Ethernet and MPLS IP VPN service revenue grew 13 percent to over $50 billion in 2011

Telecom Lead India: Global Ethernet and MPLS IP VPN
service revenue grew 13 percent in 2011 to over $50 billion.

Surging data traffic, cloud services, and cost-cutting
initiatives contributed to the growth.

The growth rate of IP MPLS VPN and Ethernet service
revenue soundly outdistances the growth rate of telecom service provider
revenue (though actual service provider revenue is increasing).

Asia Pacific is expected to overtake EMEA as the leading
region for IP MPLS VPN services in 2012 and already leads in Ethernet services.

Asia will remain the leader for the combined IP MPLS VPN
and Ethernet services market going forward, led by China and India.

Over 90 percent of spending on mobile backhaul equipment
in 2011 was on IP/Ethernet gear.

The move from legacy frame relay, ATM, and leased line
services onto Ethernet and IP services is quickening as businesses put a
razor-sharp focus on staying competitive in today’s highly interconnected,
mobile, video- and cloud-oriented world. By 2015, ATM and frame relay will
virtually vanish, while private leased lines will be around a bit longer,” said
Michael Howard, co-founder and principal analyst of Infonetics Research.

Despite slowdown in Europe in 2011 and 2012, Infonetics
Research expects solid growth ahead for both IP MPLS VPNs and Ethernet
services, together topping $81 billion worldwide by 2016.

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