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Infonetics: IP/Ethernet dominated wireless backhaul spending in 2010


12.04.2011

Driven by the wireless operator`s ongoing migration from 2G to 3G and even 4G LTE, wireless operators continue to turn to IP/Ethernet as their wireless backhaul solution of choice.

Infonetics` new Mobile Backhaul Equipment and Services market share and forecast report revealed that 89 percent of the money spent on mobile backhaul equipment in 2010 was for IP/Ethernet platforms, with Ethernet cell site routers and gateways and Ethernet packet microwave equipment seeing the most growth.

As of the second half of 2010, Alcatel-Lucent (NYSE: ALU), Tellabs (Nasdaq: TLAB), Cisco (Nasdaq: CSCO), and Huawei together own over three-fourths of the Ethernet cell site routers and gateways segment. Microwave-based equipment also rose up in 2010, with Ericsson posting its best quarter in the segment in about two years.

Demand for this equipment is being driven on two fronts: mobile operators that are leveraging their wireline parent`s fiber and copper connections and a growing group of wholesale operators, including Level 3 (Nasdaq: LVLT), Telecom Transport Management and Zayo, that are selling wholesale IP/Ethernet and hybrid TDM/IP services to large wireless operators such as AT&T (NYSE: T) and Verizon (NYSE: VZ) outside of their wireline parent`s territory.

 

 

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