Next Catalyst for Cable MSOs – Analyst Blog

Significant growth of mobile data and video traffic resulted in an unexpected future growth catalyst for the cable MSOs in the U.S. Increasing deployment of 3G mobile networks and massive growth of high-end feature rich smartphones promulgate requirements to expand coverage and infrastructure by wireless carriers. Telecom operators are facing tough times to manage traffic congestion and the escalating bandwidth costs.

 

This situation gives cable operators a chance to play a vital role in managing mobile backhaul networks. Cable operators have been investing in fiber-based infrastructure and increasingly deploying Ethernet networks that are being used by telecom operators for connecting wireless towers in order to manage backhaul traffic.

 

Large cable MSOs, e.g., Comcast Corp. (CMCSA), Time Warner Cable Inc. (TWC), and Cox Communications Inc, are technically at par with telecom giants providing triple-play voice, data, & video traffic transport. These cable operators are already present in most of the attractive wireless markets in the U.S. and very close to the actual points of presence. Cable operators are also increasingly rolling out Ethernet services for several business entities for which these networks can be used as enterprise mobile backhaul.

 

Various industry sources predicted that total backhaul links for base stations and switching elements are likely to cross 500,000 in the U.S. by 2015. As a result, mobile backhaul network may become a multi-billion dollar market by that time. Emerging 4G WiMAX and LTE networks will also create impressive demand for wireless tower and thereby generate the need for backhaul networks.