There’s been a lot of discussion about the impact data-centric devices (smartphones, Apple iPads, netbooks etc.) are having on mobile phone networks. High volumes of data traffic are stressing mobile networks and MNOs have responded by introducing additional capacity in the form of picocells, femtocells and Wi-Fi hotspots to ease some of the data load. MNOs have also taken steps to dampen down demand through the introduction of tiered data pricing models (you pay for what you use) and data usage caps.
Despite these measures, backhaul networks have come under strain and while in the past additional backhaul costs were offset by incremental voice revenues this relationship has broken down as the revenue per bit derived from data services is significantly lower than that derived from voice. So as they look to boost backhaul capacity to handle the explosion of data traffic, MNOs are having to find new cost-effective solutions.
The chart below shows the key MNO requirements from a backhaul network and the compatibility of available technologies. The key driver is the need to handle high levels of data traffic with scalability to meet future growth. And as the typical downlink/uplink ratio for data traffic backhaul is 70/30, MNOs require the flexibility to tailor asymmetric data rates to meet network flows. Fortunately MNOs can now trust IP/Ethernet to cope with the timing and synchronisation issues associated with mobile networks as they will need IP/Ethernet to handle the high air interface data rates associated with 4G/LTE.
Finally MNOs are looking for lower CAPEX and lower OPEX in their backhaul networks as they offer competitive services to satisfy the cravings of their data-hungry customers.
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