Company Strategy

CARRIER ETHERNET BUSINESS BRIEFING 2014: Why carriers need to move quickly on CE 2.0

The world’s leading Tier-1 operators are doing well out of revenues from Ethernet services, especially in areas like mobile backhaul.

But there is a danger that they will lose out on new income to non-traditional sellers of Ethernet services, for example in providing connectivity to cloud service providers, warns Nav Chander, research manager for telecom business services with IDC’s Worldwide Telecom Division. Chander believes Ethernet connectivity is a sector that a wider range of players than ever can enter, thanks in part to CE 2.0.

“The connectivity market is becoming interesting, competitive and fragmented,” he claims.

He points to moves being made in the US by TW Telecom, a Tier-2 provider.

“They are innovating with Carrier Ethernet, and at the moment I’d say are a year to a year and a half ahead of the big players. They are connecting to all the major cloud service providers. Their early 2.0 certification gives them all the hooks they need. There’s Comcast too. They’re very aggressive, and have made lots of money out of Ethernet services in the last year. Operators like AT&T and Verizon are more focussed on threats like Microsoft, Google and AWS. They are also battling away with 4G, but they might end up losing revenue,” Chander suggests.