Cable Multi-Service Operators (MSOs) are in prime position in the bid to bring bandwidth to cell towers. With fiber passing through the most densely populated areas, building laterals to cell sites serving these regions is within ‘easy’ reach, at least as far as deploying fiber goes. With efficient Ethernet backhaul increasingly sited as a key pinch point and business case driver for profitable 3G & 4G (WiMAX / LTE) services, outsourcing backhaul to those able to build the infrastructure is an attractive option even for mobile incumbents with wireline businesses, like at&t and Verizon.
Still, MSOs need to justify the spend and the opportunity cost of delivering fiber to a cell site when opportunities abound in Ethernet business services to enterprises, and quadruple play needs have them planning their own wireless offerings: either with newly acquired spectrum (like Cox), or as a Mobile Virtual Network Operator (MVNO). Good news is that sometimes the stars align, and it looks like the cable operators are starting to realize they can have their cake and eat it too, while talking on their new, subsidized wireless network.
Subsidized? Was there a wireless plan for MSOs buried somewhere in the broadband bailout? No luck. However, becoming a leader in wireless backhaul, business services and adding wireless to the bundle turns out to be self financing – at least for the latter two services. This is because as fiber gets built out deeper into metro regions for backhaul, bringing Carrier Ethernet to businesses gets easier as well. Having an access platform in the neighborhood can also provide service to enterprises, same capital spend.
And the operational expense for MSOs introducing their own wireless drops at the same time: stick an antenna on the tower already serving up bandwidth to mobile operators, and they’ll subsidize cable’s wireless expansion efforts. MVNO the model? MSOs can make a deal with their mobile partner – cheaper backhaul for cheaper pricing models.
It’s a win-win-win situation: build backhaul revenue, position for profitable wireless services, and establish a footprint for high-bandwidth Ethernet to the enterprise at the same time. If it sounds too good to be true, ask an MSO (if they can spare a minute, they’re very busy these days)!
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Ethernet Wholesale: Technology & Challenges
