Ethernet-Over-Copper Market Will Be Defined by Small Application and Geographic

Ethernet-Over-Copper Market Will Be Defined by Small Application and Geographic Niches

Product Type: Market Research Report
Published by: Yankee Group
Published: December 2006
Product Code: R388-2345

Description

The Ethernet-over-copper vendor market has generated significant interest and investment during the past 2 years. As carriers worldwide expand the availability of enterprise Ethernet services, fulfilling that demand will require some of those services to traverse copper-based networks.

In addition, most 2G/3G wireless node sites connect to the public network via T1/E1 services using copper facilities. With the market development of 3G services, bandwidth demand has increased significantly. One way to address that increase is by transmitting Ethernet over copper.

Currently, Ethernet over copper is a niche. Yankee Group believes that this segment will remain a niche for several years and does not warrant significant additional investment for the following reasons:

The deployment of Ethernet over copper will depend on the development of carrier competition in the enterprise market. Although incumbents will use the technology as a strategic tool, non-facilitiesbased competitors will be the most aggressive users. The struggle of these carriers in markets outside Europe limits the technology’s widespread use.
Fiber penetration is increasing in markets where data demand requires the deployment of enterprise Ethernet services.
In the wireless backhaul segment, technologies such as broadband wireless represent a more economic alternative and will dampen demand for Ethernet-over-copper equipment.

At the same time, we believe certain targeted niches will provide enough revenue for a small group of vendors during then next 5 to 10 years. These segments include:

DSLAM backhaul for rural ILECs in the United States
European competitive carriers who depend on leasing last-mile capacity from incumbents

Table of Contents

I. Introduction
II. Ethernet-Over-Copper Market Segmentation: Wireless Backhaul; Business Services; DSL Backhaul: A Niche Within a Niche
III. Conclusions and Recommendations: Recommendations for Vendors
IV. Further Reading

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