Consumer and business users' appetite for wireless service consumption will be a boon for wireline providers, because it will require operators to continue upgrading their backhaul networks with a mix of fiber and Ethernet facilities.
A new Dell'Oro report revealed that wireless backhaul will become a key factor in driving up telecom sales to $30 billion by 2018. Of that mix, wireline equipment, such as optical switches and network routers, will drive "70 percent of growth" during this period.
"Since the introduction of the iPhone back in 2007 and subsequent proliferation of smart phones generating data as well as voice traffic, service providers have prioritized building out and improving both their wireless and wireline networks," said Tam Dell'Oro, president and founder of Dell'Oro Group, in a press release.
She added: "While we believe carriers will continue to enhance their wireless networks, we anticipate carriers will put more emphasis on backhauling traffic which means improving their wireline networks in the next five years."
Between 2013 and 2018, Dell'Oro forecasts that the combined service-provider-equipment markets will grow at a CAGR of 2 percent, following a -1 percent CAGR between 2008 and 2013.
- see the release
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