With a 5M offering over Ethernet, of course, revenues can
be immediately realized.
Frequently, however, the market pricing is such that a customer will likely just purchase
a 10 Mbps Ethernet circuit from the Service Provider for a nominally higher price
(but still decidedly less than the price of a DS-3). Such a scenario is a win-win solution for
both the Service Provider48 and the customer. Almost all major Service Providers in the
U.S. and elsewhere are providing granular Ethernet bandwidth in increments of 1M.
Delivering Multiple Services over a Single Interface Using a single Ethernet interface, a
Service Provider can offer a vast array of Ethernet-based services (such as Internet access,
LAN extension, Transparent LAN) for low marginal costs. Employing Virtual LAN
tagging, for instance, and with a bandwidth and performance profile, each of these services
can be delivered on the same physical interface. With VoIP, voice applications, and
the potential developments in the area of circuit emulation (see Chapter 3) of other TDM
services, almost all current services can be offered over an Ethernet interface.
This scenario, which is not plausible with traditional TDM services, enables a Service
Provider to leverage a single physical interface and derive the maximum revenue from
that interface; more importantly, it positions a Service Provider to be able to deliver all
48 Even though revenue per bit has possibly decreased, this could mean additional revenue from
the customer.
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