Would Vodafone want T-Mobile for backhaul?
By Simon Bisson & Mary Branscombe in Editorial
Posted in Business, smartphone, Telecoms, Futures, Networking, Internet, Wireless, Mobile on
It’s probably about buying market share and reducing the competition that drives down prices, but there’s a new problem for mobile operators to think about these days - bandwidth and backhaul.
No matter how fast the 3G chipset in your mobile phone, you’re not getting on the Internet at that speed; you might have 3, 7 or 14Mbps between your phone and the base station but that base station is connected into the net at the same DSL speed as your home broadband. And you’re sharing that with everyone else connected to that base station; say the 50 people in the same mile radius on the same network. Wimax and LTE promise speeds of 80-100Mbps; that means backhaul will have to get much faster and wider - according to a recent In-Stat report, backhaul capacity has to triple by 2013 to a worldwide total of 90,000Gbps to match demand. To get faster speeds needs faster physical connections; faster DSL, expensive fibre optic cable or laser links. And that costs money…
Vodafone and T-Mobile both use BT for backhaul. Last year Vodafone started rolling out Tellabs’s Ethernet-based backhaul to replace the legacy voice network it was previously built on top of (getting an IP network for next-generation services at the same time);or rather BT is doing it for them (it’s all part of the ’21st Century Network’). O2 is taking the same service, and T-Mobile had signed up for it a year before that. Currently the system promises to deliver up to 60Mbps (a big improvement on the 2Mbps at most base stations). If T-Mobile is further along with the rollout, buying them could give Vodafone better bandwidth faster - and in the long run that could be worth as much as buying market share.
T-Mobile users might want to cross their fingers that the deal goes through (which is far from certain). Coverage and the weather and device configuration and the number of other people around and whole bunch of other variables make it hard to compare networks precisely, but of all the networks I test phones with Vodafone consistently gives me the best connection and coverage.
-Mary
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