Software-defined networking (SDN) is expected to trim down the perceived ‘backhaul shortfall’ by half and save mobile operators over $4bn in capital expenses by 2017, according to a new report.
Strategy Analytics latest report sponsored by Tellabs has found that a $9.2bn gap in expected demand and accessibility of backhaul capacity.
The rise in mobile data traffic would lead to increase in investment by mobile operators to boost customer experience.
The report stressed that a capacity deficit in backhaul networks has already started growing and the worldwide gap may reach 16Pb by 2017.
Tellabs CEO and president Dan Kelly said that until now, there has been too little quantification to support SDN business cases for service providers.
"The Strategy Analytics report provides solid evidence and examples to demonstrate SDN’s true value to customers," Kelly said.
The report also revealed that that among all the key network applications, Metro Aggregation/Load Redistribution application would generate the highest single saving in capital expense of about $1.1bn, followed by Local Breakout/Internet IXP ($1bn), Wi-Fi Offload/Video Redirect ($1bn), Cloud RAN ($777m) and Small Cells ($202m).
Regionally, Asia Pacific would witness the highest capital expense savings of $2.6bn, followed by North America ($599m), Western Europe ($574m), Middle East & Africa ($162m), Central & Eastern Europe ($112m) and Caribbean & Latin America ($89m).
