Low-speed services boost business Ethernet services market

SEPTEMBER 21, 2006 -- Emergent availability of sub-10-Mbit/sec offerings will boost the U.S. retail business Ethernet services market to $24 billion in cumulative revenue between 2006 and 2010, according to latest statistics from Vertical Systems Group. Figures reflect revenue for enterprise customer installations of Ethernet services at rates of 1 Gbit/sec, 100 Mbits/sec, 10 Mbits/sec and sub-10 Mbits/sec using any access technology, including fiber or copper.

Aggregate revenue for 10-Mbit/sec and higher-speed Ethernet services is forecasted to be $19 billion during the next five years. Sub-10-Mbit/sec revenue are expected to total an additional $5 billion in this time period, driven primarily by new copper-based service implementations.

"Sub-10 Mbits/sec is the fastest growing segment of the business Ethernet services market during the next five years," said Rosemary Cochran, principal at Vertical Systems Group. "As sub-10-Mbit/sec services fill in the sizeable access speed gap below the 10-Mbit/sec entry point for native Ethernet, customers with FT1/T1 networks gain a more viable migration path to emerging business-class offerings like virtual private lines and VPLS."

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