Vodafone Says Affordable Backhaul is an Issue

By

It appears backhaul strategy is becoming more significant as mobile service providers make the transition to faster networks. The ability to use the middle mile and backhaul assets owned by cable operators were among the reasons mobile service provider Vodafone bought Ono and Kabel Deutschland in Germany, for example.

But Vodafone argues European Union regulators must do more to assure Vodafone and other new contestants that affordable backhaul is available. Specifically, Vodafone wants lower prices for optical backhaul facilities, and argues regulation might be the only way to assure such access.

Those issues should escalate, as wireless backhaul has been more prominent in European mobile operator backhaul strategy than is typical in North America. So, as demands for an order of magnitude more backhaul capacity grow, European mobile operators are going to have to consider shifting from wireless to optical fiber backhaul.

In North America, the switch is primarily from copper-based special access to optical Ethernet access, given the historic North American service provider preference for fixed network backhaul.

Nearly everywhere, competitors complain about incumbent telco advantages where it comes to ownership of backhaul and access facilities.

So “market power” tests will be relevant. Service providers without facilities will want access, at sort of low wholesale rates, to incumbent backhaul facilities, and incumbents just as certainly will resist.

Complicating matters, in some markets, is the growing availability of cable TV facilities that might be used, but not on a mandatory access basis. Typically, cable operators are happy to sell commercial retail access, but resist mandatory wholesale requirements.

But some might suggest that it is additional facilities-based supply which “solves” the backhaul problem, not wholesale policies, even if wholesale often is the only reasonable option in some regions.

Such calls for mandatory wholesale at reasonable prices are a never-ending part of the competitive telecommunications business, as new entrants frequently cannot afford to build their own facilities.

What is new is the salience of mobile backhaul access.




Edited by Maurice Nagle

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Coding and Invention Made Fun

By: Special Guest    10/12/2018

SAM is a series of kits that integrates hardware and software with the Internet. Combining wireless building blocks composed of sensors and actors con…

Read More

Facebook Marketplace Now Leverages AI

By: Paula Bernier    10/3/2018

Artificial intelligence is changing the way businesses interact with customers. Facebook's announcement this week is just another example of how this …

Read More

Oct. 17 Webinar to Address Apache Spark Benefits, Tools

By: Paula Bernier    10/2/2018

In the upcoming webinar "Apache Spark: The New Enterprise Backbone for ETL, Batch and Real-time Streaming," industry experts will offer details on clo…

Read More

It's Black and White: Cybercriminals Are Spending 10x More Than Enterprises to Control, Disrupt and Steal

By: Cynthia S. Artin    9/26/2018

In a stunning new report by Carbon Black, "Hacking, Escalating Attacks and The Role of Threat Hunting" the company revealed that 92% of UK companies s…

Read More

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More