{"id":85117,"date":"2011-03-29T18:46:08","date_gmt":"2011-03-29T10:46:08","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/report-obsolete-backhaul-roll-out-plans-diminishing-operator-profit-margins\/"},"modified":"2011-03-29T18:46:08","modified_gmt":"2011-03-29T10:46:08","slug":"report-obsolete-backhaul-roll-out-plans-diminishing-operator-profit-margins","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/report-obsolete-backhaul-roll-out-plans-diminishing-operator-profit-margins\/","title":{"rendered":"Report: Obsolete Backhaul Roll-Out Plans Diminishing Operator Profit Margins"},"content":{"rendered":"<p>[03-29-11] The combination of rapid growth in network traffic and slow growth in revenue is squeezing mobile network operators\u2019 profit margins, according to a research report from global telecoms, media and technology adviser <strong>Analysys Mason<\/strong>, released March 29.<br \/>\n&nbsp;&nbsp;&nbsp; In the report, \u201cThe Cost of Capacity: Mobile Backhaul Worldwide,\u201d Terry Norman, Principal Analyst at Analysys Mason urged operators to design their network roll-outs to reduce costs and increase network capacity. \u201cOperators will be able to keep up with their customers\u2019 demand for data in the short term, but thirty-fold growth in data volumes by 2015 will drive most operators to increase their backhaul capacity. Operators can achieve this in two ways \u2013 by leasing dedicated lines from incumbent and some alternative operators, or by building their own fiber or microwave backhaul.\u201d<br \/>\n&nbsp;&nbsp;&nbsp; Analysys Mason said that well-designed radio access systems, which include a backhaul network connecting base stations to the core of a mobile operator\u2019s network, is becoming an important consideration in an operator\u2019s radio access strategy.<br \/>\n&nbsp;&nbsp;&nbsp; \u201cGrowth in the take-up of devices and technologies that offer an improved user experience, such as smartphones and tablets, will increase the amount of data that customers consume,\u201d said Norman.<br \/>\n&nbsp;&nbsp;&nbsp; <strong>O3b Networks<\/strong> CEO Steve Collar told Satellite News that the company is well aware of the importance of backhaul markets as its business model focuses on the \u201cmiddle mile\u201d and not on selling direct access to the customer. \u201cThere is a big difference between broadband and connectivity between Europe and North America and the developing world. One of the biggest problems is the backhaul. Yes, fiber and wireless are there. I think we need to think differently about the way we serve the developing world,\u201d he said. \u201cThe demands for bandwidth are high. O3b has an implicitly mobile system. We can respond to fiber cuts, emergency situations. We will be using those attributes for a number of different applications. We are selling into countries that are fibered if not more fibered in Africa. We don\u2019t compete with fiber. The deployment of networks in Africa will spur the needs for applications.\u201d<br \/>\n&nbsp;&nbsp;&nbsp; Analysys Mason\u2019s research shows that backhaul costs are forecast to increase by a factor of ten by 2015, which could significantly reduce operators\u2019 profit margins. The firm also warns that capacity constraints in backhaul networks are threatening to constrict the flow of data to and from the customer. These trends are driving operators to review their backhaul strategies and equipment suppliers to develop transmission network technologies that address these issues, according to Norman.<br \/>\n&nbsp;&nbsp; \u201cThere is no universally applicable backhaul solution. Operators must review their backhaul improvement strategies on a region-by-region and country-by-country basis to identify the optimal solution for each market,\u201d he said. \u201cThe initial cost is not the only overriding factor. Variables such as security, return on investment timescale, traffic growth rate and the availability of local infrastructure must contribute to the overall backhaul strategy. Operators must calculate a fair and accurate \u2018total cost of ownership\u2019 model for backhaul costs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[03-29-11] The combination of rapid growth in network traffic and slow growth in revenue is squeezing mobile network operators\u2019 profit margins, according to a research report from global telecoms, media and technology adviser Analysys Mason, released March 29. &nbsp;&nbsp;&nbsp; In the report, \u201cThe Cost of Capacity: Mobile Backhaul Worldwide,\u201d Terry Norman, Principal Analyst at Analysys [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-85117","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85117"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=85117"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/85117\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=85117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=85117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=85117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}