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May 2012 EtherNEWS – Cloud Will Drive Ethernet Access

Thursday, May 3rd, 2012
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Light Reading Webinar
Accedian Live

Cloud Will Dirve Ethernet Access
U.S. business spending on communications services will be lead over the next four years by business Ethernet services, principally Gigabit Ethernet, stemming from ongoing growth in cloud computing, this according to the latest market review by the Telecommunications Industry Association (TIA).

Notably, data communications spending is growing at an escalating rate. This year, enterprise data communications spending is expected to grow by about three percent, and rates will increase every year, reaching nearly six percent annual growth in 2016. Cloud computing seems to be driving much of the increased spending, as enterprises essentially “outsource” applications from local servers to cloud-based data centers.

In the data communications services market, growth in cloud services is driving data center traffic and boosting demand for networks that can handle that traffic, as per a new study by TIA. Companies are trading up to business Ethernet as cloud computing and high bandwidth connectivity to data centers are increasingly in demand.

Also, for enterprises with less extensive bandwidth requirements, Internet protocol virtual private networks (IP VPNs) are gaining share at the expense of frame relay and asynchronous transfer mode (ATM), both of which are falling precipitously. IP VPNs offer greater flexibility, lower costs and ready access wherever there is an Internet connection, TIA says. Leased lines are maintaining a major presence, as they are used in dedicated IP VPNs, a growing component of the market. Data services as a whole rose 1.8 percent in 2011, TIA adds.

Much of the growing demand near term however, is being driven by mobile backhaul. In 2012, Ethernet based mobile backhaul will account for 40 percent of physical connections of all types of mobile backhaul in the world. It’s projected to become 95 percent of the mobile backhaul connections market by 2015.




Wednesday, May 30th
11:00 a.m. New York/4:00 p.m. London
Register Here

Service providers can now take advantage of new Ethernet OAM tools to lower the cost of service and gain greater visibility into network performance. This Webinar will chart the real-world progress of Ethernet service management, examining the hurdles that need to be overcome to allow operators to access data about network performance on an end-to-end basis, including sharing that information across multiple networks. The session will provide an overview of the key OAM standards such as IEEE 802.lag, ITU, Y.1731, Y.1564 and MEF 17. Register Here

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LTE Subscribers Double, Quarter over Quarter, in 4th Quarter 2011

Wednesday, April 25th, 2012
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At the end of the fourth quarter of 2011, the worldwide Long Term Evolution subscriber base nearly doubled quarter over quarter to reach 12 million subscribers worldwide, according to Maravedis-Rethink. The quarter over quarter subscriber increase for LTE and WiMAX was 92 percent and 14 percent, respectively, over that reported at the end of the third quarter of 2011, according to Miravedis-Rethink.

At the end of 2011, 54 operators worldwide had launched LTE commercially, 19 during the quarter alone. An additional 224 major mobile operators had committed to launching the technology in the future, 193 of those with FDD-LTE and 31 with TD-LTE. Maravedis-Rethink anticipates that 469 million LTE subscribers will be active by 2016 of which 25 percent, or 118 million, will be TD-LTE users and the rest (75 percent, or 350 million) will be FDD-LTE.


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Mobile Capex Grows Most in Asia-Pacific Region in 2012

Tuesday, April 10th, 2012
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“Mobile capital expenditure is forecasted to grow percent  to $111.1 billion in 2012, supported by renewed investment in radio access network  infrastructure and in-building wireless access,” says Jake Saunders, ABI Research VP. Long Term Evolution and small cell deployments wil drive much of the activity.

A large proportion of the increased capital expenditure year-on-year comes from the Asia-Pacific region. China Mobile, for example is still spending 57 percent  of annual capital investment on radio network infrastructure, followed by 18 percent on its transmission and backbone network.

China Mobile has deployed 900 TD-LTE base-stations in six cities as part of the trial but plans to have 200,000 sites in operation by 2013, ABI Research says.

North American capital spending  will soften 1.3 percent, though.. AT&T has been adding capacity to its network and expanding backhaul.

Sprint allocates 86 percent of its capex to investment in in data capacity increases and overhauling its legacy network of base stations for multi-mode equipment.

Verizon Wireless seems to be focusing on LTE network assets.

“European CAPEX has been on the back foot relative to North America and Asia-Pacific due to weak macroeconomic factors and regulatory issues, however by 2013 we expect to start to seeing some of the European capex come back as LTE upgrades roll on Europe wide,” says Aditya Kaul, ABI Research practice director.


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