|
|
Press Releases &
Stat Flashes
Vertical In the News
Industry Events
OnDemand Content
Archives
Press
Releases &
Stat Flashes
Vertical
in the News
|
|
Excerpt:
Forecasting Carrier Ethernet Exchange market is a complex project
Carrier Ethernet Views
By Joan Engebretson
Carrier
Ethernet News
11/30/10
When Ethernet exchanges
were still in the planning phase, some industry stakeholders
projected that they could give Carrier Ethernet sales a big boost.
But now that four different companies have launched Ethernet
exchanges, how much business will they really generate?
Vertical Systems took a crack at answering this question recently
and came up with an estimate of $674 million worldwide sales through
Ethernet exchanges by 2014. But what’s perhaps even more interesting
than the number itself is the process that went into calculating it.
As Vertical Systems Principal Rosemary Cochran explained, “It’s not
really a forecast. It’s a sizing.”
Vertical Systems already creates a highly
detailed Ethernet forecast that takes into consideration where the
demand is coming from. To arrive at the $674 million estimate,
researchers looked at the Carrier Ethernet forecast they already had
created and asked, “What percentage of that business could happen
through the exchanges?”
The answer to that question depends on a variety of factors,
including individual service provider footprints and which carriers
already have bilateral agreements with one another. “If you’re a
partner in one of these agreements, you probably won’t take traffic
off [a system] that’s already working unless there is a major
benefit to doing so,” Cochran explained.
Cochran also doesn’t expect to see much demand for Ethernet
exchanges in markets where effectively only a single carrier
provides Carrier Ethernet service. In that case it most likely will
be easier and more economical for other carriers simply to establish
interconnection agreements with that carrier.
Complete article at
http://www.carrierethernetnews.com/articles/146453/
|
|
