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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Busy U.S. cell networks a bonanza for gear makers Mon Oct 26, 2009 12:13pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Sinead Carew CHICAGO (Reuters) - Dropped calls may be annoying to a mobile phone user but network equipment makers and operators are eyeing a big payday from congested cellphone networks. Flashy smartphones like Apple Inc's iPhone, which allow downloads of everything from games to stock prices, are straining mobile networks and pushing carriers to upgrade wired broadband connections to cell towers, known as backhaul. The market for backhaul equipment will double to $10.9 billion in 2013 from $4.6 billion in 2008, according to research firm Infonetics. This will provide new areas of growth for network equipment makers such as Alcatel Lucent, Ciena, Nokia Siemens, a venture of Nokia and Siemens. The Supercomm telecom trade show in Chicago this week was buzzing with operators and gear makers talking up the new possibilities of backhaul. "We're seeing at this show, really a lot of demand for optical backhaul capability," said Nokia Siemens North American President Sue Spradley. Operators like Verizon Wireless and AT&T Inc are beefing up their backhaul by replacing old copper wires with fast fiber optic connections in markets where they have both a wired and a wireless network. They are working on new deals with local operators outside their wireline markets to improve mobile data rates there. Telecom operators such as Level 3 Communications Inc and Qwest Communications International Inc and cable operators such as privately held Cox Communications all want be first to lay fiber to a cell site to make sure they win the backhaul contract with the wireless operators which have equipment there. Spradley said the U.S. market had a real requirement for upgrades as operators want to avoid bottlenecks in their increasingly popular data networks. IPhone users, who tend to download more data than average mobile phone owners, have criticized AT&T's slow data speeds and the company has said it is building a stronger backhaul. "If you have a really fast radio link and you don't have a large pipe you're slowing down the network," said Spradley, adding she had customers signing deals worth a few million to the $50 million range at the trade show. The executive said she expects the small operators who made initial orders for backhaul equipment to come back for more once they win business for upgrading more cell sites. LOCAL WHOLESALE BOOST Some local telecom companies struggling with home phone disconnections, are also getting new wholesale telecom business from the trend. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: White Sox make pitch for business with tech unit Also On Reuters Analysis: How much power does Hillary Clinton have? 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