Microwave PtMP backhaul equipment market is expected to surpass US$ 300 million by 2017

Microwave PtMP  backhaul equipment market is expected to surpass US$ 300 million by 2017
PtMP licensed backhaul equipment is still in contention as a high-capacity technology for small cell backhaul

Athens, Greece and London, UK, 22 February 2013 – Point to Multipoint (PtMP) microwave backhaul shipments decreased 6% in Q4 2012 over Q1 2012, but a sustainable two-digit Compound Annual Growth Rate (CAGR) is forecasted by 2017, according to ExelixisNet’s latest report, “PtMP Backhaul Market for LTE and small cells”.

The relentless demand for network backhaul capacity is making mobile operators consider every possible option for efficient, sustainable backhaul solutions. Licensed point to multi-point microwave solutions continued to make inroads as an alternative to conventional wireless backhaul albeit a major European network breakthrough has still not occurred. Concerns over interference, spectrum availability and service guarantee issues, continue to present barriers for widespread adoption for PtMP. The breakthrough may not be that far away however with many operators looking seriously at PtMP solutions for small cell backhaul. “The new all-outdoor licensed-band radios look very efficient and competitive, even in the emerging 42 GHz band, compared to the NLOS solutions,  and are expected to become a key asset for backhaul links between lamp posts and the sides of buildings where small cells will be installed,” said Elias Aravantinos, author of the report and ExelixisNet Leading Analyst. The new outdoor small cell PtmP solutions will be tested during 2013 not only to prove whether they can deliver ease of installation, attractive form factor, and improved traffic handling benefits but also to evaluate whether the predicted lower overall cost of ownership (TCO) can be realized.

The wireless PtMP backhaul equipment market is expected to surpass US$300 million by 2017, almost 3-fold growth from 2012 to 2017. ExelixisNet believes the overall PtMP wireless backhaul equipment market growth will reach its profitable peak early 2014, even 5-fold growth as a really high forecast, as the PtmP solutions could serve the small cell market’s uptake in a very satisfying, efficient and economic level, as described in the report.

Drawing from in-depth interviews with backhaul vendors and operators worldwide, the report provides a detailed look at licensed microwave PtMP backhaul technology, spectrum, and investment and market trends.

Selected Key Findings:

• Middle East is the fastest growing region for Ptmp microwave shipments between 2011 and 2012
• Africa maintained a continuous demand pace between 2011 and 2012, but Latin America is expected to uptake in the next 5-years
• Shipments of radios in the 26GHz band represented 47% of total shipments in H2 2011, a surprising increase of 100% from the previous half
• Lack of progress is observed in European Markets
• CBNL managed to maintain 50% of the market share mainly due to strong ongoing business in the Middle East and Africa.
• Intracom Telecom’s innovative small cell backhaul solution is expected to become a key player in the near future
• Hughes and its satellite solutions remain very attractive especially when securing communication during natural disasters
• Bluwan managed to turn the spinoff into a sustainable companyand a key player in delivering high speed and high capacity Point to Multipoint wireless backhaul

ExelixisNet is a global consulting firm focusing on LTE and broadband wireless technologies, regulation and other technologies and markets.

Press Contact:
Elias Aravantinos, Leading Analyst
Email: earavantinos@exelixisnet.com
Tel: (+30)6949732009