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Nov. 11, 2008

More and more today, wireless carriers and mobile phone operators are using new kinds of backhaul systems, specifically Ethernet Microwave, to help protect their revenue stream and keep their customers.

Preventing service degradation and offering wireless subscribers more signal bandwidth is vital as carriers try to keep abreat with all the latest smartphones and extended mobile services.

"Globally, mobile phone carriers and backhaul transport providers are increasing their wireless backhaul equipment spending about 15.1 percent from last year's levels, reaching $4.5 billion this year.

Of all the many new types of mobile backhaul technologies being added worldwide, Ethernet Microwave connections are growing the fastest, jumping from 27.2 percent of all new connections last year to 42.9 percent this year.

Overall, Ethernet Microwave is already used in over 52.9 percent of mobile backhaul connections, but less so in the Americas. But wireless operators in North America began investing more in this technology beginning in May of this year.

In less then three years from now, service providers using traditional backhaul networks will pay from three to thirty times more in overall service charges per connection than if companies using coaxial cable, DSL, Ethernet, or PON (Passive Optical Network).

"We were surprised by the extent to which North American wireless operators are reacting to the need for more bandwidth by embracing Ethernet Microwave. Although we've been watching for EFM bonded copper products to appear in mobile backhaul, we found plenty of plans in North America and Europe," said Michael Howard, a wireless industry analyst at Infonetics.

"We are seeing that some big name mobile service operators are now committing to an IP/Ethernet backhaul with some confidence that the timing and clock synchronization technologies for packet networks work well enough that they are willing to go to an all-packet backhaul. This means they will put their time/delay sensitive 2G and 3G voice traffic on the packet network, thus avoiding a hybrid approach to backhaul."

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Source: Infonetics.