2013/10/16 Outdoor small cell backhaul market kicking into high gear in 2014

Campbell, CALIFORNIA, October 15, 2013—Market research firm Infonetics Research released excerpts from its 2013 Small Cell Mobile Backhaul Equipment report, which tracks and forecasts outdoor small cell backhaul equipment revenue, units, connections and small cell sites by medium (copper, fiber, air).

“Outdoor small cells or, more accurately, low-power cells, are an exciting new expansion of mobile networking, but they come with challenging backhaul issues,” notes Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. “As a result, deployments of outdoor small cells are modest right now, as mobile operators sort things out and test, trial and select technologies, products and vendors. But that’s about to change, and fast.”

Richard Webb, directing analyst for microwave and carrier WiFi at Infonetics and co-author of the report adds, “We look for outdoor small cells to really kick into high gear beginning in 2014, and predict a cumulative $6 billion will be spent globally on outdoor small cell backhaul equipment between 2013 and 2017.”

• The 2 main applications for outdoor small cell backhaul are adding capacity/extending coverage in high-traffic urban areas and adding coverage in rural areas
• The nascent outdoor small cell mobile backhaul equipment revenue totaled $39 million worldwide in 2012
• Infonetics projects that outdoor small cell backhaul connections will grow from fewer than 7,000 in 2012 to more than 850,000 in 2017
• Of the small cell backhaul technologies, unlicensed millimeter wave makes up the largest portion of revenue
• North America currently leads the outdoor charge, with AT&T, Verizon, Sprint, Clearwire and Comcast investigating, planning and conducting field trial deployments
• In its related Macrocell Mobile Backhaul Equipment and Services report, Infonetics predicts that a cumulative $44 billion will be spent on macrocell mobile backhaul equipment between 2013 and 2017