Posts Tagged ‘backhaul’

$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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FiberTower in Default on Debt

Friday, December 16th, 2011
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Wireless backhaul specialist FiberTower Corp. is now in default on nine-percent senior notes due in 2012 since 30 days have passed since it missed a $1.3 million interest payment.

FiberTower lost its chairman, John Kelly, who quit Nov. 14, 2011,  along with Phil Kelley, another director. A third director, Randall Hack, quit Nov. 15, when San Francisco-based FiberTower chose not to pay the $1.3 million when it was due Nov. 15.

The default on this payment also puts the company in default on nine-percent notes due in 2016.

The Nasdaq also warned FiberTower that its stock doesn’t meet the minimum bid price rule for continued listing on the exchange. For, now the company will still be listed, as the Nasdaq won’t take action for 180 days. FiberTower now in default

FiberTower in November also had reduced its workforce approximately 40 percent, while halting all capital and project related spending in an effort to conserve existing liquidity.  The remaining staff arefocused on maintaining the Company’s network and day-to-day operations.

It appears the firm’s troubles are related to the loss of contracts from Clearwire and AT&T.


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Broadband Forum Adds MPLS Backhaul Specs

Friday, December 16th, 2011
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The Broadband Forum has introduced a new specification to address the use of MPLS in the mobile backhaul network as they move from TDM to packet-based wireless backhaul.

With the “Technical Specification for MPLS in Mobile Backhaul Networks,” otherwise known as TR-221, both wholesale carriers and their respective wireless operator customers will have a means to transport wireless traffic in the access and aggregation networks, including IP, TDM, ATM and Ethernet.

Specifically, TR-221 defines the global requirements of MPLS technologies in mobile backhaul networks for encapsulation, signaling and routing, QoS, Operations Administration and Maintenance (OAM), resiliency, security, and synchronization.

In addition, it takes into consideration both traditional voice and data and multimedia broadcast and multicast services that users will access over their handheld devices from the wireless network. New Backhaul Standards


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