Wholesale Carrier Ethernet, United States, 2023

This Frost & Sullivan report covers the wholesale carrier Ethernet market in North America. Ethernet has significant demand for its flexibility, scalability, and reliability features. Ethernet services offer faster repair times and better security and performance than other transport services. While the need for cloud connectivity is driving its use, it is also pushing down costs/revenues. Organizations still require Ethernet to access cloud-based applications and to interconnect their on-premises and hosted data centers (DCs). Cloud service providers also continue to use Ethernet connectivity to interconnect their geographically dispersed data centers. The main driver for Ethernet is the ever-increasing network traffic to support bandwidth-hungry enterprise applications. Direct internet access (DIA) is often used for software-defined networking (SDN) technologies, and network service providers (NSPs) are increasingly using Ethernet to support the DIA offering, which reduces revenues for the Ethernet product line. To stay competitive, wholesalers need to innovate with bandwidth-on-demand and application-aware networking capabilities to ease bandwidth optimization and grant partners greater control over their networks with pay-as-you-go cloud-like services.

Author: Leandro Agion