Carrier Ethernet Services 2007 - 2012

Table of Contents

EXECUTIVE SUMMARY

• 1.1 Carrier Ethernet
• 1.2 If Ethernet Gains, Legacy Losses
• 1.3 Forecast of Carrier Ethernet Services

BACKGROUND & INTRODUCTION

• 2.1 The Emergence of the Carrier Ethernet
  • 2.1.1 Ethernet Spreads Out of the LAN
    • 2.1.1.1 Data over Voice
    • 2.1.1.2 Native LAN: Forgotten but Not Gone
    • 2.1.1.3 GigE without the Gig
  • 2.1.2 Carrier Ethernet Grows While General Market Declines
  • 2.1.3 Definitions
    • 2.1.3.1 Ethernet' s Components Defined
    • 2.1.3.2 Wholesale Forecast Definitions
  • 2.1.4 Five Key Attributes
    • 2.1.4.1 Service Standardization
    • 2.1.4.2 Scalability
    • 2.1.4.3 Service Management
    • 2.1.4.4 Reliability
    • 2.1.4.5 Quality of Service (QoS)
  • 2.1.5 Metro Ethernet Forum: Aid to Collaboration
  • 2.1.6 Ethernet Services: Conceptual/Technical Building Blocks
    • 2.1.6.1 User Network Interface (UNI)
    • 2.1.6.2 Ethernet Virtual Connection (EVC)
    • 2.1.6.3 Service Parameters
    • 2.1.6.4 Performance Quality Parameters
  • 2.1.7 Pricing
  • 2.1.8 Types of Service: E-line and E-LAN
    • 2.1.8.1 E-line
    • 2.1.8.2 E-LAN
    • 2.1.8.3 Other Typologies: Dedicated vs. Switched
  • 2.1.9 Examples of Major Carrier Ethernet Applications
    • 2.1.9.1 LAN Extensions
    • 2.1.9.2 Layer 2 Virtual Private Network
    • 2.1.9.3 Dedicated Internet Access
• 2.2 The Data Networking Context
  • 2.2.1 Packet Data Networking
    • 2.2.1.1 Internet Protocol (IP)
    • 2.2.1.2 Packet and Virtual Networks
  • 2.2.2 Ethernet and SONET
  • 2.2.3 Resilient Packet Ring (RPR)
• 2.3 Ethernet' s Pros and Cons: The Case For and Against Carrier Ethernet
  • 2.3.1 Business Ethernet Drivers
    • 2.3.1.1 Video: The Next Killer Application
  • 2.3.2 Advantages of Carrier Ethernet
    • 2.3.2.1 Reduced Cost
    • 2.3.2.2 Ease of Use and Adoption
    • 2.3.2.3 Scalability
  • 2.3.3 Service Adoption Inhibitors
    • 2.3.3.1 Inertia and Investment Requirements
    • 2.3.3.2 Fiber Connectivity and Service Availability Constraints
    • 2.3.3.3 Interoperability as a Barrier
    • 2.3.3.4 Doubts Regarding Ethernet
• 2.4 Changing Industry Structure
  • 2.4.1 Industry Consolidation: The Market Context
    • 2.4.1.1 Consolidation: The Enterprise Perspective
    • 2.4.1.2 Provider Strategies: Incumbent vs. Challenger
    • 2.4.1.3 The Regulatory Context: The FCC UNE-P Ruling and Small Players

