Outshining the rest

CEN Feature (Aug 19 2010)

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   One of the few things currently defying the world’s economic downturn, Carrier Ethernet is outpacing overall telecom capital expenditure investments. In fact, service providers are expected to spend a cumulative $146 billion on Carrier Ethernet equipment between 2009 and 2013 according to Michael Howard, Infonetics Research’s principal analyst for carrier and data center networks.

   But just as important as the equipment they purchase to handle growing demand is Carrier Ethernet service providers’ ability to create a healthy competitive market for their services. To do that, they must differentiate themselves from one another. Most are better at positioning themselves by moving as quickly as they can to more-Ethernet-than-not architectures in order to streamline their offerings.

   Increased use of Ethernet in their primary aggregation and access networks in lieu of SONET and SDH whenever possible represents a big change, says Howard. Drivers behind the shift include the introduction of the Ethernet-Network-to-Network Interface, or ENNI, and sheer momentum of the ongoing switch from TDM to packet networks. In fact, packet data traffic is expected to speed past the 50 percent mark in mobile networks this year.

   Carrier Ethernet service providers are also competing for end customers by offering different levels of service. One carrier’s Gold Level could be another’s Silver, says Howard. Service Level Agreements, or SLAs, also are in the mix. For example, carriers can offer their customers different performance guarantees such as increased or decreased redundancy or latency. Carriers could put a customer’s traffic on a SONET long-haul line and charge a little bit more. They could also offer dual-Ethernet connections for physical redundancy or provide connections to copper for customers that require such a connection.

   “There are a lot of levels of resiliency and guarantees, but something that won’t be showing up anytime soon is monthly restrictions on traffic flows,” says Howard.

   And as more low-latency applications emerge, such as Intellifiber Networks’ 825-mile Ethernet link between financial hubs in Chicago and New York, notes Howard, Carrier Ethernet service providers that offer latency guarantees and other kinds of fine tuning can win customers by addressing their specific needs and requirements.

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