2016 U.S. Carrier Ethernet LEADERBOARD

Port base grew 16%; M&A activity accelerating

BOSTON, MA, FEBRUARY 23, 2017 ā€“Ā Vertical Systems Group announces its U.S. Carrier Ethernet LEADERBOARD results for year-end 2016. The following companies achieved LEADERBOARD status (rank order based on retail port share):Ā AT&T,Ā Level 3, Spectrum Enterprise, Verizon, CenturyLink, Comcast, XO, Windstream and Cox. Spectrum EnterpriseĀ includesĀ 2016 port share for Charter Business, Time Warner Cable and Bright House.

To qualify for the LEADERBOARD, providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured by the number of customer ports in service as tracked by Vertical Systems Group, with input from surveys of Ethernet providers.

ā€œThe pace of growth in the Ethernet market softened in the second half of 2016, finishing at 16 percent for the full year. This easing is expected to continue as alternative technology solutionsĀ areĀ evaluated, such as dark fiber and SD-WAN,ā€ said Rick Malone, principal at Vertical Systems Group. ā€œM&A activity is accelerating as Ethernet providers scramble to extendĀ fiber footprints, enhanceĀ service technology and enter new markets. Looking forward, the LEADERBOARD will undergo dramatic changes as a result of these transactions.ā€

Key results of the 2016 U.S. Carrier Ethernet share analysis:

  • Windstream advancedĀ to eighth position on the 2016 LEADERBOARD, up from ninth at Mid-2016.
  • Cox movedĀ from eighth to ninth position on the LEADERBOARD.
  • Fewer than 10 share points separate the top six LEADERBOARD companies.
  • Sprint entered the Challenge Tier, andĀ Integra exited to the Market Player tier.
  • Lightpath remains in the Challenge Tier under Altice USA, which also combinesĀ share forĀ Suddenlink and Cablevision.
  • Note: Verizonā€™s 2017 closing of the XO acquisition will beĀ reflected in Mid-2017Ā share results.
  • U.S. LEADERBOARD plus Challenge Tier companies employ more than one-third of all MEF-CECPs worldwide.

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 2016, the following four companies attained a position in the Challenge tier (in alphabetical order):Ā Altice USA,Ā Cogent,Ā SprintĀ 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, Birch Communications, BT Global Services, Cincinnati Bell, Consolidated Communications, Earthlink Business, Electric Lightwave, Expedient, FairPoint, FiberLight, Frontier, Global Cloud Xchange, GTT, Hawaiian Telecom,Ā Integra, Lightower, LS Networks, Lumos Networks, Masergy, MegaPath, NTT America, Orange Business, RCN Business,Ā Tata, TDS Telecom, TelePacific, Telstra, Unite Private Networks, US Signal, WOW!BusinessĀ 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 Groupā€™s ENS (Emerging Networks Service) Research Programs. Expanded research coverage of year-end 2016 market share results includes Port Share Analysis, U.S. Market Update & Trends, Service Provider Profiles, Port Share by Service Provider Segment, Trends by Service Provider Segment, and MEF Certification status of top providers.

Vertical Systems Groupā€™s LEADERBOARDs are the industryā€™s foremost benchmarks for measuring Ethernet Service ProviderĀ market presence based onĀ 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. For releases and more information on methodology, see LEADERBOARDs.

Vertical Systems Groupā€™s ENS Research ProgramsĀ provide a cloud-based resource with hundreds of research topics, plus analyst support for your ad hoc requests or consultations. 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 TwitterĀ for research alerts. Ā To speak to an analyst at Vertical Systems Group, please contact us.