There are several factors driving the growth of the Global Ethernet Backhaul Equipment market, one of which is the unstoppable demand for mobile data applications. The inexorable rise of data traffic from smart mobile devices is steering the increasing market for network operators. Currently, service providers globally are compelled to proactively take a strategic and aggressive stance to build out data-intensive network infrastructures, a trend that is likely to continue throughout the period 2012-2016.

In the markets where backhaul equipment adoption has been growing, there will be increasing competition among operators. This is pushing down service pricing and increasing the need for flexibility and intelligence so that providers can differentiate their services from those of competitors.

Operators, too, are increasing the pressure on equipment vendors to provide lower cost solutions from a capital expenditure perspective as well as an on-going maintenance and operational expenditure perspective. Mobile operators are very sensitive to costs as the service revenue that they receive from their customers is not rising as quickly as the capacity required to support the customers’ network backhaul needs.

Further, the report states that one of the major challenges in this market is the divergence between mobile data demand and generated revenue. In the current Telecom market, mobile operators are looking for new ways to increase their revenue while also meeting increasing customer demands. With the average revenue per unit for traditional voice services dramatically decreasing, network operators are seeking to optimize their existing mobile networks to deliver next-generation, content-rich services. There are vast opportunities to enter the new markets created by the emergence of new technologies. However, the market faces the challenge of maintaining cost-effectiveness while meeting the bandwidth and quality needs of end-users.

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