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Carriers & Ethernet Services 2010-2015

Abstract

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 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 $2.4 billion market in 2009, 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 any-to-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.

Table of Contents

Chapter I EXECUTIVE SUMMARY

  • 1.1 Carriers and Public Ethernet Services
  • 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
    • 2.1.2 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
  • 2.3 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 Data Networking Context
    • 2.4.1 Packet Data Networking
    • 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
    • 2.9.2 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 Provider Strategies: Incumbent vs. Challenger
    • 2.10.3 Issues in Partnership and Collaboration: Pros, Cons
    • 2.10.4 The Retail Customer Perspective

Chapter III TRENDS, APPLICATIONS & MARKETS

  • 3.1 New Standards, Exchanges, and Enhanced Interoperability Further Brighten Growth Outlook
    • 3.1.1 Interoperability: The Road Ahead
    • 3.1.2 Service Interworking
    • 3.1.3 The Road Ahead: Collaboration
  • 3.2 The Competitive Outlook
  • 3.3 Widened Availability on Fiber and Copper
    • 3.3.1 Fiber Expands, Slowly
  • 3.4 Service Pricing
    • 3.4.1 Costs Beyond Service Pricing: The Real Deal
    • 3.4.2 Why Ethernet: Cost Vs. Transformation?
    • 3.4.3 Tunneling: Potential Market-Changer
  • 3.5 Broadening of Applications and End Users
    • 3.5.1 Applications by Topology
  • 3.6 Product Substitution: Ethernet Gains and Legacy Loses
  • 3.7 Ethernet' s Growing "Maturity"
  • 3.8 The Promise of Switched Ethernet
    • 3.8.1 VPLS: New Face of E-LAN
  • 3.9 Public Ethernet Expanding Into the Long Haul
  • 3.10 EPL Continues Strong, Steady Growth
  • 3.11 Wholesale Ethernet Grows Faster After Slower Start
  • 3.12 Ethernet Access Moves Toward Dominance
  • 3.13 Bandwidth Trends
    • 3.13.1 Bandwidth Rates Rising Inexorably
    • 3.13.2 More Low-End Customers Build Low-End Ethernet
  • 3.14 International Growth as North America 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
    • 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
  • 5.3 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, 2010-2015

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 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, 2008-2015
  • 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 Application/Topology
  • V-6 US Public Metro Ethernet Revenues, 2008-2015
  • V-7 US Public Wide-Area/Long-Haul Ethernet Revenues
  • V-8 US Public Ethernet Access Revenues
  • V-9 US Public Ethernet Revenues by Geography/Region
  • 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

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
  • II-4 Typical Price Range for E-Line Services
  • II-5 Typical Price Range for E-LAN Services

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 Application/Topology
  • V-6 Percentage Ethernet Revenues by Topology
  • V-7 US Public Metro Ethernet Revenues
  • V-8 US Public Wide-Area/Long-Haul Ethernet Revenues
  • V-9 US Public Ethernet Access Revenues
  • V-10 US Public Ethernet Revenues by Geography/Region
  • V-11 Percentage Ethernet Revenues by Regional Domain
  • V-12 US Retail Public Ethernet Revenues
  • V-13 US Wholesale Public Ethernet Revenues
  • V-14 US Public Ethernet Revenues by Retail/Wholesale
  • V-15 Percentage Ethernet Revenues by Retail/Wholesale
  • V-16 US Public Ethernet Revenues > 1Gbit/s
  • V-17 US Public Ethernet Revenues >100Mbit/s - 1Gbit/s
  • V-18 US Public Ethernet Revenues >10Mbit/s - 100Mbit/s
  • V-19 US Public Ethernet Revenues <=10Mbit/s
  • V-20 US Public Ethernet Revenues by Bandwidth Level
  • V-21 Percentage Revenues by Throughput Level
  • V-22 US Public Ethernet Total Port Estimates by Throughput
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