Backhaul shows near-equal split between fibre, wireless

Study finds that comms market is heading towards a near-even split between microwave and fibre backhaul, with advanced economies showing signs of decreasing use of fibre, and renewed interest in microwave for high-capacity and resilient networks

Research from Ericsson has found that backhaul infrastructure is increasingly becoming wireless rather than using traditional fibre optic technologies.

The company’s annual Microwave outlook report noted that the global backhaul market is shifting towards a near-equal split between microwave (49%) and fibre (51%) by 2030. Moreover, it found that microwave backhaul now supports 75% of live 5G networks globally, with the installed base of transceivers rising to approximately 10.5 million since 2022.

The study insisted that investing in microwave technology ensures networks are prepared for future needs, supporting the demands of advanced 5G infrastructure, and ready to accommodate upcoming 6G traffic. Emerging spectrum such as the W- and D-bands are expected to play an increasingly important role, offering “vast” spectrum resources and technical advantages akin to the E-band.

Mikael Öhberg, head of microwave at Ericsson, observed that as backhaul networks evolve, the role of microwave will only grow in significance. “With continuous expansion in E-band deployments and the anticipated rise of W- and D-bands, service providers will benefit from more spectrum, innovative technology and unified management enabled by AI [artificial intelligence],” he said. “The path forward promises not only increased capacity and lower operational costs, but also the agility to adapt to a rapidly changing telecom environment.”

The report found that E-band deployments have surpassed the 38GHz band, with W- and D-bands emerging as future spectrum leaders. Coupled with AI-driven network management and advancements in mmWave technology, Ericsson believes that operators can now boost capacity cost-effectively, often without additional hardware.

Drilling deeper, E-band deployments were found to have increased to 8%, surpassing the longstanding 38GHz band, fuelled by vigorous roll-outs in markets such as India. At the same time, the report indicated that W-band can support 90% of E-band hop lengths, while D-band achieves 60%, further expanding the options available for communications service providers seeking increased capacity and coverage.

Although fibre has long been considered the dominant backhaul technology in North American markets, the US is now seeing a resurgence of investment in microwave infrastructure. This renewed focus was said to be driving faster adoption of advanced microwave services for both fixed and mobile connectivity.

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The Microwave outlook report tackled the topics of AI and automation in transforming network management and doubling backhaul capacity through the use of millimetre wave technologies.

It cited O2 Telefónica Germany as being at the forefront of innovation in backhaul technology, pioneering the integration of AI into microwave network management. By using preventive maintenance powered by high-granularity data, Ericsson said AI enables transport optimisation teams to identify root causes rapidly and act before issues occur. It added that focusing on the transport layer increases reliability, lowers total cost of ownership and enhances the overall customer experience.

Advanced millimetre wave technology and network simulations have, according to the report, identified the most efficient way to double backhaul capacity – up to 20Gbps – without significant costs or hardware upgrades.

The report shows that, where spectrum fees are reasonable, using a 2,000MHz E-band channel with cross-polarisation interference cancellation is the most cost-effective method. Ericsson’s simulations of microwave networks in three European cities indicate that this approach allows 96% of current links to seamlessly double their capacity.

Alternative upgrade paths allow service providers to double capacity at 79% of sites, even with less resource-efficient methods. This, said Ericsson, ensures service providers can effectively tailor their networks to future demands.

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