2013 U.S. Carrier Ethernet LEADERBOARD

Aggressive service pricing intensifies in metro markets and Cable MSOs gain ground

us-lb-ye14-1BOSTON, MA, FEBRUARY 12, 2014 –  Vertical Systems Group’s U.S. Carrier Ethernet LEADERBOARD results for year-end 2013 are as follows (in rank order based on retail ports): AT&T, Verizon, tw telecomCenturyLink, Time Warner Cable, Cox, XO, Comcast and Level 3. Port shares were calculated using the base of enterprise installations of Ethernet services, plus input from Vertical’s independent surveys of Ethernet providers. The Leaderboard threshold is four percent (4%) or more of billable port installations.

The fastest growing application for 2013 continues to be Ethernet access to IP/MPLS VPNs, a capability supported by each of the Incumbent Carrier and Competitive Provider companies ranked on the LEADERBOARD. For Gigabit speed Ethernet services, the top applications were connectivity to Data Centers and Cloud services.

A key business concern cited by Ethernet providers is disruptive service pricing in major U.S. metro markets. Competition for new business intensified during the past year as regional Ethernet providers and Cable MSOs focused on share gain. This trend is expected to continue throughout 2014.

Cable MSOs gained ground on the 2013 U.S. LEADERBOARD. Time Warner Cable moved up just ahead of Cox to gain the top Cable MSO provider position. Comcast moved up from the Challenge Tier, and was the fastest growing of all ranked companies.

“Cable companies have developed a winning formula for the U.S. business Ethernet market,” said Rick Malone, principal at Vertical Systems Group. “They are successfully leveraging their on-net fiber footprints to offer aggressive pricing and rapid service provisioning.”

Other providers selling Ethernet services in the U.S. are segmented into two tiers as measured by port share. The first or Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market. For 2013, the following six companies attained a position in the Challenge tier (in alphabetical order): Bright House Networks, Charter, Cogent, Lightpath (formerly Optimum Lightpath), Windstream and Zayo.

The second or Market Player tier includes all providers with port share below 1%. Companies in the Market Player tier include the following providers (in alphabetical order): Alpheus Communications, American Telesis, BT Global Services, Cbeyond, Cincinnati Bell, Consolidated Communications, Earthlink Business, Expedient, FairPoint Communications, FiberLight, Fibertech, Frontier, Hawaiian Telecom, Integra Telecom, Lightower, LS Networks, Lumos Networks, Masergy, Megapath, NTT America, Orange Business, RCN Business, Reliance Globalcom, Sprint, SuddenLink, Tata, TDS Telecom, TelePacific, US Signal, WOW!Business and other companies selling retail Ethernet services in the U.S. market.

Detailed Ethernet share results for the U.S. market plus in-depth share analysis are available now exclusively through Vertical Systems Group’s ENS (Emerging Networks Service) Research Programs.

  • Click here for related STATFLash U.S. Ethernet Service Ports Jump 26% in 2013 LEADERBOARD analysis shows port growth driven by Ethernet access to IP/MPLS VPNs and Cloud connectivity; Top providers already MEF CE 2.0 certified

Vertical Systems Group’s LEADERBOARDs are the industry’s foremost benchmark for measuring Ethernet Service Provider market presence based on billable retail port installations. Share results are calculated at year-end and mid-year for the U.S. and Global Provider markets. Year-end results additionally include U.S. provider share analysis for three separate segments: Incumbent Carrier, Competitive Provider, and Cable MSO. Research sources for share calculations include Vertical’s base of enterprise installations, plus direct input and other data from our bi-annual surveys of Ethernet providers throughout the world.

To qualify for a LEADERBOARD position, a provider must have four percent (4%) or more of billable retail Ethernet port installations (i.e., not wholesale) within the specified market segment. To qualify for the second, or Challenge tier, a provider must have at least one percent (1%) of U.S. ports for the U.S. LEADERBOARD, and 2% or more of the total number of ports outside of home countries for the Global Provider LEADERBOARD. The third, or Market Player tier, includes all other providers selling retail Ethernet services within the specified market.

Public releases show the top Ethernet service providers in rank order based on share, and the Challenge tier providers listed in alphabetical order. A selected number of Market Players are also named in alphabetical order. For detailed market share figures and analysis, including historical share data (from 2002), refer to our syndicated ENS (Emerging Networks Service) Research Programs.

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 resource for business or product planning, ENS covers enterprise customer migration across all broadband network services to provide you with more defensible analysis as compared to discrete market forecasts. Research Tracks include @Ethernet, @Access, @Dedicated IP VPNs, @Fiber, @Private Lines, @Frame Relay, @ATM, @STATFlash, @Downloads and more.  Contact us for subscription information and pricing.

Vertical Systems Group is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry. For more information see www.verticalsystems.com and follow us on Twitter. To speak to an analyst at Vertical Systems Group, please contact us.