?– Existing Substitutes do not appear to pose a major threat; the bigger fear is that
of hitherto unknown solutions emerging to address an ostensibly very attractive
market in the longer term. Regulation, while unknown in its impact (hence, the
question mark in Figure 16.6 and in Table 16.9), is not likely to be a significant
influencer especially when competition is expected to be fierce (benefiting the end
user and hence precluding the need for regulatory oversight).
?– Given the intense competition amongst Service Providers, it will likely make the
(Service Provider) economics less attractive (since more competition usually means
a reduction in end-user pricing, which in turn reduces the profitability for Service
Providers). Because profitability is a key performance criterion for Service Providers,
it is to be expected that Service Providers will try and reduce the cost structure
associated with delivering Carrier Ethernet, while incorporating as many of the underlying
feature attributes of Carrier Ethernet as possible. This will certainly lead to
a corresponding evolution in the existing solutions delivering Carrier Ethernet.
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