Exploiting carrier Ethernet to deliver profitable new services

Over the last decade, we have seen the tremendous growth of data traffic spurred by the Internet and broadband applications such as video. Yet this skyrocketing of data traffic has not been accompanied with a large increase in revenue. Revenue for incumbent service providers continues to be dominated by circuit-based services such as voice and private lines. However, these revenues streams are stagnant and even declining. Service providers must find incremental services to mine additional revenue while improving the profitability of their existing services. Ethernet offers a ubiquitous technology for local area networks enjoying a high degree of standardisation. Ethernet interfaces are very common across networking gear and the widespread availability of inexpensive Ethernet components makes the technology attractive. In addition to cost savings, Ethernet supports both point-to-point and multipoint communications. Service providers are increasingly turning their attention to Ethernet as a broadband access technology for point-to-point layer 2 VPN, layer 3 VPN, and Internet services. When coupled with existing, well-known technologies such as SONET/SDH, RPR, VPLS, and MPLS, carrier grade Ethernet offers tremendous potential for providing high-bandwidth connectivity in support of new service provider offerings.