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Ethernet Revenue To Exceed $37 Billion Over Five Years?

Tue, Jan 4, 2011

Connectivity

A research study conducted by the Insight Research Corporation suggests that between retail and corporate consumers, more than 37 billion dollars over the next 5 years will be spent with Carrier Ethernet providers. And, since almost major data carriers are already offering Ethernet services, the market should be growing at around a 25% compounded yearly rate from 2010 to 2015. This type of growth rate would result in increased spending from over $3 billion for 2010 to over $9 billion in 2015.

According to the report, demand for Ethernet in the US hasn’t seen a drop, even through the recent economic down-turn. The Ethernet report also predicts increased demand to peak sometime in 2011, where growth rates for for revenune should hit somewhere in the neighborhood of 29 percent on a compounding annual basis. Included Ethernet services are being described using many names including: Ethernet, GigE, Ethernet private line, virtual private LAN, Ethernet virtual private line, Gigabit Ethernet, Layer 2 – virtual private network, metro Ethernet, native LAN, and transparent LAN.

“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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