Ethernet market to grow at 32 pc CAGR in India

MUMBAI, INDIA: Ethernet services market is expected to grow at 32 per cent CAGR over the next five years in India and will cross Rs.900 crore mark by FY2017, according to Frost & Sullivan. 

The Enterprise telecom has 34 per cent share of the overall telecom market that is estimated around Rs.69,138 crore for FY2011-12. While the retail segment hold 63 per cent share and wholesale has three per cent share of the total market.

According to Ravi Pandey, Frost & Sullivan’s Industry analyst — ICT Practice, South Asia & Middle East Region, today enterprise are going global, virtual and interconnected.

“IP migration, evolution of border-less enterprises, focus on business continuity and disaster recovery centers, importance of compliances, regulations and convergence are driving the Ethernet market in India,” said Pandey.

Along with those drivers, the increasing usage of various technology and applications such as telepresence, core banking, broadcasting, PoS/ ATM applications and content is playing key role in the Ethernet market growth here, he added.

Among the Enterprise segment, managed services with 46 per cent followed network integration with 18 per cent share. Fixed voice and mobile services has 12 per cent share each followed with 11 per cent of data services and other services has one per cent.

Interestingly, Ethernet carrier services has been witnessing growing traction from verticals like IT/ITeS, BFSI and media which run bandwidth intensive applications.

The worldwide Ethernet service is expected to touch $44.3 billion by 2015 with annual growth of 18 per cent, according ENS — Vertical Systems Group’s report.

“India is one of the most important growing markets for Carrier Ethernet (CE). CE2.0 certification has been developed to bring these new benefits to service providers, equipment vendors and users more quickly with higher quality services at lower cost,” said Kevin Vachon, Metro Ethernet Forum (MEF)’s COO.

“Carriers and telecos with enterprise focus will able to offer Ethernet services and will largely benefit from the market growth. As Ethernet helps service providers with better usage of infrastructure and bandwidth utilization to meet the demands,” Vachon added.

In India, six operators are offering Ethernet services in the market. Among them Tata Communications, RCOM and Tata Teleservices are among the leading providers.   

“Today we provide more Ethernet ports than IPLS. As it provides security and scalability to enterprise with interconnectivity coupled with low-latency networks. BFSI, manufacturing, Internet providers and MNCs are demanding higher Ethernet services in India,” said John Hoffman, Tata Communications’ senior director — Ethernet Product Management.

“Though India started early in the Ethernet but hasn’t kept the pace in the markets,” Hoffman noted.