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Carriers and Ethernet Services: Public Ethernet in Metro & Wide Area
Networks 2009-2014
a market research report
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Ethernet, the protocol that is ubiquitous in enterprise local area networks, is now being offered by service providers as a metro or wide area service. These
publicly available Ethernet services have been among the communications market’s fastest growing segments, with carriers enjoying revenue growth in the range of 30 percent annually as enterprises large and small opt for these new services that are being offered in an array of speeds and reach.
Carrier Ethernet offers the chance to tie customer locations together in what appear to be virtual LANs that can stretch across a metropolitan area, a region, the nation, or the world.
Carrier Ethernet offers significant advantages in cost and simplicity and in facilitating convergence—and is often touted as a replacement for legacy data solutions like private line and frame relay. This Insight study projects market size, growth, and revenue, including segmented breakdowns of point-to-point and any-to-any services as well as by interface levels ranging from 10Mbit/s to the emerging 10Gigabit standard. This report provides insight into this emerging arena that will fundamentally shape the communications market of the future.
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Report Excerpt
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1.1 Carriers and Public Ethernet
Service
Ethernet is the world’s computer-to-computer protocol,
with interfaces on a billion computers worldwide—and it is well on the road
to becoming a dominant force in metropolitan and wide-area communications.
Public Ethernet is still in a relatively early growth
stage, though its heretofore robust growth is being temporarily slowed by
current global recession and concomitant intensifying downward pricing
pressures. Ethernet remains, however, second only to IP in terms of growth
potential and influence on the global communications market, and it has
become an increasingly prominent feature of the national data networking
landscape in the US. Ethernet services are available from virtually all
major US data service providers, including incumbents, second-tier carriers,
and smaller specialized players, who tend to differentiate themselves by
price, technology, and flexibility.
Until recently, public Ethernet services had generally
earned the label “metro Ethernet.” The majority of Ethernet service— aside
from access—has been, and still is, between points within a metropolitan
area. It is only relatively recently that public Ethernet has become more
widely accepted as a wide area, long-haul service.
Public Ethernet's increasingly broad acceptance has
been stimulated in part by the recent dramatic efforts of the incumbents in
the Ethernet space..............
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Market Segmentation
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Total US Carrier Ethernet Access Revenues:
by Topology:
E-Line
E-LAN
Access by Regional Domain
Metro
Wide-Area
Access by Type of Sale
Retail, Wholesale
by Bandwidth Level
greater than 1Gbit/s (1000Mbit/s)
greater than 100Mbit/s up to and including 1Gbit/s
greater than 10Mbit/s up to and including 100Mbit/s
up to 10Mbit/s
US Carrier Ethernet Total Port Estimates by Throughput
greater than 1Gbit/s (1000Mbit/s)
greater than 100Mbit/s up to and including 1Gbit/s
greater than 10Mbit/s up to and including 100Mbit/s
up to 10Mbit/s
Sample Monthly Pricing for:
In-Metro E-Line and E-LAN Services
Dedicated Internet Access
Average Price Range for E-Line and E-LAN Services
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Table of Contents
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Chapter I
EXECUTIVE SUMMARY
1.1 Public Ethernet
1.2 Ethernet Gains, Legacy Loses
