Carrier Ethernet equipment to reach $42.4 billion in 2016

Telecom Lead India: The carrier Ethernet equipment
revenue is expected to grow to a little over $42.4 billion in 2016, projects
Infonetics Research.

Over the 5 years from 2012 to 2016, operators will spend
a cumulative $186 billion worldwide on carrier Ethernet equipment, outpacing
overall telecom capex, according to Infonetics Research.


The study said that the global carrier Ethernet equipment
market grew 13.4 percent to $31.7 billion in 2011, following a 43 percent hike
in 2010.


The report added that mobile backhaul was the main
Carrier Ethernet growth area, with IP/Ethernet equipment making up 93
percent of all mobile backhaul equipment spending in 2011.


Furthermore, the report said that chief market drivers
remain service providers moving to IP packet-based next-generation networks,
which depend heavily on IP, MPLS, and Ethernet technologies.


Every major operator in the world, including BT,
Belgacom, Swisscom, Telstra, FT-Orange, Verizon, AT&T, NTT, KDDI, China
Mobile, and many others have explicit IP NGN transformation projects
going, for which they will use plenty of Ethernet as they gradually replace
their legacy SONET/SDH equipment,” said Michael Howard, principal analyst
for carrier networks and co-founder of Infonetics Research.


The largest carrier Ethernet equipment segments by
carrier spending are IP routers, carrier Ethernet switches (CES), and optical
gear. And, Ethernet-only microwave is the fastest growing carrier Ethernet
market segment based on its use for mobile backhaul.


Cisco, Alcatel-Lucent, Juniper Networks, and Huawei lead
Carrier Ethernet equipment market


The Carrier Ethernet Equipment market in North America
will grow at a CAGR of 19.2 percent over the Period 2010-2014 because of
increasing adoption of IP-based next-generation networks, according to Research
and Markets.


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