This blog is based on the analysis, Growth Opportunities in 5G Transport Network Infrastructure, 2025–2029, authored by Frost & Sullivan’s growth expert, Troy Morley, from the Enterprise Wireless Services team.
As 5G adoption picks up pace across the globe, the limelight has shifted beyond radio access network (RAN) and spectrum strategies to an equally critical component: transport network infrastructure as a whole (xHaul). Now, the transport segment, which includes fronthaul, midhaul, and backhaul connections is rapidly gearing up to meet 5G’s promise of ultra-low latency, gigabit-class throughput, and support for billions of connected devices.
In previous generations, the backhaul carried fewer bandwidth and latency burdens. But 5G is spurring transformative change with centralized, virtual, and open RAN models placing new demands on fronthaul and midhaul networks. Now, to effectively support applications like industrial automation, autonomous mobility, telehealth, immersive media, and mission-critical services, industry incumbents are focusing on deterministic performance, network slicing, scalability, and synchronization. Moreover, traditional Internet Protocol (IP)/Multi-Protocol Label Switching (MPLS)-heavy architectures are moving towards software-defined networking, that enables dynamic and automated path optimization. Amid this revolution, securing future growth means adapting to these eight strategic imperatives:
- Competitive Intensity
New Buyer and Supplier Dynamics: Traditionally, cellular network infrastructure had just a single customer category: communications service providers (CSPs). Now, enterprises across multiple industries are scrambling to adopt private 5G, creating new demand channels. As a result, suppliers that once relied on monolithic, hardware-centric offerings are being pushed toward software-defined network functions, fueled by the rise of start-ups and shared, multi-tenant infrastructure models.
- Innovative Business Models
Cloud-native Infrastructure: 5G is dependent on software running in the cloud, especially in terms of core and edge networks. Many of the old network functions have now been virtualized or rebuilt as cloud-native software. Now, the transport network must level up too (xHaul). This means becoming smarter and more flexible, enabling more precise timing, and factoring in synchronization to support solutions like network slicing-as-a-service and pay-per-use 5G transport services.
- Disruptive Technologies
Fiber Optics: Fiber remains an important part of transport networks, which means providers are under growing pressure to upgrade their optical technologies. As a result, solutions like wavelength division multiplexing (WDM), active optical networks (AON), coherent pluggable optics, and hybrid packet-optical networks are now taking center stage.
- Transformative Megatrends
Enhanced Common Public Radio Interface (eCPRI): Because 5G demands a 20-fold boost in bandwidth capacity, fronthaul architectures are moving towards eCPRI. This is a packet-based Ethernet protocol, with the potential to improve bandwidth efficiencies by a factor of 10, enhance deployment flexibility, and minimize operational costs, while supporting open RAN, interoperability, and vendor diversity.
Do you have the tools and analytical frameworks to calculate the impact of these imperatives on your 2030 goals?
- Internal Challenges
Wireless Transport Networks: Rolling out fiber isn’t cheap, fast, or easy — that’s why providers rely on wireless transport to fill these gaps. While traditional wireless backhaul can reach long distances, it tops out around 1–3 Gbps. Newer E-Band links boost speeds to 10 Gbps (even 20 Gbps with carrier aggregation), but they don’t travel as far and can be interrupted by rain. To get the best of both worlds, providers are starting to blend the two approaches, creating multiband backhaul solutions.
Explore detailed growth opportunities and best practices in the 5G Network Infrastructure ecosystem, access full analyses on the links here:
- Industry Convergence
Neutral Hosting: 5G opens the door for multiple vendors to work together across every part of the network—RAN, core/edge, and transport—in a shared, neutral-hosting, multi-tenant ecosystem. Instead of one company supplying the whole core network, different providers can now supply different functions. The challenge going forward will be to ensure interoperability, seamless handoffs, and safety-critical data exchanges.
- Compression of Value Chains
AI and Network Automation: The integration of AI-first automation is enabling dynamic optimization in 5G transport networks, making room for autonomous resource allocation based on real-time demand patterns. This cuts latency and improves network utilization, while giving enterprises the ability to set up and manage their own private 5G transport links, without operator intervention.
- Geopolitical Chaos
Supply Chain Disruptions in Optical Components: Geopolitical tensions, tariff structures, and macroeconomic changes are exposing critical shortages in optical components. This disrupts manufacturing and logistics throughout the network infrastructure value-chain. Providers therefore feel the pressure of diversifying their supplier base and inventory strategies.
Going forward, sustainability will increasingly shape transport strategy. Smarter traffic engineering, optical efficiency gains, and AI-based automation can significantly reduce energy use even as demand scales. Moreover, the next wave of 5G advantage will come from smarter collaboration. CSPs, operators, hyperscalers, enterprises, and vendors that co-design shared transport ecosystems will unlock new revenue faster than those that operate alone.
Is your 5G transport strategy evolving fast enough to support network slicing, automation, and multi-vendor ecosystems??
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