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Global Backhaul Investment Gap of $9.2 Billion could increase Customer Churn
Tellabs Sponsored Strategy Analytics Report on Next Generation Backhaul Requirements
By: PR Newswire
Feb. 25, 2013 04:20 PM
BARCELONA, Spain, Feb. 25, 2013 /PRNewswire/ -- Mobile World Congress - Tellabs recently released findings from the sponsored Strategy Analytics report 'Future Backhaul Requirements for Complex Mobile Networks' and an associated article 'Closing the Backhaul Gap' that indicates a serious global 'Backhaul Investment Gap.'
That 'Backhaul Gap' could lead to customer churn since up to half of network performance problems for mobile operators may stem from backhaul network congestion. There is an opportunity for mobile operators to differentiate themselves significantly from competitors by investing in smart backhaul.
"As many as 40 percent of mobile users list poor network performance as a key reason for leaving an operator," noted Phil Kendall, Director Wireless Operator Strategies. "For each $1 that operators invest above the 17.5 percent of Total Cost of Operations (TCO) that is spent today, operators could recapture up to $4 in revenue that would otherwise be lost." See the Chart.
"To optimize the required investment and handle the traffic throughput for new RAN we need backhaul solutions that are both smarter and more cost effective," added Sue Rudd Director, Service Provider Analysis. "New smart Backhaul systems must incorporate upper layer service awareness to guarantee customer Quality of Experience (QoE) support for LTE signaling, synchronization for packet Ethernet and Cloud RAN control. These requirements can only be delivered cost efficiently by new pro-active intelligent network management, Self-Organizing Networks (SON) and Software Defined Networks (SDN) that optimize backhaul connectivity and services while simplifying operations of these increasingly complex 'mesh' networks." Tellabs will be demonstrating these smart backhaul solutions at Mobile World Congress.
The full report and model projections will be issued by Strategy Analytics in two parts in March. Please contact Sue Rudd email@example.com for details.
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