TRENDS, APPLICATIONS & MARKETS

• 3.1 Working Together: Interoperability, Merger, and Collaboration
  • 3.1.1 Interoperability: The Current Problematic State
  • 3.1.2 Interoperability: The Road Ahead
  • 3.1.3 The Road Ahead: Consolidation
  • 3.1.4 The Road Ahead: Collaboration
    • 3.1.4.1 Partnership Issues: Pros & Cons
  • 3.1.5 Service Interworking
  • 3.1.6 Challenger Diversification & Consolidation
• 3.2 Widened Service Availability on Fiber and Copper
  • 3.2.1 The Emergence of Copper
  • 3.2.2 Ethernet as Future Network Foundation
• 3.3 Service Pricing Stabilizes
  • 3.3.1 Ethernet`s Reason: Cost or Transformation?
  • 3.3.2 Data Price Stabilization: Case Study
  • 3.3.3 Costs beyond Service Pricing: The Real Deal
• 3.4 Broadening of Applications and End Users
• 3.5 Product Substitution: Ethernet Gains, Legacy Losses, Gradually
• 3.6 The Competitive Outlook
  • 3.6.1 The Growth of Cross-Industry Players
• 3.7 Ethernet`s Growing Readiness
  • 3.7.1 Quality of Service (QoS) Issues
• 3.8 Retail Customer Perspective: Beyond Hype
• 3.9 Switched, Any-to-Any Services Will Lead Ethernet Market
  • 3.9.1 VPLS: New Face of E-LAN Emerging
  • 3.9.2 Layer 3 vs. Layer 2 VPNs: New Clash of Civilizations?
• 3.10 Carrier Ethernet Expanding Rapidly Into the Long Haul
• 3.11 E-line Will Continue Strong, Steady Growth
• 3.12 Wholesale Ethernet to Start Slower, Grow Faster
• 3.13 Bandwidth Trends
  • 3.13.1 Bandwidth Rates Rising Inexorably
  • 3.13.2 More Low-End Customers Build Low-End Ethernet
• 3.14 The International Outlook

SERVICE PROVIDER PROFILES

• 4.1 AT&T Corporation
  • 4.1.1 Network Architecture
  • 4.1.2 Services Offered
• 4.2 BellSouth Corporation
  • 4.2.1 Network Architecture
  • 4.2.2 Services Offered
• 4.3 Broadwing, Inc.
  • 4.3.1 Network Architecture
  • 4.3.2 Services Offered
• 4.4 Cogent Communications
  • 4.4.1 Network Architecture
  • 4.4.2 Services Offered
• 4.5 Global Crossing
  • 4.5.1 Network Architecture
  • 4.5.2 Services Offered
• 4.6 Level 3 Communications, Inc.
  • 4.6.1 Network Architecture
  • 4.6.2 Services Offered
• 4.7 Optimum Lightpath
  • 4.7.1 Network Architecture
  • 4.7.2 Services Offered
• 4.8 Time Warner Telecom Inc.
  • 4.8.1 Network Architecture
  • 4.8.2 Services Offered
• 4.9 Verizon Communications
  • 4.9.1 Network Architecture
  • 4.9.2 Services Offered
• 4.10 Yipes Enterprise Services
  • 4.10.1 Services Offered

MARKET FORECASTS

• 5.1 Methodology
• 5.2 Definitions and Forecast Segmentation
  • 5.2.1 Definitions
  • 5.2.2 Segmentation
    • 5.2.2.1 Breakdown by Topology
    • 5.2.2.2 Breakdown by Regional Domain
    • 5.2.2.3 Wholesale vs. Retail
    • 5.2.2.4 Breakdown by Bandwidth Level
• 5.3 Market Forecasts
  • 5.3.1 Total Market
  • 5.3.2 Market by Topology
  • 5.3.3 Market by Regional Domain
  • 5.3.4 Retail vs. Wholesale
  • 5.3.5 Bandwidth Levels

Appendix

GLOSSARY

• I-1 Total US Carrier Ethernet Revenues

• II-1 User Network Interface (UNI)
• II-2 Frame Loss
• II-3 E-Line Point-to-Point Service Type
• II-4 E-LAN Multipoint-to-Multipoint Service Type
• II-5 LAN Extension Using E-LAN Services
• II-6 Illustration of VLAN Tag Support
• II-7 Dedicated Internet Access
• II-8 Typical IP Network
• II-9 Managed Packet Network, Virtual Private Line
• II-10 Resilient Packet Ring (RPR) Technology
• II-11 Data vs. Video Traffic, 2005-2010 (Tbit/s)
• II-12 Three-Year Total Cost Savings for Ethernet Private Line

