Xtend Networks believes the sale of T-1 circuits to mobile carriers to transport cellular-phone calls between towers and switching offices is a $20 billion opportunity for cable over the next five years.
The company issued a white paper on the business case and technology necessary for providing voice-grade T-1 service over hybrid fiber-coaxial plant.
The report estimated that transport accounts for 24% of a cellular operator’s expenses, and 60%-75% of those costs are for backhaul. Michael Harris, president of Kinetic Strategies Inc., said mobile carriers face increasing costs and margin pressures that could benefit cable.
“Cable is uniquely positioned to create a win-win that lowers backhaul costs for the mobile industry and provides cable operators with revenues from an entirely new market,” he said in a prepared statement.