Vertical Systems Group’s Ethernet LEADERBOARD Shows Strong Demand, Competition

CEN Feature (Aug 17 2011) Business Ethernet , Vertical Systems

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   It’s the half way point in the year and time to take measure of which companies are leading the charge in providing Ethernet business services in the United States. According to Vertical Systems Group’s Mid-2011 U.S. Business Ethernet LEADERBOARD, released on Aug. 16^th, AT&T, Verizon and tw telecom maintain their respective positions as the top three providers of billable Ethernet ports deployed in the U.S. Vertical System’s analysis also notes that, during the last six months, AT&T has widened its lead over Verizon in the U.S.

   That the top three have such a good grip on their rankings at this stage of the game is to be expected, says Rosemary Cochran, principal at Vertical Systems Group.

   “A lot of this market is based on the migration of existing customers from legacy based services to Ethernet,” Cochran explains. The top three also tend to offer a wider variety of Ethernet services. However, the cablecos are able to leverage their large footprints and large fiber bases to make the cut, she adds. The primary criteria for making the cut and being included on the LEADERBOARD is thata company must hold 4% or more of billable Ethernet ports in the U.S.

   Despite the tough economic times, Vertical Systems’ Group 2010 forecast for 30+ percent growth was realized in the first half of 2011. This growth was fueled by strong enterprise demand for Ethernet services and the healthy competition to provide it, according to Rick Malone, principal for Vertical Systems Group.

   Shuffle up and deal

   The port share differential between the fourth and ninth ranked companies is a mere 3.1 percent. However, service provider consolidation is having its expected impact on the LEADERBOARD rankings. For example, CenturyLink’s merger with Qwest bumped Cox from fourth to fifth position, with Time Warner Cable and XO coming in fifth and sixth. Consolidation that is currently underway, such as Level 3’s acquisition of Global Crossing and Windstream’s purchase of PAETEC, is expected to have a similar impact on year-end LEADERBOARD rankings, says Cochran.

   “Everyone’s a contender, that’s the take-away,” she adds. “The LEADERBOARD shuffle only demonstrates the growth and competitive nature of this market.”

   Cochran added that it is also important to consider Ethernet providers’ global perspectives and strategies. They will be reflected in Vertical Systems Group’s Mid-2011 Global Business LEADERBOARD report that will be released in the near future.

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