Infonetics: EADs outpace a growing Carrier Ethernet equipment market

CEN Feature (Jun 3 2010)

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   A recent report from Infonetics Research underscores the Carrier Ethernet boom—and one of the fastest growing categories within that market is Ethernet access devices (EADs).

    

   Infonetics coined the term a few years ago, says Michael Howard, principal analyst for the firm. Researchers saw a need for a term to describe a certain type of device installed at the customer premises or at a cell site, as well as the device in the carrier network with which those devices communicate.

    

   “EADs are demarcation devices to connect copper or fiber to buildings with Ethernet,” explains Howard. “They aren’t switches or routers, although some have switching functions.”

    

   The devices are aimed at providing a less expensive alternative to a router, while also supporting operations and management capability to enable service providers to more easily manage and maintain the devices.

    

   The new Infonetics Carrier Ethernet Equipment report projects the worldwide Carrier Ethernet equipment market to increase from $24.6 billion in 2009 to $32 billion by 2014 (a growth rate of about 30 percent). During the same period, the worldwide EAD market is expected to more than triple, jumping from worldwide sales of $558 million in 2009 to $1.7 billion in 2014.

    

   “The EAD market is growing because carriers are connecting more customers who have Ethernet and because mobile backhaul is going Ethernet,” notes Howard. “The big trend is for operators to move from TDM to the Ethernet or packet world and these devices play right into that big wave.”

    

   Within the EAD market, devices designed to work with fiber connections currently outsell those that work with copper, comprising about two thirds and one third of the market, respectively, Infonetics says. By 2014, Infonetics projects that the share of fiber-based equipment will rise to about 80 percent of the EAD market.

    

   “That points up the major trend that copper is gradually being replaced,” Howard says.

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