Mobile Network Backhaul

Microwave, E1/T1, Fiber, Cable, and Wireline Solutions

Research Report

With the advent of faster throughput in 3G and 4G mobile networks, the adoption of smartphones, the proliferation of OS-related applications and "all you can eat" data plans, data services have been growing and have successfully penetrated the mass market. With them has come network congestion due to exponential growth in mobile data usage in the past five years. Many mobile operators have been forced to find quick new solutions other than adding parallel T1/E1's to adjust the required bandwidth. T1/E1 has become cost-prohibitive in meeting high speed 3G and 4G bandwidth requirements. This, paired with the inevitable move toward all-IP 4G networks, provides an initial glimpse of the issues that current backhaul solutions must solve. Carrier Ethernet can handle larger amounts of data at a lower cost per bit, but other issues, such as synchronization, arise. How can legacy migrate to ATM, SDH, and SONET protocols toward IP protocols in ways that fit each operator's unique needs? This study focuses on describing and analyzing these issues in both aggregation and access layers, profiling key players in these areas, and examining some of the solutions that introduce innovative features in this area. Forecasts include the CAPEX and OPEX on different access technologies, data traffic forecasts by region, OPEX on leased backhaul services, mobile data services by region, microwave infrastructure vendor market share, and microwave CAPEX for new base station installations by region.

Table of Contents

  • 1. Executive Summary
    • 1.1. Wireless Backhaul Overview
    • 1.2. Key Findings
    • 1.3. Market Drivers for Backhaul
      • 1.3.1. Migration to IP
      • 1.3.2. 3G Data Traffic Bottlenecking
      • 1.3.3. Applying Lessons Learned for 4G Deployments
      • 1.3.4. Flexible Options for Operators
      • 1.3.5. India and China Deploy 3G Networks
    • 1.4. Market Barriers for Backhaul
      • 1.4.1. Switch from Legacy Networks (TDM, SDH, SONET) Comes with a Price
      • 1.4.2. Segmented Network Equipment
    • 1.5. Recommendations
      • 1.5.1. Recommendations to Service Providers
      • 1.5.2. Recommendations to Backhaul Vendors
  • 2. Technology Overview
    • 2.1. Backhaul Definition
      • 2.1.1. Access Layer
      • 2.1.2. Aggregation Layer
      • 2.1.3. Core Network
    • 2.2. Backhaul Alternatives and Their Evolution
      • 2.2.1. T1/E1/DS3/E3/Copper Backhaul
      • 2.2.2. Ethernet over Copper Backhaul/ADSL2+
      • 2.2.3. CATV Backhaul
      • 2.2.4. Microwave Radio Backhaul (6 GHz to 38 GHz Spectrum)
      • 2.2.5. Microwave Radio Backhaul (60 GHz to 90 GHz Spectrum)
      • 2.2.6. Carrier/Metro Ethernet
      • 2.2.7. IP/MPLS-TP
      • 2.2.8. Satellite Backhaul
  • 3. Market Overview
    • 3.1. Backhaul Drivers
      • 3.1.1. 3G Data Services
      • 3.1.2. 4G Data Services
      • 3.1.3. Video
      • 3.1.4. 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. CenturyLink
    • 3.4. Implications of Femtocells for Mobile Operator Backhaul
  • 4. Key Industry Players
    • 4.1. Service Providers
      • 4.1.1. North America
      • 4.1.2. Latin America/Caribbean
      • 4.1.3. Europe
      • 4.1.4. Middle East and Africa
    • 4.2. Infrastructure Vendors
      • 4.2.1. Alcatel-Lucent
      • 4.2.2. Aviat Networks
      • 4.2.3. BridgeWave
      • 4.2.4. Cambridge Broadband Networks (CBNL)
      • 4.2.5. Ceragon
      • 4.2.6. Ciena
      • 4.2.7. DesignArt
      • 4.2.8. DragonWave
      • 4.2.9. Ericsson
      • 4.2.10. Exalt Communications
      • 4.2.11. Fujitsu
      • 4.2.12. Motorola
      • 4.2.13. NEC
      • 4.2.14. Nokia Siemens Networks
      • 4.2.15. Overture Networks
      • 4.2.16. PMC Sierra
      • 4.2.17. RAD
      • 4.2.18. SkyFiber
      • 4.2.19. Taqua
      • 4.2.20. Tellabs
      • 4.2.21. ZTE
  • 5. Market Forecasts
    • 5.1. Forecast Scope and Methodology
      • 5.1.1. Scope
      • 5.1.2. Mobile Backhaul Costs
      • 5.1.3. Backhaul Opportunities
      • 5.1.4. Leased Backhaul Revenue
      • 5.1.5. Microwave Forecasts
      • 5.1.6. Cost per Megabit
    • 5.2. Base Station Data
      • 5.2.1. Base Station Shipments
    • 5.3. Wireless Subscriber Forecasts
    • 5.4. Wireless Capacity and Bandwidth Demand Forecasts
    • 5.5. Microwave CAPEX Forecasts
    • 5.6. Backhaul OPEX and Leasing Forecasts
    • 5.7. Microwave Backhaul Market Share
    • 5.8. Summary
  • 6. Company Directory
  • 7. Acronyms
  • Executive Brief: Top-Line Forecast
  • Executive Brief: Drivers
  • Executive Brief: Inhibitors
  • Executive Brief: Market Share
  • Executive Brief: Market Share
  • Executive Brief: Summary and Strategic Recommendations

