Telecom operators grew Ethernet services revenue by 20 percent in 2010


Service providers around the globe increased their
Ethernet services revenue 20 percent in 2010 over 2009, and increased their IP
MPLS VPN services revenue 12 percent, as companies continue to seek the
efficiencies and cost savings these services afford, according to Infonetics


Global revenue from Ethernet services and IP MPLS VPN
services will top $78 billion by 2015.


Asia Pacific makes up the biggest share of Ethernet
services revenue, at more than 1/3 of the global total, and will continue as
the leading region at least through 2015, led by China, India, and Southeast
Asia (Vietnam, Philippines, Laos, Cambodia, Thailand).


The fastest-growing segment of wholesale Ethernet
services is the over-1Gbps to 10Gbps speeds category, projected by Infonetics
to grow at a 37 percent compound annual growth rate from 2010 to 2015, spurred
by Ethernet for mobile backhaul transport.


While retail business makes up the bulk of the Ethernet
services market, revenue from wholesale Ethernet services is growing faster
than retail, at a 19 percent compound annual growth rate through 2015.


Wholesale Ethernet is being purchased by carriers
looking to bring down the skyrocketing cost of mobile backhaul, to increase the
capacity of urban wireline connections getting crushed by data and video
traffic, and to outfit planned LTE sites,” said Michael Howard, principal
analyst at Infonetics Research.


Market momentum in future years will be fueled by the
growing use of cloud services, which will be delivered by many service
providers over IP MPLS VPNs and Ethernet services.


By Team
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