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Carriers and Ethernet Services, Public Ethernet in Metro and Wide Area Networks, 2011-2016

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Report Excerpt

Table of Contents

Market Segmentation

Pricing Information
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Download the Free Executive Summary

Ethernet, the world’s primary computer-to-computer protocol with interfaces on well over a billion computers worldwide, is now being offered by nearly every US service provider 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 25 percent annually as enterprises large and small opt for these new services offered in an array of speeds and reach.

Carrier Ethernet services, which was a $3.2 billion market in 2010, offers the enterprise customer the chance to tie locations together in what appear to be virtual LANs that can stretch across a metropolitan area, a region, a nation, or the world. These widely available Ethernet services offer significant advantages in cost and simplicity and in facilitating convergence—and are 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 anyto- any services as well as by interface levels ranging from 10 Mbit/s to the emerging 10 Gbit/s standard. This report provides insight into this emerging arena that will fundamentally shape the communications market of the future.

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    Marketing Dept.

    Report Excerpt

    1.1      Ethernet Market Trends

    The MEF (Metro Ethernet Forum), the major industry trade and standards group developing and advocating for enhanced public Ethernet services, promotes the term “Carrier Ethernet” while INSIGHT Research has adopted the term "Public Ethernet" rather than "Carrier Ethernet" to contrast our view of the total market with the MEF classification and what is implied in their definition.

    The MEF classification excludes longstanding 1990s-originated Native and Transparent LAN (local area network) services lacking QoS (quality of service) and other required "Carrier Ethernet" features. INSIGHT, on the other hand, includes such services in our review of the market and in our market projections since most of the native and transparent LAN services have long since been upgraded with QoS and other features and thus are a vital part of the total market picture.

    INSIGHT’s use of the term “public Ethernet” refers to any Layer 2 public network carrier service that extends Ethernet beyond the LAN and connects to customers across Ethernet interfaces. Public Ethernet may be marketed as transparent or native LAN, Ethernet, gigabit Ethernet, GigE, metro Ethernet, Ethernet private line (EPL), Ethernet virtual private line (EVPL), Layer 2 virtual private network (VPN), Ethernet access, VPLS, or a variety of other names. INSIGHT’s definition does not, however, include routed Layer 3 IP-VPN services, which also can be described as carrying IP (Internet protocol) over Ethernet. Our use of the phrase “public Ethernet services” includes relatively longstanding though upgraded legacy transparent or native LAN services, whether asynchronous transfer mode (ATM)-based within the network core or using an Ethernet over fiber (or SONET) architecture. Our definition also includes newer services from small and large carriers that variously deliver end-to-end Ethernet directly over optic fiber, encapsulate Ethernet packets over SONET (synchronous optical network) or transmit it over dense wavelength division multiplexing (DWDM) wavelengths or over multi-protocol label switching (MPLS).

    The US Ethernet market can be segmented and revenue estimates calculated —as INSIGHT has in this updated report—in various ways.....

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    Market Segmentation


    Total US Carrier Ethernet Access Revenues:
          by Topology:
          by Regional Domain
          by Type of Sale
               Retail, Wholesale
          by Bandwidth Level
               greater than 1Gbit/s (includes 10Gbit/s, 40Gbit/s, and 100Gbit/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 (includes 10Gbit/s, 40Gbit/s, and 100Gbit/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


    Chapter I
    1.1      Ethernet Market Trends
    1.2      Ethernet Market Forecast

    Chapter II
    2.1      The Emergence of Public Ethernet
               2.1.1  The Ubiquity of Ethernet
    2.2      Ethernet Services: Building Blocks
               2.2.1  User Network Interface
               2.2.2  Ethernet Virtual Connection
               2.2.3  Service Throughput Parameters
               2.2.4  Performance Quality Parameters
               2.2.5  Bandwidth Profile
    2.3      Ethernet Topologies: E-line vs. E-LAN
               2.3.1  E-Line
               2.3.2  E-LAN
               2.3.3  Other Typologies: Dedicated vs. Switched
    2.4      The Broader Data Networking Context
               2.4.1  Packet Data Networking
               2.4.2  Ethernet and SONET
               2.4.3  Resilient Packet Ring
    2.5      The Public Ethernet Concept
               2.5.1  "Carrier Ethernet" vs. "Public Ethernet"
               2.5.2  Ethernet Segments Defined
          Bandwidth Levels
    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      Public Ethernet Pricing Fundamentals
               2.7.1  Costs Beyond Service Pricing: The Real Deal
    2.8      Examples of Basic Public Ethernet Applications
               2.8.1  LAN Extension
               2.8.2  Layer 2 Virtual Private Network
               2.8.3  Dedicated Internet Access (DIA)
    2.9      The Case For and Against Public Ethernet
               2.9.1  Ethernet’s Drivers
               2.9.2  Advantages of Public Ethernet
               2.9.3  Service Adoption Inhibitors
    2.10    Evolving Industry Structure/Market Players
               2.10.1  Industry Consolidation: The Market Context
               2.10.3  Provider Strategies: Incumbent vs. Challenger
               2.10.4  Issues in Partnership and Collaboration
    2.11    The Retail Customer Perspective
    2.12    The Current Market Context
               2.12.1  Public Ethernet Grows While General Market Declines
               2.12.2  Effects of Economic Slowdown

