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Carrier Ethernet Access Platform Market Abuzz

Stan Hubbard
3/30/2010

NOON -- Many of the world's leading providers of carrier Ethernet access platforms (CEAPs) used for business, residential, and mobile backhaul services will be participating in the upcoming Ethernet Europe 2010 show in London on April 12 and 13. Below are highlights of recent Heavy Reading research on the market for various types of Ethernet access platforms that will be discussed at the show. Key CEAP categories include Ethernet over fiber demarcation platforms and access switches, Ethernet over bonded copper pair solutions, and Ethernet over TDM access circuit products.

The CEAP market is rather dynamic, with dozens of equipment providers continuing to invest throughout the economic downturn to help operators gain better control over capital and operating costs while boosting revenue opportunities. A key development that has attracted carrier interest over the past year is the stepped up rollout of new Ethernet OAM capabilities on access platforms -- including IEEE 802.1ag and ITU-T Y.1731 -- that promise to improve Ethernet service and network management and provide visibility into service performance on an end-to-end basis.

Worldwide sales of CEAPs rose 11 percent to $1,023 million in 2009, according to Heavy Reading's latest CEAP Quarterly Market Tracker. The CEAP market rebounded strongly after a sluggish start for the year, and was 45 percent higher in the fourth quarter than in the first. All three CEAP product categories posted double-digit quarter-over-quarter growth in the fourth quarter of 2009. Ethernet over bonded copper pair platform sales appeared to grow most rapidly, followed by Ethernet over fiber and then Ethernet over TDM access circuit products.

Heavy Reading projects that the global CEAP market will increase at a combined annual growth rate (CAGR) of 16.6 percent between 2009 and 2013, reaching nearly $1.89 billion at the end of this period.

Heavy Reading estimates Huawei Technologies Co. Ltd. , Cisco Systems Inc. (Nasdaq: CSCO), Telco Systems (BATM) , and ADVA Optical Networking were the top four suppliers of Ethernet over fiber access platforms for the entire year 2009. The big news in recent months, however, is the dramatic rise of Ciena Corp. (NYSE: CIEN) into the No. 1 position in the fourth quarter of 2009. Ciena's sales reportedly have been fueled primarily by Ethernet over fiber deployments related to mobile backhaul.

For the Ethernet over bonded copper pair segment, Hatteras Networks Inc. led the market in both the fourth quarter and full year 2009, due to solid performances in Europe and North America. Adtran Inc. (Nasdaq: ADTN) and Actelis Networks Inc. reportedly posted strong growth in the second half of 2009 and ended up No. 2 and No. 3, respectively, for the fourth quarter and full year 2009.

Heavy Reading estimates Overture Networks Inc. maintained its No. 1 share position in the competitive Ethernet over TDM access circuit market in the fourth quarter and full year 2009. Overture reported an impressive 69 percent increase in overall bookings for its combined Ethernet over TDM access circuit and Ethernet over fiber access platform portfolio during 2009. ANDA Networks Inc. came in at No. 2 in the Ethernet over TDM access circuit market, followed by No. 3 RAD Data Communications Ltd. , No. 4 Adtran, and No. 5 ADVA.

This Thursday, April 1, ADVA, ANDA, Hatteras, and Transmode Systems AB will be joining me for an Ethernet Europe Preview Webinar titled CEAP 2.0: What's Next for Carrier Ethernet Access Platforms? We will be discussing key characteristics of the newest generation of CEAP products and share examples of how they are positively impacting the services market and driving Ethernet to more customer locations.

— Stan "EtherMan" Hubbard, Senior Analyst, Heavy Reading, and Chairman, Ethernet Europe 2010


Interested in learning more on this topic? Then come to Ethernet Europe 2010, Light Reading's tenth Ethernet event, designed to meet the information needs of service providers and enterprises that are working out what next-generation services and applications to deploy, and what infrastructures will help them do this in the most cost-effective and productive manner. To be staged in London, April 12 & 13, admission is free for attendees meeting our prequalification criteria. For more information, or to register, click here.


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