Tables

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  1. Monthly Cost per Mbps for Backhaul by Network Type, World Market, Averages: 2010
  2. Data Services Revenue, North America, Forecast: 2009 to 2015
  3. Data Services Revenue, Asia-Pacific, Forecast: 2009 to 2015
  4. Data Services Revenue, Latin America, Forecast: 2009 to 2015
  5. Data Services Revenue, Middle East and Africa, Forecast: 2009 to 2015
  6. Data Services Revenue, Europe, Forecast: 2009 to 2015
  7. Total Data Services Revenue by Region, World Market, Forecast: 2009 to 2015
  8. Total Aggregate Services Revenue by Region, World Market, Forecast: 2009 to 2015
  9. Total Voice Services Revenue by Region, World Market, Forecast: 2009 to 2015
  10. Percentage of Total Revenue Attributed to Voice by Region, World Market, Forecast: 2009 to 2015
  11. Bandwidth Capacity for Backhaul T1/E1/DS3/E3 Copper Networks, World Market, Forecast: 2009 to 2015
  12. Wireless Subscribers, Cumulative, World Market, Forecast: 2009 to 2015
  13. Bandwidth Capacity for Backhaul Ethernet Copper Networks, World Market, Forecast: 2009 to 2015
  14. Bandwidth Capacity for Backhaul Fiber Ethernet Networks, World Market, Forecast: 2009 to 2015
  15. Bandwidth Capacity for Backhaul CATV Networks, World Market, Forecast: 2009 to 2015
  16. Bandwidth Capacity for Backhaul Microwave/Radio Networks, World Market, Forecast: 2009 to 2015
  17. Bandwidth Capacity for Backhaul WiMAX Networks, World Market, Forecast: 2009 to 2015
  18. Bandwidth Capacity for Backhaul Networks by Type, World Market, Forecast: 2009 to 2015
  19. Wireless Traffic Bandwidth Demand, Asia-Pacific, Forecast: 2009 to 2015
  20. Bandwidth Capacity of Backhaul Networks by Type, Asia-Pacific, Forecast: 2009 to 2015
  21. Wireless Traffic Bandwidth Demand, United States, Forecast: 2009 to 2015
  22. Bandwidth Capacity of Backhaul Networks by Type, United States, Forecast: 2009 to 2015
  23. Wireless Subscribers, Annual Adds, World Market, Forecast: 2009 to 2015
  24. Wireless Traffic Bandwidth Demand, Canada, Forecast: 2009 to 2015
  25. Bandwidth Capacity of Backhaul Networks by Type, Canada, Forecast: 2009 to 2015
  26. Wireless Traffic Bandwidth Demand, Latin America, Forecast: 2009 to 2015
  27. Bandwidth Capacity of Backhaul Networks by Type, Latin America, Forecast: 2009 to 2015
  28. Wireless Traffic Bandwidth Demand, Western Europe, Forecast: 2009 to 2015
  29. Bandwidth Capacity of Backhaul Networks by Type, Western Europe, Forecast: 2009 to 2015
  30. Wireless Traffic Bandwidth Demand, Eastern Europe, Forecast: 2009 to 2015
  31. Bandwidth Capacity of Backhaul Networks by Type, Eastern Europe, Forecast: 2009 to 2015
  32. Wireless Traffic Bandwidth Demand, Middle East, Forecast: 2009 to 2015
  33. Bandwidth Capacity of Backhaul Networks by Type, Middle East, Forecast: 2009 to 2015
  34. Wireless Data Subscribers, World Market, Forecast: 2009 to 2015
  35. Wireless Traffic Bandwidth Demand, Africa, Forecast: 2009 to 2015
  36. Bandwidth Capacity of Backhaul Networks by Type, Africa, Forecast: 2009 to 2015
  37. Total Annual Base Station Net Additions by Region, World Market, Forecast: 2009 to 2015
  38. Microwave/Radio Penetration by Region, World Market, Forecast: 2009 to 2015
  39. Total Cumulative Installed Base Stations by Region, World Market, Forecast: 2009 to 2015
  40. Total Microwave CAPEX by Region, World Market, Forecast: 2009 to 2015
  41. Microwave CAPEX for New Base Station Installs by Region, World Market, Forecast: 2009 to 2015
  42. Total Microwave Base Stations by Region, World Market, Forecast: 2009 to 2015
  43. Backhaul OPEX, T1/E1/DS3/E3 Copper, World Market, Forecast: 2009 to 2015
  44. Backhaul OPEX, Ethernet Copper, World Market, Forecast: 2009 to 2015
  45. Wireless Video Subscribers, World Market, Forecast: 2009 to 2015
  46. Backhaul OPEX, Fiber Ethernet, World Market, Forecast: 2009 to 2015
  47. Backhaul OPEX, CATV, World Market, Forecast: 2009 to 2015
  48. Backhaul OPEX, Microwave/Radio, World Market, Forecast: 2009 to 2015
  49. Backhaul OPEX, WiMAX, World Market, Forecast: 2009 to 2015
  50. Backhaul OPEX, All Types, World Market, Forecast: 2009 to 2015
  51. Leased Backhaul Revenue, T1/E1/DS3/E3 Copper, World Market, Forecast: 2009 to 2015
  52. Leased Backhaul Revenue, Ethernet Copper, World Market, Forecast: 2009 to 2015
  53. Leased Backhaul Revenue, Fiber Ethernet, World Market, Forecast: 2009 to 2015
  54. Leased Backhaul Revenue, CATV, World Market, Forecast: 2009 to 2015
  55. Leased Backhaul Revenue, Microwave/Radio, World Market, Forecast: 2009 to 2015
  56. Base Station Shipments by Region, World Market, Forecast: 2009 to 2015
  57. Leased Backhaul Revenue, WiMAX, World Market, Forecast: 2009 to 2015
  58. Leased Backhaul Revenue, All Types, World Market, Forecast: 2009 to 2015
  59. Leased Backhaul Revenue, All Types, World Market, Forecast: 2009 to 2015
  60. Microwave Backhaul Market Share by Vendor, World Market: 2008 and 2009
  61. Spending on Backhaul Services by Mobile Operator, World Market, Forecast: 2009 to 2015
  62. Bandwidth Demand for Wireless Services,
  63. Theoretical Peak Data Transfer Limits on Selected Mobile Technologies,

