Tomorrow’s Backhaul: Comparative Analysis of Backhaul Cost for Policy Decisions

Despite forecasted quadratic growth of cellular traffic over the next several years, no in-depth analysis of brownfield and greenfield Long Term Evolution (LTE) backhaul deployment over different local access network options has been published. The models in this paper integrate engineering with economic analysis of the backhaul to support LTE mobile broadband networks using digital subscriber line (DSL), cable (DOCSIS), fiber, or microwave networks for the backhaul network. The results of the model allow a regulator to determine which backhaul solution to support depending upon traffic load and spectrum allocation. The model results indicate that the Net Present Value (NPV) do favor fiber passive optical network (PON) for a greenfield deployment, while brownfield DOCSIS or PON is favored depending on population density. The model demonstrates that demand for the next ten years can be met with the deployment of small cells and picocells with an increase in available frequencies. The model also demonstrates fifth generation (5G) picocells delays expansion of backhaul.