Scaling 3G backhaul

15 Oct 2006
00:00

 

A classic example is offshore drilling rigs. If a drilling rig is 65 to 70 km off shore, that is a satellite application. You can never deliver the required bandwidth to that site via microwave radio. So it's a satellite job. By the same token, if you've got a rig that's only sitting 7 or 8 km off shore, nobody would ever install satellite, it's microwave.

An Ericsson official suggested recently that as operators increase the capacity of backhaul for 3G, one of the potential business opportunities was a wholesale opportunity where you sell excess backhaul capacity to enterprises or other service providers.  Is this feasible‾

Dick Carter: In the States, there is a company called FiberTower, and they were so successful, they were acquired. They took that concept to the next level. They are not an operator, but they went out and they targeted certain cities in the US and they built a microwave platform network and became a carrier's carrier. And they lease capacity on the microwave network to cellular operators in the US, and there were operators that gladly gave them the keys. 'Yeah. We'll do that. That's great!' These guys have actually made a business model out of that concept.

Would any of the operators here have any interest in wholesale backhaul‾

Yap Sheng Young: Definitely. Microwave network provision has capacity, and that capacity definitely can be utilized to support some other additions to your own network. I tend to agree with what you're saying, but the question is whether it would be more incidental to your own requirements. The way I see it, it really varies from operator to operator and also country to country, because different countries have different requirements and the competition is different.
Ong Kok Ching: If there's a carrier's carrier in Singapore, I'll certainly welcome it. But if someone is going to be a carrier's carrier, the quality has to be good for the carrier to sell services to their customers.

Andy Singer: I'll tell you, it's worked out well for us because the carrier's carrier is very concerned about quality and has no reluctance whatsoever to pay a little more for that quality product, so because of where we're positioned in the marketplace, its great for us.

 

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