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Wireless can save up to 31% of costs in transitioning to fibre backhaul
Our latest white paper examines how mobile operators planning to move to fibre backhaul can significantly lower costs by using wireless now, and investing in fibre later.
This strategy uses wireless as an interim solution for operators that need to increase backhaul capacity, but cannot move to fibre today.
The paper shows that over ten years, operators can reduce the Net Present Value (NPV) of their backhaul upgrade by:
- 7% in developed markets and 31% in emerging markets compared with leased fibre
- 14% in developed markets and 27% in emerging markets compared with built fibre.
Fibre: a complex journey
The transition to fibre backhaul is often complex, expensive, and time consuming.
Building a fibre network requires a huge initial investment and a long deployment time, with permitting and negotiation of right-of-way access rights often taking longer than installation itself.
If an operator chooses to lease fibre but does not have a privileged relationship with a fibre provider that ensures affordable pricing, it may find high rental costs in some areas, especially in emerging markets.
However, a hybrid approach can ease the pressure of transitioning to fibre, upgrading networks and making the necessary investments.
The white paper outlines that there is plenty of breathing space to be had by not jumping straight in to a full-on fibre commitment.
It provides new financial analysis on the implications for operators choosing from different backhaul solutions - wireless, leased fibre, and built fibre - and compares these choices to the adoption of wireless backhaul as an interim solution in both developed and emerging markets.
If they have access to spectrum, operators may save money by initially deploying a wireless backhaul solution that is paid off in a short period, and moving to fibre gradually at a later time, when and where it becomes available or cost effective, or when the operator is ready to deploy it.
The overall cost savings of the wireless-to-fibre solution are due to the combined effect of the lower cost of ownership of wireless backhaul and the financial benefits tied to postponing fibre investment.
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