SOURCE: Infonetics Research

Infonetics Research

August 04, 2009 16:31 ET

Infonetics Research: Ethernet and IP MPLS VPN services growing in the face of downturn

CAMPBELL, CA--(Marketwire - August 4, 2009) - Market research firm Infonetics Research released a new report, Ethernet and IP MPLS VPN Services, which tracks service provider revenue derived from wholesale and retail Ethernet services and Layer 2 and Layer 3 IP MPLS VPN services.

ANALYST NOTE

"In spite of the downturn, and in part because of it, uptake of IP MPLS VPN and Ethernet services is growing at a healthy pace as companies seek to increase efficiencies and decrease costs. In today's über-competitive, fast-changing, network-oriented world, organizations are looking to control WAN costs despite rising bandwidth needs by turning to Ethernet, a known cost-per-bit champion, and to managed Layer 2 and Layer 3 services, where service provider expertise and tools can help stabilize costs, prioritize critical applications, and increase capacities," said Michael Howard, co-founder and principal analyst of Infonetics Research.

REPORT HIGHLIGHTS

--  Worldwide service provider revenue for Ethernet services grew 36%
    sequentially in 2008, to $16.9 billion, and is forecast to nearly double to
    $33 billion by 2013
--  Layer 2 and Layer 3 IP MPLS VPN service revenue increased 16%
    worldwide in 2008
--  Although pricing varies widely, Ethernet services are typically at
    least 20% to 30% lower than frame relay or private line services
--  In North America, the monthly cost for 100M Ethernet is about $50 per
    megabyte, but that monthly cost increases to about $180 per megabyte when
    using DS3s or SONET
--  The largest Ethernet service revenue opportunities by segment include
    100M retail E-LINE and E-LAN services, and 1G wholesale services
--  The fastest growing Ethernet service revenue opportunities are all in
    the 10G speed segments
--  Asia Pacific made up the biggest share of Ethernet services revenue in
    2008, but North America takes share away over the next few years
    

REPORT SYNOPSIS

Infonetics' Ethernet and IP MPLS VPN services report provides market size, forecasts through 2013, and analysis for Ethernet services by wholesale and retail (Internet/WAN access, E-LINE, E-LAN) and by speed (1M-10M, > 10M-50M, > 50M-100M, > 100M-1G, and > 1G-10G), and tracks IP MPLS VPN services by Layer 2 and Layer 3. Regions tracked: North America, EMEA (Europe, Middle East, Africa), Asia Pacific, Central and Latin America (CALA), and worldwide. Data on the markets in the US and Canada are included.

RELATED RESEARCH

-- Cautious carriers pull back on router and switch spending

-- Carrier Ethernet market defying downturn

-- China Telecom Restructure Revisited

UPCOMING RESEARCH

-- Service Provider Routers and Switches (Aug. 24)

-- Carrier Ethernet Equipment (Sept. 18)

FOR MORE INFORMATION

Members: http://www.infonetics.com/login

New to Infonetics: http://www.infonetics.com/cgp/newaccounts.asp

From the portal, go to RESEARCH, then CARRIER ROUTING, SWITCHING, AND ETHERNET.

FOR SALES:

--  Larry Howard, Vice President: larry@infonetics.com, +1 (408) 583-3335
--  Scott Coyne, Senior Account Director, Eastern North America, Europe,
    Middle East: scott@infonetics.com, +1 408.583.3395
    

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Follow Infonetics on Twitter for the latest headlines: http://twitter.com/infonetics.

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