Another player entering the Ethernet services market is Fibernet Group plc (London: FIB). It has rolled out a nationwide MPLS network in the U.K., based on core routers from Huawei Technologies Co. Ltd., to offer Ethernet services (see Huawei Springs Surprises).
Level 3 Communications Inc. (Nasdaq: LVLT) recently relaunched its Ethernet services in Europe (see Level 3 Expands in Europe). Level 3 believes that, in addition to the pent-up demand in Europe, Ethernet connections are now regarded as credible alternatives to STM1, STM4, STM16, and even STM64 links. The carrier also reckons that the cost and capabilities of Ethernet technology have now reached levels where a quality service can be economically delivered.
Other Ethernet service providers, such as Colt Telecom Group plc (Nasdaq: COLT; London: CTM.L) and Exponential-e Ltd. say business is booming. Exponential-e says it already has 150 enterprise and about 15 service provider customers, and it plans to raise money to extend its network into continental Europe (see Exponential-e: What Yipes Wasn't)).
The upshot of all this activity is that Europe's incumbent carriers are being forced into a position of having to respond by rolling out their own Ethernet services, even if they risk cannibalizing their legacy data services.
BT Group plc (NYSE: BTY; London: BTA) launched its own services late last year (see BT Offers Ethernet Over ATM). It's also planning to announce a Gigabit Ethernet access option in the coming week. This will allow users to aggregate multiple circuits onto a single connection.
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