All in One
Ethernet services offer cost advantage to both service providers as well as
end users, especially when user applications are generating Ethernet traffic. It
is inherently sub-optimal to carry this traffic over legacy TDM networks which
provide pre-determined, fixed bandwidth options to end users.
Explains Kumar, "Legacy networks do not allow service providers to take
advantage of statistical multiplexing provided by Ethernet that enables service
providers to offer better support for high bandwidth and on-demand applications
to a higher number of customers over the same bandwidth pipe."
The Ethernet ecosystem is leading to innovation and consequent reduction in
prices, thus making it beneficial for service providers and customers to migrate
to Ethernet based platforms.
As Shoval Bolotin, senior product line manager, carrier Ethernet access
solutions, RAD Data Communications says, "Ethernet's 'pay as you grow'
flexibility, that allows businesses to purchase the bandwidth they need, and
easily upgrade it as per their requirements has made it to be a better option as
compared to other legacy devices."
"Customers find Ethernet easy to use within their own companies because so
many of their existing staff are already familiar with Ethernet," explains
Prasenjit Dey, senior product manager, global Ethernet services, Tata
Communications.
He further adds, "Flexibility is the key for Ethernet. Customers routinely
site 'flexibility' as the main reason for purchasing Ethernet."
Vachon says, "Convergence of voice, video and data services is a major
driver, as Ethernet offers the simplicity of an integrated all-IP network."
Innovation is the Key
As mentioned earlier, various innovations have led to the popularization of
Ethernet in India.
Few initiatives that have set the industry notice the new emerging vertical
include:
Tata Communications introduced global priority stretch service in April,
2009. This service offers cost-effective solution based on usage based billing.
Using a tier-1 IP network, Tata Communications provides bandwidth on a global
scale with no commitment required, enabling customers to use up to the maximum
port speed.
Reliance Communications is pioneering the ring based Ethernet topology. Says
George Varghese, president, enterprise business, Reliance Communications,
"Traditional Ethernet networks are implemented using point-to-point topology.
Such networks are prone to frequent outages due to fiber cut. In a country like
India, where the basic road infrastructure is being expanded at a rapid pace and
'dial before dig' practice does not exist, fiber cuts happen quite frequently,
thus making the services unreliable. Hence, RCOM decided to have ring based
Ethernet network."
This ring based topology brings inherent redundancy at a very little
incremental cost as compared to legacy TDM technology. Moreover, Ethernet
network can be enhanced to mesh network at a lower incremental cost, hence,
further strengthening network robustness.
Operators' Takeaway
The segment of Ethernet services is now in the good books of operators. Its
high demand in the industry has made operators calculate the gains involved in
this new segment. The surge in bandwidth demand from video and TV applications
is comfortably accommodated by Ethernet's performance, reliability, and QoS
benefits.
| Customers
want carrier Ethernet connectivity to extend beyond their local provider's
footprint Kevin Vachon, COO, Metro Ethernet Forum
How do you think is the Ethernet market is likely to evolve in the
coming two to three years?
In terms of projected growth over the next few years, almost all of the
mainstream industry analysts are forecasting a growth of global Ethernet
services from the current $20 bn to exceed $38 bn by 2013. In relation to
India, Ovum has forecast revenues to grow from $84 mn this year to $853 mn
by 2015.
What are the benefits of Ethernet services in comparison with other
legacy alternatives?
MEF certified carrier Ethernet services offer benefits right across the
board in terms of scalability, performance, reliability, security,
simplicity and cost-effectiveness. Customers welcome Ethernet as a familiar
technology that can now be used to link metro, national and global sites.
Business also benefits from a 'pay for what you get' service that allows
bandwidth to be provided at a short notice on demand. For instance, rather
than having to invest in excess bandwidth to meet peak traffic loads, a
company can just ask for extra bandwidth when needed than lower it if the
demand drops. This ensures an optimal return on money spent on services. But
above all, it is the new business opportunities offered by superior carrier
Ethernet services that are driving the market.
What applications are driving the migration to Ethernet?
Cost-effectiveness is a major benefit, but it is usually a secondary
consideration for businesses that choose Ethernet for the functionality and
competitive advantages it makes possible. Other business applications in
India using Ethernet services include L2 VPN, business continuity, disaster
recovery, business Internet, and Ethernet leased lines.
What are the technical advantages accelerating the growth of Ethernet
in India?
Initially, India was not a major adopter of carrier Ethernet, but has
leapt to the forefront in terms of service provision with world-class
Ethernet business service offerings from companies like TATA and Reliance.
Ethernet's flexibility in terms of access media is ideal for India, where
the legacy telecom infrastructure has been less developed. It allows both
incumbent and go-ahead providers to leapfrog old technology, and move
straight to next generation services. The flexible and cost-effective
scalability of Ethernet, and the wide choice of access media are also the
major benefits for India's developing regions.
How is the business adoption of Ethernet going across the globe?
The first step for the MEF was to educate those who saw Ethernet purely
in terms of local area networks. Defining standards and establishing
certification programs encouraged a growing number of service providers to
offer carrier Ethernet services since 2006. Businesses began to discover the
benefits, and the MEF encouraged this with a 'Carrier Ethernet for Business'
world tour in 2007-08. Since then, the demand for these services has soared
worldwide, and met a new bottleneck: customers want carrier Ethernet
connectivity to extend beyond their local provider's footprint, but it still
takes time to establish interconnection agreements with other carriers. This
problem is currently being addressed by the MEF, and from the next year we
expect standards to be ratified allowing carrier-class global networks to be
established as quickly and consistently as global phone links. This will
encourage a further surge in Ethernet services sales, launch a revolution in
global networking.
How will be the next generation services be affected by the use of
Ethernet?
It is only carrier Ethernet-with its power, flexibility, reliability,
and security-that makes the provision of next generation networking a truly
practical proposition. It is the only way forward.
Archana Singh
archanasi@cybermedia.co.in |
All in all, Ethernet is on the fast track of growth in the country. All
service providers provide Ethernet based enterprise and residential services to
customers. Operators like Tata and Reliance have come up with new models in the
competitive landscape of the Ethernet business. Airtel, recently, launched
Ethernet services in more than twenty-five cities across Asia, Europe, North
America, and Australia.
On asked the reason of operators' keen interest in Ethernet, Dey explains,
"Many firms have cited the ability to get and pay for only the capacity they
need rather than taking more capacity than they require at layer-1 bandwidth. In
addition, some customers have cited the ability to grow their network with
non-service impacting upgrades as another reason."
Blooming Prospects
Bolotin of RAD Data Communications says, "With operators world over embracing
Ethernet as far more than a 'best effort' service, business solutions are being
rolled out to encompass the next generation services that are cheaper, and offer
added user value with quick return on investment and sustainable revenue
potential."
The prospects of Ethernet technology appear bright, with its easy-to-deploy
alternative and therefore, even the market is finding promising benefits in it.
Archana Singh
archanasi@cybermedia.co.in
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