3G traffic will drive demand for capacity

6 Nov 2007

A projected 32pc growth in traffic over mobile 3G networks will see mobile operators spend US$37bn by 2012, accounting for 12pc of their total operating expenses.

According to research from analyst Ovum, sales of backhaul transport equipment will grow 32pc annually over the next five years and will reach US$7.3bn by 2012.

Component demand related to backhaul transport equipment will exceed US$1bn by 2012.

“Mobile operators today are challenged to grow backhaul capacity quickly, flexibly and economically to support rapid growth in bandwidth-intensive mobile data services,” said John Lively, vice-president at Ovum RHK.

“Fortunately, many new architectures and equipment innovations will allow them to meet this challenge.

“Wireless backhaul is an exciting growth market for telecom equipment and component vendors,” Lively added.

By John Kennedy