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Vertical Systems Group:
Worldwide Ethernet Exchange Opportunity Sized at $674M by 2014

LONDON, UK, OCTOBER 13, 2010 -- The market opportunity for Ethernet Exchange services is sized at $674 million worldwide in 2014, according to Vertical Systems Group's latest research, which was released today at the Carrier Ethernet Backhaul & Exchange Europe conference in London.  An Ethernet Exchange is defined as an open marketplace solution for the interconnection of Ethernet services among multiple providers.  Driving this emerging market is rising demand throughout the world for Ethernet services, and the consequent need for service providers to fill selected gaps in their existing network footprints.

"Geographic coverage is a competitive differentiator, so Ethernet providers are open to more efficient ways to deliver services to sites they can't reach directly," said Erin Dunne, director of research services at Vertical Systems Group. "At this early market stage, Ethernet Exchanges have more Ethernet providers committed to selling than buying services. Buyer enrollment is expected to increase as the business benefits of Ethernet Exchanges stabilize as compared to bilateral NNI agreements and other alternatives."

Vertical Systems Group analyzed the Ethernet Exchange opportunity utilizing its proprietary data and modeling tools. Demand for Ethernet services by speed and provider segment was reconciled with planned Ethernet Exchange offerings, technology alternatives, and the purchase drivers of Exchange participants.  Projected Ethernet end-points were derived from Vertical's database of enterprise network installations and commercial sites by regional market. Maps of end-point demand were overlaid to the worldwide geographic footprints of Ethernet providers to determine coverage gaps.  This bottom-up analysis formed the basis for modeling Ethernet service delivery alternatives.

Full analysis of the Ethernet Exchange opportunity includes drivers and risks, customer segmentation, deployment timing, and projections for Ethernet Exchange ports and revenue.  Ethernet Exchange research content is available immediately and exclusively to annual subscribers of ENS @Ethernet Research Programs.  Contact us for subscription options and pricing.


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Vertical Systems Group's ENS Research Programs feature web-based access to hundreds of research topics plus analyst support for your ad hoc requests or consultations.  As a comprehensive "real world" resource for business or product planning, ENS covers customer migration across all broadband network services to provide you with more defensible analysis as compared to discrete market forecasts.  Available Research Tracks include @Ethernet, @Access, @Dedicated IP VPNs, @Fiber, @Frame Relay, @Private Lines, @Broadband, @ATM, @SURVEYFlash, @STATFlash and more.