Worldwide sales of metro Ethernet equipment are forecast to nearly double between 2006 and 2010, when they will reach $18.8 billion, according to “Metro Ethernet Equipment,” a new report from Infonetics Research (www.infonetics.com).
According to the report, the hottest selling technologies in the metro Ethernet market are routers and Carrier Ethernet switches (CES), Ethernet over optical, and Ethernet over DSL.“The metro Ethernet market picked up some steam in the last six months. From 2006 to 2007, port shipments will increase in every metro Ethernet equipment category we track, and we’ll see revenue growth in all categories except Ethernet over DSL and cable. The slight decline in Ethernet over DSL and cable revenue is due to price erosion, as ports are up,” says Michael Howard, principal analyst and cofounder of Infonetics Research.
Main drivers include the fact that Ethernet is less expensive than other technologies; broadband subscriber numbers are increasing, forcing service providers to upgrade their networks with DSL, cable, PON, and Ethernet FTTH; and rapid uptake in video and IPTV services is creating traffic increases that require more bandwidth, stringent QoS, and network transformations.