NAPERVILLE, Ill., Aug. 29, 2013 /PRNewswire/ -- A new study
sponsored by Tellabs defines the value of Software Defined
Networking (SDN) in mobile backhaul networks. New research by
Strategy Analytics finds that SDN can save mobile operators more
than $4 billion in capital expenses
by 2017.
Savings stem from 5 key SDN applications for mobile backhaul
networks. These savings can help close almost half of the
$9.2 billion "backhaul gap"
identified in Strategy Analytics' earlier report, "Future Backhaul
Needs of Mobile Network Operators."
Multimedia
- Video of Strategy Analytics' Sue
Rudd
- Executive summary of the Strategy Analytics study
- Infographic on how SDN addresses the "backhaul gap"
- Blog.
As mobile data traffic grows, the investment required to meet
users' experience expectations escalates. The "backhaul gap" is the
difference between required backhaul investment and planned
spending.
The earlier report found that a capacity shortfall in backhaul
networks has already begun to build. The "backhaul gap" may reach
16 petabytes globally by 2017.
Key SDN Applications Cut Capital Expenses
To evaluate SDN's impact on mobile backhaul investment, Strategy
Analytics researched 5 SDN applications. Strategy Analytics
anticipates these areas are where SDN will have the most impact:
Metro Aggregation/Load Redistribution, Local Breakout/Internet IXP,
Small Cells, Cloud RAN and Wi-Fi Offload/Video Redirect.
The largest single saving in capital expense value terms will
come from Metro Aggregation/Load Redistribution. This application
could contribute savings of $96
million in 2013, rising to $1,116
million in 2017.
Across the SDN applications, the value of capital expense
savings by 2017 is forecast to be:
- Metro Aggregation/Load Redistribution - $1,116 million
- Local Breakout/Internet IXP - $1,083
million
- Wi-Fi Offload/Video Redirect - $1,021
million
- Cloud RAN - $777 million
- Small Cells - $202 million.
Regional Breakdown
In addition, the research showed savings that SDN could generate
by region.
Asia Pacific is the region
facing the most significant backhaul funding shortfall.
Asia Pacific will also be most
likely to benefit from SDN. Estimated capital expense savings by
region in 2017 are:
- Asia-Pacific - $2,662 million
- North America - $599 million
- Western Europe - $574 million
- Middle East & Africa - $162
million
- Central & Eastern Europe -
$112 million
- Caribbean & Latin America - $89
million.
So far, SDN has been used to optimize data center resources and
service platforms in the cloud. Recently, operators have tested SDN
applications for operational network elements. Applying SDN to
transport and backhaul optimization is so new that standards work
began only recently.
"Until now, we've seen too little quantification to support SDN
business cases for service providers," said Dan Kelly, Tellabs CEO and president. "The
Strategy Analytics report provides solid evidence and examples to
demonstrate SDN's true value to customers.
"Based on customers' input and the compelling business cases
we've identified, we plan to incorporate SDN functionality into the
Tellabs 8000 intelligent network manager, and into Tellabs 8600 and
Tellabs 7100 products, early in 2014."
Earlier this year, Tellabs demonstrated its Congestion Control
Application, which applies SDN to head off bottlenecks in the
backhaul network – even before users become aware of a service
issue. SDN is expected to drive demand for Tellabs optical and data
solutions in customer networks.
About Tellabs – Tellabs innovations advance smart
networks to help our customers succeed. That's why 80% of the top
global communications service providers and 40 of the Fortune 100
companies choose our mobile backhaul, packet optical, business and
services solutions. We help them get ahead by adding revenue,
reducing expenses and optimizing networks.
Tellabs (Nasdaq: TLAB) is part of the Ocean Tomo 300®
Patent Index and several corporate responsibility indexes,
including the Maplecroft Climate Innovation Index, FTSE4Good and
eight FTSE KLD indexes. www.tellabs.com
SOURCE Tellabs