The mobile wireless market is growing at an extraordinary rate fueled by increased voice usage and particularly by demand for mobile data services. To keep up with the demand and to enable revenue growth, service providers continue to expand their coverage and upgrade their services from 2G to 2.5G and 3G, with early deployments of HSDPA already under way and HSUPA on the horizon.

In today’s difficult economic times, service providers must not only focus on meeting the increased demand, they must also be concerned with the return on investment (ROI) for capital expenditures. As networks are expanded and upgraded, service providers must focus on leveraging existing infrastructures and reducing operating expenses, especially recurring costs, in order to maximize ROI. The radio access network (RAN) in particular, where T1/E1 lines are often leased from the incumbent PTT or local exchange carrier (LEC), is a source of high recurrent costs for wireless operators. It has been estimated that backhaul transmission costs can amount to as much as 40% to 60% of network OpEx, especially in 3G networks. According to The Yankee Group, wireless operators annually spend approximately $22 billion globally to lease backhaul transmission.

Recurring costs in the RAN are exacerbated by deployments that are best characterized as multiple overlay networks. These overlay networks consist of a variety of backhaul transport techniques and technologies resulting from multiple standards, multiple vendors’ equipment, or previous mergers and acquisitions. As new 2.5 and 3G networks are implemented, these overlay networks in the RAN multiply overall operating costs. In addition to the cost of operating overlay networks while migrating from one generation to the next, the cost problem is multiplied for some providers by their migration from TDMA and/or CDMA to GSM/EDGE/UMTS architectures.

Axerra Networks’ Pseudo-Wire technology offers a full-service solution for mobile wireless operators. Axerra Networks’ solution reduces backhaul expenses by providing an alternative to costly leased-line access, enabling backhaul for all generations of voice and data traffic over Carrier Ethernet, xDSL, EPON/GPON, cable HFC, and broadband packet radio (including WiMAX). In addition, Axerra’s Pseudo-Wire solution provides the ability to combine voice and data services from multiple protocols, enabling mobile wireless providers to leverage existing equipment, optimize the RAN, and significantly reduce the expenses associated with backhaul transmission. These capabilities translate into immediate and significant cost savings, thereby enhancing mobile wireless operators’ profitability today.

To access the full white paper, click here: "Pseudo-Wires: The Full Service Solution for Mobile Wireless Backhaul"