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NTT Takes Ethernet Global

Light Reading
News Analysis
Light Reading
6/30/2005

Japanese carrier NTT Communications Corp. has come out with an international Ethernet virtual private line service that puts a twist on similar services being offered by several global carriers (see NTT Unveils Global Super Link).

The Global Super Link service, which launches tomorrow with connections between Japan and the U.S., runs over an MPLS network rather than the Sonet/SDH infrastructure that most carriers are using.

The virtual private line service, which offers point-to-point and point-to-multipoint connections between locations, isn’t strictly VPLS, which usually refers to virtual private LAN services providing multipoint connections between multiple locations.

These virtual Ethernet connections, which connect customers over shared rather than dedicated bandwidth, offer the flexibility and scaleablity of MPLS with the simplicity and low prices offered by Layer 2 Ethernet.

The service puts NTT up against global players with Ethernet private line portfolios like MCI Inc. (Nasdaq: MCIP), Global Crossing Holdings Ltd. (Nasdaq: GLBC), and Tyco Telecommunications, as well as other incumbents with international reach like AT&T Corp. (NYSE: T) and BT Group plc (NYSE: BT; London: BTA).

The announcement comes as those carriers have been touting their own Ethernet strategies. AT&T said last week it has expanded its Ethernet reach to more than 1,700 locations globally, up from 1,300 at the end of last year (see AT&T Goes Global (Again)).

And at Light Reading’s Future of Carrier-Class Ethernet event in London this week, BT put Ethernet at the heart of its next-generation strategy, although three new services to be launched in July will operate on the national level only (see BT's Bross: Ethernet Will Deliver).

NTT, which provides a range of Ethernet services within Japan, affirms the trend of carriers seeing more demand among their customers for Ethernet services able to link their disparate locations (see Ethernet Dons Transatlantic Dress).

"Multinational corporations today are furthering their global collaboration in product development and design, which requires large volumes of data transmission among geographically dispersed locations," said Kimio Tamura, vice president of product management at NTT’s Global Services Business Division, in announcing the service.

The Asia/Pacific region is the hottest market for Ethernet services, accounting for over 40 percent of total revenues worldwide, according to Infonetics Research Inc. (see Report: Ethernet Services Top $2.5B).

— Nicole Willing, Reporter, Light Reading


For more information on the services capabilities of the companies mentioned above, check out their listings in Light Reading's Ethernet Services Directory:


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