Archive for the ‘News’ Category

$840 Billion in Mobile Backhaul Spending in 2016

Friday, January 20th, 2012
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Juniper Research predicts that mobile network operators will have to spend $840 billion globally on optimizing backhaul assets and adding capacity between 2011 and 2016.

Microwave will represent about 60 percent of the backhaul in 2016, Juniper Research predicts. Microwave backhaul will be driven by capacity needs in Latin America, Central and  Eastern Europe, the Indian Subcontinent and the rest of the Asia Pacific region.

By 2016, operator investments in the Far East and China will reach $233 billion, driven by fiber backhaul deployments.

In North America, Juniper predicts that optical fiber will overtake copper as the most widely used access technology.

Microwave’s share of mobile backhaul capacity in the Indian Subcontinent is set to reach almost 87 percent by 2016.

But backhaul capacity will not the only key concern mobile executives will be facing between now and 2016. Juniper Research also forecasts that mobile service providers face potential capital investment and operating costs that actually exceed revenues by about 2014, according to Juniper Research.

The problem is that profit margins are running between 15 percent and 20 percent, which means many service providers are at about break even.

By 2015, costs will exceed revenues slightly, and fall below capital and operating expense by about 2016. Mobile backhaul


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Do Small Cells “Require” Use of Unlicensed Spectrum?

Tuesday, January 17th, 2012
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No matter how one looks at the matter, as mobile service providers deploy more small cells that cover extremely small areas in high-density, high-traffic urban areas, the cost of base stations and backhaul will be crucial.

Whichever technology is used to backhaul small cells, it has to be cheap, “it has to be massively cheap,” said Andy Sutton, Everything Everywhere principal architect, access transport. “We have a financial envelope for small cells and it’s challenging.” small cell economics

Cost is so important because small cells will have relatively low usage compared to a macrocell and there will be lots of sites to support. Compared with macrocells, small cells will cover distance of about 50 square meters or 538 square feet. That’s an area about 23 feet by 23 feet.

One way to look at matters is that this is an area smaller than the range of a consumer’s home Wi-Fi router.

Some think that might require use of unlicensed spectrum, using adaptive directional antennas with smart meshing technology and predictive channel management, argues David Callisch, Ruckus Wireless VP. Unlicensed spectrum

That will probably make more sense to European service providers than to North American mobile service providers, who traditionally have preferred fixed line connections to wireless, even using licensed spectrum.

But small cells have demanding new cost constraints.


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Half a Million New TD-LTE Base Stations by 2016

Wednesday, January 4th, 2012
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At least half a million base stations will be installed or upgraded for TD-LTE by the end of 2016, according to ABI Research. One way of looking at that statistic is that half a million base stations also will need Ethernet and megabit per second connections as well.

“It was only two years ago that nearly every WiMAX operator, including operators with unpaired TDD frequency spectrum, were planning to deploy WiMAX 2,” says Aditya Kaul, ABI Research practice director, mobile networks. “Today, almost all of them have switched plans and are deploying TD-LTE instead.”

TD-LTE is the Time-Division Duplex (TDD) variant of the fourth-generation (4G) Long Term Evolution (LTE) wireless standard. 4G base station upgrades


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