Pioneer Consulting has published a new report which concludes that packet microwave products are ready for deployment in advanced 3G networks such as HSPA, which support Ethernet/IP as their backhaul transport technology.
Emerging trends in cellular backhaul such as the shift of IP/MPLS core networks into the aggregation and core network layers, and the expected release of Ethernet interfaces in base stations in 2008, has led wireless backhaul vendors to anticipate demand for packet microwave equipment in cellular networks.
Microwave vendors have introduced Ethernet interfaces, integrated switches, adaptive modulation techniques, QoS support, Abis optimization and aggregation modules to help cellular operators deal with the re-engineering in a phased manner. Hybrid approaches, such as carrying voice on TDM legacy transport while carrying data on Ethernet/IP is being actively considered by many operators.
Aditya Kaul, Senior Analyst, Emerging Wireless Technologies Practice and author of the report commented, "Despite innovations, the current market for packet microwave is being primarily driven by backhaul demand in WiMAX networks, enterprise links and fibre extensions. Cellular backhaul has yet to see any significant use of packet microwave, but this is expected to change beyond 2008 with advanced 3G networks becoming increasingly established in Europe, followed by North America, Asia Pacific and Middle East/Africa".
However, the overall worldwide annual demand for wireless backhaul equipment in cellular networks is expected to see a decline after 2007. This is due to the slowing growth in cellular subscribers, which will soon overshadow the replacement and upgrade demand for base stations. Further price erosions of wireless backhaul equipment will cause wireless backhaul revenues to reduce from US$2.7 billion in 2006 to US$2.5 billion in 2012. "
Posted to the site on 8th May 2007
Posted to: www.cellular-news.com/story/23623.php