A new report by Infonetics Research titled "Mobile Backhaul Equipment, Installed Base, and Services," shows that many operators are turning to newer mobile backhaul solutions, particularly Ethernet microwave as they scramble to protect their revenue and hold on to their subscribers.
What's driving this is the increasing mobile backhaul costs due to a swelling numbers of mobile subscribers accessing the internet, and watching and sending video and photos over their mobile phones -- partly spurred by the popularity of the iPhone and its clones. In turn, rising customer demand is forcing mobile operators to invest in higher-capacity backhaul networks to prevent service degradation and offer subscribers bigger bandwidth packages.
Worldwide, mobile operators and backhaul transport providers are increasing their mobile backhaul equipment spending by 15% from the 2007 level to $4.5 billion in 2008. Ethernet microwave connections are growing the fastest among the new mobile backhaul connections being added worldwide, jumping from 27% of all new connections in 2007 to 43% in 2008 and ramping up quickly over the next few years.