Infonetics: Ethernet mobile backhaul equipment spikes in 2010

OCTOBER 18, 2010 -- Service providers are expected to spend a cumulative $36 billion worldwide on mobile backhaul equipment between 2010 and 2014, says market research firm Infonetics Research. And the mobile backhaul market should see an immediate jump this year to get the ball rolling.

OCTOBER 18, 2010 -- Service providers are expected to spend a cumulative $36 billion worldwide on mobile backhaul equipment between 2010 and 2014, says market research firm Infonetics Research. And the mobile backhaul market should see an immediate jump this year to get the ball rolling.

"Last year Ethernet-based mobile backhaul equipment sales jumped 36% year-over-year, to $4.8 billion, representing 80% of total backhaul spend. We expect Ethernet spending to spike again in 2010 and growth to continue for many years, fueled by the ongoing HSPA/HSPA+ onslaught across the 3GPP world and early LTE deployments led by 3GPP2 players. We see no letup in the Ethernet market; improvements to backhaul solutions, such as packet timing and synchronization, have been made, and about 100 operators around the world are now actively deploying a single IP-Ethernet backhaul to carry all traffic," explains Michael Howard, principal analyst and co-founder of Infonetics Research.

Infonetics Research released the market projections in its updated Mobile Backhaul Equipment and Services market size, market share, and forecast report.

Richard Webb, directing analyst for microwave at Infonetics and co-author of the report, says, "Even with TDM microwave spending declining significantly every year from here on out as service providers move to packet technology, we expect the overall mobile backhaul equipment market to grow to $8.2 billion by 2014 based mainly on the strength of Ethernet equipment."

Other mobile backhaul equipment market highlights contained in the report include:

  • Ericsson continues to lead in worldwide mobile backhaul microwave radio revenue market share, following closely by Huawei, Nokia Siemens, and NEC.
  • Alcatel-Lucent holds the top spot in the first half of 2010 for worldwide revenue in the fast-growing Ethernet cell site routers and gateways segment, ahead of Tellabs, Cisco, and Huawei.
  • Infonetics expects revenue from microwave Ethernet mobile backhaul equipment to jump 367% in 2010 over 2009.
  • Ethernet cell site routers and gateways posted double- and triple-digit percent revenue increases in 2009 and are expected to continue growing year-over-year at least through 2014.

Infonetics' Mobile Backhaul report provides worldwide and regional market size, vendor market share, forecasts through 2014, analysis, vendor and operator activity, a mobile operator backhaul strategies tracker, and technology roadmaps. The report tracks mobile backhaul equipment by technology and medium (copper, fiber, air); connections by technology and medium (including average bandwidth per connection); installed cell sites by medium and type of RAN (2G, 3G, LTE, WiMAX, mixed), and service charges by technology.

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