Worldwide metro Ethernet equipment revenue reached $2.5 billion in 2002 and is projected to grow 131% to 5.7 billion by 2006, reveals a new study from Infonetics Research. Worldwide metro Ethernet equipment ports hit 756,000 in 2002 and are expected to grow 337% to 3.3 billion by the end of the forecast period.

"In the next ten years, Ethernet will inexorably take over the metro," contends Michael Howard, principal analyst and Infonetics Research co-founder. "Of course, there will never be a wholesale change because of the SONET/SDH installed base, but every year Ethernet will account for a larger portion of metro cap-ex. Between 2002 and 2006, Ethernet will make major inroads into metro telecom equipment spending, accumulating $18.9 billion," he adds.

The spending is driven by increased customer demand for Ethernet services, lower prices, and the convenience of incremental bandwidth that Ethernet enables. Even with cap-ex pressures, say analysts, service providers must respond to customers or they risk losing them to a competitor; they have to invest in metro Ethernet equipment.

The report also finds that:

• Ethernet switches and routers captured 66% of the total revenue in 2002.
• Ethernet over SONET/SDH (standard and RPR) accounted for 21% of revenue in 2002.
• Asia Pacific lead the market in 2002 with 43 % of the spending, followed closely by North America, which accounted for 37% of the spending.

For more information about the report, "Metro Ethernet Equipment," visit the company's Web site at www.infonetics.com.