The market for wireless backhaul solutions is growing as operators explore LTE and small cell deployments in areas that are not served by fiber. There are several approaches to wireless backhaul, and now two companies with different solutions are joining forces.
Fastback Networks offers a sub-6 GHz line-of-sight solution for wireless mobile backhaul and Sub10 Systems focuses on millimeter-wave solutions for non-line-of-sight use cases. The companies said that these are the two fastest-growing parts of the mobile backhaul market.
According to ABI Research, LTE/LTE-A upgrades as well as demand for higher capacity backhaul and denser cellular networks are driving demand for wireless backhaul. The firm is forecasting 36% CAGR over the next five years for sub-6 GHz solutions and 70/80 Ghz (millimeter wave) solutions. Together, these two markets are projected to be worth $1.6 billion by 2019.
Infonetics Research sees small cells as a potential driver of major growth for wireless backhaul solution providers. “Small cell deployments have taken some time to take off. One of the remaining challenges is backhaul, and whilst there are solutions available there remains an opportunity for a vendor to take up a disruptive position,” said Richard Webb, senior principal analyst, mobile backhaul and small cells at Infonetics Research. “The merger of Fastback’s any-line-of-sight technology with Sub10 Systems millimeter wave portfolio looks like an innovative combination that could give operators a genuine alternative to solutions already on the market.”
Sub10 Systems’ principal investor was the Business Growth Fund, which is also an investor in Fasback Networks. Other Fastback Networks investors include Foundation Capital, Granite Ventures, Harmony Partners, Juniper Networks’ Junos Innovation Fund and Matrix Partners.
The merged company will operate as Fastback Networks, will have 75 employees and will be headquartered at Fastback’s Silicon Valley offices. Fastback Networks CEO Kevin Duffy will lead the combined company. Stuart Broome, co-founder and CEO of Sub10 Systems, has become chief sales and marketing officer at Fastback Networks. His co-founder Mark Stevens will be co-CTO of the new company, along with Fastback Networks’ Kevin Negus.