• III-1 AT&T Data Transport Revenue Growth

• IV-1 Broadwing All-Optical Switched Network
• IV-2 Level 3' s National Backbone (3)Link Intercity Wavelength Net

• V-1 Total US Carrier Ethernet Revenues
• V-2 US Carrier Ethernet Access Revenues
• V-3 US Carrier Ethernet E-Line Revenues
• V-4 US Carrier Ethernet E-LAN Revenues
• V-5 US Carrier Ethernet Revenues by App/Topology
• V-6 Percentage Ethernet Revenues by Topology
• V-7 US Carrier Metro Ethernet Revenues
• V-8 US Carrier Wide-Area/Long-Haul Ethernet Revenues
• V-9 US Carrier Ethernet Revenues by Geography/Region
• V-10 Percentage Ethernet Revenues by Region
• V-11 US Carrier Ethernet Topology by Regional Market
• V-12 US Retail Carrier Ethernet Revenues
• V-13 US Wholesale Carrier Ethernet Revenues
• V-14 US Carrier Ethernet Revenues by Retail/Wholesale
• V-15 Percentage Ethernet Revenues by Retail/Wholesale
• V-16 US Carrier Ethernet Revenues >1Gbit/s
• V-17 US Carrier Ethernet Revenues >100Mbit/s - 1Gbit/s
• V-18 US Carrier Ethernet Revenues >10Mbit/s - 100Mbit/s
• V-19 US Carrier Ethernet Revenues <=10Mbit/s
• V-20 US Carrier Ethernet Revenues by Bandwidth Level
• V-21 Percentage Revenues by Throughput Level
• V-22 US Carrier Ethernet Total Port Estimates by Throughput

• I-1 Characteristics of Ethernet Service Varieties

• II-1 Characteristics of Ethernet Service Varieties
• II-2 Sample Monthly Pricing for In-Metro E-Line and E-LAN Svcs
• II-3 Sample Monthly Pricing for Dedicated Internet Access
• II-4 SONET and Ethernet Defined Transmission Rates
• II-5 Average Price Range for E-Line and E-LAN Services
• II-6 Major Ethernet Providers Deploying/Planning Eth over Copper
• II-7 Sample QoS-Based Metro Ethernet SLA, EVPL
• II-8 Continuing Industry Consolidation

• III-1 Comparative Strengths of Layer 2 and Layer 3 VPNs

• V-1 Total US Carrier Ethernet Revenues
• V-2 US Carrier Ethernet Access Revenues
• V-3 US Carrier Ethernet E-Line Revenues
• V-4 US Carrier Ethernet E-LAN Revenues
• V-5 US Carrier Ethernet Revenues by Appl/Topology
• V-6 Percentage Ethernet Revenues by Topology
• V-7 US Carrier Metro Ethernet Revenues
• V-8 US Carrier Wide-Area/Long-Haul Ethernet Revenues
• V-9 US Carrier Ethernet Revenues by Geography/Region
• V-10 Percentage Ethernet Revenues by Region
• V-11 US Carrier Ethernet Topology by Regional Market
• V-12 US Retail Carrier Ethernet Revenues
• V-13 US Wholesale Carrier Ethernet Revenues
• V-14 US Carrier Ethernet Revenues by Retail/Wholesale
• V-15 Percentage Ethernet Revenues by Retail/Wholesale
• V-16 US Carrier Ethernet Revenues >1Gbit/s
• V-17 US Carrier Ethernet Revenues >100Mbit/s - 1Gbit/s
• V-18 US Carrier Ethernet Revenues >10Mbit/s - 100Mbit/s
• V-19 US Carrier Ethernet Revenues <=10Mbit/s
• V-20 US Carrier Ethernet Revenues by Bandwidth Level
• V-21 Percentage Revenues by Throughput Level
• V-22 US Carrier Ethernet Total Port Estimates by Throughput