Infonetics: IP/Ethernet dominated wireless backhaul spending in 2010

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.

Infonetics mobile backhaul

For more:
- see the release

Related articles:
Verizon Wireless' ongoing LTE drive creates a lush wireline-based backhaul opportunity
CenturyLink Q4 revenues dip, 2011 outlook raises red flags
Qwest takes holistic view to wireless backhaul

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