InfoCom Says Carrier Ethernet Has a Bright Future Despite Some Initial Hurdles

Clear trend towards EoMPLS - Offer review reveals EoMPLS is the Carrier Ethernet preferred solution - with Carrier Ethernet based on EoMPLS, customers may burst traffic above committed rate.

Stuttgart, Germany, April 29, 2010 --( After investigating the Carrier Ethernet market, InfoCom found out that EoMPLS is seen as having several advantages, as compared to EoSDH.

Carriers prefer EoMPLS first of all because it allows finer bandwidth granularity, whatever bandwidth they may ask for, whereas EoSDH is constrained by the bandwidth of the SDH VCs (Virtual Containers). “A second relevant advantage often quoted is that EoMPLS scales better, i.e. it is easier to add new sites” the Senior Analyst coordinating the research stated, “and in this respect it is even better suited for P2MP (Point-to-Multipoint – also known as hub-and-spoke) and VPN (Virtual Private Network) solutions,” he added. Furthermore, EoMPLS provide the possibility for customers to burst their traffic above the committed rate they usually enjoy. Finally, thanks to the pre-defined MPLS CoS (Class of Service) field, with EoMPLS it is possible to offer CoS in a relatively easy and standard manner.

Generally speaking, there is a clear trend away from EoSDH, and SDH, in favour of EoMPLS, and MPLS. Some network operators no longer offer EoSDH or, alternatively, systematically push EoMPLS rather than EoSDH. Most equipment vendors, as well, do not see any real technical advantages any more for EoSDH compared to EoMPLS. Indeed, the only reason why it might still make sense to offer EoSDH is that some customers, for whatever reason, e.g. simply out of tradition, may still ask specifically for EoSDH.

EoMPLS includes VPLS (Virtual Private LAN Services), which uses the label path feature of MPLS network to realise Layer 2 Ethernet switching, without SP Routing, and thus to offer Ethernet VPN.

About this contribution: Carrier Ethernet is one of the topics included in InfoCom latest Datacommunication Peer Markets in Western Europe, the first report of the new Series Business Communications 2010 — Challenges & Opportunities, a new series of reports focused on specific topics all around business communications, analysing offers, players' strategies, players' positioning. To know more about this product, please contact us.

About InfoCom: InfoCom is a market research and consultancy company with over 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.

Infocom GmbH
Aileen Brucal
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