Friday, April 23, 2010

USA - The migration of mobile backhaul to Ethernet will help spur growth of the wholesale Ethernet market at an annual rate of 40 percent

[prnewswire] The migration of mobile backhaul to Ethernet will help spur growth of the U.S. wholesale Ethernet market at an annual rate of 40 percent or more over the next five years, according to a major new report from Heavy Reading (, the research division of Light Reading (

U.S. Wholesale Ethernet Services: A Five-Year Market Forecast analyzes the current market conditions affecting the wholesale Ethernet business in the U.S. and delivers a five-year revenue forecast for this market. It also examines the most significant issues and trends that will affect this market over the next five years, including adoption drivers and obstacles, service availability, interoperability, changing service technologies, and pricing. The report includes in-depth profiles of 15 leading network operators that are shaping the U.S. wholesale Ethernet market.

The information and analysis presented in this report is based on in-depth interviews with senior executives and marketing and network professionals from 15 companies that sell wholesale Ethernet services in the U.S., often including two or three representatives per company. The companies interviewed included traditional carriers, CLECs, international carriers, specialized infrastructure providers, and cable MSOs.

"Wholesale Ethernet is finally emerging as a major, thriving U.S. market," notes Steve Koppman, Analyst at Large with Heavy Reading and author of the report. "While retail Ethernet has boomed for several years, the wholesale market has been regarded as something of a market backwater until recently. The promise of mass migration of the fast-growing cellular backhaul segment from TDM to Ethernet is infusing massive new energy into this market, which is now pacing already rapid overall Ethernet services growth."

Heavy Reading predicts that within four to five years – even with the rest of the market growing rapidly – mobile backhaul will account for close to half of revenues spent on wholesale Ethernet in the U.S. "By contrast with other categories of wholesale buyers, wireless players are in a stronger position as decision-makers to make major future commitments based on their own growth," Koppman explains. "They have the networks and traffic volumes under their effective control, and they are not dependent, like many resale customers, on uncertain ongoing success with retail end users."

Mobile Backhaul to Drive Wholesale Ethernet Growth, Heavy Reading Finds

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