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Networks & Service Platforms

Closing the Mobile Backhaul Gap will Improve Profit Margins

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Report Summary:

In our recent report ‘Future Backhaul Needs of Mobile Network Operators’ we noted that Mobile Backhaul is now being recognized as a strategic element in network design and planning which directly impacts end user Quality of Experience (QoE). The addition of ‘Smart Backhaul’ to optimize aggregation points and route traffic from multiple access technologies over shared backhaul transport helps lower the cost per GB and ensure high quality performance.

However, despite dramatic improvement in both physical transport and network technology, today’s levels of backhaul spending are less than optimal to meet the dramatic growth in traffic demand. In this report we estimate the capacity that we believe is required and examine the business case for increasing backhaul expenditures to meet true demand.

The payback for increasing backhaul capacity to meet user requirements and guarantee end-to-end performance is estimated to be approximately four dollars for every incremental dollar invested. A significant return on investment.

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