This will inevitably translate in to accelerated fiber deployment since Service
Providers will have to offer a host of new value-added services (and consequently, new
streams of revenues) while optimizing their delivery costs. Carrier Ethernet delivered
natively over fiber provides for an optimal converged solution which can also scale (and
hence ensure that the Service Provider is well positioned to retain the customers).
Fiber deployment, at least in the U.S., though reasonably widespread, still has a long
way to go. Only about 11 percent or so of the buildings in the U.S. are connected via fiber,
Evolution of Carrier Ethernet Solutions 527
but there is a considerable effort underway to extend this coverage quite rapidly.
Verizon??™s FIOS (albeit mostly focused on residential communities) and almost all cable
companies in the U.S. are aggressively deploying fiber in all metropolitan areas. This
situation is also consistent with other countries, although wireless options such as FSO
and WiMax are being considered actively especially in developing countries.
Competition There is widespread competition amongst Service Providers to deliver a
new generation of packet applications (discussed above); with blurring of the boundaries
between the traditional Telephony providers, Cable providers and the type of
services they deliver, competition will especially intensify to capture the customers.
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