Thursday, December 11, 2008

Boost to mobile broadband backhaul network

BT Group has selected network equipment maker Tellabs Inc as its partner to support its ethernet-based mobile backhaul service.

As part of the five-year deal, Tellabs will support BT as its customers migrate from traditional leased lines to the higher-capacity, 21 century ethernet-based base station connectivity which will enable customers to manage data traffic growth, BT said.

The announcement is likely to be seen as a boost for Tellabs after the firm warned in October its fourth-quarter revenue would fall far short of Wall Street estimates, although no financial details regarding the deal were revealed.

The agreement comes as mobile operators push mobile broadband services as a new stream of revenues which results in growing backhaul requirements. Four of the five UK mobile operators use BT's 21 century service for their backhaul requirements.

Backhaul network capacity is key to the anticipated growth of mobile broadband - it is one of the primary reasons for the current data limits imposed by the providers.

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