Backhaul at front and center of next-gen evolution

Editor’s Note: This article originally appeared in RCR Wireless News’ January Special Edition Wireless Infrastructure: The Engine for Economic Recovery. Look for our March Special Edition, coming soon.
One topic that has continually cropped up in conversations I have had over the past several months is the issue of backhaul capabilities for next-generation networks. Those conversations have typically revolved around the expected difficulties in getting enough capacity to cell sites in order to support the expected surge in network traffic that next-generation networks are set to spur.
This issue was brought front and center during a recent WiMAX event in Florida where Barry West, long-time industry executive and current president of International at Clearwire Corp., noted the company’s ongoing deployment of its WiMAX network involves the deployment of two networks, stating: “We are building out two networks, not one. You are building a backhaul network the likes of which the world has never seen before.”
It seems not too long ago when dropping a T1 line or two into a cell site was enough to handle even the most demanding backhaul needs. But, with the advent of more powerful 3G network technologies and, maybe more importantly, the advancement of devices that can take advantage of those networks, those old models are no longer valid.
I remember speaking with an executive from a wireless carrier several years ago as they were just rolling out 3G services and asking if there was any concern that the new technology would encourage customers to be more aggressive in using their wireless data service. I was told – perhaps slightly tongue in cheek – that the carrier would love to be in a position of not having enough capacity to handle all of that traffic as it would mean a steady stream of revenues rolling into the carrier. Now we have found out that this may not be the case as data pricing has not been able to keep up with demand. As AT&T Mobility President and CEO Ralph de la Vega recently noted, around 3% of AT&T Mobility customers are generating 40% of the traffic. Because of this, AT&T Mobility is looking at a tiered pricing model for its wireless data service in order to squelch bandwidth hogs.
This all comes back to a cell site’s ability to transfer the gobs of incoming data transmission back to the Internet in an efficient and cost-effective manner. Cell site operators are not going to invest the capital needed to upgrade those sites unless there are enough carrier tenants to make it cost effective. And carriers are becoming more selective in targeting new sites that have the necessary backhaul capabilities already in place. A bit of a chicken-and-egg scenario.
Regardless of which comes first, for next-generation networks to fulfill the promises being made today, both parties are going to need to work together to ensure that their backhaul networks do not become the bottleneck strangling the growth of wireless services and the wireless industry.