The demand for mobile backhaul in the U.S. market will increase 9.7 times between 2011 and 2016, according to a new research report, fueled by growing data demands and the move to faster networks.
According to research firm iGR, the demand for U.S. mobile backhaul will grow at a compound annual growth rate of nearly 58 percent between 2011 and 2016. As a subset of that, iGR found that growth of fiber backhaul is expected to reach a CAGR of nearly 85 percent during the same period. Although microwave backhaul is still in the mix in terms of solutions for operators, iGR noted that fiber has rapidly become the preferred mode of backhaul transport.
"Just as the radio networks are transitioning from 3G to 4G and adding more small cells, so the mobile operators must also upgrade their mobile backhaul from legacy TDM to Ethernet. This study shows clearly the size of the challenge that faces the operators and, of course, the significant opportunity for mobile backhaul service, infrastructure and solution providers," said Iain Gillott, president and founder of iGR.
The report's findings fit with larger industry trends. Last year a report from Dell'Oro Group found that the global mobile backhaul market will see revenues approach $9 billion by 2015 thanks to LTE networks.
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