Report: Microwave backhaul market to ride growth, internal flux

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The microwave backhaul market is seeing strong fluctuations as the growing need for wireless networks to support mobile data usage is driving revenue growth while at the same time divestments by infrastructure providers is expected to results in consolidation, according to a new report from Visant Strategies.

“Mobile data continues pushing the mobile wireless infrastructure industry and the point-to-point microwave industry as wireless carriers build out robust, data optimized networks,” said Andy Fuertes of Visant Strategies, in a statement. “But like the mobile infrastructure industry the PTP industry is undergoing transformation and consolidation.”

The report noted that the selloff of PTP product lines by vendors could result in opportunities for existing independent PTP players. The firm added that it expects the overall wireless backhaul market to grow 6% this year, a slight dip from 2011 results.

“PTP radio revenues grew 8% in 2011 from 2010 due mainly to continued upgrades to mobile backhaul networks,” said Larry Swasey of Visant Strategies, in a statement. “Data demand in leading wireless nations is key, but mobile operators in emerging markets are also opting to upgrade backhaul links at least at key aggregation points for future data demand.”

A recent report from Infonetics Research found that while microwave equipment sales slowed a bit in 2011, the market is set for growth in the coming years due to expanding LTE network deployments and the increased use of small cell technologies.

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Dan Meyer

Editor-in-Chief, Telecom Software, Policy, Wireless Carriers
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Dan Meyer started at RCR Wireless News in 1999 covering wireless carriers and wireless technologies. As editor-in-chief, Dan oversees editorial direction, reports on news from the wireless industry, including telecom software, policy and wireless carriers, and provides opinion stories on topics of concern to the market such as his popular Friday column “Worst of the Week.”