Ethernet, IP MPLS VPN services to grow

CAMPBELL, USA: 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.

Michael Howard, co-founder and principal analyst, Infonetics Research, said: "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

Report Highlights
Worldwide service provider revenue for Ethernet services grew 36 percent 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 percent worldwide in 2008

Although pricing varies widely, Ethernet services are typically at least 20 percent to 30 percent lower than frame relay or private line services

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

Source: Market Wire