Carrier Ethernet Service Revenue in Western Europe Will Reach EUR8 billion by 2010, says Analysys

Business Wire, Sept 26, 2006

CAMBRIDGE, England -- The market for Ethernet services in the MAN and WAN will grow at an average rate of 33% over the next five years to be close to EUR8 billion by 2010, according to a new report, Developing a Successful Carrier Ethernet Service Portfolio, published by Analysys, the global advisers on telecoms, IT and media (http://research.analysys.com). The market will move away from uncontended point-to-point links in metropolitan areas to see Internet access over Ethernet and services with QoS predominate in 2010, says Analysys.

"The work of the Metro Ethernet Forum in developing service standards and standards-based SLAs for users will result in some very attractive and cost-effective services," says the report's author, Margaret Hopkins. "However, most end users are not yet aware of this initiative."

Key findings from the new report include:

1. E-LAN best effort services, which interconnect sites as if they are on the same LAN, are expected to grow most quickly from a very low base to exceed EUR500 million by 2010. [graphs available to editors on request]

2. Ethernet services with QoS, based on VPLS or VLANs, are expected to grow at a rate of over 200% per annum to reach EUR2.5 billion by 2010

3. Small sites that are part of organisations with more than 500 employees will form the biggest market segment by value, with spend reaching almost EUR4 billion by 2010.

This report takes an in-depth look at the emerging carrier Ethernet portfolio. It summarises the services being standardised in the Metro Ethernet Forum, describing what they will offer to the customer in terms of performance and quality guarantees. It examines why end users might select Ethernet in preference to other services offered by the carriers. The report recommends marketing priorities for service providers currently developing an Ethernet service portfolio and forecasts retail spend on carrier Ethernet services to 2010, split by size of site, country, service type, architecture and level of quality guarantees.

The report is available to purchase online at http://research.analysys.com/store, priced at GBP1700 (approximately EUR2450) plus VAT. For more information, telephone Analysys on 44 (0)1223 460600 or email research@analysys.com.

Media enquiries to gina.ghensi@analysys.com or call 44 (0) 1223 452 279.