Happy Holidays and Happy New Year from all of us at Aviat Networks. Just as you are finishing those final gifting ideas for the winter, we would like to share a few thoughts from Travis Mitchell, Aviat Networks director of low latency business development. In the just published article “Microwave Technology for Low Latency Trading Networks” in Wall Street & Technology, Travis clears up the misconceptions that trading technologists may have about microwave communications, many of which have carried over from the age of analog radio and do not apply to digital microwave.
In addition, Travis spells out the advantages that low latency microwave has over fiber optic technology. Two of these are the point-to-point, direct line-of-sight communications between microwave stations and the absolute higher speed microwaves can achieve. In comparison, fiber communications oftentimes do not run directly from Point A to Point B but must instead wind their way around obstacles, burrow underground, climb tall buildings and so on before reaching their destination. This extra distance covered contributes delay to the overall latency experienced by trades sent via fiber as compared to microwave.
Then the immutable laws of nature tell us that microwave communications—even traveling through the atmosphere—approach very close to the speed of light. On the other hand, laser communications traversing the dense medium of fiber optics are much slower than the speed of light—many tens of percentage points slower than the speed of light.
To close, Travis briefly summarizes other factors that go into making low latency microwave networking the choice for traders over fiber, including minimizing the network route, maximizing the distance between microwave hops and using passive repeater technology, when appropriate. For the whole story, see the article. Other resources also include our low latency microwave white paper and low latency webinar replay.
- High-frequency trading turning to microwaves (blogs.marketwatch.com)
- The Wi-Fi Microwave Renaissance (beanstalk-inc.com)
- All-Outdoor Microwave Radios: Site Considerations (aviatnetworks.com)
- Know Your Microwave Backhaul Options (ytd2525.wordpress.com)
- 3 Important Questions for Ultra-Low Latency Microwave Networks (aviatnetworks.com)