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Excerpt:
Analyst Firm Marks First MSO Showing in Top Tier of U.S. Business
Ethernet Providers
LIGHTWAVE,
08/07
In its latest market analysis, Massachusetts-based
industry research firm Vertical Systems Group reports that two of
the top three providers of retail business Ethernet services in the
U.S. gained port share for mid-year 2007 as compared to year-end
2006 results. The report further reveals that multiple-systems
operator Cox Business entered into the top tier for the first time,
while several other major providers showed declines in port share.
Rick Malone, principal at Vertical Systems Group,
says that the expectation that competition in this market would heat
up in the first half of this year was fulfilled, which resulted in
"considerable port share fluctuation." He says, "The dense
availability of low-cost metro services boosted share for many
regional U.S. Ethernet providers, including MSOs. Additionally, the
aggressive deployment of new fiber infrastructure for residential
applications enabled broader accessibility of native Ethernet
services for adjacent business sites."
AT&T, Verizon Business,
and Time Warner Telecom are the top three U.S. retail business
Ethernet services providers. AT&T, including BellSouth (acquired in
December 2006) holds the lead with a 19.5% share of mid-2007 ports.
AT&T's share declined as compared to the combined year-end 2006
shares for AT&T (13.6% port share) plus BellSouth (8.5%). Verizon
Business shows an increase from 12.2% to 15.8% port share, in the
No. 2 slot. In third position is Time Warner Telecom, which rose to
13.7% of ports from 10.7% in 2006.
Cox Business, holding a
port share of 8.9%, makes a debut in fourth position as the first
MSO in the top tier of U.S. business Ethernet providers. Cogent is
fifth with an 8.6% share of the market, an increase from 8.2% at
year-end 2006. Qwest (including OnFiber, an acquisition which was
completed last September) is sixth at 8.4%, down from a 9.9% port
share. Yipes, which recently announced its acquisition by Reliance
Communications and will operate as a business unit within the
company's FLAG Telecom operations, is seventh with a share of 4.6%,
a decline from 5.4% at year-end.
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