The launch of 3G and 4G services coupled with increasing availability of affordable smartphones is leading to an exponential increase in data usage in India. To keep pace with this demand, operators are strengthening their backhaul networks to support a number of next generation network mobile technologies. In an interview with tele.net.in, Ashish Basil, partner, telecom practice, Ernst & Young, discusses the key growth drivers of the Indian backhaul market, challenges faced by the operators in upgrading these networks and key industry trends.
Excerpts?
What are the current and emerging trends in backhaul network deployments in India?
At present, microwave is largely used as the main backhaul option for mobile cell sites in India. Limited fibre connectivity and high cost of fibre network deployment in the country led to the widespread adoption of microwave as the preferred backhaul technology by operators. With growth in data usage, operators are considering transition to IP-based backhaul to support next generation network mobile technologies and are transforming their networks. Some emerging technologies include Wi-Fi offload, use of femtocells, picocells and E-Band communication.
What are the key growth drivers for backhaul market in India?
The roll out of 3G and 4G services coupled with the availability of low cost devices such as smartphones and tablet PCs is going to drive the demand for high capacity internet connectivity. Further, higher internet speed would require strong backhaul support.
What are the key challenges facing the operators on the backhaul front?
Historically, backhaul networks designed by operators were mainly time-division multiplexing (TDM) based and primarily supported voice. With the demand shifting towards data usage, operators will need to now convert their current infrastructure to support data uptake along with voice. This would require significant investment from operators, which poses a challenge in a scenario of low average revenue per user from data subscribers.
What are the challenges associated with the service providers migrating to an all IP-backhaul network?
Given that voice continues to be a major source of revenue for the Indian operators, players will need to have a backhaul network that would support both traditional voice subscriber base and data users. Currently, operators are looking for a solution which takes care of both the TDM and IP traffic. They are focusing on hybrid backhaul solutions, where voice and real-time traffic are separated from high speed downlink packet access and mobile broadband services.
What are the backhaul strategies that are being deployed by operators for 2G and 3G? How are these going to change with the launch of LTE services?
To support increasing data usage in the cities, as an immediate solution, operators are laying fibre to connect the tower sites (which mostly are on microwave backhaul today) to the nearest intra city fibre node and this entail minimal incremental investment. In the long run most operators would be moving towards full IP backhaul networks. With the launch of long term evolution services, date usage is only going to surge further and therefore the demand for stronger backhaul networks would become inevitable.
