Do 5G providers need to own a fiber network too?

Source: 
Author: 
Coverage Type: 

AT&T and Verizon – two of the nation's biggest 5G mobile network operators – own extensive fiber holdings around the country, and both argue that such ownership is critical to their long-term success. T-Mobile and Dish Network, on the other hand, are building extensive 5G mobile networks (though Dish hasn't yet switched on commercial services) without owning any fiber whatsoever. And, according to both Dish and T-Mobile, that's just fine. So, which side is right? Naturally, the answer isn't straightforward. But it's an important topic considering a commercial 5G network cannot exist without somehow connecting into the world's broader fiber Internet backbone. That connection – called backhaul – can account for around 15 percent or more of a mobile network operator's total spending, according to estimates from the GSMA. "While T-Mobile and Dish do not own a fixed network, they lease fiber connections to cell sites and use microwave where fiber is not available," explained analyst Jimmy Yu with research and consulting firm Dell'Oro Group. "AT&T and Verizon use their fixed network for backhaul, lease fiber from other carriers where needed and use microwave when fiber is not available. I'm not sure any one operator's [mobile network] performance is better than the other's due to ownership of backhaul. It may improve their long-term costs to own the backhaul."

[Mike Dano is editorial director of 5G and mobile strategies at Light Reading.]


Do 5G providers need to own a fiber network too?