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Excerpt:
Take 5 with Erin Dunne
CEN Feature
Carrier
Ethernet News
September 1,
2011
CEN: Vertical Systems
Group just released its mid-2011 Ethernet services market share
results for the U.S. and Global Providers. What are the key trends?
Erin: In the
U.S., we saw very strong enterprise demand (30+% port growth) in the
first six months of 2011 across all Ethernet provider segments. Nine
companies achieved a position on our Mid-2011 U.S. Business Ethernet
LEADERBOARD: three Incumbents (AT&T, Verizon, CenturyLink/Qwest),
four competitive providers (tw telecom, XO, Cogent, Level 3) and two
MSOs (Cox, Time Warner Cable). The threshold for a Leaderboard
position is 4% or more of billable retail ports.
For Global Providers,
the Mid-2011 LEADERBOARD has six companies: Orange Business,
Verizon, Colt, NTT, AT&T and Global Crossing. Share trends for the
first half of the year indicate that global Ethernet providers are
capitalizing on two essential assets. First, they all operate fiber
infrastructures that enable delivery of Ethernet services in
multiple countries. And second, these companies offer their
customers network solutions that integrate higher speed Ethernet
access connectivity to IP/MPLS VPNs.
CEN: In the past,
Vertical Systems Group has emphasized that a significant number of
Ethernet service connections were sub-10Mbps. Where is the current
sweet spot in terms of Ethernet service connection speeds?
Erin: Vertical's
Ethernet speed outlook is that "100 Mbps is the new 10 Mbps". Today
the majority of U.S. Ethernet connections to enterprise sites are 10
Mbps or lower, including sub-10 Mbps speeds. Based on our latest
research, we're projecting that speeds above 10 Mbps will be most
prevalent for Ethernet connectivity by the end of 2012.
CEN: What are the
initial applications for 10Gig Ethernet services? Who is buying them
and what’s driving bandwidth demand?
Erin: This is a great
question because the need for speed is really accelerating. Our
research shows that Ethernet bandwidth has just surpassed the
aggregate bandwidth associated with all legacy circuits in the U.S.
For 10 Gig services, the top buyers and applications include:
-
ISPs - backbone
circuits, social networking, video, gaming, SaaS, IaaS
-
Cellular providers -
cell site backhaul aggregation, Ethernet private lines between
cellular provider switching centers
-
Large enterprises -
interconnection of data centers, Ethernet private lines,
VPN/Internet access for online applications and cloud content
CEN: How would you
summarize the availability of Carrier Ethernet access technologies
today and where do you see them evolving in the future?
Erin: Today, just
over half of U.S. business Ethernet installations are delivered over
Direct Fiber. SONET/DWDM is the second most prevalent Ethernet
access technology. Other technology alternatives include TDM, bonded
copper, Coax/HFC, FWL and others. While fiber is the access
technology of choice for Ethernet service delivery, alternatives to
fill gaps in fiber coverage will be required for many years. This is
good news for vendors of equipment that addresses the flexible
access requirements service providers are demanding.
CEN: Vertical Systems
Group was recently reported to say one-quarter of new Business
Ethernet locations worldwide would require Carrier Ethernet access
connections delivered via an access operator partner. Can you expand
on this?
Erin: Yes,
Ethernet service providers directly deliver nearly three-quarters of
all new Ethernet ports using their own "on-net" service
infrastructures. To reach the remaining one-quarter of new port
locations, the most prevalent solution is to use a type 2 service
extension provided by an incumbent or other last mile provider. In
this scenario, Ethernet service providers establish bilateral
business and technical interconnection agreements with each access
carrier, typically as a wholesale transaction. Another alternative
is the use of an Ethernet Exchange service, which enables the
interconnection of Ethernet services among multiple service
providers.
CEN: Last
year, Vertical Systems Group reported that Carrier Ethernet
Exchanges had more Ethernet providers committed to selling than
buying services. Has this situation changed of late?
Erin: Not yet.
The original Exchange model is most appealing to Ethernet carriers
selling wholesale services because it provides a different sales
channel. It is less compelling for buyers of Ethernet connections.
Most potential buyers have not been able to quantify the business
case for using an Exchange as compared to other Ethernet delivery
alternatives. As a result, Exchange players have been repositioning
their capabilities to focus on other Ethernet interconnection
opportunities, like cloud computing and content delivery.
CEN: We've heard
you're an avid surfer. Is there anything about surfing that you
could relate to Carrier Ethernet in general?
Erin: (laughs)
Well, the first thing I can tell you is that technology is the last
thing I'm thinking about when I'm in the water. On the other hand,
surfing does require that you remain patient and focused on the
prize -- catching a great wave. So, in effect, we're talking about
capitalizing on an opportunity. And, there is quite a bit of
opportunity for Carrier Ethernet in the market today and in the
foreseeable future.
Complete article at
http://www.carrierethernetnews.com/articles/291247/take-5-with-erin-dunne/
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