Carrier Ethernet Exchange Trend Buoyed by 73% Enterprise Ethernet Use

June 18th, 2010
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The recent announcement by privately held TelX of its TelX Ethernet Exchange signals the growing trend towards carrier ethernet services for enterprise connectivity and mobile backhaul, says Nemertes Research.
The TelX Ethernet Exchange, offered in partnership with Neutral Tandem, creates a 21-location network of Ethernet exchanges across the United States, similar to the Equinix Ethernet Exchange or CENX.
Exchanges offer enterprises and mobile service providers the ability to extend end-to-end class of service and management services across multiple carriers.
Enterprise interest in carrier Ethernet is skyrocketing, with 73 percent of organizations saying they use at least some carrier Ethernet today, and 91 percent projecting use by the end of 2010.

The recent announcement by privately held TelX of its TelX Ethernet Exchange signals the growing trend towards carrier ethernet services for enterprise connectivity and mobile backhaul, says Nemertes Research.

The TelX Ethernet Exchange, offered in partnership with Neutral Tandem, creates a 21-location network of Ethernet exchanges across the United States, similar to the Equinix Ethernet Exchange or CENX.

Exchanges offer enterprises and mobile service providers the ability to extend end-to-end class of service and management services across multiple carriers.

Enterprise interest in carrier Ethernet is skyrocketing, with 73 percent of organizations saying they use at least some carrier Ethernet today, and 91 percent projecting use by the end of 2010.


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LTE is the Network of the Future; HSPA+ is the Bridge

June 17th, 2010
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LTE is the Network of the Future; HSPA+ is the Bridge
Operators can still rely on their HSPA (high speed packet access) and HSPA+ networks to satisfy customers’ bandwidth needs even as Long Term Evolution gets rolled out globally, said Ronny Haraldsvik, SpiderCloud VP, at a Communicasia panel (Accedian is at the show).
The device ecosystem has to ramp up even after spectrum has been awarded and the networks are built, he said. Furthermore, LTE coverage will only be available in pockets, with operators unlikely to offer nationwide coverage all at once.
Ovum analyst Nathan Burley concurs. “We have to remember that coverage won’t be everywhere from day one,” he said.
Voice support is another issue that complicates matters, as LTE originally was designed as a  high-speed, high-bandwidth data enabler, not a voice network. Burley said voice will still contribute 47 percent of operator revenues into 2015.
That isn’t to suggest anybody thinks LTE is anything but the future. And there is simply some point where it will make sense to switch, said Dirk Wolter, Alcatel-Lucent CTO North and Southeast Asia.
While some observers had deemed LTE and WiMax as competing technologies, most now believe WiMax operators will eventually migrate to an LTE platform to stay commercially viable.
http://www.zdnetasia.com/hspa-still-viable-don-t-rush-into-lte-62200845.htm

Operators can still rely on their HSPA (high speed packet access) and HSPA+ networks to satisfy customers’ bandwidth needs even as Long Term Evolution gets rolled out globally, said Ronny Haraldsvik, SpiderCloud VP, at a Communicasia panel (Accedian is at the show).

The device ecosystem has to ramp up even after spectrum has been awarded and the networks are built, he said. Furthermore, LTE coverage will only be available in pockets, with operators unlikely to offer nationwide coverage all at once.

Ovum analyst Nathan Burley concurs. “We have to remember that coverage won’t be everywhere from day one,” he said.

Voice support is another issue that complicates matters, as LTE originally was designed as a  high-speed, high-bandwidth data enabler, not a voice network. Burley said voice will still contribute 47 percent of operator revenues into 2015.

That isn’t to suggest anybody thinks LTE is anything but the future. And there is simply some point where it will make sense to switch, said Dirk Wolter, Alcatel-Lucent CTO North and Southeast Asia.

While some observers had deemed LTE and WiMax as competing technologies, most now believe WiMax operators will eventually migrate to an LTE platform to stay commercially viable.

http://www.zdnetasia.com/hspa-still-viable-don-t-rush-into-lte-62200845.htm


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Carrier Ethernet Market Grows, but Pricing Unstable

June 14th, 2010
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The carrier Ethernet business is growing, with higher-capacity ports displacing lower-capacity ports, with pricing pressure relatively high, as a result.

Carrier Ethernet Pricing is Unstable at the Moment
Frost & Sullivan estimates the carrier Ethernet business at $595 million worth of revenue in 2009 and  $ 1.5 billion in 2014. But prices are unstable at the moment, the company says, with 1 GigE and 10 GigE prices dropping and demand for lower-speed ports declining.
“Wireless carriers were the single largest segment driving double-digit revenue growth for the Ethernet market in 2009,” says Frost & Sullivan Research Analyst Roopashree H. “Wholesale carriers saw great demand for Ethernet in both mobile backhaul and aggregation, and this trend will continue in the near future.”
As the wholesale Ethernet market migrates from low-speed ports to high-speed ports, particularly 1 GigE, the service will experience significant price declines, reducing overall market revenues. The price decline for high-speed ports – 1 GigE and 10 GigE – is expected to slow toward the end of 2011, leading to price stabilization in the market.
The emergence of carrier Ethernet exchanges will have a huge impact on the wholesale Ethernet market, providing a platform for carriers to connect to multiple carriers at other locations, argue analysts at Frost & Sullivan. The reason is simple: bilateral agreements are time-consuming and cumbersome. Exchanges and collocation sites eliminate the work of negotiating and creating bilateral agreements by gathering scores to hundreds of carriers at a single physical location where simple cross connects are possible.

Frost & Sullivan estimates the carrier Ethernet business at $595 million worth of revenue in 2009 and  $ 1.5 billion in 2014. But prices are unstable at the moment, the company says, with 1 GigE and 10 GigE prices dropping and demand for lower-speed ports declining.

“Wireless carriers were the single largest segment driving double-digit revenue growth for the Ethernet market in 2009,” says Frost & Sullivan Research Analyst Roopashree H. “Wholesale carriers saw great demand for Ethernet in both mobile backhaul and aggregation, and this trend will continue in the near future.”

As the wholesale Ethernet market migrates from low-speed ports to high-speed ports, particularly 1 GigE, the service will experience significant price declines, reducing overall market revenues. The price decline for high-speed ports – 1 GigE and 10 GigE – is expected to slow toward the end of 2011, leading to price stabilization in the market.

The emergence of carrier Ethernet exchanges will have a huge impact on the wholesale Ethernet market, providing a platform for carriers to connect to multiple carriers at other locations, argue analysts at Frost & Sullivan.

The reason is simple: bilateral agreements are time-consuming and cumbersome. Exchanges and collocation sites eliminate the work of negotiating and creating bilateral agreements by gathering scores to hundreds of carriers at a single physical location where simple cross connects are possible.


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