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Excerpt:
Vertical Systems:
Layer 2 Ethernet Services Drive Market Growth
Sean Buckley
Fierce Telecom
1/26/11
Vertical Systems Group's
U.S. bi-annual Ethernet service LEADERBOARD results for 2010
reflected a growing comfort level by enterprise customers to buy
Layer 2 Ethernet services for their high bandwidth applications.
Driven by growing adoption from the financial, education and
state/local government segments, the Ethernet port base grew 3
percent from Vertical's previous forecast of 31 percent to 34
percent. One of the noticeable changes on this report, which lists
service providers that have more than 4 percent of the market, is
that there were only eight service providers that made the cut based
on ports sold.
"The top four providers on the LEADERBOARD did not change as AT&T,
Verizon, tw telecom, and Cox held their respective spots, although
AT&T did widen its lead," said Rosemary Cochran, principal and
co-founder of Vertical Systems in an interview with FierceTelecom.
Cochran added that what helped AT&T widen its lead in 2010 was its
wide fiber footprint. "Not only did AT&T pick up some ports from
their Centennial acquisition, which took a long time to close, but
they have been pretty focused on the footprint they have, especially
in the old SBC metro fiber footprint they have," she said. "In
particular markets where the regional fiber exists that's where we
are seeing the pockets of customers, and when you look at the AT&T
footprint that's where the activity is."
Outside of the Tier 1
providers, VSG noted that there were a number of shifts in the
competitive Ethernet market segment that make up an estimated 20
percent of the U.S. Ethernet market. While still dominated primarily
by competitive providers and cable MSOs, XO Communications (OTC BB:
XOHO.OB) tipped Qwest (NYSE: Q) from the fifth spot on the 2010
Ethernet Leaderboard. At the same time, Cogent dropped off the
Leaderboard while Level 3 Communications (Nasdaq: LVLT) moved up to
the eighth position. "Cogent has been always predominantly a
provider of Ethernet-based Internet access, which is somewhat
saturated," Cochran said. "A lot of the growth
looks like it's coming from point-to-point and point-to-multipoint
applications as opposed to straight Internet access."
Complete article at
http://www.fiercetelecom.com/story/vertical-systems-layer-2-ethernet-services-drove-2010-ethernet-growth/2011-01-26
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