 |
 |
|
|
By Gerry Carson,
Managing Consultant - Service Provider Practice,
Advocate Networks, LLC
Most of us take for granted the completion of a cell phone call, or the hundreds of emails fired from our blackberries each day. However, it takes many network elements to make these events occur. Wireless voice and data travel from cell tower to cell tower, and then follow a data connection from the tower to a central site, managed by the wireless provider. This last flow of traffic is called wireless backhaul, and the majority of it flows over small data pipes called DS1s.
Management of wireless backhaul traffic presents challenges on multiple fronts. The first challenge is a lack of bandwidth or capacity. A Smart phone, such as a Blackberry, uses an estimated 30 times more network capacity than a regular cell phone, and a laptop uses 450 times as much capacity. Wireless backhaul is commonly referred to as the “choke point” of the network, because it was not designed to carry the traffic accompanying today’s boom of data usage. Providers such as T-Mobile, Verizon Wireless and AT&T face the challenge of upgrading their networks to support today’s changing traffic profile.
Managing wireless backhaul will place financial strain on wireless providers. As usage and investment in network upgrades rise, wireless providers will have to reduce costs to maintain margins. The lion’s share of what wireless carriers purchase for backhaul are DS1 data pipes from Incumbent Local Exchange Carriers (ILECs) like AT&T and Verizon. DS1 and other special access rates are likely to increase starting in January of next year. The ILEC’s share of all backhaul circuits is about 80 percent, according to speakers at Lightreading’s “Wireless Backhaul Strategies” conference held recently in Atlanta, Ga.
Although alternatives to ILECs for wireless backhaul have not reached critical mass, multiple players have entered the space. Currently, the major cable companies are the only players with sizeable, nation-wide fiber footprints. Companies like Time Warner Cable and Brighthouse were cited at the conference as viable alternative providers. What a powerful wholesale opportunity for cable and wireless partnership: new revenue is generated for cable companies, competitive impact is delivered to the ILECs, and wireless providers are able to reduce cost. Other backhaul players include Fiber Tower, Harris Stratex, and FBL Fibernet. While still a formidable challenge, the equation for success is clear: wireless providers must solve the bandwidth issues of backhaul and also reduce their overall costs.
Advocate Networks can help wireless providers by assessing backhaul spend, benchmarking prices, identifying savings opportunities and proceeding with strategic procurement to achieve the savings. Advocate Networks also has numerous relationships that can help providers identify and move to alternative backhaul players.
If you would like to discuss this topic further, please contact Gerry Carson at (678) 987-5905 or gerry.carson@advocatenetworks.com.