Communications and Technology Industry Research

The wireless backhaul market is expected to surge over the next two years as more users purchase next-generation electronic devices and utilize bandwidth-hungry applications like video, according to a new report from market research firm NPD In-Stat (News - Alert).

In fact, the number of fiber-enabled wireless backhaul macro base stations is expected to hit 1.8 million in 2014, says NPD In-Stat, which notes that global wireless bandwidth usage has increased ten-fold in the last four years alone and will continue to skyrocket moving forward.

Senior analyst Chris Kissel says that the key for operators that are in the market for wireless backhaul solutions is to find a provider that can deliver in a short window at a competitive price point while also matching the needs of their specific network.

"At the same time, operators must leverage their existing investments, while being able to scale their networks. If the target bandwidth for a current backhaul solution is 100Mbps, five years from now the same operator may need 1Gbps at that site," he added. "Therefore, operators seek cost-effective backhaul solutions that can be scaled in the future at a reasonable cost. There is a mosaic of solutions that help mobile operators to meet these goals."

Delving deeper into the report, NPD In-Stat found fiber to be the preferred backhaul medium for both macrocells and small cells. As an example, China Mobile (News - Alert) speculates that north of 95 percent of its base stations have fiber-optic access.

The research house believes that the demand for wireless backhaul solutions will particularly benefit infrastructure equipment vendors and cable MSOs, satellite vendors and wholesalers, which will all be provided with near-limitless service opportunities.

Cable operators can generate strong revenue streams by utilizing all of their bandwidth in their hybrid fiber-coaxial (HFC) cable to push cable TV/data and mobile backhaul services, says NPD In-Stat.