Light Reading
Industry report suggests backhaul investments won't meet capacity requirements, with Asia/Pacific operators facing the biggest crunch

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
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
Like Us on Facebook
Twitter Feed