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June 13, 2007
Study: 3G Economics Favor Wireless Backhaul in Urban Regions
By Prabhala Ranga Sai, TMCnet Contributor
Pioneer Consulting, a research firm focused on technologies in the wireless space, recently found that wireless backhaul was more cost-effective compared to wireline solutions for a 3G
network scenario. That’s according to the firm’s latest report, “Wireless Backhaul 2007-12, Role and Significance in Cellular Markets,” which said that 3G economics favors wireless backhaul in urban regions.
network scenario. That’s according to the firm’s latest report, “Wireless Backhaul 2007-12, Role and Significance in Cellular Markets,” which said that 3G economics favors wireless backhaul in urban regions.
The Pioneer study analyzed annual wireless backhaul demand for several frequencies, which the firm said made the study distinctive from other analysis. Among all the frequency segments between 2.4 GHz and 38 GHz, the study found rapid growth in 10.5/ 11 GHZ equipment. This analysis concluded that there will be increase in demand for short and medium distance links compared to long-haul links.
segments between 2.4 GHz and 38 GHz, the study found rapid growth in 10.5/ 11 GHZ equipment. This analysis concluded that there will be increase in demand for short and medium distance links compared to long-haul links. Commenting on these findings, Aditya Kaul, senior analyst and author of the report, said: “The report adds value by going beyond the discussion around Ethernet backhaul and Packet microwave, analyzing the cost implications and identifying the market opportunity for wireless backhaul.”
3G cost benefits exist in both developed and developing regions, according to Kaul. But the benefits are more in case of urban environments where the savings on operational expenditures is more compared to that of wireline environments, he adds. This advantage outweighs the higher initial capital cost of a wireless backhaul solution, Kaul concluded.
Economic benefits of the technology will propel the growth of North American wireless backhaul penetration from 6 percent in 2006 to 10.6 percent in 2012, according to Pioneer’s forecast.
Economic benefits of the technology will propel the growth of North American wireless backhaul penetration from 6 percent in 2006 to 10.6 percent in 2012, according to Pioneer’s forecast.
Even though wireless backhaul solutions are expected to undergo rapid growth, wireline backhaul solutions—primarily T1 leased lines—will continue to dominate the North American market, Pioneer said. Wireline backhaul solutions have certain advantages such as easy availability and favorable pricing structure, the firm added.
leased lines—will continue to dominate the North American market, Pioneer said. Wireline backhaul solutions have certain advantages such as easy availability and favorable pricing structure, the firm added. This North America scenario is not exclusive to the region; wireline backhaul dominates the other parts of the globe including Europe, Asia, Latin America and Middle East/Africa—and it is poised for further growth, according to Pioneer.
To learn even more about wireless backhaul, check TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP communications industry. The library offers white papers, case studies and other documents free to registered users.
communications industry. The library offers white papers, case studies and other documents free to registered users. P.R. Sai is a contributing writer for TMCnet. To see more of his articles, please visit his columnist page.
