A survey of executives from roughly 500 wireless Internet service providers (WISPs) showed that a clear majority prioritized performance over cost in choosing a wireless backhaul solution.
A full 63% of the respondents cited performance as the single most important factor in a wireless backhaul choice. More than 90% of participants answered a related question by saying that higher bandwidth, or providing bandwidth levels otherwise unavailable, were their main competitive advantages.
James Hackett, business development manager at Cruzio Internet, said that he agreed with the survey results that performance is the number one factor. Cruzio uses a fiber/wireless hybrid network to provide connectivity in Santa Cruz county, Calif. Both high tech companies and high tech agricultural operations are eager for wireless connectivity in an area that Hackett said has been underserved for its backhaul needs by competitors such as AT&T and Comcast.
“We’ve found that we can leapfrog ahead and deliver end-users bandwidth and speeds that they just can’t get anywhere else, by using wireless technology,” Hackett said.
Wireless backhaul provider Exalt Communications commissioned the blind study in October to get insight into the breakdown of technologies WISPs are using for backhaul, issues driving the business, and what effect, if any, the economy has had on WISPs’ business growth.
The survey reflected optimism among WISP execs, as 75% reported higher dollar sales in their previous business quarter and 60% expect business conditions to improve in the next six months. Nearly 80% of respondents expect that the WISP business also will be thriving in five years. But spectrum constraints remain a major concern, with 49% of participants indicating that access to spectrum remains the biggest factor affecting the health of their businesses.
“Across the globe, we’ve seen access to spectrum as a major concern for operators of all types,” said Peter Jarich, vice president of consumer and infrastructure at Current Analysis. “It’s not surprising to see this concern expressed by the WISP community. Nor, in the face of rising traffic demands, is it surprising to see backhaul performance as a major hot button. What is surprising is that cost is now a distant second to performance in this particular cost-driven market. Take together, the worries about spectrum and performance speak to the need for scalable solutions with the flexibility to support a wide array of bands, including license-exempt spectrum.”
Other survey findings included:
- 73% of WISPs use fixed wireless as their primary solution for network backhaul, with microwave accounting for 75% of their networks.
- Their biggest worry is acquiring new customers.
- The most important factors cited in continuing success were pricing for services (31%) and cost control (30%).
More information from the survey is broken down in the following infographic from Exalt:
