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Ethernet Service Revenue Up 132% to $5.9B in 2005, Mid-Band Ethernet Services Pick Up Speed

Posted on: Wednesday, 26 April 2006, 18:00 CDT

Worldwide Ethernet services revenue more than doubled between 2004 and 2005 to $5.9 billion, and is expected to jump another 280% between 2005 and 2009 to $22.5 billion, according to Infonetics Research's latest report, "Ethernet Services" market size and forecast.

Mid-band Ethernet services, which include the 1-10M and > 10-50M speed bands, hit almost $1.9 billion in 2005, and are forecast to grow to over $8 billion in 2009, or 36% of total worldwide Ethernet services revenue.

"Since Ethernet offers more bandwidth without increasing WAN costs, it's growing in popularity, especially among small and medium businesses, and among remote and branch offices of large businesses -- the very customers service providers are targeting for new revenue," said Michael Howard, principal analyst at Infonetics Research.

"Eighty-five percent of North America's buildings are copper-fed," continued Howard. "That's a big market. And now that copper bonding products finally meet the requirements of major providers, offering mid-band Ethernet services to small and medium businesses is as easy as adding a pair of copper bond switches. BellSouth is offering mid-band Ethernet service as part of field trials now, and other service providers are gearing up for mid-band Ethernet, too, including XO, TDS, MTS-Allstream, CenturyTel, Finnet, and Telenor. 2006 will be the year the real ramp in mid-band Ethernet sales begins."

2005 Market Highlights

 --  Wholesale Ethernet service revenue, much of which comes from     point-to-point Gigabit Ethernet links, accounts for 25% of all Ethernet     service revenue, and will grow slowly through 2009 --  Revenue from retail Ethernet services (Internet/WAN access, Ethernet     private line, and transparent LAN services) account for 75% of all Ethernet     service revenue --  Asia Pacific accounts for over 40% of total Ethernet service revenue,     EMEA for over 30%, North America for over 20%      

Infonetics' "Ethernet Services" report includes market size totals, annual revenue forecasts through 2009, and analysis of the Ethernet services market for all regions. It tracks wholesale Ethernet service revenue by capacity (1M-100M and > 100M), and retail Ethernet service revenue by capacity (1M-100M and > 100M) and source (Internet/WAN, Ethernet private line, and transparent LAN).

Download sample data at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom, providing a complete view of the market through constant interaction with equipment manufacturers, service providers, end-users, chip and component manufacturers, sales channels, and the financial community. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

 Press Contact: Michael Howard Principal Analyst and Co-Founder Infonetics Research (408) 583.3351 Contact via http://www.marketwire.com/mw/emailprcntct?id=C4E452D878018689  

SOURCE: Infonetics Research

Source: MARKET WIRE

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