Mobile Backhaul Equals Big Money Opportunity

As noted earlier, wireless industry experts believe that mobile backhaul networks represent a big opportunity, mostly because of the proliferation of 3G and 4G networks and the easy availablity of iPhone-type devices is going to boost mobile data and video use.

Infonetics Research has issued a report that forecasts 4.4 billion mobile subscribers worldwide by 2011, and estimates that their needs will push the demand for wireless backhaul equipment to over $10 billion by that year. Infonetics predicts that the big spending is going to happen on the IP/Ethernet portion of worldwide mobile backhaul equipment with triple-digit growth rates predicted from 2007 to 2011. No surprise: T-Mobile, Swisscom Mobile and Telecom Italia are all building IP/Ethernet based backhaul networks. Ironically, given the amount of money being spent on this sector there isn’t much startup activity in this space.