Report: Ethernet Services Top $2.5B

SAN JOSE, Calif. -- Worldwide Ethernet services revenue topped $2.5 billion in 2004 and is expected to more than double in 2005, then jump another 276% between 2005 and 2009 to $22.2 billion, according to Infonetics Research's latest report, Ethernet Services market size and forecast.

"The Ethernet services market is on fire for several reasons," said Michael Howard, Infonetics Research principal analyst and author of the report. "On the end-user side, many companies are hungry for more bandwidth and many are looking to reduce their WAN costs. Ethernet offers the only way to achieve both due to its superior bandwidth capacities and cheaper prices per bit. Service providers are also looking for ways to connect their various sites with higher bandwidths at cheaper price per bit, and Gigabit Ethernet point-to-point wholesale services meet this demand. And on the equipment side, recent carrier-class improvements have been made to Ethernet products that are enabling service providers to offer new Ethernet services, including those with QoS and SLAs, characteristics of the long-standing private line, frame relay, and ATM services they are now beginning to replace."

2004 Market Highlights

Infonetics Research Inc.