Mobile backhaul options

Spectrum analysis and recommendations

September 2018

Copyright © 2018 GSM Association

The GSMA represents the interests of mobile ABI Research provides in-depth analysis and
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This report was authored by

Jake Saunders
Vice President, Asia-Pacific & Advisory Services

Nick Marshall
Research Director
 MOBILE BACKHAUL OPTIONS

Contents
1 Executive Summary 2 5 Spectrum availability38
5.1 Data throughput 39
2 Fixed versus Wireless Telco Backhaul6
5.2 Sub-6 GHz 42
2.1 Growth in subscriptions 7
5.3 Microwave spectrum in the
2.2 Upgrading LTE 7
10 GHz to 40 GHz range 44
2.3 The outlook for 5G 8
5.4 Upper microwave wave bands
2.4 5G needs additional access spectrum 9 (41 GHz to 100 GHz) 48
2.5 Mobile data traffic strains the network 9 5.5 Potential regulatory considerations 52
2.6 Technical capabilities of backhaul solutions 11
6 Spectrum backhaul licensing procedures54
2.7 Macro cell site backhaul deployments 15
6.1 Types of licensing procedures 55
2.8 Addressing small cell deployments 17
6.2 Per link spectrum licensing 55
2.9 Small cell site backhaul deployments 19
6.3 Block spectrum licensing 56
2.10 Stakeholders analysis 20
6.4 Lightly licensed spectrum 57
2.11 Potential regulatory considerations 21
6.5 Shared spectrum licensing 57
3 Wireless backhaul equipement 6.6 Unlicensed spectrum 58
harmonization22
6.7 Quantitative spectrum license summary 60
3.1 Wireless backhaul equipment vendor
6.8 Stakeholders analysis 62
ecosystem23
6.8 Potential regulatory considerations 62
3.2 Impact of fragmented spectrum bands 25
3.3 Opportunities for standardizing 7 Recommendations and policy options64
wireless backhaul 26 7.1 The changing face of cell site backhaul 66
3.4 Hybrid wireless backhaul 7.2 Modulation schemes and multi-band
solution integration 26 aggregation67
3.5 Stakeholders analysis 27 7.3 Ecosystem development and
3.6 Potential regulatory considerations 28 recommendations68
7.4 Regulatory recommendations 69
4 LoS versus NLoS wireless backhaul30
4.1 LoS versus NLoS comparison 31
4.2 Topological considerations 32 Appendix 1 72
4.3 TCO backhaul considerations 34
Appendix 2 76
4.4 Regional PMP spectrum availability 35
4.5 Stakeholders analysis 36 Acronyms 82

4.6 Potential regulatory considerations 37

 MOBILE BACKHAUL OPTIONS

1 Executive Summary
Total mobile service provider revenue stood at more than
US$1.05 trillion and supports nearly 800 mobile operators, as well
as a highly competitive mobile device, infrastructure, and software
developer ecosystem.

Executive Summary 2
 MOBILE BACKHAUL OPTIONS

At the end of 2017, total mobile subscriptions worldwide represent 55% of total subscriptions in 2025, but they
reached 8.1 billion, with an annual growth rate of represent 91% of the total traffic generated in 2025.
5.4% year-on-year. A number of regional markets are
saturated, but global subscriptions will continue to grow Mobile operators have a challenging time backhauling
to reach 9.8 billion by 2025. 3G and 4G will represent the mobile voice and data traffic from varied
51% of total subscriptions, while 5G subscriptions are environments, such as urban, suburban, rural, offices,
anticipated to surpass 849 million. Over the course residential homes, skyscrapers, public buildings, tunnels,
of ABI Research’s forecasts, mobile data traffic is etc. Table 1 outlines how mobile operators rely on a
anticipated to grow at a Compound Annual Growth variety of backhaul approaches to transmit their traffic
Rate (CAGR) of 28.9% to surpass 1,307 exabytes on an to and from macro and small cell base stations.
annual basis in 2025. 4G and 5G subscribers may only

Table 1

Mobile Backhaul Technology Trade-Offs

Wireless vs Fixed vs Satellite
Segment Microwave V-Band E-Band Fiber-optic Copper Satellite
(7–40 GHz) (60 GHz) (70/80 GHz) (Bonded)

Future-Proof Available
Medium High High High Very Low Low
Bandwidth

Deployment Cost Low Low Low Medium Medium/High High

Suitability for Outdoor Cell- Outdoor Cell- Outdoor Cell- Outdoor Cell-
Indoor Access
Heterogeneous Site/Access Site/Access Site/Access Site/Access Rural only
Network
Networks Network Network Network Network

Support for Mesh/Ring Yes where

Yes Yes Yes Indoors Yes
Topology available

Interference Immunity Medium High High Very High Very High Medium

Range (Km) 5~30, ++ 1~ ~3 <80 <15 Unlimited

Time to Deploy Weeks Days Days Months Months Months

License Required Light License/ Licensed/

Yes No No No
Unlicensed Light License

Note: Shading indicates preferred choice for 5G mobile backhaul.

Source: ABI Research

Mobile carriers are increasingly facing the reality of driving a significant share of fiber (26.2%). Bonded
having to deploy a Heterogeneous Network (HetNet) copper xDSL connections (3.5%) are available in 2017,
architecture of macro and small cells that may rely but the need for this technology is declining over the
on 3G, 4G, and 5G. Microwave and millimeter bands next 7 years. Satellite-based backhaul, which primarily
(V-band (60 GHz) and E-band (70/80 GHz)) are very plays a role in backhauling traffic in peripheral
suitable for HetNet backhaul because it allows for locations or rural environments where microwave may
outdoor cell site and access network aggregation of not exist, represents 1.9% of backhaul links worldwide.
traffic from several base stations, which can then be
handed off to the mobile switching centers and finally On a worldwide basis, fiber-optic backhaul is expected
the core network. to grow to 40.2% of macrocell sites by 2025, which just
eclipses microwave in the 7 GHz to 40 GHz band with
In 2017, the majority share of backhaul links (an 38.2%. Microwave Line-of-Sight (LoS) in the 7 GHz to
aggregate of macrocells and small cells) deployed was 40 GHz bands is still a long-term viable solution for
in the traditional microwave 7 GHz to 40 GHz (56.1%) macrocell sites. Microwave links in the 41 GHz to 100
bands. The higher bandwidth requirements of LTE are GHz bands will double from 5.1% to 12.6%.

Executive Summary 3
 MOBILE BACKHAUL OPTIONS

Chart 1

Total (Macrocell & Small Cell) Backhaul by Method

World Markets, Historical 2017 and Forecast 2025
100%
Total Site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Chart 2

Total (Macrocell & Small Cell) Backhaul by Method

By Region, Historical 2017 and Forecast 2025
100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Executive Summary 4
 MOBILE BACKHAUL OPTIONS

This report highlights the mobile cellular backhaul Ownership (TCO) considerations, as well as a synthesis
options available to the mobile service provider, the of policy and industry recommendations based on
Strengths, Weaknesses, Opportunities, and Threats primary and secondary research.
(SWOT) facing each solution, and Total Cost of

Executive Summary 5
 MOBILE BACKHAUL OPTIONS

2 Fixed versus wireless

telco backhaul
Wireless and fixed-line backhaul infrastructure is an essential
component of the mobile telecommunications network. Voice traffic,
text messages, instant messages, mobile data, and video traffic all
need to be backhauled to and from the mobile cellular base stations
to the core network. The success of 4G Long-Term Evolution (LTE)
has placed even greater challenges on mobile operators as they strive
for more network capacity, latency reduction, and the need to deliver
an enhanced user experience. As of January 2018, the Global mobile
Suppliers Association (GSA) reported there were more than 651
LTE operators in more than 202 countries. By 2020, the stakes will
increase further as next-generation 5G networks are commercialized.

Fixed versus wireless telco backhaul 6

 MOBILE BACKHAUL OPTIONS

2.1 Growth in subscriptions

At the end of 2017, total mobile end-user subscriptions is 35.2% of the overall total, but by 2025, LTE will
worldwide exceeded 8.1 billion, with an annual surpass 43.3%. By 2025, 5G subscriptions will start to
growth rate of 5.4% year-on-year. A number of hit critical mass by reaching 849 million. At present,
regional markets are saturated, but global end-user most Machine-to- Machine (M2M)/Internet of Things
subscriptions will continue to grow to 9.8 billion by (IOT) devices use short range unlicensed spectrum.
2025. The 2017 subscription count means that overall However, cellular-based IOT devices, including LTE
cellular penetration stood at 110%. At the end of 2017, Enhanced Machine Type Communications (eMTC) and
3G and 4G subscriptions totaled 5.94 billion, or 73.2%. Narrowband IoT (NB-IoT) are expected to grow to 4.2
LTE subscriptions have been growing at a rapid rate; billion by 2025 from 376 million in 2017.
at the end of 2017, there were 2.86 billion, which

Chart 3

2G, 3G, 4G, and 5G Mobile End-User Subscriptions Excluding IoT

World Markets, Forecast: 2015 to 2025
10
Subscriptions (Millions)

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

GSM UMTS HSPA 2G CDMA 3G CDMA LTE (FD)*

LTE (TD)* LTE-Advanced LTE-Advanced Pro Gigabit LTE 5G Other

Source: ABI Research

2.2 Upgrading LTE

While 5G is on the horizon, a number of technical Advanced Pro provide peak bandwidth enhancements,
innovations in LTE have been approved by the 3GPP. greater energy efficiency for IoT connections, more
LTE-Advanced Pro, also known as 4.5G, is a notable reliable emergency first responder services, and a
upgrade that will benefit LTE telcos in emerging and better voice and video user experience. LTE-Advanced
developed markets. The technical features of LTE- Pro’s most notable feature is that it enables high

Fixed versus wireless telco backhaul 7

 MOBILE BACKHAUL OPTIONS

data rates up to 1 Gbps, which is 8X to 10X higher • Lower Latency: Shorter transmission time interval
than standard LTE. This high data rate is expected to and round-trip delay time (10 ms)
be particularly invaluable for video traffic as mobile
• Advanced Antenna Features: Three-Dimensional
devices start to support 2K and 4K resolution. Other
(3D)/full-dimension Multiple-Input Multiple-Output
key features include:
(MIMO), elevation beamforming
• Peak Bandwidth: Larger than 450 Mbps, 256 QAM • Utilization of 5 GHz Band: LTE-Unlicensed,
downlink/64 QAM uplink Licensed Assisted Access (LAA)/Enhanced LAA
(eLAA), MulteFire
• Carrier Aggregation (CA): Three Component
Carriers (CC) CA and higher, up to 32 carriers, • DigitalTV: LTE Broadcast, single cell Point-to-Point
enabling Category 9 and above devices (PMP) through superposition coding

2.3 The outlook for 5G

AT&T and Verizon Wireless are jostling to be the first to needs of a specific application, as an “instance” or a
deploy commercial Fixed Wireless Access (FWA) 5G slice of the entire network. Examples of network slicing
services by the end of 2018, but the first mainstream could be Wireless to the x (WTTx) ultra-broadband
5G mobile and fixed wireless services are expected users, public safety 5G, Industrial IoT, or supporting
to commence in 2020. South Korea, Japan, and the autonomous driving (Vehicle-to-Infrastructure (V2X)).
United States are likely to be the first countries to do
so. 5G is intended to deliver an end-to-end digital In January 2018, the GSA reported that 113 operators in
transformation with the objective of minimizing 56 countries had started 5G trials. Some of these trials
Operating Expenditure (OPEX), delivering efficiencies, have been small technical evaluations, while in other
and driving revenue growth. countries, they have been wide area pre-commercial
demonstrations. Based on ABI Research’s own research,
A prominent feature of 5G is network slicing. Network all of the top 50 countries will have one or more 5G
slicing treats related logical network functions from the networks up and running by 2024 (see Figure 1).
Radio Access Network (RAN) to the core to serve the

Figure 1

Anticipated Commercial Deployment of 5G Services

World Markets, Forecast: 2018 to 2024

2019 2020 2021 2022 2023 2024

Source: ABI Research

8 Fixed versus wireless telco backhaul Fixed versus wireless telco backhaul 8
 MOBILE BACKHAUL OPTIONS

2.4 5G needs additional access spectrum

5G offers an unprecedented leap in bandwidth speeds important harmonized 5G “mid-band.”
compared to the previous generation. This is made
possible by using high-band frequency spectrum, as The step change in performance expected from 5G
well as key antenna technologies, such as massive networks is, in large part, based on using significantly
MIMO. Bands in three spectrum ranges will be needed more access spectrum. The key virtue of the bands
for 5G: Sub-1 GHz, 1-6 GHz, and above 6 GHz. Crucial above 24 GHz, such as 26 GHz and 28 GHz, is that
5G spectrum bands above 24 GHz will be agreed upon significantly wider channel bandwidths should be
at the World Radiocommunication Conference in 2019 available, leading to significantly faster data speeds
(WRC-19); this includes 26 GHz and 40 GHz, which and network capacity. As 5G will employ significantly
already have significant international support for 5G more spectrum in the access portion of the networks,
access. Outside of the WRC process, the 28 GHz band it will also require significantly higher bandwidth
is also supported for 5G access by important markets backhaul solutions. Section 5 discusses the key
such as the United States, Japan, and Korea. For the wireless backhaul bands and what migration may need
initial enhanced mobile broadband use case, spectrum to occur to accommodate future 5G access bands.
within the 3.3 GHz to 3.8 GHz range is emerging as an

2.5 Mobile data traffic strains the network

All of these mobile data subscribers are continuing to Over the 8-year period, there is a crucial shift in the type
make greater and greater demands on the operators’ of traffic that will take its toll on the mobile operator.
networks. Over the course of ABI Research’s forecasts, In 2017, worldwide video streaming generated 81.6
mobile data traffic is anticipated to grow at a CAGR of exabytes in traffic or 49.3%. By 2025, video streaming
28.9% to surpass 1,307 exabytes on an annual basis in expands to 70% of total mobile traffic worldwide. The
2025. 4G and 5G subscribers may only represent 55% global average amount of traffic generated per user
of total subscriptions in 2025, but they represent 91% per month is expected to grow from 1.71 gigabytes as
of the total traffic generated in 2025. of year-end 2017 to just under 11.3 gigabytes. In certain
markets like Korea and Japan, mobile smartphone users
were already generating 12 gigabytes in 2017.
Chart 4

Mobile Network Data Traffic by Traffic Type

World Markets, Forecast: 2015 to 2025
1,400,000
Petabytes

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Web/Internet VoIP Video Streaming/TV P2P Audio Streaming
Source: ABI Research

Fixed versus wireless telco backhaul 9

 MOBILE BACKHAUL OPTIONS

M2M and the IoT may push up the number of non- Common Public Radio Interface (CPRI) architecture
human connections, but a large proportion of the requires bandwidth of 1 Gbps to 10 Gbps per sector,
data traffic generated will come from end users’ while a 5G base station with the upgraded Enhanced
smartphones and other mobile devices, such as tablets CPRI (eCPRI) architecture requires 10 Gbps to 25 Gbps.
and laptops. There will be fairly dramatic cyclical shifts However, mobile service providers cannot ignore
in data traffic usage throughout the day, as end users the latency requirements for 4G and 5G services. A
commute/travel during a 24-hour day. Additional cell 4G or 5G base station based on eCPRI architecture
sites, most likely small cell deployments, will need to requires no more than 75 µs, but even in the most
be deployed to address these cyclical hotspots as end latency-tolerant scenario (S1/NG), latency of no
users commute from home to work and back again. more than 30 ms is needed. Many operators have
either upgraded their networks to LTE-Advanced
or are in the process of doing so. In the case of
LTE-Advanced, new RAN optimization techniques
impose critical performance requirements on the X2
2.5.1 THE IMPORTANCE OF LATENCY interface (essentially the IP control and user plane for
communications links), which results in a latency cap
The exponential growth of mobile data traffic will of no more than 10 ms from end to end. This means
be driven largely by the uptake of streaming TV and latencies across the backhaul network need to be
movie services, as well as video content in social media <1 ms. In 5G, for mission-critical applications, latencies
and instant messaging. A 4G base station based on a will need to be sub-1 ms.

Figure 2

4G and 5G Bandwidth and Latency Requirements

LTE Bandwidth Latency

CPRI 1–10 Gbps/sector 75 µs

S1/NG 1–2 Gbps/site 30/5 ms

5G NR Bandwidth Latency
eCPRI 10–25 Gbps 75 µs

F1 1–10 Gbps 5 ms

S1/NG 1–10 Gbps 30/5 ms

Note: Actual numbers will depend on site size, access spectrum and network type

Source: Ericsson (2017)

Only areas served with fiber-optic cable or microwave served by satellite backhaul, mobile operators may be
links will be able to support the latency tolerances constrained to 2G, 3G, and non-latency-sensitive LTE
required by some LTE and 5G applications. In areas services.

Fixed versus wireless telco backhaul 10

 MOBILE BACKHAUL OPTIONS

2.6 Technical capabilities of backhaul solutions

When it comes to backhaul solutions, mobile operators While fiber-optic has tremendous operational capacity,
have several technical solutions at their disposal. its main limitation is the cost and logistics of deploying
Copper line, primarily as a bonded Digital Subscriber fiber-optic. Over the past 5 years, the cost of deploying
Line (DSL) solution, is still a backhaul option, but fiber-optic cable has come down, in addition to the
mobile operators are increasingly preferring fiber- purchasing price of the fiber-optic cable. Nevertheless,
optic where available, especially in city centers, but it can take several months to provision each cell
microwave is the mainstay solution for backhauling site with fiber-optic backhaul, Fiber may cost up to
traffic. Satellite backhaul is deployed for a marginal US$70,000 per km, depending on the location; 5 years
percentage of backhaul links for the network fringe ago, it was closer to US$100,000.
where existing backhaul infrastructure is not available
or new deployments where the operator has not been
able to secure long-term Point-to-Point (PTP) or PMP
microwave link licenses.
2.6.2 COPPER-LINE BACKHAUL

With 2G and even some 3G networks, copper-based

backhaul was the primary backhaul technology. Given
2.6.1 FIBER-OPTIC BACKHAUL the amount of traffic being generated from LTE users,
copper-based backhaul has become an infrequently
Optical fiber may be used as the physical medium used solution. At the heart of copper-based backhaul
connecting cell sites to Mobile Switching Centers is the T1/E1 protocol, which supported 1.5 Mbps to
(MSCs) and then to an exchange or central office 2 Mbps. Vendors such as Genesis Technical Systems
where it can be transferred to the landline network, have responded to the technical challenge by bonding
long haul metro, and regional networks. As the cost of two or more lines together. Having up to 12 bonded
fiber-optic cable has steadily come down in price and paired lines enables bonded copper backhaul to
more efficient deployment solutions, such as micro- provide over 150 Mbps downlink capacity over 1.5 km,
trenching and fiber-optic insertion solutions, have which was previously only capable of delivering
come into play, fiber-optic has become an increasingly 24 Mbps.
popular option for mobile service providers. The traffic
generated by LTE has accelerated the demand for Nevertheless, copper lines do not scale easily to
Fiber to the Tower (FTTT) and has required Mobile provide adequate bandwidth at a distance above a few
Network Operators (MNOs) to upgrade many aspects hundred meters (m) to support 3G and LTE broadband
of their backhaul networks to fiber-based Carrier usage. 5G traffic scenarios will prove particularly
Ethernet. challenging for mobile service providers. In bonded
configurations, monthly costs increase linearly with
Even though fiber has significant bandwidth, several bandwidth requirements.
techniques in use completely avoid any bandwidth
constraints, essentially rendering the fiber assets Another challenge with copper-based backhaul
future-proof. Wavelength Division Multiplexing solutions is due to available DSL bandwidth being
(WDM) technology combines multiple optical signals inversely proportional to distance, and the longer a DSL
by carrying each signal on a different wavelength or connection between the cell site and the aggregation
color of light. WDM can be divided into Coarse WDM point or digital subscriber line access multiplexer is,
(CDWM) or Dense WDM (DWDM). CWDM provides the lower the bandwidth of the connection is likely to
8 channels using 8 wavelengths, while DWDM uses be. Depending on the DSL variant in use, this generally
close channel spacing to deliver even more throughput limits the reach of DSL backhaul for LTE to around 500
per fiber. Modern systems can handle up to 160 m. DSL comes into its own in terms of mobile backhaul
signals, each with a bandwidth of 10 Gbps for a total for indoor small cells, in-building HetNets, and public
theoretical capacity of 1.6 Tbps per fiber. As can be venue small cell networks.
seen in Section 2.7, fiber- optic adoption is expected to
grow from 25.3% of macrocell backhaul links in 2017 to A number of DSL technologies are available, including
37.3% in 2025, but microwave is still the predominant ADSL2+ and VDSL2 that can be used to provide
backhaul solution due to its capacity capabilities and near-term bandwidth relief for high-bandwidth
deployment flexibility. applications like LTE. VDSL2 with vectoring has been

