Infonetics: Mobile backhaul moving to IP

IP-based systems for providing backhaul capacity for mobile networks are expected to account for 45% of mobile backhaul equipment sales by 2009, according to a new study from Infonetics Research. That will bring IP’s share to about $1.1 billion of an anticipated $2.4 billion market in 2009.

That total market will actually will represent a decrease from the $3.4 billion total value of the backhaul equipment market in 2005, but new, less expensive technology and equipment capable of providing far more capacity than current TDM-based T-1 links will account for the decline.

However, spending on mobile backhaul services is another story. “Mobile operators spent $16 billion on mobile backhaul link services in 2005, and will spend double that in 2009,” said Michael Howard, principal analyst of Infonetics Research, in announcing the findings. “Although that’s a significant increase in charges, the good news is they’ll be getting a lot more for their money in coming years, because the average annual charge per connection goes up only 18% between 2005 and 2009—from $8004 to $9455—while the capacities grow from one to two T-1/E-1s per connection to 10s of Mb/s to even 100 Mb/s.”