|By PR Newswire||
|April 23, 2014 07:52 AM EDT||
MOUNTAIN VIEW, Calif., April 23, 2014 /PRNewswire/ -- Carrier Ethernet continues to gain ground with business users due to its scalability, reliability and cost-efficient bandwidth. When evaluating a service provider, it's important to see beyond benchmarks around billable retail ports delivered, and have a complete, thorough picture. This includes the vendors' overall market stance, which is best considered by looking at how the providers stack up head-to-head based on revenue. When selecting the best Carrier Ethernet provider, market revenue correlates to that vendor's ability to provide quality service and adequate support, as well as their network reach and longevity in the marketplace.
Frost & Sullivan's new analysis, Business Carrier Ethernet Services Market Update, 2014, finds the market is dominated by the following companies (in order of market leadership positioning):
Ranking (based on 2013 revenues)
Level 3 Communications
Other companies considered in this analysis include XO Communications, Cogent Communications, Sprint, Zayo Group, Integra, Charter Business, Cox Communications, Lumos Networks, FairPoint Communications, Time Warner Cable Business Class, Comcast Business, TelePacific Communications, EarthLink Business, LightPath Technologies, and SureWest Communications, among many others.
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"We find AT&T and Verizon continue to lead in the overall Ethernet services market due to their sheer size and geographic reach, which is reflected in their robust offerings in terms of service portfolio, delivery models and performance guarantees," concluded Honnachari. "Overall, Ethernet emerges as the preferred enterprise choice, with increasing penetration of bandwidth intensive applications such as video, collaboration and VoIP in the enterprise WAN network driving demand for high capacity bandwidth."
The overall business Carrier Ethernet services market revenue exceeded $4 billion in 2013, and is expected to reach $10.0 billion by 2018. The research finds that while both dedicated and switched Ethernet services are seeing growth, the latter is witnessing much higher year-over-year growth rates as compared to dedicated Ethernet.
Demand for point-to-point or E-Line Ethernet services continues to grow as businesses migrate from traditional private lines (T1/T3/SONET) to Ethernet. Similarly, E-LAN services continue to see growth in key verticals, such as healthcare, government and education, which often need multipoint-to-multipoint connectivity. Switched Ethernet, with its ability to support multiple Ethernet Virtual Circuits (EVCs) that enable service multiplexing onto a single port, has seen significant adoption in the metro markets.
"In short, as enterprise customers seek cost-effective solutions to converge their voice, data and video applications, Ethernet — with its large number of benefits, and cost effective, flexible, and reliable bandwidth — continues to be a winner in the WAN services arena," concluded Honnachari.
The Business Carrier Ethernet Services Market Update, 2014 analysis is part of Stratecast's (http://stratecast.frost.com) Business Communication Services Growth Partnership Service program. All research included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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