Heavy Reading

Ethernet Services Carrier Scorecard: Europe

Carrier Ethernet represents the next major enterprise data services growth opportunity for European network operators, complementing the success of IP VPNs and creating an opportunity to reenergize their struggling business portfolios. While we have found no major service provider in the region making significant investments to advance legacy Frame Relay, ATM, or TDM leased-line services, interest in Ethernet is booming. This is true because Ethernet is moving beyond a best-effort service to become increasingly carrier-grade – giving enterprises the choice of a rich set of features, bandwidth scaleability, flexibility, and simplicity at lower prices than traditional data services.

As Heavy Reading has also found in its ongoing research on the North American market, European carriers are excited about providing potentially game-changing Ethernet services that can drive down communications costs, boost productivity, and help enterprises compete more effectively in an on-demand business environment.

Heavy Reading has identified more than 100 operators in Europe that offer Ethernet enterprise services and/or are using carrier Ethernet infrastructure to support residential triple-play, IPTV, and video on demand (VOD) services. According to our Carrier Ethernet Switch/Router Quarterly Market Tracker service, Europe leads the world in deployment of the carrier Ethernet switch/routers that lie at the heart of the next-generation Ethernet equipment market and are playing an increasingly vital role in aggregating and transporting mission-critical and non-mission-critical traffic.

Ethernet Services Carrier Scorecard: Europe is Heavy Reading’s first extensive report examining Ethernet market trends and players exclusively in Europe. The report highlights key Ethernet services drivers, describes the types of Ethernet services offered, and analyzes the Ethernet service deployment and delivery plans of 14 incumbent and alternative service providers. Research includes snapshots of the Ethernet strategies, portfolios, and network infrastructure of six operators, as well as more detailed profiles of eight further service providers, based on extensive interviews and other information. The profiles present an in-depth examination of each carrier’s Ethernet strategies, revenue momentum, customer traction, service footprint, service pricing, service portfolios, plans, and opinions regarding industry challenges that remain to be overcome.


For a list of network operators profiled and evaluated in this report, click here.

Like their counterparts in North America and Asia, many European service providers report that sales of their legacy data services have stagnated or declined over the past year, due to increased price competition and a migration to lower-cost solutions. More operators are shoring up their Ethernet portfolios in an offensive effort to offset the decline in traditional revenues and defend themselves against competitive threats from next-gen Layer 2 and 3 services.

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Ethernet Services Carrier Scorecard: Europe delivers an in-depth accounting of how Europe’s most important network operators are moving to Ethernet-based services to counteract erosion of revenues from legacy services. The report provides a detailed roadmap of currently available and planned Ethernet services from the region’s leading operators, broken out by specific service type, data rates, and other key performance metrics.

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Report Scope and Structure

Ethernet Services Carrier Scorecard: Europe delivers an up-to-the-minute examination of the key technologies and players shaping one of the hottest data services growth markets in Europe. It is based on one-on-one interviews with profiled operators, additional primary research on other service providers, and conversations with leading equipment vendors. The report complements the findings of earlier Heavy Reading reports – particularly our Ethernet Services Carrier Scorecard: North America (Vol. 3, No. 7, April 2005).

This report's structure is as follows:

Section I is an introduction to the report, with complete report key findings.

Section II examines macro-level drivers generating momentum for Ethernet service adoption, explores the primary factors driving the shift toward high-performance Ethernet solutions, and explains why European operators are under pressure to embrace Ethernet. We also spotlight the role of the MEF in promoting carrier Ethernet services adoption.

Section III presents Heavy Reading's Ethernet Services Framework, along with diagrams and definitions for the various Ethernet connectivity services, based on work done in industry standards bodies as well as general understandings that have evolved within the service provider and vendor communities.

Section IV is the first of two sections that focus on a total of 14 incumbent and alternative operators providing Ethernet services in Europe. This section provides snapshots covering the Ethernet strategies, service offerings, and network infrastructure of six operators.

Section V provides extensive profiles on the other eight service providers, summarizing:

  1. Carrier Ethernet strategies
  2. Ethernet revenue momentum/customer traction
  3. The markets serviced by all Ethernet services in the carrier's portfolio
  4. Service pricing trends
  5. The network equipment used to support all of the carrier's Ethernet services
  6. Recent Ethernet-related activity
  7. Ethernet-related plans
  8. Carrier views regarding industry-wide challenges related to Ethernet
This section also includes a summary of the eight profiled carriers' Ethernet services and applications portfolio, along with a set of standard information for their connectivity services, including:

  1. Service names
  2. A description of the service (including how it maps to MEF definitions)
  3. The speed and bandwidth scaleability of the service
  4. Service performance characteristics
  5. Technologies used to support the particular service
The report is essential reading for a wide range of industry participants, including:

Incumbent and competitive network operators in Europe: How does your rollout strategy for Ethernet services compare with those of other service providers? Which types of services are your competitors bringing to market? How deep will the competitive field be for Ethernet services? Which technologies are settling in as the most popular choices? How do your pricing strategies align with those of other carriers?
Ethernet equipment suppliers: Which network operators are pursuing Ethernet services most aggressively? Which types of services and which technologies are they choosing? Who are the most aggressive emerging network operators, and how do your products mesh with their service deployment plans? Are there any Ethernet service providers that are slipping through the sales cracks?
Enterprise users: Which carriers are offering the kinds of Ethernet services that you need? Who is making the strongest carrier commitment to Ethernet? Are your service prices in line with what other carriers are offering, or is there an opportunity for you to strike a better deal?
Investors: Which equipment makers and service providers are in the best position to capture market share in this important telecom industry sector?

Ethernet Services Carrier Scorecard: Europe is published in PDF format.

PRICE: $3,795
Senior Analyst, Heavy Reading
A communications professional with extensive experience in wireline-related business analysis and strategic marketing, prior to joining Heavy Reading Hubbard spent seven years with Ciena – most recently as director of market intelligence...
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52 pages of analysis of the European Ethernet services market strategies and technology options
Comprehensive listing of carrier Ethernet services now available in Europe from profiled carriers, covering more than 100 connectivity services and Ethernet-based applications
In-depth analysis of market and technology plans of leading Ethernet service providers
Latest intelligence on carrier plans to expand Ethernet service portfolios in Europe
PRICE: $3,795
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