23 It has been estimated that over 70 percent of the total cost of ownership of delivering a service is comprised
of the OPEX. Hence, a reduction in OPEX has considerably higher impact on reducing cost.
Carrier Ethernet 95
to OPEX for Ethernet services currently is the largely manual and time-consuming effort
required to manage these services??”from provisioning to fault notification, troubleshooting
to managing any issues that emerge. The key reason for this situation is the lack of
sophisticated tools and features to manage Ethernet services, especially on an end-to-end
service level; as noted in the previous section of this chapter, this Carrier Ethernet services??™
shortcoming has been the focus of the initial standards efforts.
Bandwidth Demand Curve While newer bandwidth intensive applications such as video
make Carrier Ethernet the natural solution for enterprises, it must be pointed out
that a significant portion of the addressable market??”nearly 95 percent according to
Vertical Systems Group??”is served by T1 (64 Kbps) connections. While bandwidth demand
at these SMEs is indeed growing, it is not quite jumping to 10 Mbps??”the typical
Carrier Ethernet service offering.
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