As more efficient and cost effective broadband solutions are being implemented by businesses, the legacy systems they once used are slowly being replaced. Depending on what each company is looking for and the resources they have at hand, the service technologies they utilize can vary from Ethernet to Private Lines, Frame Relay, ATM, TDM, and business broadband services.
According to a recent Vertical Systems Group report, previous Private Lines, T1 and ATM services are now being replaced by Ethernet bandwidth services, which are actually taking the lead in terms of demand and deployments.
The report explains that driven by the demand for higher speed network services, the volume of Ethernet bandwidth purchased by enterprises in the U.S. has surpassed the aggregate bandwidth for legacy circuits.
According to Rosemary Cochran, Principal at Vertical Systems Group, the demand for bandwidth is continuing to increase creating a new standard. “100Mgps is the new 10Mgps,”Cochran told TMCnet. “100Mgps is becoming the sweet spot for legacy frames in the Ethernet space.”
Cochran specifically sees a migration towards services that provide higher speeds; however, while Ethernet is seen as being the leader, there is still growth in legacy private lines as well. “The trending is clearly moving towards more bandwidth which is a big driver for Ethernet,” she added.
Cochran also mentioned that once companies obtain higher ranges and speeds, they can use other solutions for lower services which drive acquisitions and consolidation in the industry.
The report also noted that in 2011, there was a significant surge in Ethernet installations with access rates ranging up to 10+ Gbps. Coincidentally, this milestone coincides with the 10-year anniversary of the MEF (News - Alert), an organization that has successfully fostered the deployment of carrier-class Ethernet services throughout the world.
Actelis Networks, a well-known provider of Ethernet over copper services, has recognized the demand for higher speed broadband solutions as a positive for the company as it is well equipped to meet the industry’s needs.
“The insatiable appetite for higher bandwidth has had a significant impact on Actelis’ business over the past few years, as evidenced by our #1 global ranking by Frost & Sullivan and Infonetics (News - Alert) Research since 2007,” Eric Vallone, Vice President of Marketing, Actelis Networks, told TMCnet.
“What’s driving this increased demand for bandwidth are service providers and enterprises looking for pragmatic solutions to deliver greater bandwidth. But they have been hamstrung by inherently low speeds of legacy T1/E1 solutions and the high cost of deploying fiber ubiquitously. Actelis’ (News - Alert) Ethernet in the First Mile over Copper solutions, with patented technologies like our EFMplus™ and DRB, allow carriers and enterprises to immediately and cost effectively accelerate their wide-scale broadband service deployments,” Vallone added.
As the demand for Ethernet services grows, the demand for bandwidth will continue to increase as well. Since Ethernet can easily and reliably deliver existing and future broadband services, Actelis believes that Ethernet is now the globally accepted de facto standard for next-generation networks.
“We are already seeing the demand for more bandwidth being driven in the consumer market by smartphones and tablets, while applications like cloud computing, telepresence, e-healthcare and intelligent transportation systems are fueling growth for large enterprises and municipalities. Certainly, these trends are just a few examples, but what it’s telling us is that wide scale deployment of mobile and DSLAM backhaul solutions and T1/E1 line replacement are critical to meet the needs of this broad base of customers,” Vallone said.
Based on Vertical’s analysis, by 2015 Ethernet bandwidth is projected to more than double. In order to keep up with its customer’s demands, Actelis Networks already has a plan in place to meet the anticipated requirements ahead of time.
“At the core of Actelis’ culture is the commitment to innovate. Actelis continues to raise the bar of what is possible over existing network infrastructures. Actelis’ DRB technology, for example, doubles the bandwidth of Ethernet broadband services to twice as many customers, more reliably, and more cost effectively than carriers previously thought possible. ” Vallone said.
As Actelis continues to innovate, they plan to drive standardized technologies that continue to blur the lines between the bandwidth that can be delivered over fiber and the bandwidth that can be delivered over copper.
“We realize, however, that it is not just about the ability to deliver higher bandwidth, but also the ability to deliver higher bandwidth broadly, scaling solutions to meet demand anytime and anywhere, and doing so cost effectively,” Vallone added.
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Stefanie Mosca is a Managing Editor for TMCnet. Previously she worked as a freelance copy writer for Digital Surgeons LLC. She holds a master's degree in journalism from Quinnipiac University and a bachelor's degree in communication from the University of New Haven. To read more of her articles, please visit her columnist page.
Edited by Carrie Schmelkin