Metro Ethernet Offers Opex Gains
by Gary Southwell, Metro Ethernet Forum
Posted 01/2005; Published 07/2004




Can Ethernet service be operationally efficient enough to offer advantages over traditional services? The Metro Ethernet Forum decided to find out. Recently, it commissioned a set of independent studies of global business service deployments to examine the operational cost models of traditional TDM, frame relay and ATM services compared with that of recently rolled-out Ethernet services. PointEast Research studied the operational models of 36 North American and European service providers as well as 18 providers from Asia/Pacific. In both studies, PointEast found that Ethernet private line (E-Line) and Ethernet LAN (E-LAN), services can save service providers approximately 22 percent in opex on average over three years, compared with their TDM and frame relay/ATM rivals.


The two studies show that savings increase year over year for the entire study period. In performing these studies independently, PointEast was able to confirm and validate its original findings for the North American and European markets against the results from the recently concluded Asia/Pacific study. The results were nearly identical and show conclusively that Metro Ethernet services have substantial operational cost benefits for service providers in comparison to legacy services and can materially affect provider profitability.


About the author:

Gary Southwell is vice president of the Metro Ethernet Forum and vice president, product marketing for Ciena Corp.



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