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Communication and mobile news


Ethernet to grow at 39% CAGR in next 5 years

19 January 2011

At the recently held Ethernet Business Services Seminar by MEF (Metro Ethernet Forum) in Mumbai, Kevin Vachon, COO, MEF underlined India’s growing strength in the global business landscape. He also spoke about the dramatic growth in Ethernet services across the world as providers embraced the flexibility, performance and cost advantages of Carrier Ethernet.

Since its inception in 2001, MEF has been non-profit defining body for Carrier Ethernet worldwide and till date has certified over 125 vendors and 800 products, said Kevin. According to Kevin, the demand for high bandwidth, low latency and lower cost networks has been the driving force behind the phenomenal growth of Ethernet Services

At this seminar was also present Ravi Pandey, Senior research analyst at Frost & Sullivan, who highlighted that in the Indian telecom market which stood at Rs. 1,95,503, had 68 percent of its consumers coming through the retail channel, while enterprise and wholesale constituted for 29 percent and 3 percent respectively. Of the 29 percent enterprise telecom market fixed, mobile and data services contributed to 15, 14 and 11 percent respectively, while the remaining 60 percent were other services. However, Ravi further added that while the CAGR for fixed and mobile services would be 2 percent and 6 percent respectively. The CAGR for data services would be 12 percent, Ethernet to grow at 39 percent over the next 5 years.

Ravi attributed the primary growth drivers of Ethernet to IP migration, evolution of borderless enterprises, datacenters, compliance and disaster recovery, increase in CAPEX and OPEX, and convergence of networks such as business, residential and wireless. He further added that the sectors that would be the top adopters of Ethernet would be finance, healthcare, education, government, IT, retail, real estate, legal and media. This trend is bound to take place as Ethernet offers benefits such as scalability, controllability, reliability,

This year India, in particular, was singled out as an industry leader, with TATA Communications being named APAC Service Provider of the Year 2010 at the MEF’s Service Provider Awards ceremony in Hong Kong last December.

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