Summary
1. Verizon Wireless’ move to LTE will increase its backhaul capacity demands immensely. 2. With the apparent go-ahead on carrier Ethernet as a solution, it opens up the door to Ethernet over Copper (EoC) 3. “Only 10% of the cell sites in the US are connected by fiber today,” according to the source article.
Analysis
Given it is going to take several years to deploy fiber in the backhaul in a big way and given that LTE is on a fast track at Verizon Wireless, it appears to make sense that EoC will be deployed. One may logically expect an RFP to be released soon. It is also reasonable to assume that it would be Adtran’s business to lose.
There could be a good couple of years of EoC gear sales to Verizon before a critical mass is reached. At that point, there would be enough systems to move around, as fiber increasingly gets deployed -- to adequately cover the areas requiring the application in the network.
It only makes sense to share the fiber optic capacity with competitors. It will help pay for the expense and will probably become a large cash cow down the road.
Apparently, LTE will bring with it a sufficient amount of pain to finally make Verizon move away from its TDM-centric ways in the backhaul.
