Service Providers have
for the most part learned this tough lesson, as CAPEX strategies are now increasingly
geared toward offering service differentiation. Carrier Ethernet equipment and the
standards developed by the Metro Ethernet Forum (MEF) give Service Providers rich
options for defining and deploying differentiated services.
Telecommunications has become a cyclical industry having four major phases: plateau,
decline, recovery, and new investment. Infonetics Research??™s CAPEX analysis indicates
that the industry is at the beginning of a new investment phase in 2006. This new
investment phase, however, is not expected to reach the unsustainable levels of the
late 1990s. The main reason lies in the fact that starting a Service Provider company,
either cell phone- or VoIP-focused, does not require the build out of a costly network
because startups can lease access to the networks of major carriers. This, in turn, is
not helping the equipment makers, particularly as next generation networks use cheaper
equipment, including Carrier Ethernet. This change in the Service Provider business
model is forcing a change in the vendor business model??”as Service Providers look
to fixed mobile converged services, vendors are merging to offer strong product lines
across fixed mobile networks (e.
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