HOT NEWS!!! Busy cell networks a bonanza for gear makers
Companies race to provide fiber network 'backhaul' to improve data speeds
HOT NEWS!!! Busy cell networks a bonanza for gear makers. Dropped calls may be annoying to a mobile phone user but network equipment makers and operators are eyeing a big payday from congested cellphone networks.
Flashy smartphones like Apple's iPhone, which allow downloads of everything from games to stock prices, are straining mobile networks and pushing carriers to upgrade wired broadband connections to cell towers, known as backhaul.
The market for backhaul equipment will double to $10.9 billion in 2013 from $4.6 billion in 2008, according to research firm Infonetics.
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This will provide new areas of growth for network equipment makers such as Alcatel Lucent, Ciena, Nokia Siemens, a venture of Nokia and Siemens.
The Supercomm telecom trade show in Chicago this week was buzzing with operators and gear makers talking up the new possibilities of backhaul.
"We're seeing at this show, really a lot of demand for optical backhaul capability," said Nokia Siemens North American President Sue Spradley.
Operators like Verizon Wireless and AT&T are beefing up their backhaul by replacing old copper wires with fast fiber optic connections in markets where they have both a wired and a wireless network.
They are working on new deals with local operators outside their wireline markets to improve mobile data rates there.
Telecom operators such as Level 3 Communications and Qwest Communications International and cable operators such as privately held Cox Communications all want be first to lay fiber to a cell site to make sure they win the backhaul contract with the wireless operators which have equipment there.
