Western Europe, Forecast: 2009
  • Backhaul Network Distribution by Technology, Western Europe, Forecast: 2014
  • Backhaul Network Distribution by Technology, Eastern Europe, Forecast: 2009
  • Backhaul Network Distribution by Technology, Eastern Europe, Forecast: 2014
  • Backhaul Network Distribution by Technology, Middle East and Africa, Forecast: 2009
  • Backhaul Network Distribution by Technology, Middle East and Africa, Forecast: 2014
  • Microwave Backhaul Market Share by Vendor, 2008

Figures
  • Backhaul Definition
  • Clearwire Backhaul Ring Architecture
  • E-Line Architecture Diagram
  • Ericsson Backhaul Evolution Architecture