1.3 Forecast of Public Ethernet
Services
1.4 Market Trends
Chapter II
BACKGROUND & INTRODUCTION
2.1 The Emergence of Public
Ethernet
2.1.1
The Ubiquity of Ethernet
2.1.1.1 Data over Voice
2.1.1.2 Native LAN: Early Ethernet Services
2.1.1.3 Contemporary Ethernet Service
2.1.2
Public Ethernet Grows While General Market Declines
2.2 Ethernet Services:
Conceptual/Technical Building Blocks
2.2.1
User Network Interface
2.2.2
Ethernet Virtual Connection
2.2.3
Service Parameters
2.2.4
Performance Quality Parameters
2.2.4.1 Frame Delay
2.2.4.2 Jitter
2.2.4.3 Frame Loss
2.3 Ethernet Topologies: E-line
vs. E-LAN
2.3.1
E-Line
2.3.1.1 Ethernet Access
2.3.2
E-LAN
2.3.3
Other Typologies: Dedicated vs. Switched
2.4 The Data Networking Context
2.4.1
Packet Data Networking
2.4.1.1 Internet Protocol
2.4.1.2 Packet and Virtual Networks
2.4.1.3 IP VPNs
2.4.1.4 MPLS
2.4.2
Ethernet and SONET
2.4.3
Resilient Packet Ring
2.5 How to Look at the Ethernet
Market
2.5.1
Ethernet’s Segments Defined
2.5.2
Wholesale Forecast Definitions
2.5.3
Carrier Ethernet vs. Public Ethernet
2.6 The MEF and Carrier Ethernet’s
Five Attributes
2.6.1
Service Standardization
2.6.2
Scalability
2.6.3
Service Management
2.6.4
Reliability
2.6.5
Quality of Service
2.7 Pricing
2.8 Examples of Major Public
Ethernet Applications
2.8.1
LAN Extensions
2.8.2
Layer 2 Virtual Private Network
2.8.3
Dedicated Internet Access
2.9 The Case For and Against
Public Ethernet
2.9.1
Ethernet’s Drivers
2.9.1.1 The Importance of Video
2.9.2
Advantages of Public Ethernet
2.9.2.1 Reduced Cost
2.9.2.2 Ease of Use and Adoption
2.9.2.3 Scalability
2.9.3
Service Adoption Inhibitors
2.9.3.1 Inertia and Investment Requirements
2.9.3.2 The Service Provider Perspective: Reluctance to Invest
2.9.3.3 Fiber Connectivity and Service Availability Constraints
2.9.3.4 Copper’s Increasing Importance
2.9.3.5 Interoperability as a Barrier
2.9.3.6 Doubts Regarding Ethernet Remain, Dissipating
2.10 Changing Industry Structure
2.10.1
Industry Consolidation: The Market Context
2.10.1.1 Consolidation: The Enterprise Perspective
2.10.1.2 Provider Strategies: Incumbent vs. Challenger
Chapter III
TRENDS, APPLICATIONS & MARKETS
3.1 Working Together: Carrier
Interoperability, Mergers, and Collaboration
3.1.1 Interoperability: The Current Problematic State
3.1.2 Interoperability: The Road Ahead
3.1.3 Service Interworking
3.1.4 Consolidation and Interoperability
3.1.5 The Road Ahead: Collaboration
3.1.5.1 Issues in Partnership and Collaboration: Pros, Cons
3.2 The Competitive
Outlook
3.3 Widened Service
Availability on Fiber and Copper
3.3.1 Fiber Expands, Slowly
3.3.2 The Importance of Ethernet Over Copper
3.3.3 Ethernet as Future Network Foundation
3.4 The Issue of
Service Pricing
3.4.1 Costs Beyond Service Pricing: The Real Deal
3.4.2 Why Select Ethernet: Cost Vs. Transformation?
3.4.3 Tunneling: Potential New Market-Changer
3.5 Broadening of
Applications and End Users
3.6 Product
Substitution: Ethernet Gains and Legacy Loses
3.7 Ethernet's Growing
"Maturity"
3.7.1 Quality of Service Issues
3.8 The Retail
Customer Perspective
3.9 The Importance of
Meshed, Any-to-Any Services
3.9.1 VPLS: New Face of E-LAN Emerging
3.9.2 EVPL
3.10 Layer 3 vs. Layer 2 VPNs
3.11 Public Ethernet Expanding
Rapidly Into the Long Haul
3.12 E-line Will Continue Strong,
Steady Growth
3.13 Wholesale Ethernet Grows
Faster After Slower Start
3.14 Bandwidth Trends
3.14.1 Bandwidth Rates Rising Inexorably
3.14.2 More Low-End Customers Build Low-End Ethernet
3.14.3 "Step Functions" as Applications?
3.15 International Growth as NA
Catches Up
Chapter IV
SERVICE PROVIDER PROFILES
4.1 AT&T Corporation
4.1.1 Network Architecture
4.1.2 Services Offered
4.2 Cogent
Communications
4.2.1 Network Architecture
4.2.2 Services Offered
4.3 Cox Cable
4.3.1 Network
4.3.2 Services Offered
4.4 Global Crossing
4.4.1 Network Architecture
4.4.2 Services Offered
4.5 Level 3
Communications, Inc.