Charts

  1. Base Station Shipments by Region
  2. Total Annual Base Station Net Additions by Region
  3. Total Cumulative Installed Base Stations by Region
  4. Wireless Subscribers, Cumulative
  5. Wireless Subscribers, Annual Adds
  6. Wireless Data Subscribers
  7. Wireless Video Subscribers
  8. Bandwidth Capacity for Backhaul T1/E1/DS3/E3 Copper Networks
  9. Bandwidth Capacity for Backhaul Ethernet Copper Networks
  10. Bandwidth Capacity for Backhaul Fiber Ethernet Networks
  11. Bandwidth Capacity for Backhaul CATV Networks
  12. Bandwidth Capacity for Backhaul WiMAX Networks
  13. Bandwidth Capacity for Backhaul Networks by Type
  14. Total Microwave CAPEX by Region
  15. Annual Microwave CAPEX by Region
  16. Total Microwave Base Stations by Region
  17. Spending on Backhaul Services by Mobile Operator
  18. Backhaul OPEX, T1/E1/DS3/E3 Copper
  19. Backhaul OPEX, Ethernet Copper
  20. Backhaul OPEX, Fiber Ethernet
  21. Backhaul OPEX, CATV
  22. Backhaul OPEX, Microwave/Radio
  23. Backhaul OPEX, All Types
  24. Leased Backhaul Revenue, All Types
  25. Leased Backhaul Revenue, All Types
  26. Leased Backhaul Revenue, All Types
  27. Microwave Backhaul Market Share by Vendor
  28. Leased Backhaul Revenue, All Types
  29. Microwave CAPEX for New Base Station Installs by Region
  30. Base Station Shipments by Region
  31. Data Services Revenue
  32. Data Services Revenue
  33. Data Services Revenue
  34. Data Services Revenue
  35. Data Services Revenue
  36. Total Data Services Revenue by Region
  37. Total Aggregate Services Revenue by Region
  38. Total Voice Services Revenue by Region
  39. Percentage of Total Revenue Attributed to Voice by Region
  40. Total Annual Base Station Net Additions by Region
  41. Spending on Backhaul Services by Mobile Operator World Market, Forecast: 2009 to 2015
  42. Microwave Backhaul Market Share by Vendor World Market: 2009