Light Reading

Tier 2 Carriers Eat Up Ethernet

Light Reading
News Analysis
Light Reading
2/16/2005
50%
50%

Ethernet is becoming the weapon of choice for Tier 2 service providers, as analysts see a rush to provide intercity Ethernet services before Tier 1 carriers catch up.

The trend was signaled by two competing announcements yesterday. Broadwing Corp. (Nasdaq: BWNG) announced its Converged Services Network, an Multiprotocol Label Switching (MPLS)-based network that will begin carrying Layer 2 and Layer 3 VPNs in the second quarter of this year. And WilTel Communications Group Inc. launched the managed version of its Ethernet Wide Area Network (EWAN) service (see Broadwing Readies 'Unique' Network and WilTel Launches Managed EWAN).

Time Warner Telecom Inc. (Nasdaq: TWTC) already took this route with its multipoint Extended Native LAN, announced in June 2004 (see Time Warner Deploys VPLS With Juniper).

What's crucial to all three announcements is that the carriers are taking Ethernet beyond its point-to-point phase, using relatively new technologies such as virtual private LAN services (VPLS) to rope together customers' offices in different cities. "This is the hot market for Ethernet services: intercity private LANs," says Stan Hubbard, analyst with Heavy Reading. "They're getting maybe six months ahead of some of the larger players with these intercity offerings."

It's something the larger carriers haven't tapped into yet, and Tier 2 players believe they have a chance to grab some business by getting aggressive with Ethernet, Hubbard says.

The theory is that customers are anxious to embrace Ethernet, with all its flexibility and perceived simplicity. But many carriers, including the Tier 1 crowd, are only beginning to tap the possibilities of pure Ethernet networks; in fact, Sonet (Synchronous Optical NETwork) and SDH (Synchronous Digital Hierarchy) are still the targets for most Ethernet services on offer today (see Sonet/SDH Dominates Ethernet Services).

Those in the Tier 2 camp "are using Ethernet WAN and other flexible Ethernet service options, like easily upgraded bandwidths, to get a competitive advantage over Tier 1 carriers" and even "over other Tier 2s and MSOs [cable Multiple System Operators]," says Michael Howard, president of research firm Infonetics Research Inc..

"We're confident this is going to help us against the big guys. Even if we pick up a few percentage points [of market share], it'll be huge," says Jamey Heinze, director of data services at Broadwing.

Broadwing in particular wanted to offer the most advanced package of Ethernet services it could. To that end, the company isn't running the Converged Services Network on its installed backbones, which use routers from Alcatel (NYSE: ALA; Paris: CGEP:PA), Cisco Systems Inc. (Nasdaq: CSCO), and Juniper Networks Inc. (Nasdaq: JNPR). Doing so "would not allow us to offer everything as cohesively as we wanted to," Heinze says.

Rather, the company is building a new MPLS core, overlaid on its present networks and initially based on 10 nodes using Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) 8860 routers. Just about every incumbent equipment vendor has a multiservice edge router that competes with that line, but Broadwing liked Tellabs's ability to offer "hard" quality of service (QOS) as opposed to "relative prioritization," says Gina Nomellini, a senior product manager for Broadwing.

Broadwing also felt the Tellabs routers were best able to interwork between older services, such as Asynchronous Transfer Mode (ATM), and newer Ethernet services, she says (see Broadwing Picks Tellabs ).

The win is a nice boost for Tellabs, which acquired the 8800 line by purchasing Vivace Networks in 2003. Tellabs recently reported that Vivace sales fell to $3.2 million for the December quarter, down 62 percent from the previous quarter. (See Tellabs Snags Vivace for $135M, Broadwing Picks Tellabs , and Tellabs Ups Q4 Revenue.)

— Craig Matsumoto, Senior Editor, Light Reading




For further education, visit the archives of related Light Reading Webinars:

For more on this topic, check out:

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
branalex
50%
50%
branalex,
User Rank: Light Beer
12/5/2012 | 3:26:29 AM
re: Tier 2 Carriers Eat Up Ethernet
Any idea who the vendors are supplying the mpls enabled ethernet infrastructure?
opticalwatcher
50%
50%
opticalwatcher,
User Rank: Light Beer
12/5/2012 | 3:26:24 AM
re: Tier 2 Carriers Eat Up Ethernet
"Any idea who the vendors are supplying the mpls enabled ethernet infrastructure?"

There was a Lightreading article a couple of days ago that talked about this:
http://www.lightreading.com/do...
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (4) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.