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Microwave Backhaul to Grow at Near Double the Rate of Leased Line Spending
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Growing at a compound annual growth rate of 4.3%, capital expenditures on microwave backhaul equipment for mobile networks will reach almost $5 billion in 2012 as mobile network operators upgrade and transition to more cost effective packet microwave systems. The Asia Pacific and Western European regions will continue to dominate the market for microwave equipment with a combined share of 61% in 2017.
World-wide Opex from leased T1/E1 and Fiber backhaul represents $6.2 billion in 2012 growing at a CAGR of 2.2%.
"We believe mobile network operators are increasingly lowering their TCO by using Capex to replace leased T1/E1 and Fiber backhaul with modern, high capacity, cost effective, packet based microwave links," says Nick Marshall, principal analyst at ABI Research.
Meanwhile Backhaul Opex on leased copper-based T1/E1 lines will continue to shrink at a CAGR of -1.1% reaching only $4 billion in 2017.
"T1/E1 based backhaul is no longer compatible with modern 3G/4G mobile networks and will phase out as operators increasingly transition away from legacy TDM systems," continues Marshall.
Tags: [backhaul]
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