Thursday, September 5, 2013

Research Report Predicts US Businesses to Spend $49 Billion on Ethernet Services

The Insight Research Corporation recently completed a study that predicted U.S. businesses would spend more than $49 billion on Ethernet services provided by carriers. AT&T explains that, “Ethernet provides simplified networking solutions by extending from your Local Area Network to your Metro Network and across your Wide Area Network.”

Ethernet can be integrated into your 3 layer virtual private network in order to provide you with a complete networking solution. Industry revenue is expected to grow from nearly $5.5 billion in 2013 to over $13 billion in 2018.  As carriers complete their 4G LTE deployments, the large-scale migration of wireless backhaul cell sites from TDM to Ethernet will continue to be a major factor.

"Ethernet services in the small to mid-sized business market is the fastest growing segment of this market, while wireless backhaul still commands the top segment," says Fran Caulfield, Director of Research at Insight. "Over the five year forecast period we project a compounded annual revenue growth rate of 19 percent, with the highest growth levels in the next two years," Caulfield concluded.

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