Microwave Backhaul Total Cost of Ownership (TCO) pt. 2

How Important is Initial CAPEX?

Are we seeing the forest or the trees?

Based on microwave Total Cost of Ownership (TCO) model posted earlier, the most significant contributor to total cost is ongoing OPEX.

We see an increasing trend of operators making decisions on backhaul solution based mostly (sometimes solely) on price (or initial CAPEX). While initial CAPEX is important, if the goal is lowest cost, this can be problematic approach as initial CAPEX it is not the most significant contributor to total cost.  Ongoing OPEX is key.

Perhaps a better approach would be to focus on features most impacting lowering total costs.  For instance, adaptive coding and modulation can lower antenna sizes – which can reasonably reduce 10 year TCO by as much as $48,000 (which is 2-3x more than initial CAPEX).  Deploying ring architectures with high layer (L2/L3 or packet-based) failure recovery techniques can enable lower per hop reliability and smaller antennas – further lowering costs.

Microwave Backhaul Total Cost of Ownership

Gary Croke

Product Marketing, Aviat Networks

Markets

Aviat is pioneering wireless solutions across diverse industries, driven by customer challenges. Explore Now
$
Mobile Operators
$
WISPs
$
Public Safety
$
Government
$
Utilities
$
Oil & Gas
$
Mining
$
Transportation

Products

Aviat's products offer unique, tailored solutions, ensuring optimal performance and cost-effective network design. Explore Now
$
All-Outdoor Radio
$
Microwave Indoor Units
$
Microwave Routers
$
Split-Mount Radio
$
All-Indoor Radio
$
Microwave Trunking
$

Virtual Fiber PTP/PMP 

$
Private LTE
$
Network Management

Hosted Softare

Aviat's hosted software streamlines network management, ensuring efficient, accessible, and reliable solutions. Explore Now
$
Aviat Design
$
Frequency Assurance Software
$
Health Assurance Software

Services

Aviat offers tailored services optimizing wireless infrastructure, from project management to continuous support Explore Now
$
Project Services
$
Managed Services
$
Support
$

Education & Certification

Explore Company

Aviat Networks delivers reliable wireless transport solutions, backed by 70 years of expertise and a strong focus on customer satisfaction. Explore Now
$
About Aviat
$
Compliance
$
Responsible Sourcings
$
Leadership
$
Careers

Resources

Aviat's Resource Center offers a comprehensive collection of insights and tools to support your wireless transport needs Explore Now
$
Blog
$
Webinars
$
Collateral

Investors

Aviat Networks, Inc. is the leading expert in wireless transport solutions and works to provide dependable products, services and support to its customers. Explore Now
$
Overview
$
Press Releases
$
Events & Presentations
$
Financial Information
$
Stock Information
$
Investor Resources

Contact Aviat

Contact Aviat for network solutions, sales, support, and global locations. Explore Now
$
Discuss My Network
$
Schedule a Demo
$
Request a Quote
$
Request Customer Pin
$
Get Tech Support
$
Request an RMA
$
Upgrade / Buy License Key
$
Become Aviat Certified
$
Customer Training