Carrier Ethernet Industry Voices

Competitive Providers and Cable MSOs continue to gain port share during the first half of 2010. 

Competitive Providers and Cable MSOs gained U.S. Ethernet port share from Incumbents in the first half of 2010, continuing a trend that began in the second half of last year, according to latest Vertical Systems Group research on enterprise installations. Ethernet providers attaining a position on the Mid-2010 U.S. Business Ethernet Services Leaderboard are as follows (ranked in port share order): AT&T, Verizon, tw Telecom, Cox, Qwest, XO, Time Warner Cable, Cogent and Level 3.  Leaderboard recipients hold four percent or more of the market based on retail port installations.

"Incumbents AT&T and Verizon showed solid performance and remain at the top of the U.S. Ethernet Leaderboard, however the Competitive Provider segment generated the highest port growth during the first half of 2010," said Rick Malone, principal at Vertical Systems Group. "Our analysis shows that this is a healthy broadening of market competition, rather than an indication of trouble for Incumbents.  We're seeing more Tier 2 providers and Cable MSOs exploiting their footprints and intensifying their efforts to sell Ethernet services to enterprise customers."

Key results of Vertical's Mid-2010 Ethernet port share analysis:

• The U.S. Business Ethernet port base expanded more than 13% in the first six months of 2010.
• XO had the largest port share gain among providers listed on the Leaderboard .
• 10+ Gbps services are beginning to take hold in certain vertical markets.
• Ethernet providers are actively employing Ethernet over TDM and other copper-based solutions to fill in service coverage gaps.
• Service Provider interest in Ethernet Exchange services is high; participation to-date is mixed.

Other companies delivering Business Ethernet services in the U.S. market during the first half of 2010 include AboveNet, CenturyLink, Charter Business, Comcast Business, Covad, Expedient, Frontier, Global Crossing, Masergy, NTT, Optimum Lightpath, Orange, Paetec, RCN Metro, Reliance Globalcom, Sprint, SuddenLink and Windstream, along with many regional and specialized providers.
 
Detailed share results plus in-depth Business Ethernet market statistics are available exclusively through Vertical Systems Group's ENS (Emerging Networks Service) Research Programs.  Contact us for subscription information and pricing.

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About Vertical Systems Group

Vertical Systems Group (http://www.verticalsystems.com) is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry.  To speak with an analyst at Vertical Systems Group, contact Erica Ambrose at +1.781.352.0700 or eambrose@verticalsystems.com.