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Market Expands for U.S. Wholesale Carrier Ethernet Services Finds Frost & Sullivan - The U.S. wholesale carrier Ethernet services market is poised for high growth during the next few years as carrier network interconnects grow
Market Expands for U.S. Wholesale Carrier Ethernet Services Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2010/06/10 - The U.S. wholesale carrier Ethernet services market is poised for high growth during the next few years as carrier network interconnects grow.

   
 
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The emergence of carrier Ethernet exchanges will have a huge impact on the wholesale Ethernet market, providing a platform for carriers to connect to multiple carriers at other locations. This eliminates the bilateral agreements with each of the carriers with whom they intend to interact.

New analysis from Frost & Sullivan (telecomservices.frost.com), U.S. Wholesale Carrier Ethernet Services Market Update - 2010, finds that the market earned revenues of $595 million in 2009 and estimates this to reach $ 1.5 billion in 2014.

If you are interested in more information on this study, please send an email to Jake Wengroff, Corporate Communications, at jake.wengroff[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"Wireless carriers were the single largest segment driving double digit revenue growth for the Ethernet market in 2009," says Frost & Sullivan Research Analyst Roopashree H. "Wholesale carriers saw great demand for Ethernet in both mobile backhaul and aggregation, and this trend will continue in the near future."

The Ethernet virtual private line (EVPL) and virtual private LAN service (VPLS) markets witnessed a greater uptake of switched Ethernet services in 2009 and is expected to grow until 2014.

Despite the year-on-year (YoY) growth rates being higher for EVPL as compared to Ethernet private line (EPL), EPL services will represent a majority revenue share in the market.

"The market was largely limited to point-to-point or E-Line circuits and metro access being wholesaled," says Roopashree. "Carriers now have EVPL & VPLS included in their wholesale offering, along with EPL representing the largest market opportunity."

Since the mobile backhaul market is still in the early phase of adoption of carrier Ethernet, wireline service providers are seeing the demand for Ethernet circuits vary from 10 Mbps to 100 Mbps. During 2007 and 2008, mobile operators worked to get the market to grow from zero to a commendable demand in 2009.

As the wholesale Ethernet market migrates from low-speed ports to high-speed ports, particularly 1 GigE, the service will experience significant price decline, reducing overall market revenues. The price decline for high-speed ports – 1 GigE and 10 GigE – is expected to slow toward the end of 2011, leading to price stabilization in the market. Frost & Sullivan expects 1 GigE and 10 GigE services to drive significant demand in the market, which will offset the price decline. Fewer ports will sell, as demand for low speed ports declines, but the high speed ports sold will command a higher price, resulting in a hike in revenues for ports sold.

U.S. Wholesale Carrier Ethernet Services Market Update - 2010 is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Carrier Ethernet Services, Wavelength Services, Private Line and SONET Services, MPLS VPN Services, ATM & FR services, Business VoIP Services, Cloud Computing, and Managed Services and others. All research services included in subscriptions provide detailed market opportunities and industry trends that were evaluated after extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

U.S. Wholesale Carrier Ethernet Services Market Update - 2010 / N739

 
 
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Market Expands for U.S. Wholesale Carrier Ethernet Services Finds Frost & Sullivan

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Contact: Jake Wengroff 
210.247.3806 jake.wengroff[.]frost.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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