Cost of Delivering Ethernet Services While Ethernet services are generally attractive
to Service Providers from an OPEX standpoint, they are less compelling when you
consider that a Service Provider??™s physical infrastructure is largely not optimized for
Ethernet delivery. Most of it is based on SONET, so consequently delivering Ethernet
often means force fitting these solutions for Ethernet delivery, which is inherently
inefficient and increases costs.
Figure 1.18 Ethernet portion of broadband business in the U.S. (Vertical Systems Group, 2006)
39%
Private Lines
29% 9%
Frame Relay
8%
Other (2%)
Total = $31B
Ethernet (3%)
10% ATM
Business DIA
Dedicated IP VPNs
U.S. Business Data Services
Ethernet: From LAN to the WAN 41
Furthermore, a Service Provider??™s operational infrastructure (systems, personnel)
are not yet optimized for delivering Ethernet services because most of this infrastructure
was optimized for supporting the much larger revenue-yielding TDM services. While
pockets of data expertise definitely exist (due to deployments of X.25, ATM, and other
data technologies), it is still a limiting factor. Updating infrastructure is a time consuming
and costly challenge.
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