    Chapter III
    3.1      Intensified Market Focus on Interoperability
               3.1.1  Carrier Ethernet Exchanges Move Forward, Slowly
               3.1.2  Private E-NNIs Supported by Evolving Standards, Slowly
               3.1.3  The Road Ahead: Collaboration?
    3.2      Explosion in Ethernet for Cellular Backhaul
               3.2.1  Data Roaming: Wireless Game-Changer?
               3.2.2  Pseudo-wire as Cell Backhaul Modality
               3.2.3  Booming Broader Wholesale Market
    3.3      Hybrid Networking Becoming New High-End Norm
    3.4      Evolution to Switched Ethernet/Multipoint Topologies
    3.5      Ethernet End-Users "Democratize," Though Still Paced by Top Verticals
               3.5.1  Low-End Customers Build Low-End Ethernet
               3.5.2  Ethernet Applications Proliferate
               3.5.3  "Cloud" Computing Cloudy Though Growth Clear
    3.6      Bandwidth Growth Pivotal Market Driver
               3.6.1  Bandwidth Recap
               3.6.2  New High-Bandwidth Levels Wait
    3.7      Performance Monitoring Standards Bolsters Market, Slowly
    3.8      Pricing Stabilizes But Varies Radically
               3.8.1  Costs Beyond Service Pricing: The Real Deal
    3.9      The Competitive Outlook
               3.9.1  Widened Availability on Fiber, Copper, and HFC
    3.10    Ethernet Access Moves Toward Dominance
    3.11    Public Ethernet Expanding In the Long Haul, and Short
    3.12    International Growth as North America Catches Up

    Chapter IV
    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      Level 3 Communications, Inc.
               4.4.1  Level 3 Background
               4.4.2  Global Crossing- Background
               4.4.3  Network Architecture
               4.4.4  Services Offered
    4.5      Optimum Lightpath
               4.5.1  Network Architecture
               4.5.2  Services Offered
    4.6      Reliance GlobalCom
               4.6.1  Network
               4.6.2  Services Offered
    4.7      tw telecom
               4.7.1  Network Architecture
               4.7.2  Services Offered
    4.8      Verizon Communications
               4.8.1  Network Architecture
               4.8.2  Services Offered

    Chapter V
    5.1      Methodology
    5.2      Definitions and Forecast Segmentation
               5.2.1  Definitions
               5.2.2  Segmentation
    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  Market Forecasts By Bandwidth Level

    Table of Figures

    Chapter I
    I-1     Total US Public Ethernet Revenues, 2009-2016

    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

    Chapter IV
    IV-1  Level 3’s National Backbone Network

    Chapter V
    V-1   Percentage Ethernet Revenues by Topology
    V-2   US Public Ethernet Revenues by Regional Domain
    V-3   US Public Ethernet Revenues, Percentages by Regional Domain
    V-4   Percentage Ethernet Revenues by Retail/Wholesale
    V-5   Percentage Revenues by Throughput Level

    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    Comparative Strengths of Layer 2 and Layer 3 VPNs

    Chapter IV
    IV-1   AT&T Ethernet Services
    IV-2   tw Telecom’s Ethernet SLAs

    Chapter V
    V-1    Total US Public Ethernet Revenues
    V-2    US Public Ethernet Private Line Service Revenues
    V-3    US Public Ethernet Virtual Private Line Service Revenues
    V-4    US Public Ethernet E-LAN Service Revenues
    V-5    US Public Ethernet Revenues by Topology
    V-6    Metro Ethernet Revenues
    V-7    Long-haul Ethernet Revenues
    V-8    US Public Ethernet Access Revenues
    V-9    US Public Ethernet Revenues by Regional Domain
    V-10  US Retail Public Ethernet Revenues
    V-11  US Wholesale Public Ethernet Revenues
    V-12  US Public Ethernet Revenues by Retail/Wholesale
    V-13  US Public Ethernet Revenues > 1 Gbit/s
    V-14  US Public Ethernet Revenues >100Mbit/s – 1Gbit/s
    V-15  US Public Ethernet Revenues >10Mbit/s – 100Mbit/s
    V-16  US Public Ethernet Revenues <=10Mbit/s
    V-17  US Public Ethernet Revenues by Bandwidth Level
    V-18  US Public Ethernet Total Port Estimates by Throughput

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    Pricing Information


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    $ 3995
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    $ 4695 Single-User Printable PDF

    $ 6995 6-Seat Printable PDF

    $ 10000 Unlimited Corporate-Wide Distribution

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