Fixed versus wireless telco backhaul 11

 MOBILE BACKHAUL OPTIONS

shown to achieve data rates of 100 Mbps at distances mobile telcos as they upgrade from 3G to 4G and 4G
of up to 400 m, and 40 Mbps can be supported with to 5G. Nevertheless, there are markets in Africa, South
loops as long as 1,000m. Pair bonding is a well- America, and the Middle East where satellite has a
established technique that can be used to either complementary role to play.
increase bandwidth or extend the reach of a given
bandwidth, making it suitable for LTE backhaul over 3GPP Evaluates Satellite Backhaul
short distances.
Due to its complementary role, there is ongoing
Ethernet over copper is suitable for indoor applications, standardization work being done. The 3GPP has already
such as small cells where backhaul can use the existing evaluated the potential of satellites for 5G backhaul as
in-building CAT5/DSL cable. Copper-based backhaul part of Release 14. It is now proceeding with at least two
solutions face particular challenges in emerging studies to determine the technical aspects of integrating
markets where the value of copper on the scrap satellite networks into 5G network infrastructure
metal market has led to theft of copper cable. Even in deployments. One study aims to define deployment
developed markets, telcos are upgrading copper links scenarios and related system parameters as well as to
with fiber-optic links to better serve mobile cell sites, as gain more information on channel models. The second
well as business and residential users. phase of the study will handle evaluation and definition
of RAN protocols and architecture. It is unclear what the
precise definition of any satellite component to 5G will
be at this stage. But it is clear the performance will be
notably lower than terrestrial IMT-2020.
2.6.3 SATELLITE BACKHAUL
LEO Satellite Provider Startups
Satellite backhaul is a niche backhaul solution for
mobile telcos. It is deployed in fringe areas of the Latency is a challenging bottleneck for satellite backhaul
network, usually in rural scenarios in emerging systems, especially for 4G and 5G traffic. Geostationary
markets. It is also used as an emergency backhaul satellite-link latency was seen to have a round-trip delay
communications link solution in developed and of around 500 ms to 600 ms, which can affect the
emerging markets. Furthermore, satellite backhaul may response time of 4G, and even 3G data applications.
be deployed as a temporary measure as the telco waits
for regulatory microwave licenses to be approved. A number of startup satellite providers, such as
OneWeb and Telesat, are attempting to address the
Satellite terminal vendors such as Gilat are positioning bandwidth and, just as crucially, the space satellite-to-
satellite as a fallback backhaul solution for rural sites ground latency challenges. Their approach is to deploy
where a small cell can be combined with a low- satellites in Low Earth Orbit (LEO). Instead of 36,000
cost satellite modem/router. A recent example of km from Earth, the satellites are 1,500 km away. While
backhaul with satellite technology involved Hughes this reduces LoS latency to ~50 ms, the LEO satellite
Network Systems, using its high-throughput satellite company may have to route traffic through additional
modem and Lemko Corporation’s Distributed Mobility LEO satellites to reach a satellite ground station. This is
Wireless Network. Over the years, satellite vendors because LEO satellites are constantly moving overhead
have been able to improve bandwidth and latency because they are not in geostationary orbit.
by implementing data compression, byte-level
caching, predictive cache loading, and data stream There are still large question marks concerning
de-duplication. For example, Gilat offers a satellite these LEO satellite systems. Many of these LEO
backhaul transceiver that supports 150 Mbps on the satellite systems are still at the design stage, so their
downlink and 10 Mbps on the uplink. commercial deployment status is uncertain. While LEO
satellite providers like OneWeb do have an explicit
From ABI Research’s analysis of backhaul link usage, goal of targeting the backhaul needs of mobile telcos,
satellite backhaul constituted 1.9% of worldwide it is far from certain if they can provide carrier-grade
backhaul links in 2017. By 2025, the percentage ratio reliability to mobile telcos, given the non-stationary
drops to 1.4 on a percentage basis. It should be noted LEO coverage, complexity of their networks, and the
the overall installed base of satellite backhaul links will need to hand-off traffic to terrestrial satellite gateways.
increase over the forecast period. But fiber-optic, and
in particular, microwave backhaul, are growing much
faster. They are the preferred backhaul solutions for

Fixed versus wireless telco backhaul 12

 MOBILE BACKHAUL OPTIONS

2.6.4 MICROWAVE BACKHAUL Due to adequate bandwidth, the possibilities of

operating the microwave link in Non-LoS (NLoS), as
Despite fiber being the first choice for mobile telcos well as in LoS, makes it suitable for mesh and ring
for 4G and 5G backhaul, most operators heavily rely topologies required in backhauling LTE outdoors. The
on microwave backhaul solutions in the 7 GHz to 40 drawback is that microwave requires that a license
GHz bands, as well as the higher microwave bands, be obtained, unless the link is in the E-band, which is
such as V-band (60 GHz) and the E-band (70/80 GHz). lightly licensed or even potentially unlicensed as in the
Backhaul links using the V-band or the E-band are case of the V-band. However, because of E-band’s and
well suited to supporting 5G due to their 10 Gbps to 25 V-band’s high frequency, it is subject to atmospheric
Gbps data throughput capabilities. The main drawback effects or rain fade, which can attenuate the signal
to fiber is its cost. Deploying fiber to a cell site involves and limit its range. This “limitation,” however, is being
trenching, boring, or ducting, and invariably requires turned to its own advantage. E-band is proving
permits. popular and practical as a solution for high bandwidth,
short distance links, which are required for small cells.
Microwave, on the other hand, is a low-cost option for
mobile backhaul, as is the higher frequency E- band; Furthermore, E-band links are being combined with
both can be deployed in a matter of days and support a lower frequency band with different properties that
a range of up to several miles. Microwave and E-band serve to get the best out of both bands. By combining
technologies are developing rapidly with innovations a lower-frequency band that has robust propagation
that include ACM, high order QAM, XPIC, compression properties with a higher-frequency band that has
accelerators, and MIMO, all aimed at increasing greater capacity, it is possible to achieve high capacity
bandwidth on the link: over longer distances with enhanced availability. For
example, in the northern latitude climate, the same hop
• Adaptive Coding and Modulation (ACM): ACM length can be achieved at 70/80 GHz as for 18 to 28
helps manage the modulation, coding, and other GHz. For a more tropical climate, the same hop length
signal and protocol parameters to the conditions on can be achieved at 70/80 GHz as for 15 to 23 GHz.
the microwave radio link.
• High Order Quadrature Amplitude Modulation
(QAM): 64-QAM and 256-QAM are often used
in digital cable television, but QAMs of 1024 are
becoming common in microwave links.
• Compression Accelerators: Other capacity-
boosting techniques are often employed that
involve compression accelerators (both hardware
and software) that are used to reduce the volume
of traffic on the microwave link by compressing and
de-duplicating the data payload.
• Cross Polarization Interference Cancellation
(XPIC): XPIC can potentially double the capacity of
a microwave link.
• MIMO: MIMO allows the use of multiple antennas
at both the transmitter and receiver to improve
communication performance.
• Multi-Carrier Bonding: Mobile operators are
increasingly combining a low-band microwave
link with a high band (typically E-band) to boost
capacity, but also to have the assurance of a reliable
link that is resistant to atmospheric attenuation
(e.g., rain fade).

Fixed versus wireless telco backhaul 13

 MOBILE BACKHAUL OPTIONS

2.6.5 PERFORMANCE AND TCO TRADE-OFFS

The comparative merits of the various backhaul solutions are complex and no one solution fits all scenarios. The
trade-offs for 4G and especially 5G mobile backhaul technology are listed in Table 2.

Table 2

Mobile Backhaul Technology Trade-Offs in Relation to 5G

Wireless versus Fixed versus Satellite
Microwave V-Band E-Band Copper
Segment (7–40 GHz) (60 GHz) (70/80 GHz) Fiber-optic (Bonded) Satellite

Future-Proof
Medium High High High Very Low Low
Available Bandwidth

Deployment Cost Low Low Low Medium Medium/High High

Suitability for Outdoor Cell- Outdoor Cell- Outdoor Cell- Outdoor Cell-
Indoor Access
Heterogeneous Site/Access Site/Access Site/Access Site/Access Rural only
Network
Networks Network Network Network Network

Support for Mesh/ Yes, where

Yes Yes Yes Indoors Yes
Ring Topology available

Interference
Medium High High Very High Very High Medium
Immunity

Range (Km) 5~30, ++ 1~ ~3 <80 <15 Unlimited

Time to Deploy Weeks Days Days Months Months Months

License Required Light License/ Licensed/

Yes No No No
Unlicensed Light License

Note: Shading indicates preferred choice for 5G mobile backhaul.

Source: ABI Research

Fixed versus wireless telco backhaul 14

 MOBILE BACKHAUL OPTIONS

The assessment is dependent on the location and line also runs the risk of being stolen in certain
the ground conditions facing the backhaul engineer. emerging markets. Copper is, therefore, being used
For wireless-based solutions, it is essential there is or upgraded to bonded copper where there are
sufficiently available spectrum for future deployments existing trenches or poles.
to the backhaul architecture. Deployment cost can be
Mobile carriers are increasingly facing the reality of
a key criterion when the network operator is faced with
having to deploy a HetNet architecture of macro and
deploying several hundred to potentially thousands of
small cells that may rely on 3G, 4G, and 5G. Microwave
(small) cell sites in a year.
and millimeter spectrum (V-band and E-band) is very
suitable for HetNets because it allows for aggregation
• While fiber-optic is considered to provide a
of traffic from several base stations at the periphery
versatile, high capacity backhaul link solution that
of the network, which can then be handed off to the
scales well as operators move from 3G traffic, to 4G
mobile switching centers and onto the core network.
LTE (and its incremental upgrades LTE-Advanced
The X2 protocol is an ultra-fast broadband-related
and LTE-Advanced Pro), and then onto 5G, it is also
protocol that allows 4G and 5G base stations to
a comparatively expensive option to deploy.
communicate directly with each other. This enables the
• Leased fiber-optic is approximately 4X the TCO operator to potentially use mesh topologies to offload
of microwave PTP and even the higher frequency traffic.
V-band (60 GHz) and E-band (70/80 GHz)
millimeter links. Indeed, microwave deployed in a Other criteria that operators are also burdened with
PMP configuration can be approximately half the are time to deploy and licensing. While a cell site is
cost of microwave PTP backhaul links. usually operational for several years, if not decades,
the network manager is often under pressure to get
• The cost of satellite terminal equipment located
a cell site “operational” as quickly as possible. Having
at the base station is in line with microwave
to wait several months for a fiber-optic or copper line
equipment installed at the cell site but the operator
connection to be provisioned to the cell site can be
also needs to factor in the “pay as you use”
debilitating on network traffic in the short term.
monthly usage fees. Recent new High-Throughput
Satellites (HTSs) have helped to reduce the cost
The “blue” highlighted cells in Table 2 indicate
per megabyte. At present, HTS fees is in the range
attributes that particularly benefit 4G, and especially
of US$1.5 to US$3 per GB transferred and there is
5G backhaul. Clearly, fiber-optic does have its role
reoccurring monthly fee of between US$500 to
to play in specific scenarios, and microwave links in
US$1,000 depending on the data speed required.
the 6 GHz to 40 GHz bands have been a mainstay of
The main challenge with satellite backhaul is its
wireless backhaul for macrocell sites; the V- band and
variable TCO aspect compared to flat-rate fiber or
E-band could play a more prominent role in the mobile
microwave links.
operators’ backhaul networks. Additional spectrum
• Bonded copper is not really being deployed on is being legislated and harmonized by a number of
newly commissioned sites. For the opportunity countries in the 92 to 114.25 GHz (W-band) and the
cost of having to dig a trench, operators are 130–174.8 GHz (D-band) bands to further boost the
preferring to deploy fiber-optic cable. Copper available backhaul capacity.

2.7 Macrocell site backhaul deployments

While the macrocell microwave LTE backhaul market On a worldwide basis, fiber-optic use for backhauling
will not grow at the same rate as small cell microwave grew to 39.6% of macrocell sites by 2025, which is a
backhaul, it does show consistent growth. In 2017, the robust growth rate, but microwave 7 GHz to 40 GHz
majority share of macrocell backhaul links deployed still captures 45.1% of all backhaul links. Microwave LoS
was in the traditional microwave 7 GHz to 40 GHz in the 7 GHz to 40 GHz bands is still a long-term viable
(56.9%). The higher bandwidth requirements of LTE solution for macrocell sites.
are also driving a significant share of fiber (27.2%).
Bonded copper xDSL connections (3.6%) were Microwave links in the 41 GHz to 100 GHz bands will
available in 2017, but the outlook over the next 7 years grow over time. For macrocell, backhaul links in this
is likely to decline. category will effectively double from 3.2% to 6.1%.

Fixed versus wireless telco backhaul 15

 MOBILE BACKHAUL OPTIONS

Transmission distances are contained to ~3 km, but GHz. What is notable is the more rapid decline of
being able to support data throughput of up to 25 copper-based backhaul links (3.6% share versus the
Gbps to even 100 Gbps makes it suitable for macrocell previous 10%). Copper has not scaled capacity-wise
sites in downtown locations with high levels of traffic. as effectively as microwave, which is comparatively
low cost to deploy, but has also experienced upgrades
There is some marginal (less than 1%) use of Wi-Fi in modulation, size of channels, and interference
for macrocell site backhaul (e.g., in some emerging mitigation. Mobile operators have not only upgraded
markets like India and Latin America), but the their access networks to support LTE-Advanced, but
unlicensed nature of Wi-Fi, combined with growing also LTE-Advanced Pro, so operators have opted
interference from neighboring public and private Wi-Fi for more scalable backhaul capacity solutions. In
access points, as well as poor transmission distances, the current forecast, satellite represented 2% of
severely limits deployments. Satellite will remain a links in 2017, compared to a forecasted 0.1% in the
niche solution, seeing some deployments in rural areas previous report. Satellite backhaul is a niche solution,
where microwave or other cabled technologies are an “edge of network” solution, but it does have a
hard to justify. complementary role to play in the mobile network,
especially in developing markets. In these markets,
Comparing the backhaul links analysis ABI Research low disposable income and universal coverage
performed in 2013 versus the current analysis based required by regulators can oblige operators to use
on historical 2017 data, the forecast for fiber-optic satellite backhaul. In some developed markets, satellite
deployment has been essentially in line with previous backhaul has been deployed in emergency or natural
expectations, as well as for microwave: 7 GHz to 40 disaster situations.

Chart 5

Macro Backhaul by Method

World Markets, 2017 and 2025
1.0
100%
Macro Cell-site Backhaul Usage

0.9 90%
0.8
80%

0.7 70%
0.6
60%

0.5 50%
0.4
40%

0.3 30%
0.2
20%
0.1 10%
0.0
0%
WW 2017 WW 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

Source: ABI Research

16 Fixed versus wireless telco backhaul Fixed versus wireless telco backhaul 16
 MOBILE BACKHAUL OPTIONS

Chart 6

Macro Backhaul by Method

Regional Markets, 2017 and 2025
100%
Macro Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

Note: Detailed total worldwide, and by region, 2G, 3G, 4G and 5G segmentations for backhaul links by method of transmission can be
found in Appendix 1 on page 66.

Source: ABI Research

2.8 Addressing small cell deployments

As LTE subscriber adoption and traffic builds, mobile These new sites will need to be compact, simple
operators have been increasingly reliant on small cell to install, and energy efficient, and incorporate an
site deployments. In 5G, small cells providing 3.5 GHz organically scalable and tightly integrated backhaul
and even higher 26 GHz or 28 GHz access coverage solution. As a result, there will be many more sites—
will be even more essential. Small cells promise a some vendor projections estimate that up to 10 small
new “underlay” of outdoor and indoor, low-power cells will be deployed for every macro site. Small cells
microcells, picocells, and even femtocells that are hold out the promise of great gains for end users, but
deployed on public and private infrastructure within pose a massive challenge for operators—particularly in
the urban environment. Sites being considered include: backhaul.

• Pole tops (e.g., street lighting, traffic lights, Small cell deployments, so far, have mainly been
telco poles, etc.) concentrated in Northeast Asia, Europe, and the
United States. Throughout the forecast period, the
• Busstops
installed base of macrocell sites grows from 11.1 million
• Building walls in 2017 to 14.1 million in 2025. In the same period of
time, small cells are expected to grow from 0.71 million
• Building rooftops
to 4.3 million (see Chart 7).

Fixed versus wireless telco backhaul 17

 MOBILE BACKHAUL OPTIONS

Chart 7

Installed Cell Sites by Cell Type

World Markets, Forecast: 2015 to 2025
20,000
Installed Basestations (000s)

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Installed Macro BTS Installed Small Cell BTS
Source: ABI Research

To address the backhaul needs of small cells, a combination of PTP and PMP solutions will be needed.

Fixed versus wireless telco backhaul 18

 MOBILE BACKHAUL OPTIONS

2.9 Small cell site backhaul deployments

To address the backhaul needs of small cells, fiber- the V-band, and the D-band, will encourage small
optic can prove costly and logistically challenging cell vendors to offer solutions with those operating
to execute on a comprehensive scale where there is parameters. The higher bandwidth and data rates
limited, pre-existing, installed fiber-optic cable. To available in the 60 GHz band means that this
date, a sizeable proportion of small cells deployed has technology will become a popular option as links are
been in urban cities with a high level of fiber-optic daisy-chained and aggregated for transport back to
provisioning. For example, in Tokyo, Japan, and Seoul, the network core (see Chart 8).
South Korea, small cells are serviced by fiber-optic
backhaul links in some locations. In the United States, The small cell market has had a more challenging
Crown Castle has installed more than 50,000 small outlook. Small cells have been regularly commented
cells supported by fiber-optic cable. on by vendors and mobile operators as a necessary
feature of the RAN to be able to handle the future
Fiber-optic is the predominant backhaul method growth in traffic. However, operators have held back,
for small cells with 43.2%, followed by microwave in preferring to squeeze additional capacity out of their
the 7 GHz to 40 GHz range with 35.2%. By 2025, the existing networks. Nonetheless, 4G LTE traffic is
percentage of small cells supported by fiber-optic will now achieving significant levels, and with 5G going
grow to 56.1%. Microwave links in the 41 GHz to 100 commercial in 2020, small cell deployments with fiber-
GHz range grow from 10.4% to 13.1%. optic provisioning have outpaced expectations. Fixed
telco operations have been accelerating their rollouts
While licensed and unlicensed sub-6 GHz have NLoS of fiber-optic in urban areas, where the small cells
properties, the increased prioritization of sub-6 GHz tend to be. The outlook for microwave in the 7 GHz to
spectrum for access services is likely to constrain the 40 GHz range has remained in line with expectations;
adoption of backhaul links in the sub-6 GHz bands. the same is true for microwave in the 40 GHz to
The higher microwave bands, especially the E-band, 100 GHz range, as well as satellite.

Chart 8

Small Cell Backhaul by Method

World Markets, 2017 and 2025
100%
Small Cell Site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Fixed versus wireless telco backhaul 19

 MOBILE BACKHAUL OPTIONS

Chart 9

Small Cell Backhaul by Method

Regional Markets, 2017 and 2025
100%
Macro Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Note: Detailed total worldwide, and by region, 2G, 3G, 4G and 5G segmentations for backhaul links by method of transmission can be
found in Appendix 1 on page 66.

