Port base grew 16%; M&A activity accelerating
BOSTON, MA, FEBRUARY 23, 2017 – 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): AT&T, Level 3, Spectrum Enterprise, Verizon, CenturyLink, Comcast, XO, Windstream and Cox. Spectrum Enterprise includes 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.
“The 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 solutions are evaluated, such as dark fiber and SD-WAN,” said Rick Malone, principal at Vertical Systems Group. “M&A activity is accelerating as Ethernet providers scramble to extend fiber footprints, enhance service technology and enter new markets. Looking forward, the LEADERBOARD will undergo dramatic changes as a result of these transactions.”
Key results of the 2016 U.S. Carrier Ethernet share analysis:
- Windstream advanced to eighth position on the 2016 LEADERBOARD, up from ninth at Mid-2016.
- Cox moved from eighth to ninth position on the LEADERBOARD.
- Fewer than 10 share points separate the top six LEADERBOARD companies.
- Sprint entered the Challenge Tier, and Integra exited to the Market Player tier.
- Lightpath remains in the Challenge Tier under Altice USA, which also combines share for Suddenlink and Cablevision.
- Note: Verizon’s 2017 closing of the XO acquisition will be reflected in Mid-2017 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): Altice USA, Cogent, Sprint 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, Integra, Lightower, LS Networks, Lumos Networks, Masergy, MegaPath, NTT America, Orange Business, RCN Business, Tata, TDS Telecom, TelePacific, Telstra, Unite Private Networks, 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. 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.