TeleGeography: Long haul Ethernet service comes at a steep price

Service providers are continually upping the ante of their long-haul Ethernet service product portfolios that allow Ethernet to be carried over various transport technologies, including SDH/SONET (EoSONET), MPLS (EoMPLS) and DWDM (EoDWDM), but customers that want QoS guarantees will have to pay a premium.

A new TeleGeography report reveals that while having these options enables large enterprise customers to connect their geographically diverse sites over a simple Ethernet interface, the transport network carrying the service can impact pricing and QoS guarantees.

One advantage EoSONET/SDH has over EoMPLS is that it can extend financial organizations features they crave such as guaranteed latency and restoration times. But the drawback of buying these services, explained TeleGeography, is that 100 Mbps EoSDH services cost about 50 percent more than EoMPLS services on average.

EoSONET/SDH pricing in the U.S. was particularly expensive. TeleGeography found that a 100 Mbps Ethernet service between Miami and New York over an EoSDH/SONET network cost two times than an EoMPLS-based service, for example.

"Customers who require both Ethernet simplicity and the quality of service guarantees of SDH/SONET should expect to pay a premium price," said TeleGeography analyst Brianna Charpentier.

For more:
- see the release

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