Over 50 percent of wireless backhaul equipment spending will come from Asia-Pacific

MELBOURNE, AUSTRALIA: The total spending on wireless backhaul equipment in Asia-Pacific (AP) will reach $3.8 billion in 2016, a CAGR of 5.1 percent from $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, VP 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 $359 million in 2010 to $825 million 2016. China, Japan and Korea as a group will account for spending of $2,072 million in 2010 growing to $2,614 million in 2016, a CAGR of 4 percent.