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Carriers and Ethernet Services, Public Ethernet in Metro and Wide Area Networks, 2012-2017

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Report Excerpt

Table of Contents

Market Segmentation

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Download the Free Executive Summary

Ethernet, the protocol that is ubiquitous in enterprise local area networks, is now offered by service providers in most metro areas and as a 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 22 percent annually as enterprises large and small opt for these new services offered in an array of speeds and reach.

Carrier Ethernet services, which is a $4.1 billion market in the US, offers the enterprise customer the chance to tie locations together in 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, 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 any-to-any services as well as by interface levels ranging from 10 Mbit/s to the emerging 40- and 100-Gbit/s standards. This report provides insight into this emerging arena that will fundamentally shape the communications market of the future.


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    Report Excerpt

    1.1 Public Ethernet

    Insight’s use of the term “public Ethernet” refers to any Layer 2 public network carrier service that extends Ethernet beyond the LAN (local area network) 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 (virtual private LAN service), 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, upgraded, legacy transparent or native LAN services, whether asynchronous transfer mode (ATM)-based within the network core or using an Ethernet over fiber or a synchronous optical network (SONET) architecture.  Our definition also includes newer services from small and large carriers that variously deliver end-to-end Ethernet directly over optical fiber, encapsulate Ethernet packets over SONET, or transmit it over dense wavelength division multiplexing (DWDM) wavelengths ..............

    Download the Free Executive Summary


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    Market Segmentation

     

    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 (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
    EXECUTIVE SUMMARY
    1.1    Public Ethernet
             1.1.1  Definitions: Public vs. Carrier Ethernet
    1.2    Market Segmentation
    1.3    Market Trends
    1.4    Ethernet Market Forecast

    Chapter II
    BACKGROUND & INTRODUCTION
    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
    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
            2.10.2  MSOs Emergent
            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
    Trends & Markets
    3.1   Ethernet Growth Continues Unabated
            3.1.1  Ethernet Access Moves Toward Dominance
            3.1.2  The Global Context
    3.2   Bandwidth Demands Intensify, Levels Rise
            3.2.1  Yet New Top Ethernet Bandwidth Levels Lie Fallow, For Now
    3.3   Applications and End-Users
            3.3.1  Clearly, The Cloud
            3.3.2  Ethernet Diversifies Down-Market, But Top Verticals Stay Strong
            3.3.3  Cellular Backhaul Nears Inflection Point
            3.3.4  Wholesale Gains Generally After Early Lag
    3.4   Topology: Any to Any Switched Ethernet Pacing Long-Term Growth
    3.5   Increasing Market Confidence in Ethernet
            3.5.1  Despite Confidence, Market Confusion Rife
    3.6   MEF's Ethernet 2.0: Confidence Builder, Head-Scratcher
            3.6.1  Ethernet OAM Enhancing Reliability, Transparency
            3.6.2  Intensified Market Focus on Interoperability
    3.7   Availability Remains Problematic, Fiber Keeps Lead
    3.8   Hybrid Networking - Beyond Ethernet
    3.9   Pricing Varies Across Map, on "Average" Mild Declines
    3.10 The Competitive Outlook
    3.11 Public Ethernet Expanding In the Long Haul, and Short
            3.11.1  International Growth as North America Catches Up
    3.12 From Thirty Thousand Feet: The Market in Three Years

    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  Level 3 Communications, Inc.
           4.4.1  Network Architecture
           4.4.2  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
    MARKET FORECASTS
    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, 2010-2017

    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 I  llustration of VLAN Tag Support
    II-10 Dedicated Internet Access

    Chapter V
    V-1   Total US Public Ethernet Revenues, 2010-2017
    V-2   US Public Ethernet Private Line Service Revenues, 2010-2017
    V-3   US Public Ethernet Virtual Private Line Service Revenues 2010-2017
    V-4   US Public Ethernet E-LAN Service Revenues, 2010-2017
    V-5   Metro Ethernet Revenues, 2010-2017
    V-6   Long-Haul Ethernet Revenues, 2010-2017
    V-7   US Public Ethernet Access Revenues, 2010-2017
    V-8   US Retail Public Ethernet Revenues, 2010-2017
    V-9   US Wholesale Public Ethernet Revenues 2010-2017
    V-10 US Public Ethernet Revenues > 1 Gbit/s, 2010-2017
    V-11 US Public Ethernet Revenues >100Mbit/s – 1Gbit/s, 2010-2017
    V-12 US Public Ethernet Revenues >10Mbit/s – 100Mbit/s, 2010-2017
    V-13 US Public Ethernet Revenues <=10Mbit/s, 2010-2017

    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 Offers
    IV-2  tw Telecom’s Native LAN Ethernet Products

    Chapter V
    V-1   Total US Public Ethernet Revenues, 2010-2017
    V-2   US Public Ethernet Private Line Service Revenues, 2010-2017
    V-3   US Public Ethernet Virtual Private Line Service Revenues 2010-2017
    V-4   US Public Ethernet E-LAN Service Revenues, 2010-2017
    V-5   US Public Ethernet Revenues by Topology, 2010-2017
    V-6   Percentage US Public Ethernet Revenues by Topology, 2010-2017
    V-7   Metro Ethernet Revenues, 2010-2017
    V-8   Long-Haul Ethernet Revenues, 2010-2017
    V-9   US Public Ethernet Access Revenues, 2010-2017
    V-10 US Public Ethernet Revenues by Regional Domain, 2010-2017
    V-11 US Public Ethernet Revenues, Percentages by Regional Domain, 2010-2017
    V-12 US Retail Public Ethernet Revenues, 2010-2017
    V-13 US Wholesale Public Ethernet Revenues 2010-2017
    V-14 US Public Ethernet Revenues by Retail/Wholesale 2010-2017
    V-15 US Public Ethernet Revenues, Percentages by Retail/Wholesale, 2010-2017
    V-16 US Public Ethernet Revenues > 1 Gbit/s, 2010-2017
    V-17 US Public Ethernet Revenues >100Mbit/s – 1Gbit/s, 2010-2017
    V-18 US Public Ethernet Revenues >10Mbit/s – 100Mbit/s, 2010-2017
    V-19 US Public Ethernet Revenues <=10Mbit/s, 2010-2017
    V-20 US Public Ethernet Revenues by Bandwidth Level, 2010-2017
    V-21 Percentage Revenues by Throughput Level, 2010-2017
    V-22 US Public Ethernet Total Port Estimates by Throughput, 2010-2017


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    Pricing Information

     

    Hard Copy Price
    $ 3995
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    (PDF License Descriptions)
    $ 4695 Single-User Printable PDF

    $ 6995 6-Seat Printable PDF

    $ 10000 Unlimited Corporate-Wide Distribution


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