Rather than forcing customers to jump from
T1 (1.5M) to T3 (45M) or E1 (2.0M) to E3 (34M), nearly all service providers, alternatives,
and incumbents are offering Ethernet at increments that make sense to customers
and lowering the price per bit.
Despite the advantages, in the past carriers were reluctant to adopt Ethernet, as it
was to them a relatively new technology, and their customers expected Ethernet to be
less expensive. Demand and competitive pressures, however, were unrelenting, and
Ethernet has now become an integral part of metro networks.
106 Chapter 3
A particular measure of Ethernet in the metro networks is the investment in equipment
used to support Ethernet services and connections in provider networks. By
2009, Infonetics Research forecasts Ethernet making major inroads into metro telecom
equipment spending, as service providers have and will spend much, a cumulative total
of over $49 billion for the five-year period 2005??“2009. Over the next five to ten years,
Ethernet will inexorably take over the metro??”though there will never be a wholesale
change because of the SONET/SDH installed base. Although total metro capital expenditures
will hold steady or grow slowly, every year Ethernet will account for a greater
portion of metro CAPEX, driving a 32 percent CAGR for 2005??“2009.
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