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Carrier Ethernet Makes Its Move

Light Reading
News Analysis
Light Reading
8/29/2005

Having conquered the LAN, Ethernet is making a serious push for the carrier space. In fact, "a relatively small but growing number" of carriers are considering the phaseout of Sonet/SDH in favor of Ethernet, according to "Carrier Ethernet Equipment Market Outlook," a new report from Heavy Reading, the paid research arm of Light Reading.

"This could be one of the big stories in 2006," writes Stan Hubbard, author of the report. He cites 's interest in Ethernet as an example, noting that the company has described itself as building "the world's largest Ethernet network."

The report is being released in conjunction with Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker, which will deliver quarterly revenue and market-share figures for equipment vendors in the sector (see HR Launches CESR Market Tracker).

By 2007, carrier Ethernet could create a $1 billion market for "feature-rich" switches and routers, according to Heavy Reading's numbers. What's key is that Ethernet gear is covering more of the territory previously ceded to Sonet/SDH -- QOS and fast restoration times, in particular, Hubbard writes.

That's made Ethernet a realistic option for carriers. At the same time, carriers' priorities no longer lie with cutting expenses, but with generating new services -- to the dismay of vendors that answered the call to lower operating expenses (see Switches Face IP Challenge). Ethernet services fit the new agenda neatly, giving carriers an attractive offering.

But this isn't just an enterprise story; Ethernet services have implications for broadband access as well. Roughly 45 percent of the operators deploying carrier Ethernet equipment are doing so to support present or upcoming residential triple-play services, the report finds.

None of this spells doom for other types of equipment. "Operators will also invest a lot more money on multiservice routers, service gateway and router products, and optical platforms that support Ethernet service delivery, transport, and/or Ethernet aggregation," Hubbard writes.

As for which vendor leads the carrier Ethernet market... Oh, come on, you don't need a report to tell you it's But some might be surprised to see Riverstone Networks Inc. (OTC: RSTN.PK) and Atrica Inc. in the Numbers 2 and 3 slots, respectively. The report also credits and with some rapid share gains lately.

The report notes that future Heavy Reading research will address other aspects of the Ethernet equipment and services sectors, including the Ethernet-over-optical equipment market and Ethernet service deployments in Europe and Asia/Pacific.

— Craig Matsumoto, Senior Editor, Light Reading




CALLING ALL ETHERNET SERVICE PROVIDERS:
Make sure your company and services are listed free of charge in Light Reading's Ethernet Services Directory, which already lists hundreds of services, by completing this questionnaire.




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Pete Baldwin
Pete Baldwin
12/5/2012 | 3:03:53 AM
re: Carrier Ethernet Makes Its Move
I should mention that the argument about carriers wanting new services, rather than opex, didn't come from Stan Hubbard.

Stan does see the Ethernet craze as an intersection of the two, driven by the desire for new services and Ethernet's low low prices.

We're hearing a LOT about carriers unfolding new Ethernet-minded plans. Expect more coverage on the topic, and of course extra news tips are never turned down: [email protected]
Roshani
Roshani
12/5/2012 | 3:03:41 AM
re: Carrier Ethernet Makes Its Move
Craig

"Ethernet-minded" plans don't mean all Ethernet aka carrier ethernet, right? I sometimes get confused with LR articles and their titles.

Also can you shed some light on how today's carrier Ethernet solutions (e.g. the one you mention int his article) are holding up on the OAMP front?

roshani
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