Overcoming the Challenges
of Serving Remote Areas

The Challenges of Serving Remote and Underserved Communities

One 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.

Wireless Broadband the only Way Out

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

Key Drawbacks of Wired Broadband

High Capital Expenditure and Operational Expenditure

• Installation of fiber, most cost-effective solution whether on pole or underground, includes expensive trenching costs.
• Optical transmitters and receivers, as well as fiber splicing, are required every six kilometers, resulting in heavy capital cost
• Fiber cables also have high, recurring maintenance and lease costs

Scalability

• Fiber must be handled with great care while installing in rough rural terrains.

Installation Time

• Wired networks take months to be installed

To sum up one of the biggest disadvantages of wired systems is that the RoI is quite low due to recurring maintenance cost and inflexibility