Cell Backhaul: Wireless Edging Out Copper/Fiber

According to the Dell'Oro Group, the mobile backhaul transport market, comprising wireless and fiber/copper backhaul systems, is forecast to drive $5.3 billion annually over the next five years as a near term rise in wireless backhaul equipment is expected to energize the microwave transmission equipment market.

"Much of the expansion in mobile backhaul is behind us," wrote Jimmy Yu, vice president at Dell'Oro Group. "While we do not envision topline market expansion in the next five years, we do believe a few dynamics are underway. Most notably, small cells have finally started to roll out, and though most are indoor units, we think operators will steadily raise deployments of outdoor small cells requiring additional backhaul links. Another dynamic underway is a slight mix shift to wireless backhaul from fiber/copper in the near term, which should propel microwave equipment purchases for the next three years."