One Million Carrier Ethernet Service Ports Projected in U.S. by 2018

Growth driven by expanding service options, rising bandwidth demand, and falling prices

1million-2018BOSTON, MA, SEPTEMBER 25, 2014 – Customer installations of Carrier Ethernet services in the U.S. will reach one million ports in 2018, according to new @Ethernet research from Vertical Systems Group. The projected figure includes all retail Ethernet services at speeds ranging from Sub-10 Mbps to more than 10 Gbps.

“U.S. market demand for business-class Carrier Ethernet services is solid. Enterprises and SMBs will make purchase decisions to deploy hundreds of thousands of new Ethernet ports throughout the next several years, facilitated by a range of service options and competitive price points that have never been better,” said Rosemary Cochran, principal at Vertical Systems Group. “Following a 26% increase in U.S. customer port installations last year, growth projections are on track to hit the one million mark by 2018.”

Vertical Systems Group’s latest U.S. Ethernet research quantifies how market growth is being impacted by rising customer demand for bandwidth, coupled with falling service prices. Detailed analysis for six Ethernet service segments shows significant variations in port and revenue projections by access speed. Revenue opportunities by service, as well as the challenges of competitive pricing pressures are also quantified.

@Ethernet provides insight and statistics on key topics like the following:

  1. What are the top revenue opportunities for Ethernet providers?
  2. Which two industries contributed more than half of all new ports purchased in 2013?
  3. Which Ethernet service accounts for the most new customer ports between now and 2018?
  4. Why will two service segments slow to single digit growth by 2017?
  5. How much has the ‘street price’ dropped for 10 Mbps Metro LAN services?
  6. How much has access bandwidth increased for 100 Mbps and 1 Gbps ports?
  7. What percent of customer installations are delivered using direct optical Fiber, as compared to SONET, bonded copper, TDM, Coax/HFC, or other access technologies?
  8. What is the share of Ethernet ports delivered by Incumbent Carriers, Competitive Providers and Cable MSOs?
  9. Which Ethernet service providers gained market share in the first half of 2014?
  10. How will pending mergers impact the market shares of leading providers?

@Ethernet is an essential cloud-based resource for companies that develop, sell, deploy, purchase or invest in Ethernet services and technology. Available now exclusively thorough Vertical Systems Group’s ENS (Emerging Networks Service) Research Programs, the @Ethernet Research Track provides comprehensive market statistics and analysis on the U.S. market, including the port share detail used for LEADERBOARD rankings. All ENS Programs include expert advisory support to address ad-hoc inquiries and specialized data requirements.

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, @Dynamic Network Connectivity Services, @Private Lines, @Frame Relay, @ATM, @STATFlash, @Insight and more. Contact us for subscription information and pricing, or to schedule an ENS demo.

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 and follow us on Twitter. To speak to an analyst at Vertical Systems Group, please contact us.