Light Reading
Ethernet services are taking flight as smaller carriers look for weapons to fight off Tier 1 competition

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
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
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Be Open to the Freedom of Openness
Kelly Herrell, 8/29/2014
Netflix to FCC: Kill Comcast-TWC Deal
Alan Breznick, Cable/Video Practice Leader, 8/28/2014
Like Us on Facebook
Twitter Feed