New (consumer and business) networking applications are almost exclusively being
developed assuming an underlying IP infrastructure50 and delivered over an Ethernet
interface. As a result, Ethernet is also becoming further entrenched as the platform for
convergent access.
Customer Retention By employing Ethernet, a Service Provider can reduce customer
churn by offering
?– Better pricing
?– A pay-as-you-use flexibility
?– A wider array of future services delivered over same interface
49 Optical Ethernet infrastructure indicates transporting (and switching if necessary) Ethernet natively
over a fiber-optic infrastructure.
50 Almost all the popular networking applications presuppose working over the global Internet (in fact it is
a necessary condition to gain mass market appeal), which of course is based on IP (Internet Protocol).
38 Chapter 1
This ultimately leads to more profits for the Service Provider because they avoid
the significant costs incurred during the acquisition of new customers to replace those
who leave. Figure 1.17 shows a scenario illustrating the significant revenue benefits
of delivering Ethernet services over traditional TDM services.
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