Source: ABI Research

2.10 Stakeholders analysis

The framework for this analysis is quite extensive. Operators will need a wide range of fixed and
The mobile operators are the key stakeholders. Many wireless backhaul solutions from a larger number of
operators have anywhere from several thousand manufacturers to cater to the various scenarios. While
to hundreds of thousands of cell sites to manage. the ecosystem is heavily segmented, competition has
And that is “before” the growth in small cell site led to a number of innovative solutions.
deployments.
In the mainstream macrocell microwave market, the
The deployment scenarios for those cell sites are largest vendor is Ericsson, but other vendors have
complex and diverse. They can range from 50m closed the gap. Notable vendors include Huawei,
lattice towers to angled rooftop deployments on NEC, and Nokia, which acquired Alcatel-Lucent
public buildings/private multi-dwelling unit buildings, and its microwave portfolio. Aviat Networks and
to streetlight outdoor small cells. NLoS transmission DragonWave-X also have comprehensive portfolios.
blockages, such as skyscrapers, large trees, and
hillsides, pose additional challenges for operators.

Fixed versus wireless telco backhaul 20

 MOBILE BACKHAUL OPTIONS

The small cell site deployment represents a potential will remain commercially viable in the long term.
line of disruption to the incumbents. Vendors such Over the past 5 years, the number of vendors has
as Huawei, Tarana Wireless, Cambridge Broadband contracted by approximately 20%. A small percentage
Networks, Cambridge Communication Systems, Siklu of operators will opt for multi- vendor (three or
Communications, and VublQ are providing robust more) arrangements, but given that the vast majority
small cell backhaul solutions. There are at least 30 of backhaul vendors have proprietary solutions,
vendors in the wireless backhaul ecosystem. The operators will not be able to use these backhaul
level of competition is intense and not every vendor solutions in a modular manner.

2.11 Potential regulatory considerations

Mobile operators have a challenging time backhauling spectrum support from national regulators.
the mobile voice and data traffic from varied urban,
sub-urban, rural, office, residential home, high-rise This pressure to support backhaul solutions and
buildings, public buildings, tunnels, etc. They need spectrum for the macrocell site market is also
options. As can be seen in Chart 5 in Section 2.7, reinforced by the need to support the backhaul
macrocell’s fiber-optic’s prevalence does grow from connectivity for small cell deployments that are
25.3% to 37.3%, but there is still a heavy dependence expected to reach 4.3 million by 2025 on a worldwide
on LoS microwave, LoS millimeter wave, and even basis. Spectrum and licensing considerations are
802.11ac Wi-Fi (primarily 5 GHz). This usage outlook investigated in the following sections.
reflects maturing technical solutions that will need the

Fixed versus wireless telco backhaul 21

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3 Wireless backhaul
equipment
harmonization
The wireless backhaul network equipment market is characterized
by a number of multinational vendors, such as Ericsson, Huawei, and
NEC, as well as a number of specialized boutique vendors that solely
target the backhaul market. The macro microwave cell site backhaul
market was worth US$8 billion in 2017. The microwave/millimeter
small cell backhaul market is starting to build traction, but by 2020,
ABI Research calculates its value will be US$3 billion. It is, therefore,
worth delineating the ecosystem, identifying the key players, and
assessing what opportunities there are for harmonization and
standardization.

Wireless backhaul equipment harmonizatio 22

 MOBILE BACKHAUL OPTIONS

3.1 Wireless backhaul equipment vendor ecosystem

Apart from the large end-to-end system suppliers, cover all segments, either as a wholly-owned product
most vendors can be partitioned by wireless backhaul or in partnership with the specialist vendors. Other
technology with some offering multiple technologies. specialists are Hughes Networks Systems and iDirect
For example, Aviat offers products for both microwave for satellite backhaul.
and E-band applications, DragonWave has a portfolio
containing sub-6 GHz, microwave, and millimeter wave In the small cell wireless backhaul equipment market,
products, and Ceragon’s portfolio offers sub-6 GHz the “most effective” backhaul technology for small
and E-band radios. cells is a hotly debated topic. There are multiple
technologies available for small cell backhaul, and it
For each of the technologies, there is a group of is likely that a mix of technologies will be required,
specialist or niche vendors represented. Examples depending on the deployment scenario. These include
include: in microwave, 41 GHz to 100 GHz bands NLoS schemes in either licensed or unlicensed bands,
technologies by BridgeWave; in the E-band (70/80 which are suitable for use in urban environments
GHz), LightPointe, Loea, Siklu, and VubIQ; and Airspan, where LoS techniques are less effective than they are
Cambium, Fastback Networks, Proxim, Radwin, and in suburban and rural settings.
Tarana are companies that specialize in sub-6 GHz
systems. The specialists in microwave small cell Another technology, the recently released 60 GHz or
backhaul include Cambridge Broadband Systems V-band for unlicensed use, shows potential, because
Limited (CBNL), Cambridge Communication Systems the attenuation effects of oxygen absorption work in
(CCS), and Intracom. favor of linking closely spaced small cells with short
hops. Another emerging technology is the E-band
Large vendors such as Nokia, Aviat, Ceragon, Cisco, (70/80 GHz) and the W-band (92 to 114.25 GHz), which
DragonWave-X, Huawei, and NEC. offer complete with very wide channels make 10 Gbps to 25 Gbps
end-to-end infrastructure portfolios that feature data rates a real possibility in the backhaul, without the
multi-technology small cell backhaul portfolios. These complexities of high-order modulation schemes.
companies offer small cell backhaul technologies that

Wireless backhaul equipment harmonizatio 23

 MOBILE BACKHAUL OPTIONS

Table 3

Wireless Mobile Backhaul Vendor Ecosystem Portfolio Comparison

Sub-6 GHz Sub-6 GHz Microwave V-band E-band TV White
Vendor Unlicensed Licensed (7–40 GHz) (60 GHz) (70/80 GHz) Space Satellite

Airspan

Aviat Networks

BridgeWave
Communications

Cambridge
Broadband
Networks

Cambridge
Communication
Systems

Cambium Networks

Carlson Wireless

Ceragon

Communication
Components
(formerly Blinq
Networks)

DragonWave-X

E-band

Ericsson

Fastback Networks

Huawei

Hughes Network
Systems

iDirect

Intracom

LightPointe
Wireless

Loea
Communications

NEC

Nokia Networks

Proxim

Ruckus Wireless

Radwin

Siklu
Communications

Sonus Networks
(Taqua)

Tarana Wireless

VublQ
Source: ABI Research

Wireless backhaul equipment harmonizatio 24

 MOBILE BACKHAUL OPTIONS

3.2 Impact of fragmented spectrum bands

Depending on how one defines a contiguous block of • The size and cost of the antenna drops as one
mobile telco backhaul spectrum, there are at least 52 moves up the frequency bands. The antenna size
bands in use for wireless backhaul between the range for E-band backhaul is well suited for the small cell
of 1 GHz and 95 GHz. The true number is likely to be form factor.
much higher.
• The cost of producing the electronic components,
especially for the baseband/transceiver, used to be
Based on research interviews conducted with
high for spectrum bands over 40 GHz (see Figure 3).
equipment vendors, the incremental costs of supporting
The rationale for this has largely been driven by
different frequency ranges (e.g., migrating to 32 GHz
economies of scale. However, over the past 5
from 28 GHz) is fairly marginal. It is the broader support
years, regulators have increasingly made available
for a spectrum category (such as the 60 GHz or the
spectrum above 40 GHz and this has galvanized the
70/80 GHz bands) that has proven to be the greater
infrastructure vendors to scale up production. As can
challenge. There are, in fact, two cost equations taking
be seen from Chart 11 (Regional Backhaul Spectrum
place as one moves up the frequency bands:
Allocation by Frequency Range), the majority of
wireless backhaul deployments have been in the
10 GHz to 40 GHz bands. However, ABI Research
has observed a substantial shift in the availability of
spectrum in the 70 GHz to 90 GHz bands.

Figure 3

Cost of Spectrum versus Cost of Equipment over Time

Cost (US$)

t0

t1

t2

10 40 Frequency (GHz)

Cost of equipment ($/link) Cost of spectrum ($/MHz.Km2)

Source: ABI Research, others including CBNL

The implementation of novel semiconductor engineering initiatives, such as silicon/germanium chips, has helped
push down the cost of equipment curve.

Wireless backhaul equipment harmonizatio 25

 MOBILE BACKHAUL OPTIONS

3.3 Opportunities for standardizing wireless backhaul

There has been some discussion as to whether there entrepreneurs, many of which have financial backing
are opportunities for standardizing or harmonizing the from venture capital firms.
hardware for wireless backhaul. There are currently
more than 30 wireless backhaul vendors addressing
PTP, PMP, and LoS, as well as NLoS solutions. These
solutions operate from the sub-6 GHz all the way up to
the 90 GHz E-band and satellite backhaul. 3.3.1 DIGITAL AND SIGNAL
PROCESSING INNOVATIONS
The number of vendors in this sector does provide a
key market indicator: the wireless backhaul market is Due to the significant number of small cells that will be
starting to mature. Over the past 5 years, the number deployed over the next 7 years, backhaul must evolve
of vendors has contracted by approximately 25% and to be compatible with the small cell value proposition
will continue to consolidate over the next 5 to 7 years. and become an integral part of the small cell. The way
Many of the vendors are startup companies or at least some vendors are doing this is to innovate at the silicon
boutique specialists. Only a handful of companies— level and bring advanced digital and signal processing
Ericsson, Huawei, NEC, and Nokia—have infrastructure techniques to bear on the problem, maximizing link
solution portfolios that extend beyond backhaul. performance and mitigating interference in complex
PMP and NLoS topologies.
Many smaller vendors will, therefore, seek a merger
with a larger parent company in order to secure Vubiq has incorporated silicon-based Integrated
additional financial resources, economies of scale from Circuits (ICs) into a novel waveguide packaging
larger production facilities, or improved leverage for solution that facilitates low-cost, high-volume
input cost negotiation with suppliers. The marketplace production of these radios. Furthermore, the company
will inevitably consolidate. has incorporated the radio into a standard WR-15-
type waveguide to enable customers to directly
ABI Research would advocate that is a healthy process outfit their own antennas. These silicon IC production
for the wireless backhaul industry. The range of tools are transforming the cost of manufacturing
solutions witnessed is a function of the competitive backhaul solutions. BridgeWave Communications,
pressure on the wireless backhaul marketplace. The which supplies 4G millimeter wave backhaul solutions,
current and perceived future profits from wireless also relies on silicon/germanium RF technology that
backhaul solutions have served to attract startups and enables high-power operation, while the high level of
integration delivers a lower cost of coverage.

3.4 Hybrid wireless backhaul solution integration

Competition has slimmed down the ecosystem. The OBSAI specifications defined a number of parameters:
There has been momentum to introduce a certain
amount of standardization in the radio infrastructure • The internal modular structure of the
architectures, such as the Open Base Station wireless base station
Architecture Initiative (OBSAI) and the CPRI that has
• Provided a set of standard Base Transceiver Station
reduced costs and improved interoperability.
(BTS) modules with specified form, fit, and function,
so that a BTS vendor can acquire and integrate
The OBSAI standard has had considerable success
modules from multiple vendors in an Original
in bringing down the cost of base station-related
Equipment Manufacturer (OEM) fashion
equipment, but has now been largely superseded by
the CPRI standard. The OBSAI was a trade association • Specify the internal digital interfaces between BTS
created by LG Electronics, Hyundai, Nokia, Samsung, modules to assure interoperability and compatibility
and ZTE in 2002 with the objective of creating an open
• Support for different access technologies, such as
market for cellular network base stations.
GSM/EDGE, CDMA2000, WCDMA, and LTE

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 MOBILE BACKHAUL OPTIONS

The CPRI standard offers infrastructure vendors and 3.4.1 AUTOMATION AND ZERO TOUCH
mobile service providers a flexible interface between
Radio Equipment Controllers (RECs) and Radio As mobile operators prepare for 5G, their networks are
Equipment (RE). The CPRI allows the replacement of becoming increasingly complex, with often thousands
copper or coax cable connections between a radio or even tens of thousands of network elements. Mobile
transceiver and the base station, so that a connection service providers are, therefore, aspiring to achieve
can be made from a more remote or more convenient “zero touch” network management. Self-Optimizing
location (fronthauling). Usually, this uses a fiber-optic Network (SON) procedures and tools are becoming
connection, but it can be microwave, as long as latency essential features of radio network infrastructure, and
is kept to a minimum. The CPRI specification was this includes backhaul.
initiated by Ericsson, Huawei, NEC, and Nokia.
SON promises that wireless backhaul will become
Both solutions are based on the implementation self-configuring, self-optimizing, and self-healing,
of digital radio over fiber, whereby the radio signal much like the small cell RAN itself in 3GPP Rel. 8 and
is sampled and quantized, and, after encoding, later. The self-configuration feature is intended to
transmitted toward the Baseband Unit (BBU). render the wireless backhaul link “plug-and-play.” Self-
However, the two specifications differ in the way that optimization establishes the presence of neighboring
information is transmitted. The CPRI is a serial line backhaul radios and mitigates interference, while the
interface transmitting Constant Bit Rate (CBR) data self-healing feature adjusts the link’s transmission
over a dedicated channel, while the OBSAI uses a parameters to compensate for a failed link or a new
packet- based interface. Based on initial research, it link addition.
looks like most global vendors have chosen CPRI for
their products, as the standard is considered to be It is unlikely that small cells can be made to be plug-
more efficient than OBSAI. and-play in terms of their backhaul interfacing on an
individual cell site by cell site basis. It is more likely that
“clusters of small cells” from a particular vendor are
installed. The respective clusters of small cells and their
backhaul links would need to be “aware” of the other
vendor solutions on the network, and self-organizing
processes would be needed to mitigate interference
and allow the various components from different
vendors to work seamlessly together.

3.5 Stakeholders analysis

Among the vendors offering some form of SON for Siklu also offers SON-based zero-touch plug-and-play
wireless backhaul (for their own solutions) is Nokia, installation on its 60 GHz Etherhaul-600 radios for
which worked with Coriant to develop a SON-based small cell backhaul, and according to the company, the
backhaul solution in 2015. Airspan is another vendor product can be installed by an unskilled technician and
offering a form of SON embedded in its small cells, rendered operational in a matter of a few minutes.
which it calls AirSON and makes use of electronically
steerable MIMO antennas, removing the need for
manual alignment during installation, coupled with
a zero-touch provisioning feature that enables rapid
single-person deployment.

Wireless backhaul equipment harmonizatio 27

 MOBILE BACKHAUL OPTIONS

3.6 Potential regulatory considerations

This section has largely focused on competition theory, chipset innovation, hardware standardization, and
collective negotiation, but there are some regulatory coordination activities needed to support overall backhaul
solution harmonization. ABI Research does advocate that coordination efforts are put in place to support some
crucial wireless backhaul initiatives:

• More active promotion of the 70/80 GHz E-bands • The main microwave bands 10 GHz to 40 GHz are
for wireless backhaul in the international regulatory generally deemed to have sufficient spectrum, but
community. more effort is needed to align similar microwave
bands in more markets, particularly at the regional
• More active promotion of the 60 GHz V-band for
level. This would have the benefit of bringing down
wireless backhaul in the international regulatory
the cost of equipment.
community.
• Potential bands that have secured a degree of
• Promotion and support for spectrum needed for
regional support include the 6 GHz, 7 GHz, 8 GHz,
PMP backhaul applications, with the associated
11 GHz, and 13 GHz bands, 18 GHz; 23 GHz and 24
need for per block licensing in the 10 GHz, 32 GHz,
GHz; 38 GHz and 40 GHz. As part of those efforts,
and 60 GHz bands.
channel sizes have also been increased (e.g. to
112 MHz and 224 MHz wide) to support greater
capacity especially for 4.5G LTE and 5G.

Wireless backhaul equipment harmonizatio 28

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Wireless backhaul equipment harmonizatio 29

 MOBILE BACKHAUL OPTIONS

4 LoS versus NLoS

wireless backhaul
Historically, most wireless backhaul links have been LoS due to the
high frequencies being used, as well as the narrow beam widths used.
In the past 10 years, NLoS has become a viable solution that should
prove particularly advantageous with clusters of small cells that
mobile operators are expected to deploy over the next 5 to 10 years.

Wireless backhaul equipment harmonizatio 30

 MOBILE BACKHAUL OPTIONS

4.1 LoS versus NLoS comparison

When comparing small cell wireless backhaul to wired cells backhauled through LoS technology. Pole tilt and
small cell backhaul, there is an added consideration sway are also a concern for small cell backhaul, and this
and that is whether both ends of a link are “visible” to becomes increasingly important for frequencies above
each other or not. LoS solutions tend to operate in the 18 GHz where the antenna beam width is narrower. This
higher microwave and millimeter wave ranges. LoS is a concern for operators wishing to deploy small cell
systems also have higher gain antennas and narrow backhaul on structures like utility, lighting, and traffic
beam widths compared to NLoS systems. poles, which were not originally designed to resist sway
to the extent required by microwave backhaul.
NLoS links generally operate in the sub-6 GHz
frequencies. Near-Line-of-Sight (nLoS) can operate Another problem lies in the cost of the backhaul,
up to around 10 GHz. These backhaul links make use which can be considerable, especially for scenarios in
of these signals’ ability to penetrate or diffract around which 2,000 to 5,000 small cells could be deployed
obstacles. Unlike LoS, these systems do not require in a typical network, such as in metropolitan hot-
alignment at set up. NLoS systems can potentially zones. Each transceiver requires a PMP link, and if
offer better coverage in dense urban environments, daisy chains are involved, the cost of the backhaul
provided the links support the bandwidth, increases quickly when compared to NLoS. This
synchronization, and latency requirements of the RAN. becomes significant, as skilled technicians are usually
required for antenna alignment for LoS technologies,
and when large numbers of small cells are deployed,
the costs become prohibitive. On the other hand, NLoS
technologies are much more plug-and-play and can be
4.1.1 LoS advantages set up in a short amount of time with lower labor costs.

A LoS wireless small cell backhaul solution, such as

microwave, 60 GHz, and E-band, require, as the name
implies, direct, unobstructed visibility between the
transceivers at each end of the link. A highly directional 4.1.3 NLoS advantages
beam transmits data between two transceivers and
transports the data in a straight line with little or no fading Vendors with expertise in Orthogonal Frequency-
or multipath radio interference. This is a highly efficient Division Multiplexing (OFDM) technologies are offering
use of spectrum, as multiple microwave transceivers can OFDM-based products with proprietary optimizations
function within a few feet of each other and reuse the for NLoS backhaul. NLoS backhaul can service the
frequency band for transmitting separate data streams. coverage area for small cell deployments by relaying
information back to the central base station that
Mainly used for high-bandwidth applications for provides coverage. NLoS backhaul needs only to be
outdoor small cell deployments, rather than indoor placed within range of the backhaul radio unit. NLoS
femtocells or picocells, LoS links can allow a single systems using OFDM present a level of tolerance
small cell with integrated backhaul, such as a lamppost to multipath fading and other wireless channel
femtocell, to communicate with the next point of impairments not possible with LoS systems.
aggregation. Microwave is best used as a highly
directive beam, so spectrum is not much of an issue; Properly designed NLoS solutions can provide
two microwave transceivers can be used at very close coverage for various types of small cell setups;
range compared to NLoS technologies. This setup is however, the 100 Mbps capacity limit, higher latency,
useful in areas with a high concentration of cells. and latency variability of these solutions limit their
ability to aggregate multiple sites. As a result, an upper
limit exists as to how many small cells can be blanketed
through this type of solution in order to ensure that
each covered cell receives a certain Quality of Service
4.1.2 LoS disadvantages (QoS) and has a minimum capacity per link.

LoS applications are more effective in some situations The main advantage of NLoS technology is that a
than others. For example, a park where many trees single NLoS base station can provide coverage for
could block LoS is an impractical location for small multiple small cells within the coverage area. NLoS

Wireless backhaul equipment harmonizatio 31

 MOBILE BACKHAUL OPTIONS

systems also circumvent the need for an unobstructed to 150 Mbps on average, about six to nine small cells
path between the transceivers, making this technology can fit under this umbrella from the standpoint of
extremely helpful for future planning and upgrades. bandwidth. This number is better than the initial three,
NLoS solutions are easier to plan and more convenient but their peak rates may not be as high as designed
to deploy than LoS solutions. capacity if the cells are packed under one NLoS
backhaul coverage area.

