Infonetics Research: New Study Details Operator Plans for Small Cell Backhaul

CAMPBELL, Calif. -- (BUSINESS WIRE) -- In December 2011, market research firm Infonetics Research published important new findings in two Global Service Provider Survey reports: Small Cell and LTE Backhaul Strategies, led by principal analyst Michael Howard (excerpts below), and Small Cell Deployment Strategies, led by principal analyst Stéphane Téral (excerpts here).

For its Small Cell and LTE Backhaul Strategies survey, Infonetics interviewed mobile operators and mobile backhaul transport providers around the world that have already deployed or will deploy mobile backhaul that can support LTE by 2012. The operators participating in the survey represent more than half of the world’s telecom carrier revenue and capex.

ANALYST NOTE

“While operators handle most of their mobile traffic with macrocells (90% on average) and the backhaul network, we were surprised to find that operators we surveyed already offload about 10% of their traffic over indoor and outdoor small cells, WiFi hotspots, and residential femtocells – and they intend to triple that to about 30% at some point in 2013 or later,” notes Michael Howard, principal analyst and co-founder of Infonetics Research.

Howard adds: “This trend really highlights the importance of spectrum offload and backhaul offload strategies to operators. Of the mobile traffic handling alternatives, outdoor small cells will see the most growth in use among our respondents, increasing five-fold from 2011 to 2013 or later. And for operators deploying outdoor small cells, the most popular technologies to use in 2013 will be Ethernet on fiber, Ethernet-only microwave, and Ethernet on copper.”

SMALL CELL AND LTE BACKHAUL SURVEY HIGHLIGHTS

• By 2013, a majority of mobile operators and transport providers will have over 90% of their cell sites connected with IP/Ethernet
• Ethernet is only part of the story: 70% of respondents plan to use some form of MPLS at their cell sites, and prefer to lease a “layer 2 only” service from transport providers
• Small cells are commonly expected to be a key characteristic of LTE networks, yet there is a growing acceptance that they will also play a vital role in HSPA networks, where they have so far played only a minor role

SMALL CELL AND LTE BACKHAUL SURVEY SYNOPSIS

For its 30-page Small Cell and LTE Backhaul Strategies: Global Service Provider Survey, Infonetics interviewed 27 mobile, incumbent, and competitive operators and mobile backhaul transport providers in EMEA (Europe, Middle East, Africa), North America, and Asia Pacific. The study provides the industry’s first accurate measure of operators’ use and plans for macrocell and small cell backhaul technologies and capacities, HSPA+ and LTE backhaul, IP-enabled base station deployments, peak load capacities, cell site backhaul connections (IP/Ethernet, Ethernet, MPLS), evolved packet core (EPC) plans and strategies, and packet timing and synchronization. The survey respondents together represent 51% of the world’s telecom carrier revenue and 54% of the world’s telecom capital expenditures, and make up a significant sample of the telecom operators that are dealing with small cell planning and LTE backhaul. The mobile operators participating in the survey serve 1.86 billion mobile subscribers.

RELATED RESEARCH

Download Infonetics report highlights, prospectuses, tables of contents, etc. at http://www.infonetics.com/login (see MOBILE BACKHAUL & MICROWAVE or SMALL CELLS & WIFI OFFLOAD).

• Latest Infonetics Small Cells and Backhaul research newsletter: http://bit.ly/tnbW8A
• Small cell survey shows operators plan to run 12% of network capacity on small cells by 2012
• European Union debt crisis having minimal impact on telecoms; LTE equipment up 38% in 3Q11
• Mobile network optimization / self-organizing network (SON) market nearing $3B by 2015
• Telecom capex up 6% to $311B in 2011, rev. up 8% to $1.86T, driven by mobile broadband
• Ericsson, NEC, Huawei now within 1 market share point of each other in microwave market
• NEC, Ericsson get top marks from carriers in latest Infonetics Research microwave survey
• Small cell backhaul driven by capacity, coverage, quality; all-IP/Ethernet backhaul imminent
• IP/Ethernet at 89% of all mobile backhaul spending; Ericsson expands microwave lead
• Microwave and millimeter wave equipment evolving to support next-gen RAN

UPCOMING MARKET RESEARCH

• Small Cell Equipment Forecast (Q1 2012)
• Femtocell Equipment Forecast (2012)
• WiFi Offload Equipment Forecast (2012)
• LTE Deployment Strategies: Global Service Provider Survey (2012)
• SON and Optimization Strategies: Global Service Provider Survey (2012)
• Residential Femtocell Service Strategies: Global Service Provider Survey (2012)
• Small Cell Coverage Strategies: Global Service Provider Survey (2012)
• WiFi Offload Strategies: Global Service Provider Survey (2012)

SALES

• Larry Howard, VP, Western NA, Asia, CALA: larry@infonetics.com, +1-408-583-3335
• Scott Coyne, Eastern NA, Texas, Midwest: scott@infonetics.com, +1-408-583-3395
• George Stojsavljevic, EMEA: george@infonetics.com, +44-755-488-1623
• Japan, Taiwan, Korea: http://www.infonetics.com/contact.asp

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.