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Ethernet services business to grow in India

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CIOL Bureau
New Update

MUMBAI, INDIA: Asia Pacific, especially India, holds a huge potential for Ethernet services business, said Kevin Vachon, Metro Ethernet Forum (MEF) chief operating officer, during the MEF Business Services Seminar held recently.

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MEF is a global industry alliance comprising over 180 organizations telecom service providers, cable and network equipment/software vendors, chip makers and testing bodies, including Indian telecom services providers such as Tata Communications, Bharti Airtel, Tejas Networks, Veryx Technologies etc.

“Though Indian Ethernet services market is relatively small compared to other regions, we see a growing demand for bandwidth, mobility, and convergence from enterprises, telecom and other sectors, which in turn will provide tremendous potential for this industry in the coming years,” Vachon added.

According to Frost & Sullivan’s recent Indian Enterprise Telecom Market study 2010, Indian enterprise data market will grow at 12 percent CAGR, while the Ethernet market is expected to grow at 39 percent CAGR over the next five years.

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The study also finds that overall Indian telecom market stands at Rs.1,95,503 crore for 2010 fiscal, which comprises of 68 percent share of retail, 29 percent enterprise and rest three percent wholesale.

The enterprise segment is worth around Rs.56,618 crore contributed by 15 percent fixed services, 14 percent mobile services, 11 percent data services and remaining 60 percent from other services including managed services, network integrations and conferencing and others, according to the study.

“Enterprise segment contributes nearly 34 percent of the overall telecom market increasing share from managed services and network integration,” Ravi Pandey, Frost & Sullivan’s senior research analyst said.

Pandey also added that businesses and enterprises are highly dependent on data centres for centralized application, high connectivity, data storage and are looking for technologies to save cost on investment and operations.

Vachon noted that though India holds a huge potential for Ethernet, there is a lot of work to be done in terms of educating carriers and operators about the benefits of Ethernet, standardization of the technology, products and services and certification for professionals.

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