Monday, September 19th, 2011 - OVUM
Melbourne, September 19, 2011. The total spending on wireless backhaul equipment in Asia-Pacific (AP) will reach US$3.8 billion in 2016, a compound annual growth rate of 5.1 percent from US$2.8 billion in 2010, predicts Ovum. The Asia-Pacific region will account for slightly more than 50 percent of the global spending on wireless backhaul equipment in 2016.

In a new forecast*, Ovum defines a capex-constrained scenario in which spending on backhaul transport equipment is limited by constraints on overall capital expenditures of service providers.

John Lively, Vice President of Forecasting explained: “The most likely scenario is that capital expenditures will be limited by slowing revenue growth, forcing service providers to address backhaul traffic growth with constrained equipment budgets. This will drive operators to include traffic management and optimization, network sharing, and possibly a relaxation of reliability standards in the lower levels of the network in their solutions to the backhaul bandwidth challenge.”

In this scenario, backhaul spending in India is forecasted grow at a CAGR of 15 percent from US$359 million in 2010 to US$825 million 2016. China, Japan and Korea as a group will account for spending of US$2072 million in 2010 growing to US$2614 million in 2016, a CAGR of 4 percent.

--ENDS---

NOTES TO EDITORS

* Wireless Backhaul Forecast - Global

To arrange an interview or for further details regarding this release, please contact Tanisha Kaul in the Ovum press office on +61 (0) 3 9601 6723, or email [email protected]

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Tanisha Kaul, the Ovum press office
P: +61 (0)3 9601 6723
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telco, wireless, research

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