US microwave and WiMax backhaul solutions provider Harris Stratex Networks (Nasdaq: HSTX) sees significant sales potential in Latin America as operators migrate their TDM networks to Ethernet, Shaun McFall, the company's chief marketing officer, told BNamericas.
According to McFall, IP mobile backhaul is growing 20% worldwide annually in the most developed markets due to the penetration of smartphones and the use of data. Data transport over mobile networks grew four times in 2007 and is projected to grow another four times this year.
"Growth in demand for capacity runs all the way from the core network to the base station. When they get to radio access networks they're going to start running into difficulties because these networks were not designed for that capacity," McFall said. "The modernization of those networks is what we see as our opportunity; to migrate it to Ethernet or allow [gradual migration] so they can still keep the legacy TDM network on the air for 5-10 yrs."
"Future mobile networks some years from now will probably eventually be all Ethernet and between now and then they will be increasingly a mix of Ethernet and TDM. The latest generation of microwave products are designed to transport both," he added.
WIMAX
While traditionally offering microwave backhaul, Harris Stratex has recently started offering WiMax backhaul, especially for utilities and governments.
In Africa, in particular, Harris Stratex's mobile operator customers have a spectrum license but also have a license to offer fixed services. They have towers, infrastructure and billing systems - therefore, "they can now reach out and add other technologies to get fixed subscribers for broadband, which is an additional revenue stream for them," McFall said.
According to the executive, many emerging markets are not quite ready for fully mobile 4G technology, but are seeking to address a demand for broadband in areas where fixed line telephony infrastructure is non-existent, insufficient or simply low quality.
To address South America and the Chilean market in particular, Harris has partnered with Raylex in Chile. The companies are eyeing opportunities in the Chilean government's upcoming US$100mn internet infrastructure project for isolated communities.
The government is offering to subsidize 70% of the investment in areas that are normally unprofitable for telecoms operators to invest. The amount represents the Chilean government's largest ever subsidy for telecommunications projects.
"We are extremely interested in going into those areas and feel it is a very good opportunity," Raylex president Eduardo Middleton told BNamericas, adding that he believes the infrastructure needed will be a mixture of WiMax and CDMA 450.
Harris Stratex is majority owned by Harris Corporation and was formed as a merger with DMC Stratex Networks.
The Harris Stratex unit generated global revenue of US$187mn for the fourth quarter of fiscal 2008, ending June 27, with US$21.1mn coming from Latin America and Asia Pacific. The potential of emerging markets was highlighted by Africa in 2007, when the unit's sub-region revenues grew 50%.
No comments:
Post a Comment