The Current State of Ethernet Services Deployment
Revenues from Ethernet-based services worldwide are fairly significant and in the
range of over $2 billion (based on 2005 figures from Infonetics). The market is expected
to experience a Compounded Annual Growth Rate (CAGR53) of 40 percent between
2005 and 2009, reaching approximately $20+ billion. Some analysts have even more
promising numbers; Vertical Systems Group, for instance, assesses that fiber-based
business Ethernet services in the U.S. alone will be over $15 billion cumulative over the
next five years (2007??“2012). A more comprehensive discussion of the drivers of market
growth is provided in Chapter 3, but it is clear that Ethernet in the MAN, and WAN is
beginning to develop a critical mass and is growing at a very impressive pace. Ethernet
is slowly beginning to dominate niche markets such as the metro access portion of
Service Provider networks. Its ability to enable broadband access is without question
beginning to extend to the MAN and WAN as well.
However, Ethernet beyond the LAN??”especially deeper in the MAN and WAN??”is
still is a long way from dominating the market, notwithstanding the overwhelming
advantages discussed earlier.
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