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Ethernet Revenue To Top $37 Billion Over Next 5 Years?

Wed, Jan 5, 2011

Connectivity

According to a research study conducted by the Insight Research Corporation, between businesses and consumers more than $ 37 billion over the next 5 years is expected to be budgeted towards Carrier Ethernet providers. Taking into account most all major data carriers already offer Ethernet services, the market is expected to grow at a compounded rate of nearly 25 percent year over year. This would result in an increase from roughly 3.1 billion dollars in 2010 to about 9.7 billion dollars in 2015.

According to this Ethernet study, U.S. demand for Ethernet service hasn’t dropped…even during the recent economic downturn. The report also foresees increased demand that will peak in 2011, where rates of revenue growth should reach approximately 29 percent on a compound annual basis. These Ethernet services are marketed under any number of names, including Ethernet access, native LAN, transparent LAN, Ethernet private line, Ethernet virtual private line, Gigabit Ethernet, GigE, virtual private LAN, Layer 2 virtual private network, and metro Ethernet.

“The momentum behind sales retail business Ethernet services is being driven by a growing customer demand for bandwidth and the real advantages of Ethernet cost in terms of providing flexible bandwidth and scalability that is superior to many competitive services, “says Robert Rosenberg, president of Insight Research. “The driving force behind sales Wholesale Ethernet improves interoperability between operators greater confidence in emerging economies and newly adopted standards, and changes in more than carriers of a more favorable stance Wholesale “concluded Rosenberg.

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