NLoS backhaul solutions also limit spectrum; in

certain areas, frequency planning would have to be
4.1.4 NLoS disadvantages coordinated to avoid producing too much interference.
Additionally, if the solutions use unlicensed
NLoS technology has an upper limit to the amount frequencies, they would need to be coordinated to
of data that each coverage area can backhaul. avoid interference with other cell sites using the same
OFDM-based NLoS technologies are well suited to spectrum bands. Given the current rate of growth for
3G networks. To illustrate, assume that an OFDM- data usage, every bit of usable spectrum that could
based NLoS technology provides about 1 Gbps of connect a mobile user to the internet should and will
backhaul data transfer. In the situation where LTE be used for this purpose. Mobile consumer and mobile
peak download rates are around 300 Mbps, roughly user connectivity take up many of the best NLoS
three small cells can connect at the peak to the NLoS frequencies. Using these frequencies for backhaul
backhaul without causing bottleneck issues. Since could pose a problem.
LTE small cells will initially require about 100 Mbps

4.2 Topological considerations

When it comes to deploying their wireless backhaul spectrum rental fees, as the same frequency can be
links, operators have traditionally deployed PTP used for multiple links, which makes PMP links fast to
solutions, which have been typically LoS, but PMP is deploy and cost efficient. Operators are increasingly
increasingly becoming a serious contender. considering deployment of PMP networks for backhaul
in the heavy cellular traffic sites in their urban locations
for its advantages of deployment in small cells.

4.2.1 POINT-TO-MULTI-POINT

In a PMP arrangement, a central hub transceiver links 4.2.2 POINT-TO-POINT

to multiple small cells. The hub typically uses multiple
sector antennas so that links can be maintained with In contrast, PTP topologies are typically LoS with
a number of small cell terminals surrounding the hub highly directional antennas at each end of the link, and
site, such that the hub transceiver bandwidth is shared each small cell can access the full link bandwidth. PTP
with the small cell terminals. In a PMP deployment, a topologies require transceiver hardware at each side
single access point on one side of the link is set up to of the link. When compared to a PMP connection of
cover a sector that spans 90° in one direction, thus “N” small cells in the backhaul access layer, a PTP array
blanketing an area that can contain multiple base would result in double the number of transceivers
stations. In this topology, for every “N” microwave links, for a functional small cell site (i.e., two N transceivers
only N+1 radios are required, representing a Capital per link). PTP connections would be expensive for
Expenditure (CAPEX) saving over PTP networks and this setup, requiring two transceivers for each link,
also an OPEX saving, because adding another base possibly increasing the cost of a backhaul link, but
station only requires one radio to establish the link, with offering higher bandwidth to the small cell. Each link
a consequent reduction in setup time. requires its own antenna at each end, so the Point of
Presence (PoP) site can soon become overcrowded
PMP technology is deployed mostly in high-density with many antennas. Figure 4 compares the PTP and
urban areas. PMP microwave links require smaller PMP topologies and illustrates the differences in the
antenna sizes compared to PTP systems and reduce number of radios required in each case.

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Figure 4

PMP and PTP Backhaul Topologies Compared

Four-Cell Small Cell Network

PMP Topology PTP Topology

Hub transceiver Remote radio PTP radio

Hub and remotes may be NLoS (Each link is LoS)

Source: ABI Research

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 MOBILE BACKHAUL OPTIONS

4.3 TCO backhaul considerations

Using these two arrangements as building blocks, 4.3.2 MESH NETWORK
combinations can be used to create more complex
arrangements. In chain or tree arrangements, PTP In a mesh network, the close proximity of neighboring
links are interconnected in a daisy chain with traffic cells allows them to interconnect and create a tightly
combined with each successive small cell as the link knit and resilient network, because there are many
nears the aggregation PoP. The daisy-chain topology redundant links that provide multiple paths between
is used in PTP layouts to extend a branch and increase the nodes.
the distance from a base station to a PoP. Small cell
architectures provide coverage in closely spaced Wi-Fi networks can be set up for mobile backhaul and
locations, so a daisy chain could connect multiple small operate in the 2.4 GHz or 5 GHz bands. While the 2.4
cells to an egress point. GHz band could be used for backhaul, the high degree
of congestion and limited size of channels does not
Because a daisy chain requires multiple backhaul make the 2.4 GHz band a viable option for backhauling
elements to connect a small cell, this would be 4G and 5G traffic. Therefore, it is typically the 5 GHz
economically viable only in certain use case scenarios. band, using 802.11ac modulation schemes, that is being
To keep costs down, small cells need to reduce used for backhaul where licensed PTP or PMP licenses
backhaul costs as much as possible. If setting up an are not available.
outdoor picocell requires a three-hop microwave daisy
chain to provide backhaul, the backhaul equipment will Currently, Wi-Fi has a mesh protocol layer that can
probably be just as expensive or even more than the be set up for mesh networking. The mesh uses the
small cell itself. Daisy chains would be more useful to Wi-Fi protocol standards, so it could be deployed only
microcell base stations. The cost of anything smaller in Wi-Fi-designated frequencies (currently 2.4 GHz
than a microcell base station would not justify the use and 5 GHz). In addition, many outdoor Wi-Fi access
of this setup. The capacity of this type of backhaul points already support this, or could, through a slight
must be properly dimensioned to take into account modification or addition to the unit.
the number of downstream cells, which must be
supported, perhaps, as in the case of ring network In-band mesh networks use the licensed frequencies
arrangements, by providing redundant links to ensure of the 2G, 3G, or 4G/LTE RAN. The attitude toward
resistance to link outages. in-band mesh is starting to shift. Until 3 years ago,
many MNOs did not consider in-band backhaul very
favorably because it was perceived to cannibalize
expensive licensed spectrum, resulting in loss of
capacity in dense urban and metropolitan areas.
4.3.1 RING NETWORK
However, where the operator has sufficient spectrum,
they are implementing the solution. Sprint, for
A ring topology, as the name suggests, is built from a
example, uses in-band cellular links in the 2.3 GHz
chain of PTP links that circles back on itself. One of the
band to backhaul traffic from small cells in urban cities
disadvantages of a ring is that it takes many radio hops
such as New York.
to reach a distant small cell, which adversely affects
latency. Increasing the ring capacity for increased
In situations where a small cell network is used for
demand can be expensive because each node must
coverage and not capacity, such as on roads or
receive similar upgrades. One way to increase ring
freeways with very low population density (the only
capacity is to interconnect each node so the ring
population density would be traffic) and very little
becomes a mesh network. Ring network configurations
in the way of infrastructure, in-band backhaul can
are proving to be an increasingly common deployment
be useful. In such situations, a handset in use in a
architecture for backhauling traffic across a country or
vehicle travels out of range from one small cell and
across regions.
falls into coverage of the next small cell very rapidly.
By reducing the cost of extra backhaul equipment
and having an egress point to the core network after
several hops, a small cell network would be less
expensive than a macro network.

34 Wireless backhaul equipment harmonizatio Wireless backhaul equipment harmonizatio 34

 MOBILE BACKHAUL OPTIONS

4.4 Regional PMP spectrum availability

Typically, PMP often needs to operate in environments (Asia-Pacific) and 25 GHz to 27 GHz bands (Western
where NLoS is the norm. PMP has been deployed in Europe and the Middle East). Eastern Europe has PMP
the sub-6 GHz band in North America and Europe. spectrum allocated in multiple spectrum bands, from
PMP backhaul has also been deployed in the 11 GHz sub-10 GHz to 81 GHz to 90 GHz (see Chart 10).

Chart 10

Regional PMP Backhaul Spectrum Allocation by Frequency Range

World Markets, 2017
Percent share of frequency allocated

100%

80%

60%

40%

20%

0%
1–10 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–100 91–100
GHz GHz GHz GHz GHz GHz GHz GHz GHz GHz

Western Europe Eastern Europe Asia Pacific North America Latin America Middle East Africa
Source: ABI Research

There is considerable opportunity for PMP

deployment. CBNL has live networks in at least
47 countries around the world; in emerging markets,
as well as developed markets.

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 MOBILE BACKHAUL OPTIONS

Table 4

PMP Markets by Region

2017
Western Eastern North Latin
Europe Europe Asia Pacific America America Middle East Africa

United Kingdom Russia Malaysia United States Argentina Saudi Arabia Mali

Germany Poland Indonesia Venezuela Iraq Kenya

Ireland Czech Republic Philippines Peru Lebanon DR Congo

Belgium Slovakia Australia Uruguay Afghanistan Nigeria

Netherlands Ukraine Mexico Ghana

Italy Hungary Guadeloupe South Africa

Sweden Romania Martinique Cameroon

France Ecuador Rwanda

Brazil Zambia

Tanzania

Guinea
These countries support 1 or more PMP bands in 10.5, 26, or 28 GHz
Senegal

Mauritania

Morocco

Botswana

Somalia

Source: ABI Research, CBNL

4.5 Stakeholders analysis

The PMP ecosystem is not as mature as The majority of the mobile backhaul links
the traditional PTP marketplace. Clearly, deployed are PTP links. All countries surveyed
backhaul solutions have to be very robust, with in this report use PTP backhaul links, but the
minimal downtime—either due to hardware number of countries that have reported the
failure or due to transmission interference. use of PMP backhaul links has steadily grown.
Nevertheless, a number of PMP vendors have Out of the 30 countries surveyed, at least
gained traction in the wider mobile operator 11 had PMP networks. Key markets include
backhaul marketplace. Key PMP players France, Germany, Italy, Poland. Australia,
include Cambridge Broadband Networks, CCS, Japan, Saudi Arabia, and South Africa.
Airspan, Cambium Networks, Carlson Wireless,
Intracom, Proxim, Radwin, and Ruckus Wireless. PMP technology operates at multiple
frequencies. In Germany, frequency bands
in the range 24.5 GHz to 26.5 GHz are partly
allocated for PMP backhaul links.

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 MOBILE BACKHAUL OPTIONS

4.6 Potential regulatory considerations

4.6.1 NLOS SUPPORT estimated that in the 26 GHz and 28 GHz bands, there
is approximately 2 GHz available that does support
For true NLoS wireless backhaul services, high-capacity throughput and the propagation
the spectrum bands have to be below 6 GHz. characteristics make the spectrum band effective for
There are nLoS solutions that can be added mid-distance backhaul (5 km to 10 km). However, there
to the operator’s toolkit, but the long-term is considerable momentum and consensus to use the
outlook for sub-6 GHz is that it will increasingly 26 GHz to 28 GHz band for 5G access, 24.25 GHz to
be used for the access side of the network as 27.5 GHz (5G Pioneer Band, 26 GHz) in Europe and
the sub-3 GHz, which has become substantially Asia, while North America prefers to set aside the 27.5
congested. For 5G, regulators around the GHz to 28.35 GHz; and 37.6 GHz to 40.0 GHz bands
world will be allocating spectrum in the 3.3 for 5G. There is likely to be strong interest in the 26
GHz to the 4.2 GHz for base station to end- GHz to 28 GHz band for FWA around the world, both
user communication links. in developed and emerging markets. In developed
markets, the band will be used as an alternative for
fiber-optic where the OPEX/CAPEX considerations
rule it out. In emerging markets, it will be used as a
primary broadband wireless solution for homes and
4.6.2 PMP SUPPORT businesses. PMP solutions are emerging in the 60 GHz
V-bands and ABI Research anticipates deployments
At present, there is primarily support for PMP backhaul will grow over the next 5 to 10 years, especially for
in the 10.5 GHz, 26 GHz, and 28 GHz bands. It is small cells.

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5 Spectrum availability
Along with the variety in technical backhaul solutions, operators also
have a number of spectrum bands in which they can establish PTP,
and increasingly PMP, wireless links. Wireless backhaul spectrum
exists in a number of spectrum allocations. Wireless backhaul takes
place in the sub-6 GHz (licensed and unlicensed), microwave (6 GHz
to 40 GHz), V-band (60 GHz), and E-band (70/80 GHz band), as
well as the W-band (92 GHz to 114.25 GHz). Satellite is also an option
for rural sites, but fees are usage based and, therefore, need to be
monitored and controlled.

Spectrum availability 38
 MOBILE BACKHAUL OPTIONS

5.1 Data throughput

The data throughput is an essential consideration for compression schemes implemented on the backhaul
mobile service providers, even for small cells that are link, as well as how wide the channels are. Generally,
often deployed in dense population centers. Small the higher the frequency band, the greater the
cells may have a small physical coverage area of often throughput. The 60 GHz V-band can handle 10+ Gbps,
0.5 km² to 4 km², and they could be handling large while the E-band can handle 10 Gbps to 25 Gbps (see
amounts of traffic from multiple customers. The data Table 5).
throughputs are also a function of the modulation and

Table 5

Performance Characteristics for Various Spectrum Bands

Sub-6 GHz, Microwave, and Satellite
Sub-6 GHz Sub-6 GHz Microwave V-band E-band
Characteristics Unlicensed Licensed (7–40 GHz) (60 GHz) (70/80 GHz) Satellite

Carrier 2.4 GHz, 5 GHz 3.5 GHz to 6 GHz 6 to 56 GHz 56 to 64 GHz 70 to 80 GHz 4 to 6, 10 to 12,
Frequency 20 to 30 GHz

Capacity 300 to 750 250 to 500 1 Gbps+ 10 Gbps+ 10–25 Gbps 150 Mbps DL
Mbps Mbps /10 Mbps UL

Latency ~10 ms 5 ms/hop <1 ms/hop <200 µs max., 65 to 350 µs/ 300 ms
40 to 50 µs hop
typ./hop

Range (km) 250 m max <50 5~30++ <1 ~3 Ubiquitous

Topology NLoS NLoS LoS LoS LoS Universal

Installation PMP PMP PMP, PTP PTP PTP PMP

Source: ABI Research

ABI Research conducted a survey of 33 In the case of the European Commission (EC),
countries around the world to investigate it established a Radio Spectrum Policy Group
which spectrum bands have been allocated work program “… to identify and analyze
for wireless backhaul, as well as the licensing strategic spectrum issues relative to wireless
procedures they use. A summary of the backhaul for mobile networks.” Standard
spectrum band usage can be found in Chart and regulatory bodies in other regions
11. Of the wireless backhaul spectrum links, and countries will also need to give careful
44.9% were in the 1 GHz to 10 GHz and 11 consideration to spectrum and licensing issues
GHz to 20 GHz bands. Generally speaking, in relation to wireless backhaul.
state regulators are now trying to reallocate
backhaul spectrum to higher bands (21 GHz
and above). This is partly because the 1 GHz
to 10 GHz band is already heavily congested
with backhaul links in a number of markets,
and regulators intend to keep spectrum in the
sub‑6 GHz band for end-user access services.

Spectrum availability 39
 MOBILE BACKHAUL OPTIONS

Chart 11

Regional Backhaul Spectrum Allocation by Frequency Range

World Markets, 2017
Percent share of frequency allocated

20% 35%

15%
30%
10%

5%
25%
0%

20%

15%

10%

5%

0%
1–10 11–20 21–30 31–40 41–50 51–60 61–70 71–80 81–100 91–100
GHz GHz GHz GHz GHz GHz GHz GHz GHz GHz

Western Europe Eastern Europe Asia Pacific North America Latin America Middle East Africa
Source: ABI Research

By and large, there is sufficient spectrum in the 21 GHz The 0.6% activity in the chart correlates to light licensing
to 30 GHz and 31 GHz to 42 GHz bands for mobile activity. This is essentially the same as the 1.1% activity 4
operators. However, momentum is well under way in years ago. It appears that mobile service providers have
the 71 GHz to 80 GHz bands, as well as the 81 to 90 reservations about the 60 GHz band incurring oxygen
GHz as they are lightly licensed. These bands increased and rain attenuation, and while that could help keep
to 9.2% and 9.2%, respectively, of overall backhaul transmission ranges short, thereby allowing spectrum
spectrum made available compared to just 4.7% and reuse, it is still a material concern. In some countries,
3.2%, respectively, 4 years ago. Furthermore, due to the 59 GHz to 61 GHz band is used for NATO/military
the generous channel bandwidths, data throughput applications, while in other countries, administrations
is in the 10+ Gbps to 25+ Gbps throughput range have reserved the band 61–61.5 GHz for Industrial,
and has the potential to support up to 100 Gbps, Scientific, and Medical (ISM) applications only.
which is more than adequate for small cell and even
macrocell backhaul. Capacity can be further boosted Data for Chart 11 came from Table 6 on the next page.
by multi‑carrier bonding between a low-frequency and The full spectrum band allocations and their licensing
a high-frequency microwave link. conditions, as collected by the ABI Research survey
are listed in Appendix 2: Backhaul Spectrum Allocation
It is noticeable that the V-band that spans from 57 GHz Summary. In the following sub-sections, ABI Research
to 66 GHz, depending on the country, has shown analyzes which wireless backhaul spectrum bands are
mixed traction. While the majority of countries either used and how.
have or are actively taking steps to make the V-band
for unlicensed use, some countries have opted for light
licensing and others have yet to release the spectrum.

Spectrum availability 40
 Region Western Europe Eastern Europe Asia Pacific North America South America Middle East Africa
Frequency Czech New United Saudi South

Table 6
(GHz) Denmark France Germany Italy UK Croatia Republic Poland Australia India Indonesia Japan Malaysia Zealand Singapore Canada States Brazil Uruguay Arabia UAE Nigeria Africa
1
2
3
4

Source: ABI Research

5
6
7
8
World Markets

9
10
11
12
MOBILE BACKHAUL OPTIONS

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Regional Backhaul Spectrum Allocation

30
31
32
33
36
37
38
39
40
41
42
43
56
57
70
71
75
76
80
81
86
92
95

Spectrum availability 41
 MOBILE BACKHAUL OPTIONS

5.2 Sub-6 GHz

5.2.1 UNLICENSED will need to be found or these satellite ground

stations will need to be geo-fenced to prevent
In the sub-6 GHz unlicensed category, there ~3.5 GHz cell sites causing interference.
are small cell mobile backhaul solutions that
operate in the 2.4 GHz or 5 GHz unlicensed
bands. The 2.4 GHz band is highly congested
when compared to the 5 GHz band, which
5.2.3 4 GHz TO 9 GHz CASE
has a shorter range and a large spectrum
block. The close proximity of Wi-Fi access EXAMPLES
points, as an example, permits them to be
interconnected in a Wi-Fi mesh to exchange Spectrum bands in the 4 GHz to 9 GHz band
data traffic with each other and a gateway range are commonly used as backhaul links
point, replacing costly cable runs for backhaul in many countries across different regions,
and reducing total operator CAPEX. Wi-Fi, except Japan, which has not allocated
however, is not the only solution available for spectrum in the 4 GHz to 9 GHz range for
unlicensed operation in the sub-6 GHz bands, wireless backhaul (see Table 7).
with several vendors implementing proprietary
modulation schemes for interference Spectrum in the 4 GHz to 9 GHz bands has
mitigation and performance advantages. traditionally been a good fit for wireless
backhaul. Spectrum below 6 GHz can be
While unlicensed spectrum is essentially effectively used for NLoS. However, the 4
“free” to the user, the spectrum comes with a GHz to 9 GHz bands also house unlicensed
drawback in that it is, by definition, regulated spectrum in the 5 GHz bands. The unlicensed 5
by rules (technical limitation) and subject to GHz band is being used by mobile carriers for
adjacent and co-channel interference. In some backhaul, especially in emerging markets, such
very limited situations, ISM bands have been as Brazil, but the unlicensed ISM nature of the
used for wireless backhaul, which raises the band has meant there are increasing numbers
possibility that backhaul may interfere with Wi- of Wi-Fi access points and client devices
Fi access and vice versa. However, due to the that are contributing to the “noise floor” of
limitation associated with the licensing regime, the band. As the growth of personal and
such an approach will remain extremely limited commercial 802.11n access points and hotspots
and is not the priority for future wireless has grown, along with smartphones, tablets,
backhauling deployment. and laptops, the reliability of the unlicensed 5
GHz band will reduce the reliability of the band
for mobile operator backhaul links.

