Wholesale Telecom Spending by Wireless Providers

1 SCOPE OF RESEARCH AND KEY FINDINGS

Scope of Research

Scope of Research

Overview and Definitions

Key Findings

Commoditization of Voice Minutes

Demand for Backhaul Services

DS1 Not a Long-term Backhaul Solution

No Universal Successor to the DS1 Line

2 GROWTH OF MOBILE COMMUNICATIONS

Introduction

Mobile Communications Industry Growth

Non-voice Applications

State of the Industry

Overall Industry Condition

New Mobile Services and Devices

Industry Market Share

Mobile Service Provider Market Share

Previous Mobile Service Provider Market Share

Geographic Coverage

Counties with Three or More Providers

Counties With Four or More Providers

Overlap Between Different Mobile Providers

Cell Site Growth and Ownership

Number of Subscribers per Cell Sites

3 DATA REQUIREMENTS FOR MOBILE DATA AND VIDEO SERVICE

Introduction

Introduction

Mobile Services Bandwidth Requirements

Bandwidth Requirements for Different Types of Service

Data Profile Data by User Type

Camera Enabled Cell Phones

Data Services Bandwidth Growth

Data Service Usage Examples

Video Share of Backhaul Usage

Backhaul Requirements for Individual Subscribers

Basic Backhaul Issue

Danger of Overcapacity

Unexpected Video Success

Unstable Video Backhaul Demand

4 MOBLE INDUSTRY REVENUE

Introduction

Introduction

Mobile Wireless ARPU

ARPU Growth

Maintaining ARPU

Major Players ARPU

ARPU Distribution Amongst Major Players

Boosting ARPU with Non-Voice Services

Subscribers and Minutes of Use

Subscriber Growth

Revenue per Megabit

Revenue for Different Services

New Services Replace Revenue Loses

5 DECLINE OF DS1

Introduction

Introduction

Current Backhaul Solutions

Current DS1 Deployments

Rising Demand and Falling Value of MoU

Backhaul Spending Trends

Backhaul Spending Assumptions

Future Concerns

DS1 Weaknesses

Case Against DS1

DS1 Replacement Timeline

DS1 Repacement Priorities

Quality of Service

Network Monitoring

Speed of Provisioning

Price as Replacement Goal

Flexibility as Replacement Goal

Moving Backhaul in House

Partial In House Builds

Opportunities for Current Backhaul Suppliers

Wired Upgrade Paths

In House Backhaul

DS-3 or SONET

Pseudowire over Copper

6 BACKHAUL MARKET DYNAMICS

Market Drivers

Video Service Rollouts

Growing Number of Voice Minutes

Growth in Number of Cell Sites

Continued Reconfiguration of Cell Coverage

Increasing Data Service Usage

Market Restraints

Cost of Service

Increasing Use of Provider’s Own Networks

New Backhaul Technologies

Price of Service