The economic downturn is favoring carrier Ethernet technologies as a less expensive alternative to legacy gear, according to the latest report from Infonetics Research, which found service provider investment in carrier Ethernet equipment is growing faster than overall telecom capex.
Service providers spent $17 billion on carrier Ethernet equipment in 2008, and will increase their spending every year at a healthy clip over the next five years.
“Carrier Ethernet is one of the key technologies globally integral to IP next-gen network transformation projects pushing the move from TDM to packet-based networks,” said Michael Howard, principal analyst for Infonetics Research. “These IP NGN projects depend heavily on IP, MPLS, and Ethernet, and gradually will employ the use of Ethernet transport instead of SONET/SDH.”
The carrier Ethernet equipment market is forecast by Infonetics to top $32 billion in 2013, driven by the need to handle fast-growing traffic from consumer, business and mobile backhaul networks, including skyrocketing video traffic.
The largest investments will be in IP core and edge routers, carrier Ethernet switches and optical gear. In addition, Ethernet microwave is expected to be the fastest growing segment based on its use for mobile backhaul.