Regulators have been reporting that the 4 GHz to 9 GHz

5.2.2 RE-ALLOCATION OF 3.3 TO bands are becoming increasingly congested. A number of
3.8 GHz FOR 5G countries, such as Denmark, have reported that the 7 GHz
band is one of the most crowded bands in the country.
Countries around the world will start to set The bands will remain popular with telcos because of the
aside spectrum in the 3.3 GHz to 3.8 GHz band NLoS or at least nLoS capabilities of the sub-6 GHz bands.
for 5G services. As 5G services will start to
commence in 2020, regulators, like Ofcom, The anticipated assignment of spectrum for 5G access in
have completed their auction process. the 3.5 GHz range, which varies and includes differently
sized portions ranging from 3.3 GHz up to 3.8 GHz (and
In some regions, such as the Mediterranean some countries are considering using up to 4.2 GHz)
and Southeast Asia, spectrum in the 3.2 GHz to will likely have further ramifications on the spectrum
4.4 GHz band is dedicated to satellite ground around it in the long term. Spectrum in the 6 GHz to 10
stations. Either alternative spectrum bands GHz band has nLoS characteristics, which could make

Spectrum availability 42
 MOBILE BACKHAUL OPTIONS

it attractive for future “access” application services or done to manage and coordinate spectrum use in the
allocation to non-cellular applications (e.g., government sub-9 GHz bands for NLoS PMP and also PTP backhaul
or industrial) that have been affected by frequency re- links. It is not just developed markets like Germany
allocations lower down in the sub-6 GHz bands. and Singapore that have widely encouraged the use
of PMP in the sub-7 GHz bands, but also South Africa,
The sub-10 GHz bands still have a role to play in which is using the 4 GHz, 6 GHz, 7 GHz, and 8 GHz
serving sites/locations that are more remote and bands for small cell PMP backhaul.
require longer hops and/or NLoS. More needs to be
Table 7

Backhaul Spectrum Summary, 3 GHz to 9 GHz Bands

Countries Surveyed by Region
Backhaul Backhaul Backhaul Backhaul
Country Band (GHz) Country Band (GHz) Country Band (GHz) Country Band (GHz)
Western Europe Eastern Europe Asia Pacific North America
Denmark 7 Croatia 3.8 Australia 3.575–3.7 Canada 3.7–4.2
France 3.5 6 4.8–4.9 5.295–6.425
3.4–3.8 7 5.6 6.425–6.930
6 8 7 7.125–7.25
Germany 3.8–4.2 Czech 3.6–3.8 India 3.4–3.5 7.25–7.3
5.925–6.425 Republic 4 6 7.725–8.275
6.425–7.125 6 7 United 3.7–4.2
7.125–7.425 7 Indonesia 3.3 States 5.925–6.425
7.425–7.725 Poland 6 3.7–4.2 6.425–6.7
Italy 3.4–4.2 7 4.2–6 6.7–6.875
6 8 Japan —
United — Hungary 5 Malaysia 3.9
Kingdom 3.155–3.4
New Zealand 4.4–5
5.925–6.42
6.42–8.5
Singapore 3.4-3.6
5.725–5.85
5.875–5.925

Backhaul Backhaul Backhaul Backhaul

Country Band (GHz) Country Band (GHz) Country Band (GHz) Country Band (GHz)
Latin America Middle East Africa
Mexico 3.4–3.7 Brazil 5.9–6.4 Saudi Arabia 3.4–3.8 Nigeria 3.6–4.2
5.725–5.85 6.4–7.1 7 4.4–5.03
7.11–7.725 7.4–7.8 UAE 3.6 5.15–5.35
Venezuela 3.4–3.6 7.7–8.3 6 5.47–8.75
3.7 8.2–8.5 South Africa 3.5
4.2 Uruguay 6 5.725–8.496
5.725–5.85 7
5.9–6.4 8

Note: PTP, PTP/PTMP

Source: ABI Research

Spectrum availability 43
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5.2.4 STAKEHOLDER ANALYSIS grade Wi-Fi-related solutions. The size of the

antennas/waveguides can take up a sizable
In the sub-6 GHz band, there are seven footprint at the cell site.
vendors providing licensed and unlicensed
solutions: Ericsson, Cambium Networks, The sub-6 GHz band does have other non-
Ceragon, DragonWave, Fastback Networks, mobile cellular backhaul stakeholders. In
Proxim, and Radwin. Europe, as well as in Southeast Asia, a
number of countries use the 4 GHz band for
For the sub-6 GHz bands, vendor support coordinating with receiving satellite earth
demonstrates a high level of competition, stations, which may constrain use in certain
although many of them are specialized locations. Both the lower and upper 6 GHz
vendors that tend to specialize in carrier- bands may have to be shared with satellite
uplinks.

5.3 Microwave spectrum in the 10 GHz

to 40 GHz range
Microwave is a mature technology used for 5.3.1 10 GHz TO 18 GHz BAND CASE
many years to backhaul traditional macrocells, EXAMPLES
designed for carrier-grade LoS operation over
long distances. This LoS technology is suitable Spectrum bands within 10 GHz to 18 GHz are generally
for connecting rooftop microcells, rather used for medium-haul systems. Spectrum bands
than a dense cluster of outdoor picocells below 20 GHz still have a role to play for users
and femtocells. It is, however, a very well requiring longer links in both rural and suburban
understood and commonly used backhaul areas, as well as for applications where an increase in
technology, which renders it attractive as an capacity is needed. This spectrum range is commonly
option for small cell backhaul. used in a large number of countries as backhaul links.
The exceptions are countries like New Zealand and
Equipment operating in these bands is Saudi Arabia (see Table 8).
now being designed to be compatible with
small cell backhaul by reducing the power
requirements, because small cell links are
much shorter and require a compact form
factor with an integrated antenna, which can
lower costs. ABI Research believes microwave
plays an important role in small cell backhaul
now and in the future. Link capacity is a
function of channel size and spectral efficiency,
so it is the subject of considerable innovation
and optimization by the vendor community.

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Table 8

Backhaul Spectrum Summary, 10 GHz to 18 GHz Bands

Countries Surveyed by Region
Backhaul Backhaul Backhaul Backhaul
Country Band (GHz) Country Band (GHz) Country Band (GHz) Country Band (GHz)
Western Europe Eastern Europe Asia Pacific North America
Denmark 10 Croatia 11 Australia 10.5 Canada 10.55–10.68
12 13 15 10.7–11.2
15 14 India 13 11.2–11.7
18 18 15 12.7–13.25
France 10.7–11.7 Czech 10 18 14.5–15.35
12.75–13.25 Republic 11 Indonesia 10.7–11.7 14.975–15.35
17.7 13 12.75–13.25 17.8–18.3
Germany 12.75–13.25 15 14.4–15.35 United 10.55–10.6
14.5–15.35 18 17.7 States 10.6–10.68
17.7 Poland 11 Japan 17.85–17.97 10.7–11.7
Italy — 13 18
United 10 15 Malaysia 10–14
Kingdom 18 14.3–15.35
Hungary 10–12.5 15.7–16.6
New Zealand 10.5–10.68
10.7–11.7
Singapore 10.5–10.68
10.7–11.7
12.2–12.7
12.75–13.25
14.4–15.35
17.7

Backhaul Backhaul Backhaul

Country Band (GHz) Country Band (GHz) Country Band (GHz)
Latin America Middle East Africa
Brazil 10.7-11.7 Saudi Arabia 11 Nigeria 10-10.68
14.5-15.4 13 10.7-14
17.7 15 14.3-15.35
Uruguay 13 18 18
15 UAE — South Africa 10.7–11.7
12.75–13.25
14.5–15.35

Note: PTP, PTP/PTMP

Source: ABI Research

Spectrum in the 10 GHz to 18 GHz range is used for a Congestion is occurring in a number of the 10 GHz to
combination of PTP and PMP backhaul links. The 10 18 GHz bands. The 12 GHz, 15 GHz, and 18 GHz bands
GHz to 12 GHz and the 15 GHz to 18 GHz bands are are heavily congested in Denmark. Similarly, Germany
used for PMP in Germany, Saudi Arabia, Malaysia, and and Italy reported heavy-duty use in the 12.75 GHz
Singapore. to 13.25 GHz, 14.5 GHz to 15.35 GHz, and 17.7 GHz to
19.7 GHz bands. Chart 11, Regional Backhaul Spectrum

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 MOBILE BACKHAUL OPTIONS

Allocation by Frequency Range, shows the 11 GHz 5.3.2 20 GHz TO 40 GHz BAND
to 20 GHz bands had the third largest allocation of CASE EXAMPLES
spectrum bands available for wireless backhaul (17.9%
compared to 29.4% 4 years ago), while the 1 GHz to 10 In a number of regions, spectrum bands above 20 GHz
GHz spectrum is the most popular with 27.4%. Mature are used as backhaul links because higher frequency
microwave solutions and reasonably good propagation bands allow higher bandwidth. As congestion has built
characteristics supporting PTP and PMP applications up in the 1 GHz to 10 GHz and 11 GHz to 20 GHz bands,
make it a popular spectrum category for wireless countries in developed markets have taken steps
backhaul. There is, however, a need to relieve some of to make available the 20 GHz to 40 GHz bands. A
that congestion using very high microwave and even number of countries in Western Europe have allocated
millimeter spectrum bands. substantial amounts of spectrum in the 20 GHz to
40 GHz bands for backhaul links. Countries in Asia-
Pacific allocate more commonly in the spectrum range
between 20 GHz and 30 GHz (see Table 9).

Table 9

Backhaul Spectrum Summary, 20 GHz to 40 GHz Bands

Countries Surveyed by Region
Backhaul Backhaul Backhaul Backhaul
Country Band (GHz) Country Band (GHz) Country Band (GHz) Country Band (GHz)
Western Europe Eastern Europe Asia Pacific North America
Denmark 28 Croatia 23 Australia 20.2–21.2 Canada 9.3–19.7
38 38 23 21.8–22.4
France 19.7 Czech 23 24.25–27.5 23–23.6
26 Republic 26 30–31 24.25–24.45
Germany 22–23.6 28.2205– 31.8–33.4 25.05–25.25
24.5–26.5 28.4445 37 25.25–26.5
27.5–29.5 29.2285– India 21 27.5–28.35
31.8–33.4 29.4525 Indonesia 21.2–23.6 38.6–40
37–39.5 31 32–33 United 38.6-40
40.5 32 Japan 22.21–22.5 States

Italy 24.5–26.5 38 22.5–22.55

27.5–29.5 Poland 23 22.55–22.6
United 28 26 23–23.2
Kingdom 32 32 Malaysia 24.45–31.3
40 38 31.5–31.8
33.5
New Zealand 23–28
Singapore 24.25–29.5
31.8–33.4
37

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Backhaul Backhaul Backhaul Band

Country Band (GHz) Country Band (GHz) Country (GHz)
Latin America Middle East Africa
Brazil 21.8–23.6 Saudi Arabia 23 Nigeria 25.25–29.5
37–39.5 26 31–31.3
Uruguay 24 28 31.5–31.8
28 32 33
38 South Africa 21.2–23.6
UAE 40 24.549–26.453
27–29.5
37-39.5
40.5-42.5

Note: PTP, PTP/PTMP

Source: ABI Research

PMP applications have gained significant footholds in reviewed under the International Telecommunication
the higher 20 GHz bands, especially in the 26 GHz to Union’s (ITU) World Radiotelecommunication
29 GHz bands. In the United States, the 31 GHz to 32 Conference (WRC)-19 Agenda Item 1.13 for potential
GHz bands were also dedicated to Local Multipoint 5G access services. The European Radio Spectrum
Distribution Service (LMDS), a digital Television (TV) Policy Group (RSPG) has identified the 40.5 GHz to
broadcast service. The LMDS spectrum bands were 43.5 GHz band as a potential band for 5G in Europe.
then re-allocated for wireless backhaul for mobile It is, therefore, likely the 40.5 GHz to 43.5 GHz band,
cellular networks. PMP architectures can be found in along with the lower 37 GHz to 40.5 GHz band, will
Germany, Malaysia, Singapore, Saudi Arabia, Nigeria, have the opportunity to become globally harmonized
Saudi Arabia, New Zealand, and South Africa. ranges for 5G equipment.

The spectrum bands are LoS, but have the available

spectrum to support PMP deployment scenarios.
Multiple links can be set up with a single node.
Propagation characteristics are lower than the 10 5.3.3 STAKEHOLDER ANALYSIS
GHz to 18 GHz band, but still attractive for traditional
microwave backhaul applications. The 10 GHz to 40 GHz microwave range represents
the core spectrum bands used for wireless backhaul,
In different parts of the world, portions of spectrum both in PTP and PMP configurations. LoS is invariably
in the 26 GHz to 28 GHz bands are very likely to be required because the signal does a poor job of
assigned to 5G access services. In Europe, the Radio penetrating physical structures. However, some
Spectrum Policy Group (RSPG) has identified the 26 vendors are experimenting with nLoS solutions where
GHz band as the European pioneer millimeter wave transmissions may be bounced off buildings. Eleven
band. Large parts of Asia and emerging markets vendors are able to address backhaul solutions in the
are anticipated to also set aside the 26 GHz band 10 GHz to 40 GHz band. These include Nokia, Aviat
for 5G. The United States’ Federal Communications Networks, Cambridge Broadband Networks, CCS,
Commission (FCC), however, intends to offer the 28 DragonWave-X, Ericsson, Huawei, Intracom, NEC, Siklu
GHz band for the same services, as do Japan and Communication, and VubIQ Networks.
Korea. Existing backhaul links in the 26 GHz to 28
GHz bands are expected to migrate to the 32 GHz At present, the 10 GHz to 40 GHz band may be
and higher bands, which will have wider channels that the most popular with operators for their current
allow for greater capacity and data throughput. wireless backhaul needs. It also incurs very substantial
competition, with Ericsson, NEC, Huawei, Nokia, and
The 38 GHz band, and bands around it, will be DragonWave-X controlling a significant proportion of
the shipment volume.

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5.4 Upper microwave wave bands (41 GHz to 100 GHz)

The microwave 41 GHz to 100 GHz spectrum include the interference between links in close proximity. The
unlicensed 60 GHz band, the licensed/lightly licensed high frequencies also translate into smaller, more
70/80 GHz E-band, and the W-band (92 GHz to 114.25 compact antennas and help meet the zero footprint
GHz). These frequencies are compelling for small cell requirements of small cell backhaul. Also, the typical
backhaul because little congestion occurs in these full duplex bandwidth capacity seen for 60 GHz bands
bands, and they are very well suited to the short-range is between 5 Gbps and 10 Gbps, while in the 70 GHz
requirements of small cells, thanks to their high frequency. to 80 GHz E-band, it can reach up to 25 Gbps. The
70/80 GHz bands also have the advantage of longer
transmission distances (~3 km versus <1 km) because
its signal is not absorbed by oxygen atoms to same
degree as the 60 GHz band (see Figure 5). Of course,
5.4.1 DEPLOYMENT CONSIDERATIONS a disadvantage for these higher microwave wave
bands (41 GHz to 100 GHz) is that it requires LoS, which
Microwave wave backhaul in the 41 GHz to 100 GHz limits flexibility when planning small cell placement.
band uses a very narrow beam width, which reduces

Figure 5

Oxygen and Rain Absorption versus Transmission

Wavelength (mm)
30 20 15 10.0 8.0 6.0 5.0 4.0 3.0 2.0 1.5 1.0 0.8
100
Attenuation (dB/km)

40
20
10
4
2
1

0.4
0.2 H2O
1
H2O
0.04 A

0.02 O2
O2
0.01

0.004 B H2 O
0.002
0.001
10 15 20 25 30 40 50 60 80 100 150 200 250 300 400

Frequency (GHz)
Source: U.S. Department of Transportation

Small cell backhaul bandwidth today may require a millimeter link an attractive proposition for small cell
minimum of 1 Gbps for 4G and 10 Gbps to 100 Gbps for backhaul, because the propagation characteristics of
5G, and if the small cells are interconnected in a daisy the link can be used to improve its reliability where
chain, the backhaul band width may need to be double range is not a prime factor (see Figure 6).
the above-mentioned data rates.
The highly directional beam in a millimeter wave
As MNOs densify their RANs, capacity requirements link transmits data between two transceivers and
increase and transmission ranges decrease, making transports it in a straight line with little or no fading or

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multipath radio interference. This is a highly efficient other and reuse the frequency band for transmitting
use of spectrum because multiple millimeter wave separate data streams.
transceivers can function within a few feet of each

Figure 6

Potential Working and Frequency Reuse Ranges of the Millimeter

Wave GHz Band
Distance (Km)

60

Frequency
50 Reuse Range

40

30

20

10
Working Range

30 40 50 60 70
Frequency (GHz)
Source: Ofcom

These very high frequency backhaul links have a is lined up on the exact same trajectory, and in
number of additional deployment advantages that can the immediate locale of the targeted transmitter.
count in their favor: Furthermore, the intercepting receiver would have
to be tuned to the carrier signal of the transmitting
• Multiple E-Band Radio Co-Location Possible: The radio and be in the main beam in order to ensure
very narrow beams associated with 70/80 GHz reception. As a result, the presence of this third-
radios enables a number of E-band radios to be party radio would block/degrade the transmit path
installed on the same rooftop or even on the same of the transmitting radio and, therefore, reveal its
mast. Co-located radios operating in the same presence to the network manager.
transmit and receive frequency ranges can be
isolated from one another based on small lateral or
angular separations and the use of cross-polarized
antennas. V-band (60 GHz) has the added 5.4.2 V-BAND (60 GHz)
advantage of not requiring a license, but traction in
the V-band has been limited, to date. The V-band ostensibly ranges from the 41 GHz to
• Physical Security: E-band and V-band vendors the 75 GHz band. Parts of that band of spectrum are
report that there is a high degree of inherent used for millimeter wave radar and various scientific
physical security with these narrow beam LoS applications. The 60 GHz band has been attracting
transmissions. In order to intercept the signal, a considerable interest recently. There is only 70 MHz
third party would have to locate a receiver that available in the 2.4 GHz band and 500 MHz in the 5

Spectrum availability 49
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GHz band for Wi-Fi, compared to 7 GHz available in 60 km). The FCC also eliminated the need for outdoor 60
GHz V-band. GHz devices to transmit an identifier. Indoor 60 GHz
devices (for example, those based on WiGig’s 802.11ad
They are well suited to high-capacity, short-hop (<2 standard) are still constrained to the much lower
km) communications with narrow beams. The Wi- Fi power limitations, which prevents interference with
802.11ad low-power, very short-range devices will outdoor fixed link devices.
operate in the 60 GHz band, potentially offering data
throughputs of up to 10 Gbps.

EC 60 GHz Rule Change 5.4.3 70+ GHz BANDS

In late 2013, the European Commission (EC) issued
Since ABI Research’s previous spectrum survey 4
a decision, the 2013/752/EU, that made a number of
years ago, regulators have taken significant steps to
amendments to a prior policy document (2006/771/
make spectrum available in the 70 GHz and higher
EC). The main objective of the revised policy document
bands. Frequencies in the E-band (70 GHz, 80 GHz,
is to constrain transmission power levels to ensure they
and even 90 GHz bands) are being allocated on a
do not interfere with other wireless equipment. In the
licensed or “lightly” licensed basis. This licensed, or
case of the short-range devices operating in the 57
indeed lightly licensed approach to backhaul spectrum
GHz to 66 GHz band, they are restricted to 40 dBm
allocation does give the operator a high degree of
Equivalent Isotropically Radiated Power (EIRP) and 13
service delivery assurance that the 60 GHz unlicensed
dBm/MHz EIRP densities. Fixed outdoor installations
spectrum does not have. In the case of the 60 GHz
are excluded from complying with these restrictions.
band, it is the technical specifications (modulation,
Furthermore, it will ensure that these short-range
beam width, and network design) that must assure the
devices do not become a serious source of interference
backhaul link’s QoS.
for backhaul links in the 57 GHz to 64 GHz band.
The United States was one of the first countries to rule
FCC 60 GHz Rule Change that spectrum at 71 GHz to 76 GHz, 81 GHz to 86 GHz,
and 92 GHz to 95 GHz be available for high-density fixed
In late 2013, the FCC voted unanimously to change the wireless services. According to ABI Research’s survey, 16
rules governing the 60 GHz unlicensed band and said countries, up from just 8 countries 4 years ago, including
that the new raised power levels would improve the France, Germany, Malaysia, the Czech Republic, Poland,
use of unlicensed spectrum for high- capacity, short- the United States, Nigeria, South Africa, and the United
range outdoor backhaul, which is particularly useful for Arab Emirates (UAE) have allocated the 80 GHz band
small cells. for wireless backhaul. It is noticeable that a significant
number of emerging markets have issued spectrum in
There are several reasons why this rule change was these high millimeter bands for backhaul. This is a big
important for small cell backhaul. In the 60 GHz band, change from the last survey.
wireless transmissions are attenuated by oxygen
absorption and moisture or “rain fade,” which limits
their range; also, the signal will not penetrate foliage or
buildings, requiring a clear LoS. At this high frequency,
the antenna is a small dish that matches the small
form factor of the small cell and can be installed
unobtrusively outdoors.

