Packet-optical backhaul revenues to hit $1.5 billion by 2014, new report finds

As mobile service providers roll out advanced 3G and 4G broadband technologies, mobile backhaul networks must evolve beyond today's multiservice Sonet/SDH-based technologies to accommodate packet capabilities, and packet-optical transport systems (P-OTS) will play a major role in these applications, according to a new report from Heavy Reading, the research division of Light Reading.

May 21st, 2010

MAY 20, 2010 -- As mobile service providers roll out advanced 3G and 4G broadband technologies, mobile backhaul networks must evolve beyond today's multiservice Sonet/SDH-based technologies to accommodate packet capabilities, and packet-optical transport systems (P-OTS) will play a major role in these applications, according to a new report from Heavy Reading, the research division of Light Reading.

“The Future of Packet-Optical Transport for Mobile Backhaul” report focuses on the role of P-OTS in mobile backhaul applications. This class of equipment combines traditional Sonet/SDH functionality with high-capacity Ethernet switching and WDM transport to provide scalability for network traffic growth, while bridging the gap between TDM networks and Ethernet/IP networks. The report explores the key packet-optical transport equipment trends in mobile backhaul, highlighting both the opportunities for P-OTS and the challenges faced--particularly the rising competitive threat from carrier-class Layer 2/3 switching equipment.

This report provides five-year worldwide forecasts for P-OTS in mobile backhaul, broken out by access, aggregation, and metro core segments. It also examines the mobile backhaul plans of three leading network operators and profiles 14 leading suppliers of optical backhaul equipment.

Heavy Reading views P-OTS equipment as a viable option for operators building these new packet-centric backhaul networks.

Key findings include:

Worldwide revenue from P-OTS for mobile backhaul will increase from an estimated $263 million in 2009 to $1.5 billion in 2014, representing a 40.8 percent CAGR over that span.

Asia/Pacific is (and will remain) the largest revenue opportunity for P-OTS backhaul, accounting for 48 percent of worldwide revenue in 2014.

Europe is (and will remain) the second largest contributor, though its share will decline to 27 percent by 2014.

The MSPP has been the workhorse of 2G and early 3G backhaul networks, but network operators believe packet-based equipment will be needed to support the demands of mobile broadband moving forward.

The packet side of P-OTS must evolve in line with CESRs and CEAPs to remain relevant for backhaul applications.

The Future of Packet-Optical Transport for Mobile Backhaul costs $3,995 and is published in PDF format. The price includes an enterprise license covering all the employees at the purchaser's company.

More in Business