Light Reading

Tellabs IDs 4G Bottleneck

Ray Le Maistre

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        ADD A COMMENT
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.
From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Centec on Ethernet Switching

11|26|15   |   09:58   |   (0) comments

Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (10) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (2) comments

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Samsung: No Sale of Wireless Unit
Dan Jones, Mobile Editor, 11/25/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
Networking Shines in HP's Gloomy Final Earnings
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.