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Wholesale Carrier Ethernet Services Market Update, 2015

  • August 2015
  • -
  • Frost & Sullivan
  • -
  • 55 pages

Summary

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)

Executive Summary
The wholesale Carrier Ethernet services market continues to surpass Frost & Sullivan’s predicted growth rates, with 2014 market revenues exceeding $ billion. Wholesale service providers report continued
demand for Ethernet for mobile backhaul (tower/cell site access) and aggregation, and access to DIA and MPLS VPN services Cloud networking is beginning to drive demand for wholesale Ethernet services, both from retail Ethernet providers that are looking to expand their network footprint to enable cloud connectivity to enterprises, and from cloud companies that are looking to Ethernet instead of public IP networks to interconnect their cloud data centers.

Communication Service Providers (CSP) also report a significant increase in demand for Ethernet from the traditional interexchange carriers (IXCs), competitive local exchange carriers (CLECs) and international
carriers. However, lack of standardized interconnection agreements, as with the TDM circuits, continue to be a challenge to wholesale carriers. Broader adoption of—and tighter compliance with—MEF Forum
(External Network-to-Network Interface, ENNI) and MEF (Ethernet Access Services) specifications are expected to drive Ethernet expansion to more off-net locations. MEF’s Ethernet Interconnection Project and
Service Interconnection program are two other key initiatives in the industry that are expected to drive expanded Ethernet coverage. While both dedicated and switched Ethernet services are seeing growth, the latter is witnessing much higher year-over-year (YoY) growth rates. Service providers 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 2020.

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