4.5.1 Network Architecture
4.5.2 Services Offered
4.6 Optimum Lightpath
4.6.1 Network Architecture
4.6.2 Services Offered
4.7 Reliance GlobalCom
(Yipes)
4.7.1 Network
4.7.2 Services Offered
4.8 tw telecom
4.8.1 Network Architecture
4.8.2 Services Offered
4.9 Verizon
Communications
4.9.1 Network Architecture
4.9.2 Services Offered
Chapter V
MARKET FORECASTS
5.1 Methodology
5.2 Definitions and
Forecast Segmentation
5.2.1 Definitions
5.2.2 Segmentation
5.2.2.1 Breakdown by Topology
5.2.2.2 Breakdown by Regional Domain
5.2.2.3 Wholesale vs. Retail
5.2.2.4 Breakdown by Bandwidth Level
5.3 Market Forecasts
5.3.1 Total Market
5.3.2 Market by Topology
5.3.3 Market by Regional Domain
5.3.4 Retail vs. Wholesale
5.3.5 Bandwidth Levels
Table of Figures
Chapter I
I-1 Total US Public Ethernet
Revenues, 2009-2014
Chapter II
II-1 User Network Interface
II-2 Frame Loss
II-3 E-Line Point-to-Point
Service Type
II-4 E-LAN
Multipoint-to-Multipoint Service Type
II-5 Typical IP Network
II-6 Managed Packet Network,
Virtual Private Line
II-7 Resilient Packet Ring
Technology
II-8 LAN Extension Using
E-LAN Services
II-9 Illustration of VLAN
Tag Support
II-10 Dedicated Internet Access
II-11 Data vs. Video Traffic, 2005-2010
(Tbit/s)
II-12 Three-Year Total Cost Savings for
Ethernet Private Line
Chapter IV
IV-1 Level 3’s National Backbone
Network
Chapter V
V-1 Total US Public Ethernet
Revenues, 2007-2014
V-2 US Public Ethernet
Access Service Revenues, 2007-2014
V-3 US Public Ethernet
E-Line Service Revenues, 2007-2014
V-4 US Public Ethernet E-LAN
Service Revenues, 2007-2014
V-5 US Public Ethernet
Revenues by Application/Topology, 2005-2012
V-6 Percentage Ethernet
Revenues by Topology, 2009-2014
V-7 US Public Metro Ethernet
Revenues, 2007-2014
V-8 US Public
Wide-Area/Long-Haul Ethernet Revenues, 2007-2014
V-9 US Public Ethernet
Revenues by Geography/Region, 2007-2014
V-10 Percentage Ethernet Revenues by
Region, 2009 and 2014
V-11 US Public Ethernet Topology by
Regional Market, 2007-2014
V-12 US Retail Public Ethernet Revenues,
2007-2014
V-13 US Wholesale Public Ethernet
Revenues, 2007-2014
V-14 US Public Ethernet Revenues by
Retail/Wholesale, 2007-2014
V-15 Percentage Ethernet Revenues by
Retail/Wholesale, 2009-2014
V-16 US Public Ethernet Revenues
>1Gbit/s, 2007-2014
V-17 US Public Ethernet Revenues
>100Mbit/s – 1Gbit/s, 2007-2014
V-18 US Public Ethernet Revenues
>10Mbit/s – 100Mbit/s, 2007-2014
V-19 US Public Ethernet Revenues
<=10Mbit/s, 2007-2014
V-20 US Public Ethernet Revenues by
Bandwidth Level, 2007-2014
V-21 Percentage Revenues by Throughput
Level, 2009 and 2014
V-22 US Public Ethernet Total Port
Estimates by Throughput, 2007-2014
Table of Tables
Chapter I
I-1 Characteristics of
Ethernet Service Varieties
Chapter II
II-1 SONET and Ethernet
Defined Transmission Rates
II-2 Characteristics of
Ethernet Service Varieties
II-3 Typical Price Range for
E-Line Services
II-4 Typical Price Range for
E-LAN Services
Chapter III
III-1 Comparative Strengths of
Layer 2 and Layer 3 VPNs
Chapter V
V-1 Total US Public Ethernet
Revenues, 2007-2014
V-2 US Public Ethernet
Access Service Revenues, 2007-2014
V-3 US Public Ethernet
E-Line Service Revenues, 2007-2014
V-4 US Public Ethernet E-LAN
Service Revenues, 2007-2014
V-5 US Public Ethernet
Revenues by Application/Topology, 2007-2014
V-6 Percentage Ethernet
Revenues by Topology, 2007-2014
V-7 US Public Metro Ethernet
Revenues, 2007-2014
V-8 US Public
Wide-Area/Long-Haul Ethernet Revenues, 2007-2014
V-9 US Public Ethernet
Revenues by Geography/Region, 2007-2014
V-10 Percentage Ethernet Revenues by
Regional Domain, 2007-2014
V-11 US Public Ethernet Topology by
Regional Market, 2007-2014
V-12 US Retail Public Ethernet Revenues,
2007-2014
V-13 US Wholesale Public Ethernet
Revenues, 2007-2014
V-14 US Public Ethernet Revenues by
Retail/Wholesale, 2007-2014
V-15 Percentage Ethernet Revenues by
Retail/Wholesale, 2007-2014
V-16 US Public Ethernet Revenues
>1Gbit/s, 2007-2014
V-17 US Public Ethernet Revenues
>100Mbit/s – 1Gbit/s, 2007-2014
V-18 US Public Ethernet Revenues
>10Mbit/s – 100Mbit/s, 2007-2014
V-19 US Public Ethernet Revenues
<=10Mbit/s, 2007-2014
V-20 US Public Ethernet Revenues by
Bandwidth Level, 2007-2014
V-21 Percentage Revenues by Throughput
Level, 2007-2014
V-22 US Public Ethernet Total Port
Estimates by Throughput, 2007-2014
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Pricing Information
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Hard Copy
Price
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(PDF License Descriptions)
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