The FCC raised the power limit for outdoor links

operating in the 57 GHz to 64 GHz band on an
unlicensed basis. The EIRP limit was raised from 40
dBm (equivalent to 10 Watts) to a maximum of 82 dBm
(158,489 Watts), depending on how high the antenna
gain is. The new power limit is comparable to others
the FCC has in the fixed microwave services. The FCC
believes this will support higher-capacity outdoor
links, such as small cells, extending to about 1 mile (1.6

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Table 10

Backhaul Spectrum Summary, >50 GHz Bands

Countries Surveyed by Region
Backhaul Backhaul Backhaul Backhaul
Country Band (GHz) Country Band (GHz) Country Band (GHz) Country Band (GHz)
Western Europe Eastern Europe Asia Pacific North America
Denmark 57–59 Croatia — Australia 50–52.6 Canada 71–76
71–76 Czech 60 66–76 81–86
81-86 Republic 70 81–86 92–95
France 71–76 80 India — United 71–76
81–86 Poland 70 Indonesia 56–76 States 81–86
Germany 55.78–57 75 81–86 92–95
71–86 Japan —
92–95 Malaysia 55.78–76
Italy — 81–86
United 57–66 92–94
Kingdom 71–76 94.1–100
81–86 102–109.5
111.8–114.25
122.25–123
130–134
141–148.5
New Zealand 71–76
81–86
Singapore 50.4–52.6
66–76
71–76
81–86

Backhaul Backhaul Backhaul

Country Band (GHz) Country Band (GHz) Country Band (GHz)
Latin America Middle East Africa
Brazil 57–64 Saudi Arabia — Nigeria 55.78–76
71–76 UAE 80 71–74
81–86 81–86
Uruguay 50 92–100
60 South Africa 57–66
71–76 71.125–75.125
81–86 73.375–75.875
81.125–83.125
83.375–85.875

Note: PTP

Source: ABI Research

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5.4.4 STAKEHOLDERS ANALYSIS backhaul bands. There are six V-band vendors
(BridgeWave Communications, DragonWave,
Just 4 years ago, the 70/80 GHz (E-bands) Ericsson, NEC, Siklu Communications, and
were relatively sparsely used, but that has Vubiq Networks) versus 11 E-band backhaul
changed now, as small cell deployments vendors (Aviat Networks, BridgeWave
have built up. The V-band (the 60 GHz band) Communications, Ceragon, DragonWave,
has had more muted adoption, with fewer E-band Communications, Ericsson, Huawei,
indications from regulators that they have LightPointe Wireless, Loea Communications,
made the V-band available for unlicensed NEC, and Siklu Communications).
backhaul use.
ABI Research believes that the characteristics
Despite the propagation-limiting of the 70/80 GHz spectrum bands, such as
characteristics of the 60 GHz band that short distance transmissions, the assurance of
make it suitable for spectrum re-use in licensed spectrum (even if it is lightly licensed),
dense urban areas, vendor support for the and the wider channel sizes that permit
unlicensed/lightly licensed 60 GHz band potential 10 Gbps to 25+ Gbps throughput, are
is not as extensive as for other microwave drawing interest from the hardware vendor
community.

5.5 Potential regulatory considerations

Use of the 60 GHz V-bands for backhaul has aside 3.5 GHz in the 59.40 GHz to 62.90 GHz
only had limited adoption in the countries bands.
surveyed by ABI Research. The spectrum is
becoming increasingly available. The 60 GHz Complementing this, a larger proportion of the 70/80
band has been set aside for unlicensed GHz bands compared to the 60 GHz bands can be
outdoor applications in a number of countries, dedicated to backhaul services. Not only will LTE and
including the United States, Canada, Australia, LTE-Advanced contribute to the growth in traffic, but
and a number of European countries such as 5G will need high-speed wireless backhaul, with 5G
Switzerland, Austria, and Slovenia. reaching commercial implementation by 2020. Fiber-
optic cannot be deployed in all cell site scenarios. The
One challenge is that the bands are not 70/80 GHz E-band has excellent characteristics for
harmonized across markets. In the United small cell wireless backhaul (see Table 6 in Section 5.1),
States, Canada, and Korea, 7 GHz has been in particular short link distances allowing for spectrum
put aside in the 57.05 GHz to 64 GHz range. re-use and very wide channel sizes to permit data
In Europe, 7 GHz has been allocated in the throughputs of 10+ Gbps.
57 GHz to 66 GHz band, and Australia has set

Spectrum availability 52
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6 Spectrum backhaul
licensing procedures
Wireless backhaul national licensing procedures are almost as diverse
as the spectrum bands they manage. They have evolved in response
to local conditions. But what are the different wireless spectrum
backhaul licensing approaches? And what are their relative merits?

Spectrum backhaul licensing procedures 54

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6.1 Types of licensing procedures

There are effectively five licensing models: • Lightly licensed spectrum
• Unlicensed spectrum
• Per link
As shown in Chart 12, per link has been the most
• Block spectrum
favored model to date, with 60.6% of countries opting
• Shared license for this model.

6.2 Per link spectrum licensing

The per link spectrum licensing method has been the
traditional way to license mobile backhaul spectrum.
Spectrum is issued to operators upon request. Across
different regions, a majority of countries issue the 6.2.1. SWOT ANALYSIS
spectrum bands for backhaul links on a per link basis
only. Some countries, such as France and the United Per link licensing is effective for PTP backhaul
Kingdom, use per link as well as block spectrum licensing connections. Deployments are highly localized due
methods for backhaul links frequency allocation. to directed antennas with narrow beam widths.
Therefore, spectrum can be reused. Regulators
There has been a shift toward an increasing allocation find that it is a model that works, even if it is not
of block spectrum licensing. In the United Kingdom, perfect. They often keep the spectrum on a very
for example, Ofcom has reported a reduction in the short leash with license durations typically of 1 to 2
number of backhaul PTP links between 20 GHz and years. This means that the spectrum is comparatively
45 GHz due to this increased use of block-assigned cheap. However, the operator may have to acquire
spectrum. Ofcom wishes to devolve backhaul microwave link hardware with different spectrum
spectrum link management and indeed empower band configurations, which can impact the cost of
mobile service providers with greater flexibility to equipment. Furthermore, the short duration of many
manage their backhaul infrastructure. licenses means operators may not have long-term
assurance that they have access to the PTP spectrum.

Table 11

SWOT Analysis
Per Link Licensing
Strengths Weaknesses

• Effective for PTP backhaul connections • May have to acquire microwave link hardware
• Spectrum can be efficiently used with different spectrum band configurations

• A tried and tested licensing model • Can have a heavy licensing administrative
overhead
• Spectrum is comparatively cheap

Opportunities Threats

• It is a fairly mature licensing model; some • Licenses are often very short duration but
regulators and operators would like to move away invariably renewed; operator cannot be 100%
from the licensing model where possible certain they have the spectrum for the long term

Source: ABI Research

Spectrum backhaul licensing procedures 55

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6.2.2 SPECTRUM BAND ANALYSIS 22 countries used this licensing model. Per link was
largely associated with PTP backhaul deployments.
Per link spectrum licensing was, by far, the most Per link licensing typically takes place from 18 GHz to
common form of wireless spectrum backhaul licensing 42 GHz, with exceptions in certain markets or PMP
in the markets that ABI Research surveyed; 20 out of backhaul applications.

6.3 Block spectrum licensing

Per block licensing has been gaining traction in also increasingly being used for PMP links. Block
the higher spectrum bands (28 GHz and higher). spectrum allocation does give the operator more
Regulators like Ofcom have taken steps to minimize certainty of operation. Regulators would want to see
the administrative and financial overhead of wireless that there was substantial need by the operator for
backhaul licensing. Block spectrum licensing block spectrum licensing. Principally, the operator
represented 21.2% of license models in operation. would need to demonstrate that it is planning to
connect a number of macrocell sites and/or small
cell sites with PMP services. Given the anticipated
growth in small cells, ABI Research believes that block
spectrum needs to become a more prevalent form of
6.3.1 SWOT ANALYSIS licensing in a number of markets.

Block spectrum licenses have been used by some

regulators and operators for PTP links, but they are

Table 12

SWOT Analysis Block Spectrum Licensing

Strengths Weaknesses

• Can be used for PTP links, but are particularly • License cost can be significantly higher than
useful for PMP application scenarios per link licensing
• Gives the operator more certainty of operation

Opportunities Threats

• Could grow in use by regulators • Issuing licenses can take a long time thus
• They would need to see that there was delaying rollouts
substantial demand for it; this would come from • Licensing fees need to be affordable for mobile
small cell deployments backhaul; operators already pay significant
amounts in access spectrum license fees

Source: ABI Research

6.3.2 SPECTRUM BAND ANALYSIS exclusively. Allocated spectrum blocks are from bands
26 GHz and 28 GHz and are not shared. France allows
Per block spectrum licensing has been primarily block and per link allocation together in bands 23
associated with the ex-LMDS bands in 23 GHz to 28 GHz, 26 GHz, 32 GHz, 38 GHz, and 70/80 GHz. South
GHz in Europe and the 31 GHz bands in the United Africa has allocated spectrum on a per block basis in
States. Only a handful of countries use the per block a number of bands, including the 26 GHz, 28 GHz, 38
spectrum method for the majority of their backhaul GHz, and 42 GHz bands. Operators are required to
needs. Italy uses the block assignment method share the spectrum.

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6.4 Lightly licensed spectrum

In a number of markets, regulators are striving to measurements and perform an interference analysis
reduce the burden of regulation on operators. Where to assess the probability of affecting any existing
there are technical solutions to mitigate interference, users in the vicinity. All backhaul transmitters must be
there are then opportunities for implementing a identifiable in the event that they cause interference to
“lightly licensed” approach. In a lightly licensed any existing operators in the vicinity. If interference is
approach, the licensee pays a comparatively smaller caused between the licensees that cannot be mediated
fee for a non-exclusive license. The licensee then by an immediate technical solution, licensees are
pays an additional nominal fee for each wireless required to resolve the dispute between them.
backhaul link that it deploys. The operator must take

Table 13

SWOT Analysis Lightly Licensed Spectrum Licensing

Strengths Weaknesses

• Reduced regulatory/administrative burden • Operator needs to take proactive measures

on the operator to ensure its backhaul links do not cause
• License fees can be comparatively low as the interference to any neighboring existing users
license is not exclusive • If there is interference, often the two operators
• Still quite fast to roll out are required to resolve the interference issue
themselves
• Some moderate guarantees against interference

Opportunities Threats

• Likely to grow in use by regulators • Unresolved interference conflicts are a possibility,

• Operators are keen on it, especially if there is a but usually the regulator can step in as a last resort
low probability of interference

Source: ABI Research

6.4.2 SPECTRUM BAND ANALYSIS Research. The majority of these were developed
markets, but a number of emerging markets have also
A major push into light licensing has been seen in the implemented light licensing. ABI Research expects
71 GHz to 76 GHz, 81 GHz to 86 GHz, and 92 GHz to that more markets, both in developed and emerging
95 GHz bands. Regulatory implementation is building, markets, will adopt light licensing regimes as a means
including in 18 of the 22 markets surveyed by ABI to give telcos greater flexibility with their backhaul
rollout plans.

6.5 Shared spectrum licensing

In many respects, the shared licensing regime is a in a particular location. Shared spectrum licensing
variant of the light licensing regime. The administrative represented 9.1% of license models in operation.
requirements are reduced, but there is also an explicit Regulators are actively reviewing shared spectrum
requirement to share a block of spectrum with one or licensing, but it may prove challenging to implement
more participants. In the shared spectrum licensing shared spectrum for backhaul due to the high QoS
method, microwave backhaul frequencies are not requirements.
exclusive for any operator and are to be shared with
other operators on a first-come, first-served basis

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6.5.1 SWOT ANALYSIS policy in a given location. The first to deploy has
primacy, and the second cohabiting licensee is
A few regulators have dabbled in issuing shared prohibited from causing interference in that location.
spectrum licenses where there is a primary and a The incentive is to encourage effective utilization
secondary user, or there is a first-come, first-served of the wireless backhaul spectrum by the operator
community.

Table 14

SWOT Analysis Shared Spectrum Licensing

Strengths Weaknesses

• Has many of the same traits as lightly licensed • Greater risk of interference
• Reduced regulatory/administrative burden on the • Operator needs to take proactive measures to
operator ensure backhaul links do not cause interference
• License fees can be comparatively low as the to existing neighboring users
license is not exclusive • If there is interference, often the two operators
• Still quite fast to roll out are required to resolve the interference issue
themselves

Opportunities Threats

• Regulators are investigating the potential of • Unresolved interference conflicts are a possibility,
shared licensing but usually the regulator can step in as a last resort
• Operators have some concerns about quality of
service

Source: ABI Research

6.5.2 SPECTRUM BAND ANALYSIS be found in India, Singapore, and Nigeria. Regulators
are assessing assured shared spectrum licensing
Quite separate from unlicensed spectrum bands models. Such assured shared spectrum arrangements
where a number of participants may “share” a block permit cohabitation in a given spectrum band, but
of spectrum, regulated shared spectrum bands, where rules define where, when, and how the respective
two or more operators explicitly share spectrum, can participants can use the spectrum band.

6.6 Unlicensed spectrum

Unlicensed spectrum can be used for backhaul links in much higher 60 GHz band. Unlicensed spectrum
certain circumstances. Under this approach, operators represented 9.1% of backhaul models in operation.
do not need to pay a license fee. The unlicensed
model has been adopted in a number of markets,
but feedback has been largely negative. Complaints
regarding interference from a growing number of 6.6.1 SWOT ANALYSIS
public and private Wi-Fi access points are frequent.
At present, unlicensed backhaul is using the Wi-Fi Historically, operators have been wary of unlicensed
spectrum bands (2.4 GHz and 5 GHz bands) or the spectrum, especially in the Wi-Fi bands. In a world

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where operators need assured data throughput, low welcomed. Technical solutions to mitigate interference,
latency, and versatile capacity, using 2.4 GHz and even as well as an open dialog between operators to
5 GHz unlicensed spectrum is often the plan of last address sources of interference, are essential. A first-
resort. However, the allocation of spectrum in the high come, first-served policy in terms of siting backhaul
50/60 GHz bands is serving to redeem the unlicensed links is at the heart of what makes the model work.
model. A “zero” administrative model is to be

Table 15

SWOT Analysis Unlicensed Spectrum

Strengths Weaknesses

• No licensing requirements; therefore, reduced • Heavy reliance on topology, proximity, and

administrative burden technical expertise to mitigate the impact of
• No licensing fees to be paid interference

• Fast rollout
• Can provide temporary spectrum solutions
for locations that need “immediate” spectrum
coverage, e.g., an event

Opportunities Threats

• Spectrum is available in 2.4 GHz, 5 GHz, and • Very real threat of loss of connection as the “noise
60 GHz floor” rises to mask the operator's transmissions
• 2.4 GHz and 5 GHz do not provide long-term
viable spectrum solutions

Source: ABI Research

applications (<40 dB EIRP) and outdoor, high‑power

V-band transceivers intended for backhaul applications.

6.6.2 SPECTRUM BAND ANALYSIS However, in ABI Research’s latest survey, 4 years
after the last iteration, there does not appear to be
Unlicensed wireless backhaul has proven to be significant traction in the adoption of the unlicensed
an anathema to most operators. Higher data spectrum for backhaul links, even using the ultra-wide
throughputs and lower latencies are becoming pressing channels available in the 60 GHz bands. ABI Research
requirements for mobile operators as their 3G and 4G believes mobile operators have preferred to opt for
subscriptions and traffic grow. This attitude should start the lightly licensed 70/80 GHz bands that also assure
to change as unlicensed V-band (60 GHz) solutions very high-capacity links (10 Gbps to 25 Gbps), which is
gain commercial traction in the market and the cost important for an essential component of the network.
of equipment drops. Significant amounts of spectrum
are available (7 GHz of license-exempt spectrum A number of operators have used the 2.4 GHz and
is available in the 57 GHz to 64 GHz band), and the 5.8 GHz bands for wireless backhaul, but they seem to be
short propagation distances should also help mitigate deploying them as an act of last resort. These bands have
against interference. The FCC and the EC have taken been used in India and Brazil. In the case of Brazil, carriers
a proactive approach to the 60 GHz V-band and have were using the bands for temporary backhaul coverage
recommended a license-exempt approach to the active at major events, including carnivals, New Year’s Eve, and
use of the 57 GHz to 64 GHz band. Furthermore, both sporting events. The growth in 2.4 GHz and 5 GHz access
regulatory authorities have tightened up the power points and client devices has had a detrimental effect on
transmit allowances for short-range, largely indoor backhaul using such spectrum bands.

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6.7 Quantitative spectrum license summary

Based on research carried out by ABI Research, the block spectrum with almost 21.2%, and then shared
per link licensing model is predominant, with 60.6% of and unlicensed with an equal 9.1% (see Chart 12).
all license models deployed. This was followed up by

Chart 12

Backhaul Spectrum License Model & Duration Summary

World Markets, 2017

9.1%
21.2% 38%

17%
60.6%
21%

25%
9.1%
License model License duration
Unlicensed Per Link Block Shared 1 year 5 years 10 years >10 years
Spectrum

Source: ABI Research

In terms of license duration, ABI Research estimates In these bands, regulators have a general, but
that 25% of licenses are of 1-year duration, whereas unbinding principle of honoring the renewal of the
5-year license durations represented 21%. Licenses 1-year license for a further term. The rationale given
with 10 or greater licenses durations increased to 54%, by regulators is that they wanted to prevent mobile
which is a significant increase compared to 4 years operators from sitting on unused per link backhaul
ago. As demands on backhaul have increased due to licenses. Generally speaking, wireless backhaul
mobile data traffic, mobile operators have needed spectrum license fees in the 10 GHz and above bands
greater assurance in planning and placing their network have been priced well below the spectrum pricing
infrastructure. Mobile operators now have between fees of end-user access spectrum. A more detailed
10,000 and 100,000 base stations to manage. segmentation by country can be found in Table 16.

The short-term, 1- to 2-year licenses that are associated

with PTP links are likely to remain a licensing mainstay
for government regulators, especially for the sub-10
GHz and 20 GHz to 40 GHz bands, as that spectrum
could be potentially re-allocated to access-related
services for FWA or mobility services.

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Table 16

Regional Backhaul Spectrum License Summary

World Markets
Block 1 5 10 >10
Country Unlicensed Per Link Spectrum Shared Year Year Year Year

Western Europe

Denmark

France

Germany

Italy

United Kingdom

Eastern Europe

Croatia

Czech Republic

Poland

Asia Pacific

Australia

India

Indonesia

Japan

Malaysia

New Zealand

Singapore

North America

Canada

United States

Latin America

Uruguay

Middle East

Saudi Arabia

UAE

Africa

Nigeria

South Africa

World-wide Analysis

Total 3 20 7 3 6 5 4 9

Spectrum Share 9.1% 60.6% 21.2% 9.1% 25% 21% 17% 38%
Source: ABI Research

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6.8 Stakeholders analysis

In the context of licensing procedures and mandates, One critical aspect is to put a focus on the long-term
the regulators inevitably come to the fore. They outline sustainability of the industry and not just on securing
the parameters of how a license should be secured, the maximum tax receipts from the auction or leasing
the terms and conditions of the license, and invariably of spectrum. A number of operators and equipment
are in charge of the overall strategic recommendation vendors have expressed concern that end-user access-
of how the wireless spectrum resources of a country type spectrum valuations could be potentially applied
should be allocated in the long-term interests of the to backhaul spectrum bands.
citizens of the country.

