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Networks & Service Platforms

Future Backhaul Requirements for Complex Mobile Networks

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Report Summary:

Tellabs recently commissioned a study by Strategy Analytics - to analyze next generation mobile backhaul; and found that If operators continue to invest in mobile backhaul at the same rate as they have historically - about 17.5% of the Total Cost of Ownership (TCO) - they risk falling short of user demand.

Far short in fact - about $9.2 billion short on investment, and 16 petabytes short on worldwide capacity by the year 2017. The problem will be most acute in Asia-Pacific markets, but it will be pronounced around the world.

That 'Backhaul Gap' could lead to customer churn since up to half of network performance problems for mobile operators may stem from backhaul network congestion. There is an opportunity for mobile operators to differentiate themselves from competitors by investing in backhaul. For each $1 that operators invest above the 17.5% that is now planned, operators could save up to $4 in revenue that would otherwise be lost.

Tellabs has published this summary of the financial findings and the full report and model projections will be issued by Strategy Analytics in two parts in early March. Please contact Sue Rudd for details.

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