Cary, N.C. — Verizon Business is readying major changes to its network designed to result in a faster, more reliable system capable of supporting next-generation services for enterprises, such as Ethernet, VoIP and IP-based video conferencing.

This summer, the former MCI will implement pseudowires, a technique for encapsulating frame relay, ATM and other old data access circuits in Ethernet for transmission through an IP/MPLS core. This should reduce costs for enterprise customers as well as help migrate them to Ethernet, according to Fred Briggs, executive vice president of network operations and technology. Ethernet generally provides a lower cost per bit than traditional private line services, and consolidating access over one circuit should lower costs as well.

“Ethernet and Layer 2 switching are becoming the dominant [access] architecture," Briggs said this week during a conference with the media at Verizon Business global network management facilities here.

The carrier will be playing catch-up to at least one competitor, analysts say.

“Compared to Sprint, Verizon Business is a little late coming out with a Layer 2 migration technology to MPLS," says Lisa Pierce, an analyst at Forrester Research. “And it has quite a large installed base of frame relay customers. So this is a way to begin the migration."

Later this year, Verizon Business plans to boost bandwidth on one to three routes in its ultra-long haul backbone to 40Gbps from 10Gbps. The upgrade was trialed last year on a route between San Francisco and San Jose in which 10Gbps and 40Gbps wavelengths were supported on the same fiber carrying high-definition televsion video conferences, gaming, music downloads, VoIP and hundreds of simultaneous video streams, Briggs said.

The Verizon Business backbone can support 80 40Gbps wavelengths, he said. But even though 40Gbps is not yet rolled out, Verizon Business is looking past that to 100Gbps and 160Gbps.

The carrier hopes to increase backbone bandwidth to 100Gbps or 160Gbps in the next two or three years, Briggs said, while maintaining the 80 wavelength capacity.

On the competitive front, AT&T and Global Crossing also disclosed plans to boost backbone bandwidth to 40Gbps but neither carrier discussed going beyond this.

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