Infonetics Research: Ethernet services market gets boost from new Ethernet Exchanges, mobile backhaul

June 24, 2010
JUNE 23, 2010 -- Ethernet services and IP MPLS VPN services combined are forecast by market research firm Infonetics Research to hit $68.2 billion in 2014.

JUNE 23, 2010 -- Ethernet services and IP MPLS VPN services combined are forecast by market research firm Infonetics Research to hit $68.2 billion in 2014.

Healthy growth in the market is expected as organizations increasingly look to IP MPLS VPN services to control WAN costs in the face of rising bandwidth needs, to Ethernet for the lowest cost-per-bit, and to managed layer 2 and layer 3 services, where the expertise, knowledge, and tools of service providers can help stabilize WAN costs and prioritize critical applications while increasing capacities, according to a new report from Infonetics.

Market research firm Infonetics Research released its biannual 2010 "Ethernet and IP MPLS VPN Services" report, which tracks service provider revenue derived from wholesale and retail Ethernet services and layer 2 and layer 3 IP MPLS VPN services.

The worldwide IP MPLS VPN and Ethernet services markets continued growing throughout the economic downturn in 2009 as companies gravitated to the efficiency and cost-cutting features of these services, the report reveals. Worldwide, service providers generated $20.8 billion from Ethernet services in 2009, a 23% jump from 2008. Further, IP MPLS VPN service revenue increased 12% in 2009 over 2008.

"Carrier Ethernet Exchanges are an important new development that facilitate Ethernet connections and accelerate the move to Ethernet transport and services. The exchanges work like this: service providers pay small fees to a Carrier Ethernet Exchange to make it easy for them to locate, buy, and provision Ethernet connections from each other. This in turn jumpstarts more Ethernet services and more of the IP VPN services that ride on Ethernet transport. The net effect of these new Ethernet exchanges, combined with fast-rising mobile backhaul connections, is a quickening of the Ethernet and IP VPN services markets, and as a result, we have raised our revenue forecasts," notes Michael Howard, co-founder and principal analyst of Infonetics Research.

Infonetics' Ethernet and IP MPLS VPN Services report provides market size, forecasts through 2014, 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, layer 3, managed and unmanaged. Data is presented by country (U.S., Canada) and by region: North America, EMEA (Europe, Middle East, Africa), Asia Pacific, Central and Latin America (CALA), and worldwide.

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