Light Reading

Tellabs IDs 4G Bottleneck

Ray Le Maistre
2/13/2013
50%
50%

Mobile operators may be deploying state-of-the-art radio access network (RAN) technology to meet the current and future demands of smartphone-wielding 4G users but they're in danger of creating a new bottleneck in their backhaul networks that could affect quality of service levels and suppress revenue-generating potential. That's the key finding of a new Strategy Analytics Inc. report commissioned by Tellabs Inc., which suggests that, at current planned investment levels, operators in the Asia/Pacific region are on course to face the biggest backhaul capacity shortfall. The team at Strategy Analytics has been very precise in its calculation of just how much operators might be underestimating their backhaul capacity requirements. For example, in 2017 (based on set criteria used by the analyst group), the world's mobile operators are (in total) on course for a backhaul investment shortfall of more than $9.1 billion, leaving them more than 16 petabytes short of the network capacity required to deliver unencumbered data traffic throughput. So how did Strategy Analytics come up with these numbers (numbers, it should be noted, that will have major backhaul transport equipment vendor Tellabs salivating at the potential of some panic purchasing…)? Well, the analysts (who completed the report in late 2012) assumed that operators will continue to expend 17.5 percent of their total cost of operations on backhaul during the coming five years. They also used their own mobile data traffic forecasts to predict the volumes of data traffic running over the operators' networks. So, to be accurate, the Strategy Analytics forecast will need to be right and operators will have to maintain their current backhaul expenditure levels as a percentage of overall investment. (This is not a criticism of the report's methodology but an observation for perspective.) Based on those criteria, mobile data users in Asia/Pacific are most likely to find their service quality levels depleted by backhaul bottlenecks: Strategy Analytics estimates that, in 2017, the region's operators will have a collective backhaul investment shortfall of $5.3 billion (and a capacity shortfall of more than 9.4 petabytes), compared with a collective shortfall of about $656 million in North America (capacity crunch of 1.7 petabytes). The Strategy Analytics team has also generated a number of statistics related to how much operators could boost revenues and decrease churn if they invested the required cash in their backhaul networks. Tellabs, naturally, wants to help operators break that bottleneck. "Addressing the new capacity crunch requires a highly strategic approach to backhaul," said Tellabs CEO Dan Kelly in a prepared statement. "Operators who treat backhaul planning as a long-term, strategic investment opportunity to enhance customers’ Quality of Experience will produce higher revenue and profits," he added. Tellabs could do with some extra business: Its fourth-quarter results showed poor sales for the vendor's 8800 and 8600 routers, which are pitched at mobile backhaul networks. (See Tellabs Axes Product, Cuts Jobs.) — Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
year2525
50%
50%
year2525,
User Rank: Light Beer
2/13/2013 | 8:05:25 PM
re: Tellabs IDs 4G Bottleneck
Backhaul will always, always be the bottleneck. Just the way it is.
Flash Poll
From The Founder
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
LRTV Huawei Video Resource Center
Du Puts Its Faith in Huawei's Routers

4|9|15   |   3:42   |   (0) comments


Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
LRTV Huawei Video Resource Center
Huawei Gets Active in the Data Center

4|9|15   |   3:17   |   (0) comments


With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
LRTV Huawei Video Resource Center
Blue Consult & Huawei for a Better Solution

4|8|15   |   4:01   |   (0) comments


Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
LRTV Huawei Video Resource Center
Beach Petroleum on eLTE & Mining

4|8|15   |   3:09   |   (0) comments


Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
Upcoming Live Events
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
Hot Topics
Verizon Scores New OTT Content Deals
Mari Silbey, Independent Technology Editor, 4/16/2015
Can WiFi Calling Find Its Voice?
Iain Morris, News Editor, 4/13/2015
Senator Proposes New 'Title X' for Net Neutrality
Carol Wilson, Editor-at-large, 4/13/2015
Nokia, Alcatel-Lucent in Merger Talks
Iain Morris, News Editor, 4/14/2015
Nokia & Alcatel-Lucent: What's Going On?
Ray Le Maistre, Editor-in-chief, 4/15/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.