USTelecom Members Lead 2015 Ethernet Investment

Friday, February 26th, 2016

USTelecom members AT&T, Verizon, CenturyLink and Windstream were among the top performers in the Ethernet services market in 2015, according to an annual report by Vertical Systems Group. The Ethernet market grew by more than 20 percent with the bulk of growth occurring in the first half of the year, the report said. Vertical’s annual “Leaderboard” rankings included Windstream as a new entrant, due to the company’s ramped up Ethernet investments.

A Windstream press release, quoting Vertical’s Rick Malone, said demand for Ethernet services remains strong, especially in segments of the market where Windstream is targeting its strategic services. “This is Windstream’s inaugural appearance on our LEADERBOARD, and the company’s continued investments in its fiber networks should put it in solid position for next year as well,” the statement said.

The Ethernet services market is a key component of the business broadband marketplace. Over the past two decades, massive investment to deliver high-capacity services to businesses of all sizes has contributed to the success of the overall Internet economy. Businesses use these services for applications like data center interconnection, disaster recovery, video services and access to cloud services.

This market is marked by a migration away from the traditional “special access” services that use Time Division Multiplexing technology toward much higher capacity Ethernet services. A recent USTelecom white paper documented the revenue growth trend in the Ethernet market, which is estimated to expand from $7 billion to more than $20 billion over the next five years.

Vertical’s 2015 top rankings list the following companies (in order of port share): AT&T, Level 3, Verizon, CenturyLink, Time Warner Cable, Comcast, Cox, XO and Windstream. To qualify, providers must have 4 percent or more of the U.S. Ethernet services market. Shares are measured by number of ports in service at businesses and enterprises as tracked by Vertical, with input from surveys of Ethernet providers.