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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
1959 Newsreel: Make Phone Calls – From Cars!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/24/2014
Meet the Phantom Network for NFV
Ray Le Maistre, Editor-in-chief, 10/23/2014
Like Us on Facebook
Twitter Feed