Converged Packet Backhaul to Drive the Cell Site Aggregation Market, New Report Finds

Demand for specialist cell site equipment will grow as operators move to converged packet transmission to cope with high-speed data traffic, says Unstrung Insider

PRNewswire
NEW YORK
Mar 7, 2007

NEW YORK, March 7 /PRNewswire/ -- With cell site capacity requirements set to double over the next few years to support the rollout of high-speed 3G and WiMax data services, the high cost of backhaul could ruin industry profitability unless operators begin investment in packet-based transmission facilities, finds a new report from Unstrung Insider (http://www.unstrung.com/insider), a paid research service of CMP Technology's Light Reading (http://www.lightreading.com/).

"Mobile Backhaul & Cell Site Aggregation: State of the Art" examines backhaul requirements over the coming years, looks at the impact this could have on operating expenses, and evaluates how operators can reduce the cost per bit of transmission using converged, packet-based access networks.

The deployment of specialist cell site and hub site aggregation equipment is vital to the migration from TDM-centric backhaul dominated by leased-line connectivity to more efficient packet-switched transmission that captures the cost advantages of Ethernet and IP technology.

Such devices sit between radio base stations and the transmission network and are located at the cell site itself or at remote aggregation nodes. Features of this equipment include multiple types of traffic management and switching functions, which include grooming, optimization, multiplexing, quality of service marking, data offload, and pseudowire encapsulation. With more than 2 million cellular base stations deployed worldwide, demand for such equipment is set to accelerate rapidly, finds the Unstrung Insider report.

"At U.S. list prices of between $2,000 and $5,000 per cell site gateway, there's an opportunity for vendors to grab a share of an expanding market," notes Gabriel Brown, Unstrung Insider Chief Analyst and author of the report. "Operators need future-proof equipment that enables them to take advantage of whatever connectivity options are available in the future, and ultimately to converge all traffic on a single packet-based transmission network."

Among the key findings from the report:
* Demand for specialist cell site equipment is set to accelerate as
operators move to hybrid architectures and converged, all-packet
transmission networks to cope with data traffic
* Microwave will continue to replace leased lines; with prices for
16-Mbit/s links at less than $10,000, carriers are able to generate ROI
in just two years; emerging Ethernet and adaptive modulation features
further extend its competitiveness
* Optical Ethernet is the transport of choice, but there's a lot of hype
in the market; near-term realities make for a transition period, in
which bonded copper remains critical
* Strategic operator thinking sees cellular as one part of a multiservice
access network; fixed/mobile convergence and industry consolidation are
reinforcing this trend

Companies analyzed in this report include: Carrier Access Corp.; Celtro Ltd.; Ceterus Networks Inc.; Cisco Systems Inc.; Kentrox LLC; NMS Communications Corp.; RAD Data Communications Ltd.; Sycamore Networks Inc.; Tellabs Inc.; and Verso Technologies Inc.

"Mobile Backhaul & Cell Site Aggregation: State of the Art" is available as part of an annual subscription (12 issues) to Unstrung Insider, priced at $1,595. Individual reports are available for $900.

To subscribe, or for more information about this report, please visit: http://www.unstrung.com/insider. For more information about other Light Reading Insider services, please visit: http://www.lightreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

Jeff Claudino
Director of Sales
Insider Research Services
619-229-9940
claudino@lightreading.com
Press/analyst contact:
Dennis Mendyk
Managing Director
Insider Research Services
201-587-2154
mendyk@heavyreading.com
About CMP Technology

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SOURCE: Unstrung Insider

CONTACT: Jeff Claudino, Director of Sales, Insider Research Services,
+1-619-229-9940, claudino@lightreading.com, or Press/analysts: Dennis Mendyk,
Managing Director, Insider Research Services, +1-201-587-2154,
mendyk@heavyreading.com, both for Unstrung Insider

Web site: http://www.unstrung.com/insider
http://www.lightreading.com/
http://www.cmp.com/
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