In-Stat: Backhaul spending to increase 41 percent by 2014

A new report from research firm In-Stat indicates mobile operators are expected to spend almost $117 billion by 2014 on last-mile backhaul, which includes line leasing, new equipment spending and spectrum acquisitions. That figure is an increase of 41 percent from 2009's spend of $83 billion.

"We're seeing an emerging industry consensus that the optimal solution involves running fiber optic cable straight to each base station, with the Ethernet protocol as the backhaul," said In-Stat analyst Chris Kissel. "While this solution is prevalent in areas where fiber is available, the ability to install new fiber is cost-prohibitive in many locations and physically impossible in others. The best solution for each operator depends upon a unique combination of factors, thus expanding the universe of potential solutions and suppliers."

Other projections from In-Stat:

  • Millimeter microwave radios will grow from $159 million in 2009 to $874 million in 2014.
  • Traffic from LTE applications will begin to figure heavily in backhaul. By 2014, more than half of the capacity in North American last-mile backhaul will be dedicated to LTE.
  • Wireless last mile backhaul capacity in Western Europe will more than triple between 2010 and 2014, to nearly 60,000 Gbps.
  • By 2014, Ethernet will be the dominant carrier technology with 85 percentusage in base stations.
  • Broadband caps are one of many factors that can slow the widespread migration to LTE.

For more:
- see this release

Related articles:
Designing a better backhaul network
Clearwire using millimeter-wave technology for backhaul
Microwave backhaul and the future of 4G
KU, Sprint research millimeter wave technology

Suggested Articles

Ligado Networks is joining the Open RAN Policy Coalition.

The "cloudification" of the core network is perhaps the most important part as it essentially functions as the brain or control center of the network.

The FCC unanimously voted to approve Amazon’s plan to deploy 3,236 satellites as part of its Project Kuiper.