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Contact:

Aditya Kaul
Senior Analyst
Emerging Wireless Technologies Practice
Phone : +44 131 332 9442
Email: a.kaul@pioneerconsulting.com

3G Economics Favour Wireless Backhaul in Urban Regions

Wireless backhaul penetration in North America expected to surpass 10% by 2012

BOSTON (June 12 2007) — Pioneer Consulting’s latest report, Wireless Backhaul 2007-12, Role and Significance in Cellular Markets concludes that wireless backhaul is more cost-effective compared to wireline solutions for a 3G network scenario.

Unlike other backhaul reports, Pioneer’s study also breaks down the annual wireless backhaul demand by frequencies that lie between 2.4 GHz and 38 GHz. It predicts a rapid growth in the 10.5/11 GHz equipment, which indicates increasing demand for short-medium distance links as compared to long-haul links.

Commenting on these findings, Aditya Kaul, Senior Analyst and author of the report, said, “The report adds value by going beyond the discussion around Ethernet backhaul and Packet microwave, analysing the cost implications and identifying the market opportunity for wireless backhaul.”

Kaul found that the 3G cost benefit exists in both developed and developing regions, especially in urban environments where a large opex saving compared to wireline outweighs the higher initial capital cost of a wireless backhaul solution.

Pioneer expects that North American wireless backhaul penetration will grow from 6% in 2006 to 10.6% in 2012 driven by the economic benefits of the technology itself and by the propensity for 3G network growth to occur largely in urban environments. However, wireline backhaul solutions, primarily T1 leased lines will continue to dominate the North American market due to their wide availability and favourable pricing structure. Europe, Asia, Latin America and Middle East/Africa where wireless backhaul dominates over wireline backhaul will see further increases in wireless backhaul market share.

About Pioneer Consulting

Pioneer Consulting provides research on cutting-edge technologies in the wireless space, both fixed and mobile and is known for its expertise in wireless LAN, Software Defined Radio, Wireless Backhaul, 2G, 3G and 4G cellular technologies. Pioneer provides market-leading insights on technologies that are aimed at altering the wireless value chain or are causing the re-engineering of traditional wireless network architecture.

For more information on Pioneer Consulting and its products and services visit the company's Web site www.pioneerconsulting.com

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