Mobile backhaul equipment market to hit $8.2B in 2010, says Infonetics Research

Mobile operators and backhaul transport providers are expected to spend $8.2 billion on mobile first mile backhaul equipment in 2010, with Ethernet copper and fiber equipment growing the fastest, says Infonetics Research in its latest "Mobile Backhaul Equipment, Installed Base, and Services" report.

According to the report, the top 3 drivers behind the rapidly increasing numbers of mobile backhaul base stations, cell sites, base stations per cell site, and required bandwidth include:

--  A fast-growing number of worldwide mobile subscribers, which is
    jumping from 2.6 billion in 2006 to 4.2 billion in 2010
--  Heavy competition, which is forcing operators to upgrade their
    equipment and network capacity to improve and add new subscriber services
--  An explosion in mobile data and video use, which requires providers to
    significantly increase the bandwidth they offer, from Kbps to a few Mbps to
    tens of Mbps
    

"2008 will be the year of adoption for IP/Ethernet backhaul, and 2009 will kick off the Ethernet mobile backhaul revolution," said Michael Howard, principal analyst of Infonetics Research and lead analyst on the report. "Ethernet made up just 1% of total mobile backhaul equipment revenue in 2006, but will grow to 21% of the market by 2010. The Swisscom Mobile contract that Tellabs won recently for IP, Ethernet, and pseudowire cell site backhaul is the first of many we'll see over the next 18 months."

More highlights from the report:

--  IP first mile mobile backhaul equipment sales are forecast to increase
    at a phenomenal 210% 5-year compound annual growth rate (CAGR) between 2006
    and 2010
--  The number of mobile first mile backhaul connections is expected to
    double between 2005 and 2010
--  The use of Ethernet over copper, fiber, and microwave for installed
    and new mobile backhaul connections will accelerate in 2010 -- very
    dramatically for new connections -- while PDH wireline and PDH/SDH
    microwave connections sharply decrease
--  By 2010, service providers using PDH and ATM over PDH for their first
    mile mobile backhaul connections will be paying more than 5 times as much
    in service charges per connection as those using new wireline services
    (Ethernet copper and fiber, DSL, cable, PON)
--  Many operators in Europe, and to a lesser extent in North America and
    Asia Pacific, are planning to use Ethernet packet backhaul over DSL due to
    DSL's cheaper prices, wider availability, and reliance on copper-fed cell
    sites
--  EMEA -- with Europe, Middle East, and Africa all contributing --
    accounts for 42% of worldwide mobile first mile backhaul equipment revenue
    in 2007; Asia Pacific for 37%, CALA 14%, and North America 6%
    

Infonetics' mobile backhaul report tracks the competitive landscape, trends, and growth areas of the mobile backhaul market, from the cell site BTS/NodeB to the BSC/RNC. The report provides worldwide and regional market size and forecasts for mobile backhaul equipment, connections, and service charges for PDH, ATM, Ethernet copper and fiber, SONET/SDH, DSL, PON, coax cable, microwave, WiMAX, and satellite. The report also includes top player analysis, fundamental drivers of the market, changes affecting market growth, and more.

Download report highlights at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.