Table of Contents
This study presents an in-depth analysis of the key trends impacting the wholesale carrier Ethernet services market and includes market revenue forecasts and market share analysis. The analysis is segmented by:
Transport length (metro versus long haul)
Service type (dedicated versus switched)
Service configuration (point-to-point and multipoint-to-multipoint)
Port speeds (10 Mbps, 100 Mbps, 1 GigE and 10 Gbps)
The wholesale Carrier Ethernet services market once again surpassed Frost & Sullivan’s predicted growth rates, with 2013 market revenues exceeding $ x Billion. Wholesale carriers saw great demand for Ethernet for mobile backhaul (tower/cell site access) and aggregation, and this trend will continue throughout the forecast period. Internet Service Providers (ISPs) continue to buy high speed Ethernet ports for IP transit applications, and they represent a significant revenue share of the market. Service providers report a significant increase in demand from the traditional interexchange carriers (IXCs), competitive local exchange carriers (CLECs) and international carriers for Ethernet.
Cloud networking is beginning to drive demand for wholesale Ethernet services, as cloud companies look to Ethernet instead of public IP networks to build their cloud networks.
Ethernet is attractive for Communications Service Providers (CSPs) because it can be offered economically with a lower price per megabit than any other service. Furthermore, it can be offered in a range of bandwidths and for a variety of private line and Local Area Network (LAN) extension services.
While both dedicated and switched Ethernet services are seeing growth, the latter is witnessing much higher year-over-year (YoY) growth rates. The supremacy of dedicated services, fueled by widespread availability of SONET infrastructure, is coming to an end. The shift to switched services has started. CSPs report that most of the new demand is for switched Ethernet services—a trend that is expected to tilt the scale largely toward switched by 2018.
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