Ethernet may be the data technology of choice for large and small businesses, but the rising stars in this segment are Ethernet VPN/VPLS and Ethernet over DWDM (EoDWDM), says TeleGeography in a new report.
Service providers deployed 236 new on-net VPLS PoPs between the years 2012 and 2013, up 28 percent from 2011. The two markets leading the majority of growth was North America and Latin America, two regions where service providers' on-net coverage rose 41 percent and 40 percent, respectively.
At the same time, on-net coverage of EoDWDM rose 23 percent as more service providers deployed 99 new PoPs to accommodate their customers' requirements for higher bandwidth solutions. Likewise, on-net availability of Ethernet over MPLS (EoMPLS) grew 12 percent in 2013, with carriers adding 132 new PoPs.
TeleGeography said that the slower growth rate is due to the widespread availability of EoMPLS service. From a regional perspective, Africa was the clear leader, growing 57 percent, with on-net coverage rising 57 percent, followed by Latin America, where coverage increased 17 percent.
Interestingly, service provider growth of IP VPN PoPs declined 12 percent in 2012 to 4 percent in 2013, a factor the research firm says is related to service providers' extensive IP VPN coverage and the "changing nature of customer requirements." Although network expansion slowed, service providers operated almost 60 percent more on-net IP VPN than VPLS PoPs in the 166 cities the survey covered.
"Carriers are channeling their investment towards Ethernet, given the already widespread availability of IP VPN service, and growing customer demand for uniform solutions across their network," said TeleGeography analyst Brianna Boudreau. "While IP VPN remains the most pervasive enterprise network service globally, as capacity requirements continue to grow, Ethernet-based services will become ever more integral to the WAN."
For more:
- TeleGeography has this post
Related articles:
International telephony up 5%, but long-distance providers face threats from OTT
Wholesale IP transit service prices fall more than 50% in some cities
Submarine cabling boom drives down bandwidth prices in high cost regions
Sub-10 Mbps VPN connections still in high demand, says TeleGeography