All services in the list show increasing numbers of respondents using them between
2006 and 2007. This study has been performed three years running, and in general,
these services are being adopted as predicted in the previous year??™s study.
Customers want Ethernet services, and service providers know it. When the study
respondents estimated the level of demand they expect from their customers for technologies
and applications, Ethernet for Internet connections came in first at 92 percent.
Respondents rated the level of demand they expected for various technologies and
applications in the next 12 months on a scale of 1 to 7, where 1 is no demand and 7 is
high demand. The results are shown in Figure 3.3. Service Providers have discovered the
limits of Frame Relay and ATM, as well as the costs, and they are anxious to move on.
In 2005, a major barrier for carriers to offer Ethernet services was the worry that they
would cannibalize ATM, Frame Relay, and leased-line service revenue. Cannibalization
was a major issue for most providers with these legacy services, but as of 2006, most
carriers no longer worry about cannibalization, because they found that they had to go
with Ethernet or lose customers to competitors.
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