6.9 Potential regulatory considerations

6.9.1 TYPES OF LICENSING MODELS toward “block” or “area-wide” licensing, which has
helped the operators to more efficiently plan their base
Based on the research interviews conducted with station and backhaul links.
the operator and equipment vendor community,
there is concern surrounding the unlicensed model The duration of licenses has also increased over
for backhaul. The greatest concern was for the 2.4 the past 4 years. This has been appreciated by the
GHz and even the 5 GHz bands, due to the potential mobile operator community. Four years ago, of the
interference and congestion from Wi-Fi users. As the 23 countries surveyed, 40% relied on 1-year, rollover
amount of traffic continues to increase and the need type license agreements. As of the end of 2017, 1-year,
to compensate by using higher order modulation rollover licenses had dropped to 25% of the overall
schemes (e.g., from 256 Quadrature Amplitude total of license model in operation. Licenses with a
Modulation (QAM) to 1024 QAM) grows, there is duration of 5 years or more represent 75% of the total.
concern that ambient background transmissions from
other unlicensed backhaul links could degrade the
QoS for all active participants. The 60 GHz V-band is
a more viable solution, but operators have yet to fully
6.9.2 TRADING SPECTRUM FOR
embrace the 60 GHz band for their backhauling needs.
After 4 years, the adoption of the 60 GHz band for WIRELESS BACKHAUL
backhaul has been marginal (less than 3% of backhaul
links in 2017). If operators were to be able to acquire more of their
spectrum for wireless backhaul via per block licensing
Based on discussions with various stakeholders in and those licenses were of longer license duration,
the ecosystem, per link licensing for PTP deployment it would also be advantageous to be able to trade
in the main microwave bands is “fit for purpose” for spectrum with other stakeholders. This would dis-
macrocell site deployments. Interference is minimal incentivize operators from sitting on unused backhaul
and the first-come, first-served award of license links spectrum and allow operators with a greater need for
is reasonably efficient. The light licensing approach backhaul spectrum to be able to secure it. Mechanisms
appears to be gaining traction, especially in relation could be put in place to “limit” the amount of spectrum
to the 70/80 GHz band. There has also been a shift any one particular operator can secure. This would
prevent anti-competitive hoarding of spectrum.

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7 Recommendations
and policy options
Mobile operators have a challenging time backhauling the mobile
voice and data traffic from varied environments, such as urban,
suburban, rural, offices, residential homes, skyscrapers, public
buildings, tunnels, etc. Table 17 outlines how mobile operators need a
variety of technical and spectrum backhaul solutions.

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Table 17

Mobile Backhaul Technology Trade-Offs

Wireless versus Fixed versus Satellite
Segment Microwave V-Band E-Band Fiber-optic Copper Satellite
(7–40 GHz) (60 GHz) (70/80 GHz) (Bonded)

Future-Proof Available
Medium High High High Very Low Low
Bandwidth

Deployment Cost Low Low Low Medium Medium/High High

Suitability for Outdoor

Outdoor Outdoor Outdoor Indoor Access
Heterogeneous LRAN/Access Rural only
LRAN/Access LRAN/Access LRAN/Access Network
Networks /Core

Support for Mesh/Ring Yes where

Yes Yes Yes Indoors Yes
Topology available

Interference Immunity Medium High High Very High Very High Medium

Range (Km) 5~30, ++ 1~ ~3 <80 <15 Unlimited

Time to Deploy Weeks Days Days Months Months Months

License Required Light License/ Licensed/

Yes No No No
Unlicensed Light License

Note: Shading indicates preferred choice for 5G mobile backhaul. LRAN = Local Regional Access Node

Source: ABI Research

The shaded cells indicate attributes that particularly band decreases from 34.9% in 2017 and to 21.3% in
benefit 4G, and in particular, 5G mobile backhaul. 2025, but microwave 41 GHz to 100 GHz grows from
Fiber-optic does have its role to play in specific 13.5% to 21% over the same time period. Copper-line,
scenarios, and microwave links in the 6 GHz to 40 GHz as well as licensed and unlicensed sub-6 GHz, provides
bands have been a mainstay of wireless backhaul for a marginal role for the mobile service provider. Satellite
macrocell sites. However, the E- band, the W-band, has a usage-based model, but can play an essential
and even the V-band (the 60 GHz unlicensed band) role for edge of network scenarios, as well as for
will steadily play a more prominent role in mobile temporary deployment scenarios.
operators’ backhaul networks. Migration to the 70/80
GHz and the 90 GHz band is well underway. This usage outlook reflects the maturing of technical
solutions that will need spectrum support from
As a result, a complex evolution is going on in small cell national regulators. This pressure to support
backhaul usage. Fiber-optic’s prevalence is currently backhaul solutions and spectrum for the macrocell
at 40.7% on a worldwide basis, but will grow to 49.7% site market is also reinforced by the need to support
by 2025, although mobile service providers will still the backhaul connectivity for small cell deployments
need to rely on LoS microwave for much of their that are expected to reach 4.3 million by 2025 on a
backhaul needs. Microwave in the 7 GHz to 40 GHz worldwide basis.

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7.1 The changing face of cell site backhaul

While the macrocell microwave LTE backhaul market the 41 GHz to 100 GHz (4.5%). Transmission distances
will not grow at the same rate as small cell microwave are contained to 1 km to 3 km or so, but being able to
backhaul, it does show consistent growth. In 2017, support data throughput of up to 25 Gbps makes it
the majority share of backhaul links deployed is the suitable for macrocell sites in downtown locations with
traditional microwave LoS (7 GHz to 40 GHz, 57.4%). high-levels of traffic. OFDM NLoS sub-6 GHz backhaul
links could be used for macrocell sites, but deployment
The higher bandwidth requirements of 4G LTE and would be largely redundant and better suited to small
the 2020 arrival of 5G are also driving a significant cell site deployment scenarios.
share for fiber and, to a lesser degree, microwave in

Chart 13

Macrocell Backhaul by Method

World Markets, 2017 and 2025
100%
Macrocell Site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Over the past 4 years, there has been a significant cell sites are within urban or commercial business
shift in the commitment by telcos to roll out fiber for districts, which are being increasingly provisioned by
macrocells, but especially in relation to small cells. fiber-optic. What is significant is that millimeter wave
Mobile service providers have taken a long-term view usage (microwave: 41 GHz to 100 GHz) is expected
of the backhaul provisioning of macro and small cell to grow from 4.5% in 2017 to 10% in 2025. Licensed
sites. Fiber-optic provisioning has also been boosted sub-6 GHz for NLoS is still a viable small cell solution
by the wider rollout of fiber to business and residential in 2017, representing 6.2%, but it will be challenged by
premises. As a result, fiber-optic provisioning of small sufficiently available sub-6 GHz spectrum. The higher
cells stood at 25.3% in 2017 and is expected to grow to bandwidth and data rates available in the 70/80 GHz
37.3% by 2025. band and the light licensing regime means that this
technology will become a popular option as links are
Microwave and millimeter wave captured 62% in daisy-chained and aggregated for transport back to
2017, but will decline to 53.4% by 2025, as most small the network core.

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Chart 14

Small cell Backhaul by Method

World Markets, 2017 and 2025
100%
Small Cell Site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025

Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz

7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

Note: Detailed total worldwide, and by region, 2G, 3G, 4G and 5G segmentations for backhaul links by method of transmission can be
found in Appendix 1 on page 72.

Source: ABI Research

7.2 Modulation schemes and multi-band aggregation

There has been continued innovation in backhaul
technology. Higher order modulation equipment has
helped compress more data per Hertz (Hz). However,
while modulation schemes up to 2048 QAM are now
available, most equipment vendors and operators
have stated that equipment supporting 512 QAM and
higher are likely to deliver limited additional benefit,
given the greater link margins required and the
increased sensitivity of such equipment to unwanted
interference.

However, combining low- and high-frequency

microwave links has been a win-win for mobile
service providers. One example is backhaul links
that aggregate a longer, but high propagation
availability link in 18 GHz with a high capacity link in the
70/80 GHz band using a single dual-band antenna.

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Figure 7

Backhaul Bandwidth Requirements

World Markets, 2017, 2022, and 2025
Mobile broadband introduction 2017 2022 Towards 2025

80 percent of sites 25 Mbps 75 Mbps 100 Mbps

20 percent of sites 75 Mbps 200 Mbps 300 Mbps

Few percent of sites 150 Mbps 450 Mbps 600 Mbps

Advanced mobile broadband 2017 2022 Towards 2025

80 percent of sites 150 Mbps 350 Mbps 600 Mbps

20 percent of sites 300 Mbps 1–2 Gbps 3–5 Gbps

Few percent of sites 1 Gbps 3–10 Gbps 10–20 Gbps

Source: Ericsson (2017)

As a result of these innovations, Ericsson forecasts be noted that 80% of cell sites in an advanced mobile
that, by 2022, the typical backhaul capacity for a broadband network will be operating in the 350 Mbps
high-capacity cell site will be in the 1 Gbps range, but range in 2022 and the 600 Mbps range by 2025.
will increase to 3 Gbps to 5 Gbps by 2025. It should

7.3 Ecosystem development and recommendations

There are at least 25 vendors in the wireless backhaul Small cell site deployment represents a potential line of
ecosystem. Some may argue that the ecosystem disruption to the incumbents. Vendors such as Tarana
is too fragmented, but ABI Research argues that Wireless, Cambridge Broadband Networks, CCS, Siklu
this level of competition is healthy for the current Communication, and VubIQ Networks are providing
status of the backhaul market. The backhaul market novel solutions.
has been a hotbed of innovation. This is beneficial
because operators will need a wide range of fixed The level of competition is intense and not every
and wireless backhaul solutions from a larger number vendor will remain commercially viable in the long
of manufacturers to cater to the various deployment term. There has been consolidation over the past 4
scenarios that they need to address. to 5 years, and that process will continue to intensify.
A number of the smaller vendors have merged with
In the mainstream macrocell microwave backhaul larger vendors as top tier operators have selected their
market, the largest vendor is Ericsson with a majority primary and secondary suppliers. A small percentage
share of the market. NEC is in second place with a of operators will opt for multi-vendor (three or more)
strong backhaul product portfolio. Huawei, Nokia, arrangements, but given that the vast majority
and DragonWave-X also have strong traction in the of backhaul vendors have proprietary solutions,
marketplace. operators will not be able to use these backhaul
solutions in a modular manner.

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One particular characteristic of innovation that is to bear on the problem so that link performance is
shifting the potential costs of wireless backhaul maximized and interference is mitigated in complex
manufacturing is digital and signal processing. Vendors PMP and NLoS topologies. Data throughputs have
have been innovating at the silicon level and bringing demonstrated a 3× to 5× increase.
advanced digital and signal processing techniques

7.4 Regulatory recommendations

A number of regulatory initiatives need to be put in place.

7.4.1 ACTIVE PROMOTION OF • It is a promising band for backhaul services and can
THE E-BANDS AND W-BANDS FOR complement the 70/80 GHz bands. The 60 GHz
band has been set aside in a number of countries.
WIRELESS BACKHAUL
In the United States, Canada, and Korea, 7 GHz has
been put aside in the 57.05 GHz to 64 GHz range. In
• Key Takeaway: More active promotion of the 70/80
Europe, 7 GHz has been allocated in the 57 GHz to
GHz E-bands and the 92 GHz to 114.25 GHz W-band
66 GHz band, and Australia has set aside 3.5 GHz in
for wireless backhaul in the international regulatory
the 59.40 GHz to 62.90 GHz bands.
community.
• Fiber-optics cannot be deployed in all cell site
scenarios. The 70/80 GHz E-band has excellent
characteristics for small cell wireless backhaul, 7.4.3 NEED TO EVALUATE THE
in particular for short link distances, allowing for D-BAND FOR FUTURE PROVISIONING
spectrum re-use and very wide channel sizes to
permit data throughputs of 10 Gbps to 25 Gbps. In order to prepare for the inevitable future
The spectrum is to be lightly licensed or licensed, requirements for additional capacity in the backhaul
which gives the mobile operator a high level of architecture, there will be a need to consider the
assurance over QoS. Furthermore, it has better possibility of additional spectrum in the 130 GHz to
signal propagation characteristics compared to the 174.8 GHz (D-band) bands to complement the use
60 GHz band. of 70/80 GHz and the 60 GHz bands. These are
likely to be needed for ultra-fast, high-density small
cell deployments. Mobile service providers have
stated they anticipate backhaul will need to evolve
7.4.2 ACTIVE PROMOTION OF THE beyond the current traffic capacities of 1 Gbps to 10
60 GHz V-BAND FOR WIRELESS Gbps, expanding to 30 Gbps to 50 Gbps in the 2020
BACKHAUL timeframe. By 2025, some backhaul links will be
carrying 100 Gbps and higher.
• Key Takeaway: Promotion of the 60 GHz V-band
for wireless backhaul in the international regulatory
community.
• Based on ABI Research’s investigation, use of the 7.4.4 PROMOTION AND SUPPORT
60 GHz V-bands has only had limited adoption, so FOR PMP BACKHAUL SPECTRUM
far, in the countries surveyed. AND APPLICATIONS
• Operators have preferred to opt for the 70/80 GHz
and even the 90 GHz bands where licensing is • Key Takeaway: Active promotion and support
in place and the bands are not as susceptible to for spectrum are needed for PMP backhaul
atmospheric attenuation of ambient interference. applications, with the associated need for per
However, the 60 GHz V-band is unlicensed and block licensing in the 10 GHz to 15 GHz, 32 GHz, and
vendors have continued to enhance their solutions. making use of the unlicensed 60 GHz bands. Mesh,
daisy-chain routing technologies are at the heart

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of PMP. PMP is an attractive technology because 7.4.5 10 GHz TO 42 GHz

it helps route backhaul through the concrete MICROWAVE BANDS WILL
and glass landscape that can block or deflect
EXPERIENCE MIGRATION
microwave and millimeter wave transmissions.
• At present, there is PMP spectrum support mainly • Key Takeaway: The 15 GHz to 23 GHz spectrum
in the 10.5 GHz, 26 GHz, and 28 GHz bands. There will remain an essential workhorse for mobile
are, however, complications with the 26 GHz and backhaul. The bands are likely to be an invaluable
28 GHz bands, as they are likely to be re-allocated complement to the E-band using multiband carrier
for 5G access services. The United States, Japan, aggregation equipment. Demand for these combo
and Korea prefer the 28 GHz band, while Europe bands are likely to be worldwide. However, it is a
and much of the rest of the world are likely to opt reality that, in the long term, parts of the 24 GHz
for the 26 GHz band. Official regulatory guidance to 42 GHz spectrum will be increasingly used by
has yet to materialize from country regulators, so 5G services and less by microwave backhaul. In
operators have already started to migrate away some of these bands, such as the 26 GHz and the
from the 26 GHz to 28 GHz bands. It is anticipated 38 GHz in Europe, there are a significant number of
that the 32 GHz band will become the preferred operational microwave links.
spectrum band for PMP and even PTP backhaul
links. The propagation characteristics make the
spectrum band effective for mid-distance backhaul
(5 km to 10 +/- km). 7.4.6 NEED TO SUPPORT WIDER
• The PMP community is interested in using the CHANNEL SIZES ACROSS ALL BANDS
60 GHz V-band. In many markets, there has yet to
be substantial traction in the 60 GHz band for PMP, • Key Takeaway: There has been a migration to
but it should be an option in the operator’s toolkit for higher frequency bands. The reason for this is not
future backhaul deployment, especially for small cells. driven by the need to secure access to additional
spectrum bands for backhaul, but to gain access to
wider channels for backhaul.

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• The lack of spectrum supporting wide channel efficient. In some countries, the administrative
bandwidths has been identified as a potential workload of preparing the PTP application could
bottleneck for microwave backhaul. Until quite be streamlined. Light licensing models have taken
recently, regulators had put forward plans that root in a number of markets and this is a good
allow for bandwidths of up to 112 MHz in bands sign for mobile service providers. Nevertheless,
below 40 GHz. However, as mobile data traffic more needs to be done to promote the model,
has grown, having wider channels has become perhaps highlighting best practice, and this could
essential. The availability of higher spectrum be advocated to regulators in emerging and
bands have encouraged regulators to widen developed markets.
their backhaul channel allocations. For example,
• As the deployment of base stations shifts from
CEPT’s Electronic Communications Committee has
macro cells to small cells, there will be a greater
put forward a recommendation for a maximum
need for block spectrum licensing for PMP mesh
channel bandwidth of 224 MHz in the 42 GHz band,
links using the 70/80 GHz (or even higher) backhaul
2500 MHz in the 60 GHz band, 4500 MHz in the
applications.
70/80GHz and 400 MHz in the 90 GHz band.
• Given the increased investments that mobile
operators will have to make in wireless backhaul, it
is essential that mobile operators are given “greater
7.4.7 THERE IS AN EVOLUTION IN assurance of spectrum tenure” for their backhaul
LICENSING MODELS assets, even for PTP applications. Over the past
4 years since ABI Research’s previous survey, the
• Key Takeaway: From the research interviews situation has improved. Four years ago, out of 23
conducted with the operator and equipment countries, 40% relied on 1-year, rollover type license
vendor community, there is concern about the agreements, but fast forward to the end of 2017
unlicensed model for backhaul. The greatest and that figure has dropped to 25%, and 54% of
concern was for the 2.4 GHz and even the 5.x licenses are now 10 years or more. ABI Research
GHz bands, due to the very real possibility of recommends that a term of 5 years be made the
interference and congestion from public and default timeline for PTP licenses. For PMP per
private Wi-Fi users. A number of operators cited block licenses, a 5- to 10-year license period would
situations where they had deployed ISM band help reassure operators that they can recoup their
backhaul links, only to experience high levels of investment.
interference. Many operators referred to sub-6 GHz
unlicensed backhaul as the “backhaul solution of
last resort.”
7.4.8 SUPPORT WIRELESS
• The 60 GHz unlicensed V-band is a more viable
BACKHAUL SPECTRUM TRADING
solution, but operators have yet to fully embrace
the 60 GHz band for their backhauling needs
• Key Takeaway: If there is to be a larger amount of
because they have concerns about interference
per block licensing and longer license duration, it
and QoS assurance in the mid to long term. Strong
would also be advantageous to be able to dispose,
growth is expected in 802.11ad Wi-Fi devices over
and acquire, spectrum from other stakeholders.
the next 5 to 10 years, which has already been
This would dis-incentivize operators from sitting
allocated the 60 GHz band.
on unused backhaul spectrum and allow operators
• Based on discussions with various stakeholders with a greater need for backhaul spectrum to be
in the ecosystem, per link licensing for PTP able to secure it. Mechanisms could be put in place
deployment in the main microwave bands is to limit the amount of spectrum any one particular
“fit for purpose” for macrocell site deployments. operator can secure to prevent anti-competitive
Interference is minimal and the first-come, hoarding of spectrum.
first‑served award of license links is reasonably

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Appendix 1
Total (Small Cell & Macro BTS) Base station Backhaul Links Charts

Chart 15

2G Total (Small Cell & Macro BTS) Base station Backhaul Links
By Method and Region, Historical 2017 and Forecast 2025
100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Appendix 1 72
 MOBILE BACKHAUL OPTIONS

Chart 16

3G Total (Small Cell & Macro BTS) Base station Backhaul Links
By Method and Region, Historical 2017 and Forecast 2025
100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Appendix 1 73
 MOBILE BACKHAUL OPTIONS

Chart 17

4G Total (Small Cell & Macro BTS) Base station Backhaul Links
By Method and Region, Historical 2017 and Forecast 2025
100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2017 WW 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU EU NE NE S&SE S&SE NA NA LAC LAC MENA MENA SSA SSA
2017 2025 Asia Asia Asia Asia 2017 2025 2017 2025 2017 2025 2017 2025
2017 2025 2017 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Appendix 1 74
 MOBILE BACKHAUL OPTIONS

Chart 18

5G Total (Small Cell & Macro BTS) Base station Backhaul Links
By Method and Region, Forecast 2025
100%

Total Cell-site Backhaul Usage 90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
WW 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed

100%
Total Cell-site Backhaul Usage

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
EU NE S&SE NA LAC MENA SSA
2025 Asia Asia 2025 2025 2025 2025
2025 2025
Copper Fiber Microwave Microwave Satellite Sub-6 GHz Sub-6 GHz
7 GHz~40 GHz 41 GHz~100 GHz Unlicensed Licensed
Source: ABI Research

Appendix 1 75
 Spectrum
Licence PTP/ for future
Country Spectrum (GHz) Licence Type Duration PTMP consideration Comments Licence Fees
Western Europe
Denmark 7 Per Link 15 years PTP EU to propose Most crowded bands are 7 GHz, 12 GHz, Fees depend on frequency band and bandwidth.
10 minimum spectrum 15 GHz, 18 GHz and 23 GHz bands The lower frequency and the higher bandwidth
18 license duration of the higher price. Regional licenses are issued in
28 25 years 18 GHz band and higher frequency band (18 GHz,
38 23 GHz, ...).
57–59
71–76
81–86
MOBILE BACKHAUL OPTIONS

France 3.5 Per Link 15 years PTP The annual amount, expressed in euros, of
3.4–3.8 to 20 years the management fee is equal to the product
Block Spectrum PTMP
6 of a reference constant "G" by the number
26 of assignments. The annual amount of
71–76 the availability fee due is specified in the
81–86 corresponding authorizations. The annual
amount, expressed in euros, of the management
fee is equal to the product of a reference
constant "G" by the number of megahertz
alloted.

