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The Cost to Networks Of Wireless Backhaul Equipment

Communications providers always have to move with the times, and need to invest in order to ensure that they are able to keep up with leaps in technology which could leave some of their older equipment in the dust. Rather than risk being known for outdated and slow backhaul systems, more and more mobile providers are turning to mobile and wireless technology to provide new alternatives to the old problem of fast and affordable backhaul links that satisfy the customer and don’t cost the earth. If you want to know more about backhaul equipment before you invest, then working out the total cost of these devices could be a good place to start.

The cost of wireless networks

It is estimated that more than 1.5 data exabytes are transferred using mobile wireless devices in a single month, a colossal growth from only a few years ago. However, what most people do not discuss when they talk about the huge rise in the amount of data being carried from mobile phones is backhaul, the technology which transports this information from the phone to the central network. In order to support this incredible rise in data transfer, mobile companies have had to invest in fibre and wireless backhaul equipment to ensure speedy response times to data transmission. All of this costs a large amount of money, approximately 30% of any network’s operating costs.

The cost of backhaul investment

As noted, around a third of all operating costs involved in running a mobile network are the result of backhaul costs, and in fact the number was predicted to rise to around $1bn by 2017. A significant percentage of this investment is spent on wireless network equipment, including updating 70% of all base stations so that they could use a wireless connection. Even with this investment, companies constantly have to update their networks in order to ensure faster and more reliable network communications.

The future of backhaul investment

As wireless and mobile backhaul is placed under increasing pressure from constant use, so it is likely that companies will have to evolve in order to keep enhancing their technologies. Re-evaluating the options and technologies available to the company will allow them to optimise their network connections, ensuring that all of their network equipment is able to increase capacity and distance, so that it can reach more users, more often.

The flexibility of wireless backhaul equipment means that it is likely to receive the majority share of network investment in the future. As wireless connections don’t require cables or trenches, application of new technologies is faster and more reliable, and this is likely to continue to drive investment in this area.

Written By

Online Marketing Manager at Ceragon Networks.

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