16 Comments

Summary:

As noted earlier, wireless industry experts believe that mobile backhaul networks represent a big opportunity, mostly because of the proliferation of 3G and 4G networks and the easy availablity of iPhone-type devices is going to boost mobile data and video use. Infonetics Research has issued a […]

As noted earlier, wireless industry experts believe that mobile backhaul networks represent a big opportunity, mostly because of the proliferation of 3G and 4G networks and the easy availablity of iPhone-type devices is going to boost mobile data and video use.

Infonetics Research has issued a report that forecasts 4.4 billion mobile subscribers worldwide by 2011, and estimates that their needs will push the demand for wireless backhaul equipment to over $10 billion by that year. Infonetics predicts that the big spending is going to happen on the IP/Ethernet portion of worldwide mobile backhaul equipment with triple-digit growth rates predicted from 2007 to 2011. No surprise: T-Mobile, Swisscom Mobile and Telecom Italia are all building IP/Ethernet based backhaul networks. Ironically, given the amount of money being spent on this sector there isn’t much startup activity in this space.

  1. Frank Miller Tuesday, May 13, 2008

    Why is it suprising that there is no startup activity? When was the last time you saw an infrastructure startup be acquired for more than the investment put into it? The big telcos are not acquiring startups, so the VCs are not putting money into them. That coupled with the fact that mobile backhaul isn’t really that much different than other backhauls means two things. First, the service providers are going to have to choose from existing equipment for the forseeable future and second, in a few years, the big telcos are going to be screaming for new technology. It won’t be there.

    In my opinion, the root cause of this falls on the service providers. Having been through infrastructure equipment startups, I can tell you that the price pressure exerted by the service providers on big equipment vendors which then trickles down to the startups makes doing infrastructure equipment startups nonviable. The result is easily predictable, glacial progression in infrastructure technology developments, since the big guys are the only ones that can afford it and they just don’t take chances.

    Share
  2. Agreed on the big opportunity. Mobile backhaul is the choking point for increased mobile commerce growth.

    Tellabs is supplying the equipment for Telecom Italia’s migration, and they have a good podcast series on mobile commerce at:

    http://www.inspirethenewlife.com/videogallery/index.cfm?id=954615A1-B4A3-9493-637CB9855BF73461

    Share
  3. [...] | Mobile Backhaul Equals Big Money Opportunity - GigaOM Mobile Backhaul Equals Big Money Opportunity – GigaOM: “Om quotes new Infonetics numbers. He finishes with question — why is there no [...]

    Share
  4. [...] is already happening in Europe where carriers are scrambling to add backhaul connections of either microwave and Ethernet kind to meet the growing bandwidth demand [...]

    Share
  5. [...] explanation also makes sense, and ties in with an earlier post of mine in which I looked at the backhaul problems facing U.S. 3G networks and asked whether or not they’d be able to withstand the [...]

    Share
  6. [...] of 3G networks and mobile devices that consume gobs of wireless bandwidth, like the iPhone, have sent carriers and Internet service providers alike scrambling to add even more capacity to their backhaul [...]

    Share
  7. [...] to the rollout of their 3G networks and growing popularity of devices such as Apple’s iPhone. Infonetics Research predicts that demand for wireless backhaul gear will hit about $10 billion by [...]

    Share
  8. [...] provider markets. Turin, among other things makes Ethernet transport and wireless backhaul gear. Wireless backhaul is a fast growing business, thanks to demand for 3G wireless broadband services. Force 10 Networks is a big player in the 10 [...]

    Share
  9. [...] the reasons why demand for wireless backhaul equipment is on an upswing. Research firm Infonetics predicts that phone companies around the world will spend $10 billion by 2011 to make sure you can get your [...]

    Share
  10. [...] of 3G networks and mobile devices that consume gobs of wireless bandwidth, like the iPhone, have sent carriers and Internet service providers alike scrambling to add even more capacity to their backhaul [...]

    Share
  11. [...] a big opportunity. Infonetics Research predicts that demand for backhaul related gear is going to exceed $10 billion by 2011, as today’s T-1 based infrastructure is going to be replaced by fiber and microwave links. [...]

    Share
  12. [...] a big opportunity. Infonetics Research predicts that demand for backhaul-related gear is going to exceed $10 billion by 2011, as today’s T-1 based infrastructure is going to be replaced by fiber and microwave links. [...]

    Share
  13. [...] a big opportunity. Infonetics Research predicts that demand for backhaul-related gear is going to exceed $10 billion by 2011, as today’s T-1 based infrastructure is going to be replaced by fiber and microwave links. [...]

    Share
  14. [...] a big opportunity. Infonetics Research predicts that demand for backhaul-related gear is going to exceed $10 billion by 2011, as today’s T-1 based infrastructure is going to be replaced by fiber and microwave links. [...]

    Share
  15. [...] Stacey Higginbotham | Thursday, March 26, 2009 | 9:00 AM PT | 0 comments We’ve noted that Verizon plans to use its fiber network for backhaul for its future Long Term Evolution network, and today it says that it will also rent out capacity on that fiber network to other wireless carriers as well. As our readers are quick to point out, backhaul is the elephant in the room when we talk about fast wireless data, because no matter how much capacity and speed can be theoretically delivered over the air, there’s still the matter of connecting a cell site back to the Internet. [...]

    Share
  16. [...] Demand for mobile backhaul equipment is seen topping $10 billion by 2011. [...]

    Share

Comments have been disabled for this post