* Vertical Systems Group releases figures on low-speed Ethernet services
As we contemplate ever-faster LANs, reaching up to 10 Gigabit Ethernet with the recent completion of the standard for 10 Gigabit over copper, let us not forget that very low-bandwidth Ethernet still has its place. In fact, in some segments, it’s a growth area.
Research firm Vertical Systems Group this week released data that says sub-10Mbps Ethernet will boost overall revenue in the U.S. market for business Ethernet services. Note that these are Ethernet services, meaning we’re talking about WANs, but using the technology with strong roots in the LAN.
Vertical Systems Group predicts the market for retail business Ethernet services will represent $24 billion in cumulative revenue between 2006 and 2010. A full $19 billion of that will come from higher-speed Ethernet services – at 10Mbps, 100Mbps or 1Gbps – using either fiber optics or copper wiring in their implementations.
Sub-10Mbps revenue will hit $5 billion over the same time period, mainly driven by new copper-based services, the research firm says.
In a statement, Vertical Systems Group Principal Rosemary Cochran said, “Sub-10Mbps is the fastest growing segment of the Business Ethernet services market during the next five years… As Sub-10Mbps services fill in the sizeable access speed gap below the 10Mbps entry point for native Ethernet, customers with FT1/T1 networks gain a more viable migration path to emerging business-class offerings like virtual private lines and VPLS.”
The market for these services has many different players jockeying for position, the firm says. AT&T is the leader with a 16.2% share of Ethernet ports, while Verizon has 13.5% and Time Warner Telecom has 10.9%. Qwest recently completed its acquisition of OnFiber, and that means the combined company would have a 10.6% share. There are numerous other players, all under 10% each.