Germany 0.41–0.42 22–23.6 2 Per Link 10 years PTP Apply Licence fee and annual frequency usage
Appendix 2

3.8–4.2 4.5–26.5 fee. Prices are calculated based on frquency

PTMP
5.925–6.425 27.5–29.5 band and bandwidth. (eg <28 MHz: EUR 100
6.425–7.125 31.8–33.4 to 300, 14 MHz channel at 7.2 band : EUR 680,
7.125–7.425 37–39.5 28MHz and 56MHz channels cost about 1500
7.425–7.725 40.5–43.5 Euro for frequency bands (0.4–7.5 GHz), and are
12.75–13.25 55.78–57 cheaper at higher frequencies: fees between
14.5–15.35 71–86 300–1088 Euro, 80 GHz costs 1100–1500 Euro)
17.7–19.7 92–95

Italy 3.4–4.2 Block Spectrum 15 years AGCOM is looking to allocate the Fees are computed based on geographical area,
6 Allocation remaining blocks as a response for the interest rates and duration of rights. In addition
24.5–26.5 growing demand for more backhaul. to administration fees, all fees are paid once .
(Only block spectrum
27.5–29.5 AGCOM is in the process of assigning Price varies between EUE 60,000 to 1,000,000.
allocation is used.
3.6GHz and 3.8GHz bands which 28GHz and higher are more expensive
Currently 72 blocks are
operators expressed interest in them for
assigned. 48 blocks in
LTE and small cells. Another band that
26 GHz band and the
might be open for backhaul in the future
rest in 28 GHz band.)
is 40GHz

United 1–3 Unlimited Potential for shared access of spectrum at In Light-Licensing, the users of a band are
10 Per Link duration 3.6-4.2 GHz for wireless broadband use awarded non-exclusive license which are
Kingdom
28 Light Licensing: and NLoS small cell backhaul. Potential typically available to all and are either free or
32 Light licensed bands use of spectrum at 55-100 GHz for fixed only have a nominal fee attached to them.
40 include 5.8 GHz, 65, 75 wireless services for mobile backhaul. The
65 and 85 GHz bands. dominant use of these spectrum bands
57–66 today is for the provision of backhaul
71–76 within mobile networks, accounting for
81–86 more than 80% of the current fixed link
Backhaul Spectrum Allocation Summary, Countries Surveyed by Region

Appendix 2 76
licence base.
 Licence
Country Spectrum (GHz) Type Licence Duration PTP/ PTMP Others Licence Fees

Eastern Europe

Croatia 3.6–3.8 13 Per Link 5 years PTP Highest demand: 6L, 7.5G, 8L, 13, 18, 23 and 38. There had been Operators with a total gross revenue over HRK 1 million in the past
6 14 (25 years proposed) block allocation in the past in band 23 and 38 for few operators calendar year to pay a fee of 0.20% of their total gross revenue. The
7 18 but it is not official. 70/80 has more capacity, larger channel sizes operators are required to report their total gross revenue for the previous
8 23 starting with 66M, and lower fees calendar year to HAKOM by the end of March of the current year.
11 38
MOBILE BACKHAUL OPTIONS

Czech 3.6–3.8 13 PTP Duplex sub-bands 28.2205–28.4445 GHz and 29.2285–29.4525 10 GHz (licence exception band, see general authorization). 70/80 GHz
4.2–59 15 Per Link 5 years GHz are designated for utilization in the fixed service and for (licence exception band, see general authorization).
Republic
6 18 (25 years proposed) fixed links of mobile networks infrastructure. Number of rights
7 23 for use of radio frequencies is limited. Only 3 current operators
10 26 can use these sub-bands. Each operator has a radio frequencies
11 assignment for 56 MHz. Rest of the spectrum is used as guard-
28.2205–28.4445 bands.
29.2285–29.4525
Other bands allocated for fixed wireless point-to-point links can
31 60
be used by all users.
32 70
38 80

Hungary 5 Per Link 15 years PTP In each frequency bands concerned, the product of a unit price of HUF
10–12.5
7,500 per kHz per month and the amount of frequencies acquired within
24
a given Package, multiplied by the band multiplier applicable to the
26
frequency band at hand, with the proviso that the band fee stipulated in
42.5
the administrative contract
65–74
79

Poland 6 Per Link Up to 10 years Apply issuing fee EUR 465 and annual frequency utilization fee based
7 on frequency
8
Light Licensing
11
Light Licensing
13
15
18
23
26
32
38
70
75

Appendix 2 77
 PTP/ Spectrum for future
Country Spectrum (GHz) Licence Type Licence Duration PTMP consideration Others Licence Fees
Asia Pacific
Australia 3.575–3.7 Currently in Australia, the majority of bands are lightly to Apply licence issure fee and licence tax. There
4.8–4.9 moderately utilized; however, the limited spectrum below are fees (taxes) they must pay as operators of
5.6 Per Link Up to 15 years PTP 3 GHz has resulted in a shift to further use spectrum within radio telecommunications apparatus. These
7 PTMP the 6 to 8 GHz range. It is anticipated that all of the bands fees (taxes) are paid the the regulator and
10.5 above 7 GHz will experience a growth in demand, in particular are around $AUS40 per year per apparatus
15 within the bands 50 GHz, 58 GHz, 71–76 GHz and 81–86 GHz. set (ie. studio to transmitter link, broadcast
20.2-21.2 Although it is thought that there is sufficient spectrum to transmitter and so on).
23 meet increased backhaul requirements, the ACMA anticipates
24.25–27.5 that in highly dense areas, demand may exceed supply in 10
30–31 years within certain frequency bands (i.e. 7.5 GHz, 13 GHz, 15
MOBILE BACKHAUL OPTIONS

31.8–33.4 GHz and 22 GHz).

37–43.5
45.5–52.6
66–76
81–86

India 6 Issued per region to 20 years PTP 26 Nearly 80% of backhauls use microwave link. 20 years Spectrum fee is charged based on the AGR
7 22 licence areas 28 Licence is issued to the regions demanded for spectrum. (annual gross revenue). AGR= revenue
13 42 Operators need to apply spectrum from regional operators earn minus mobile termination
15 60 management. Operators are able to use spectrum as long as charges, mobile roaming charges, etc.
18 70 the length of regional license. Operators have to pay certain % of AGR to the
21 80 license fees

Indonesia 3.3 The licence fee is around 100–1000 USD per

3.7–4.2 Per Link 5 years PTP year for SHF band (<23 GHz) regarding some
4.2–6 parameters power, bandwidth, zone,
10.5
32–33
56–76
81–86

Japan 1.427-1.429 17.85-17.97 Per Link 5 years PTP Annual Spectrum fee applies based on
1.429-1.453 18.6-19.72 PTMP frequency, transmitter power output,
1.453-1.45535 22.21-22.5 classification of radio station
1.4535-1.4759 22.5-22.55
1.4759-1.501 22.55-22.6
1.501-1.50335 23-23.2
1.50335-1.518

Malaysia 3–9 81–86 Per Link Up to 20 years PTP The application fee is RM60.00 per
3.155–3.4 92–94 PTMP application for Mobile Services, Station Fee
10–14 94.1–100 (RM 120 for 30 MHz up to 3 GHz, RM 240 for
14.3–15.35 102–109.5 more than 3 GHz), Annual Fee with respect to
15.7–23.6 111.8–114.25 bands per station
24.45–31.3 122.25–123
31.5–31.8 130–134
33.4–52.6 141–148.5
55.78–76

Appendix 2 78
 PTP/ Spectrum for future
Country Spectrum (GHz) Licence Type Licence Duration PTMP consideration Others Licence Fees
Asia Pacific
New 0.45–0.47 Per Link 20 years PTP Currently no plan Standard annual fee of $150, Average annual
4.4–5 Renewable annually fee of approximately $150, There will be an
Zealand
5.925–6.42 amateur licence fee category for repeaters,
6.42–8.5 beacons and fixed links, set at $50 annually,
10.5–10.68 There will be two fee categories for multiple
10.7–11.7 location licences for land mobile radio services
23 only. For licences covering up to a maximum
24–28 of five locations the fee is $600 (annually), and
71–76 for licences covering an unlimited number of
81–86 locations the fee is $1,500 (annually)
MOBILE BACKHAUL OPTIONS

Singapore 3.4–3.6 Per Link 1 year PTP Application and Processing Fee for Commonly
5.725–5.85 PTMP Assigned Frequencies (for temporary or
5.875–5.925 occasional use): $300, Licensed (Fee payable
24.25–29.5 per annum): $400 to $10700 for All Frequency
31.8–33.4 Bands, Unlicensed (Fee payable per annum):
37–43.5 Below 10 GHz – $300 to $1800, From 10 GHz
45.5–50.2 to 15.7 GHz – $300 to $1200, From 15.7 GHz
50.4–52.6 to 21.2 GHz – $300 to 900 , Above 21.2 GHz –
66–76 $300 to $700
71–76
81–86

North America
Canada 1.7–1.71 14.5–15.35 1 year PTP The study prepared by Because of propogation characteristics and population Apply a monthly fee. anual fee and telephone
1.78–1.85 14.975–15.35 RedMobile concluded that centres, deployments are not distributed uniformly across channel equivalencies (license fees payable
2.025–2.11 17.8–18.3 demand for backhaul spectrum the country or within the frequency bands. As indicated in for a radio licence authorizing opeartion
2.2–2.285 19.3–19.7 in frequencies below 38 GHz Industry Canada’s Radio Spectrum Inventory, although on on certain frequencies for radio apparatus
3.7–4.2 21.8–22.4 will grow from 878 MHz in 2010 average approximately 65% of all backhaul links in Canada installed in a fixed station or space station)
5.295–6.425 23–23.6 to between 2603 MHz and are located outside of metropolitan areas, the number of
6.425–6.930 24.25–24.45 3394 MHz by 2015, depending assignments in these urban areas tends to be greater in
7.125–7.25 25.05–25.25 on the modelling scenario. bands above 15 GHz. Multiple backhaul solutions in Canada
7.3–7.25 25.25–26.5 Extrapolating this forecast using including fibre optics, leased lines, microwave and satellites .
7.725–8.275 27.5–28.35 a linear regression suggests Canadian operators requested 71–76 GHz, 81–86 GHz, 92–95
10.55–10.68 38.6–40 that a total of 3438–4435 MHz GHz for fixed point–to–point services. Rogers commented
10.7–11.2 71–76 Lightly licensed of backhaul spectrum will be that deployment of advanced wireless access technologies,
11.2–11.7 81–86 Lightly licensed required by 2017. Over the such as HSPA and LTE, which support mobile broadband
12.7–13.25 92–95 Lightly licensed same period, traffic carried services, Roger is in need of access to more spectrum for
over wireless backhaul links is fixed point–to–point backhaul services. In June 2012, Industry
assumed to increase with the Canada announced that the Department will issue spectrum
rapid growth in fixed and mobile licences in the bands 71–76 GHz, 81–86 GHz and 92–95
broadband traffic GHz. Licensing for all areas will be on an FCFS basis and all
licensees will have shared access to the spectrum.

United 3.7–4.2 10.7–11.7 Per link License for stations under PTP In Aug 2013, FCC on voted to In March 2014, Mimosa said its proposal to free spectrum
5.925–6.425 38.6–40 fixed wireless service will change rules in the 57–64 GHz in the lower part of the 10 GHz band, pursuant to Subpart
States
6.425–6.7 71–76 Lightly licensed be issued for a period not band, that it said will improve Z rules, would address the need for efficient microwave
6.7–6.875 81–86 Lightly licensed to exceed 1 year the use of unlicensed spectrum backhaul to serve both fixed and mobile wireless broadband
10.55–10.6 92–95 Lightly licensed for high–capacity, short–range services. Lightly licensed users of the newly freed 10 GHz

Appendix 2 79
10.6–10.68 outdoor backhaul, especially for spectrum would refer to a spectrum database for link
small cells. planning.
 Licence PTP/ Spectrum for future
Country Spectrum (GHz) Licence Type Duration PTMP consideration Licence Fees
Latin America
Brazil 4.9 Per Link PTP There are ongoing regulatory Approximately $3,000 to grant each service authorisation. After authorisation for the provision of a specific
17–19 Up to 20 years discussions ongoing for the E telecoms services has been granted, the company must also license its telecoms stations. The issue of a
21–23 Band (70/80 GHz) and V band licence certificate for the operation of a station is subject to the payment of an installation inspection fee; once
57–64 (60 GHz) but no firm decisions the station is licensed, the company must also pay an annual operating inspection fee. The fees vary according
71–76 when these will be opened. to the telecoms service for which the station is used.
81–86 Indications are that opening of
the E Band frequencies might
happen in 2015. Operators are
pushing for 60 GHz as well.
MOBILE BACKHAUL OPTIONS

Mexico 3.4–3.7 Per Link Up to 20 years PTP

5.725–5.85 PTMP
7.11–7.725
10.15
14.5–15.35
21.2–23.6
37–38.6
71–76
81–86

Venezuela 3.4–3.6 Block Licensing PTP

3.7 Up to 10 years PTMP
4.2
5.725–5.85 Unlicensed
5.9–6.4
9–10.6

Argentina 3.3–3.6 Based on the costs of processing spectrum licence applications,

4.2 Per Link PTP i.e. not reflecting the economic value of the spectrum.
6.4
7
12.2–12.7
15
17.8 Up to 10 years
40
42.5
60
76
81–86

Uruguay 6 No limit, if Monthly prices for each channel, depending on bandwidth are:
7 Per Link not used, PTP Up to 3,00 MHz of BW $ 1.644,00,
8 authorization Up to 5,00 MHz of BW $ 2.117,00,
13 takes away the Up to 15,00 MHz of BW $ 3.662,00,
15 spectrum Up to 20,00MHz of BW $ 4.231,00,
24 More than 20,00MHz of BW $ 4.724,00 (US$1=$23.3)
28
50
60
71–76
81–86

Appendix 2 80
 Licence PTP/
Country Spectrum (GHz) Licence Type Duration PTMP Others Licence Fees
Middle East
Saudi 3.4–3.8 Spectrum fee is calculated based on bandwidth, antenna height, mobile or
7 Per Link 1 year PTP non- directional antenna factor, power factor, spectrum demand density factor,
Arabia
11 PTMP high-usage cities factor, geographical coverage factor.
13
15
18
23
26
28
32
MOBILE BACKHAUL OPTIONS

38

UAE 3.6 As most cell sites are connected to fiber-optic, operators are Application Fee Dirham 500, Spectrum Fee is calculated based on Frequency
6–80 Per Link 1 year PTP less likely to apply for microwave backhaul. range factor and bandwidth factor

More than 70% of base stations use fiber-optic backhaul.

Africa
Nigeria 3.6–4.2 Per Link 1, 5, 10, 15 years PTP All request for microwave tranismission link frequencies may The price of spectrum (excluding microwave frequencies) is calculated on an
4.4–5.03 be granted. NCC will howerver reserve the right to allocate annual per state basis using the following formula; Spectrum Fee = (U) × (B) ×
5.15–5.35 whatever frequency it deems fit to any hop as dictated by (K1) × (K2) per State, U = Unit Price: This varies according to Licensing Region/
5.47–8.75 frequency co-ordination requirements in that region. Tier of the State in which the applicant seeks to operate ranging from 831USD/
10–10.68 MHz/Year to 8310USD/MHz/Year, B = Assigned Bandwidth (Spectrum Size) in
10.7–14 MHz, K1 = Band Factor from 2.0 to 0.5 depending on spectrum size, K2 = Tenure
14.3–15.35 Duration Factor from 0.3 to 10.4 for 3 months to 15 years respectively. (Duplex/
17.3–23.6 Simplex
25.25–29.5
For simplex channel, unit price per State will be half of equivalent duplex
31–31.3
channel.) Microwave frequencies are not priced on State basis. Unit price is
31.5–31.8
uniform throughout the Federation and subject to review, from time to time.
33.4–52.6
55.78–76
71–74
81–84
81–86
92–100

South 1.35–1.525 1 year PTP Apply Application fee and Licence Fee
2.025–2.285 PTMP
Africa
3.5 Block Licensing, Light Licensing
5.725–8.496 Block Licensing, Light Licensing
10.7–11.7 Block Licensing, Full Licensing
12.75–13.25 Block Licensing, Full Licensing
14.5–15.35 Block Licensing
21.2–23.6
24.549–26.453
27–29.5
37–39.5
40.5–43.5
57–66

Appendix 2 81
71.125–73.125
73.375–75.875
81.125–83.125
81–86
83.375–85.875
MOBILE BACKHAUL OPTIONS

Acronyms
h versus f In analytical tables, Historical (h) data relates to all years reported up to 2017; Forecasts (f) thereafter
802.11ac IEEE standard; supports Wi-Fi services in the 2.4 GHz band and 5.8 GHz data throughput
ASA Authorized Shared Access
BTS Base Transceiver Station
D-band Relates to 130–174.8 GHz band.
E-band Specifically it covers the 71-76 GHz and 81-86 GHz but often it is referred to as the “70/80 GHz” Band
EC European Commission
EIRP Effective Isotropically Radiated Power; the amount of power that a theoretical isotropic antenna
(distributes power in all directions) would emit to produce thevwv peak power density observed in the
direction of maximum antenna gain
FCC Federal Communications Commission (USA)
FTTT Fiber to the Tower
IMDA Info-communications Media Development Authority (national regulator of Singapore)
IoT Internet of Things. Data-centric modules that are connected to the internet with via short or long-range
wireless
ISM Industrial, Scientific, and Medical
LMDS Local Multipoint Distribution Service (a broadband wireless access technology originally designed for
digital television transmission)
LoS Line-of-Sight
LTE-TDD LTE Time Division Duplex
LTE-FDD LTE Frequency Division Duplex
Microwave In this report, Microwave addresses spectrum from 7 GHz up to 100 GHz. However, ABI Research does
segment Microwave from 7 GH to 40 GHz and 41 GHz to 100 GHz. Microwave backhaul applications in the
41 to 100 GHz offer very ultra-high capacity links (e.g. potentially 10 to 25 Gbps).
MMW Scientifically, Millimeter Wave relates to frequencies that have a wavelength of less than 10 millimeters.
Most Millimeter Wave backhaul solutions are typically in the 60 and 70/80 GHz bands. ABI Research has
avoided using the term “millimeter wave” but just make specific references to bands such as the E-band
(70/80 GHz), etc.
Ms millisecond or 0.001 second
MCI Ministry of Communication and Informatics, Indonesia
NLoS Non-Line-of-Sight
nLoS Near-Line-of-Sight
OBSAI Open Base Station Architecture Initiative
PoP Point of Presence
PMP Point-to-Multipoint
PTP Point-to-Point
QoS Quality of Service
RSPG Radio Spectrum Policy Group
SON Self-Organizing Network
SRD Short Range Devices (often low power (<40 dB))
TVWS TV White Space
TRAI Telecom Regulatory Authority of India
V-band Specifically it covers 57 GHz to 66 GHz but often known as the “60 GHz” band
W-band Relates to 92 to 114.25 GHz bands
WiGig Wireless Gigabit Alliance (promotes use of SRD in 60 GHz band)
X2 Mesh The X2 interface enables eNodeBs to communicate directly between each other. This allows for
interference management (especially in HetNets) and seamless handover

Appendix 2 82
MOBILE BACKHAUL OPTIONS

gsma.com

 3
 MOBILE BACKHAUL OPTIONS

GSMA Head Office

Floor 2
The Walbrook Building
25 Walbrook
London EC4N 8AF
United Kingdom
Tel: +44 (0)20 7356 0600
Fax: +44 (0)20 7356 0601

 6