Two of the top three providers of retail Business Ethernet Services in the U.S. gained port share for mid-year 2007 as compared to year-end 2006 results, according to Vertical Systems Group's latest market analysis. In addition, an MSO entered into the top tier for the first time, while several other major providers had share declines.
"As anticipated, competition in the Business Ethernet Services market heated up during the first half of 2007, resulting in considerable port share fluctuation," said Rick Malone, Principal at Vertical Systems Group. "The dense availability of low cost metro services boosted share for many regional U.S. Ethernet providers, including MSOs. Additionally, the aggressive deployment of new fiber infrastructure for residential applications enabled broader accessibility of native Ethernet services for adjacent business sites."
AT&T, Verizon Business and Time Warner Telecom are the top three U.S. retail Business Ethernet Services providers. AT&T, including BellSouth (acquired in December 2006) holds the leading position with a 19.5% share of mid-2007 ports. AT&T's share declined as compared to the combined year-end 2006 shares for AT&T (13.6% port share) plus BellSouth (8.5%). Verizon Business is second overall with a 15.8% port share, up from 12.2% at year-end 2006. In third position is Time Warner Telecom with 13.7% of ports, a jump from 10.7% in 2006.
Cox Business, holding a port share of 8.9%, makes a debut in fourth position as the first MSO in the top tier of U.S. Business Ethernet providers. Cogent is fifth with an 8.6% share of the market, an increase from 8.2% at year-end 2006. Qwest (including OnFiber) is sixth at 8.4%, down from a 9.9% port share. Yipes is seventh with a share of 4.6%, a decline from 5.4% at year-end. Yipes recently announced its acquisition by Reliance Communications and will operate as a business unit within the company's FLAG Telecom operations.
Other Business Ethernet Services providers comprise an aggregate 20.5% of the market, including AboveNet, American Fiber Systems, Alpheus Communications, American Telesis, Arialink, Balticore, Bright House Networks, Charter Business, CIFNet, Cincinnati Bell, Comcast Business, CT Communications, Electric Lightwave, Embarq, Expedient, Exponential-e, FiberTower, Global Crossing (including Fibernet), Globix, IP Networks, Level 3 (including Broadwing), LS Networks, Masergy, Met-Net, Neopolitan Networks, NTELOS, NTT/Verio, Optimum Lightpath, Orange Business, RCN, Savvis, Spirit Telecom, Sprint, SuddenLink, Surewest, Time Warner Cable, US LEC, US Signal, Veroxity, Virtela, Windstream, XO, and others.
