VSG: MNCs increased Ethernet access purchases in 2010

Multinational corporations' (MNC) ongoing purchases of high speed Ethernet access for their Layer 3 IP/MPLS VPNs continues to be a sound opportunity for global Ethernet service providers.

In its mid-year Global Provider Ethernet Leaderboard, Vertical Systems Group reports that the six major service providers that are leading the global Ethernet charge in rank order by port share in their respective country are Orange (France) (NYSE: FTE), Colt (U.K.), Verizon (NYSE: VZ) (U.S.), NTT (NYSE: NTT) (Japan), AT&T (NYSE: T) (U.S.) and Global Crossing (Nasdaq: GLBC) (U.S.).

Vertical Systems GroupRick Malone, principal at Vertical Systems Group, said the uptick in global Ethernet service reflects the fact that enterprises continue to hit bandwidth limits on their respective T1/E1 connections.

In response, Ethernet service providers are happily responding with Ethernet access services that can provide access at speeds up to 100 Mbps and higher to IP/MPLS VPNs. To support these services, service providers continually expanded their respective domestic and international metro fiber footprints.

Of course, there were a number of changes and shifts in VSG's biannual global Ethernet report.

One of the most obvious changes was that the Leaderboard now includes six companies, up from the five that were included at its end of 2009 report.

There were also some shifts in terms of the providers as Global Crossing took up the number six spot on the Leaderboard for the first time in 2010.

While the recent economic crisis will still have lingering effects on businesses, their drive to grow will likely drive them to migrate away from legacy T1/E1 and Frame Relay services to Ethernet, which offers greater flexibility in terms of network speeds and price.     

For more:
- see the release

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