Carrier Ethernet Industry Voices

Nearly ten years on from the formation of the Metro Ethernet Forum (MEF), a move which saw the creation of the Carrier Ethernet sector, predictions are that the market may only be seeing the beginning of its full potential for growth. 

MEF says Carrier Ethernet services could grow from their current US$20 billion value to between $40 billion and $50 billion by 2014, at the same time offering benefits in cost, flexibility and capacity to countless businesses and organisations.

According to Infonetics' biannual 2010 Ethernet and IP MPLS VPN Services report, the worldwide IP MPLS VPN and Ethernet services markets continued growing amidst 2009's economic downturn. What resonated with enterprise customers during this period was overall efficiency and cost-cutting features of Ethernet services.

According to a new market research study from The Insight Research Corporation, Ethernet services readily available from virtually all major data service providers,the market is expected to grow at a compounded rate of almost 25%, increasing from $3.1 billion in 2010 to reach nearly $9.7 billion by 2015. 

US enterprises and consumers are expected to spend more than $37 billion over the next five years on Ethernet services provided by carriers.

Carrier Ethernet brings the compelling business benefit of the ethernet cost model to achieve significant savings.  Enterprises are turning in unprecedented numbers to carrier Ethernet services driven primarily by ease of use and lower cost-per-Mbit/s.

 Carrier Ethernet requires no changes to customer LAN equipment or networks, accommodates existing network connectivity, it's more cost-effective connectivity than traditional WAN services,  provides higher bandwidths to enterprises more affordably than traditional WAN services and  offers the ability for millions to use a network service that is ideal for the widest variety of business, information, communications and entertainment applications.

Service providers worldwide are migrating their existing networks to deliver Carrier Ethernet services to enterprises, businesses and residential end-users.  According to Infonetics, Service providers spent US$17 billion on carrier Ethernet equipment in 2008 and expects spending to top $32 billion in 2013,  a compound annual growth rate of 13.5%, as service providers migrate to next-generation IP networks, and Ethernet transport from SONET/SDH.