The Challenge:

One interesting strategy for acquiring market share in the competitive cellular and data service provider markets is to be the first to enter a new geography. While the major metropolitan areas around the world have been addressed, many harder-to-reach or less-densely populated areas remain under-served. However, the challenge is how to cost-effectively install the required infrastructure. The cost of installing points of presence and backhaul equipment to a NOC both must be offset very quickly by bringing in enough revenue to begin to recoup CapEx costs. But enough leased line capacity may not be available in the very geographies that also lack sufficient cellular and broadband services – or may be available only with a premium price tag.

Suggested Products:

The Solution:

The best business model for building out a robust infrastructure for service in a new region is with wireless backhaul products (and broadband wireless Last Mile products). Wired and wireless backhaul both entail an initial equipment investment for each side of the link – yet wireless backhaul, unlike leased line backhaul – incurs zero additional monthly costs. And wireless backhaul can be installed far more quickly and easily than wires – traversing uninhabited areas to get to target populations. Wireless backhaul equipment is the difference between viability and impossibility.