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Ethernet Making Metro Inroads: Page 2 of 2

According to the report, the worldwide market is dominated by Cisco Systems, with 39 percent of the market, and Nortel, with 21 percent. Perrin noted that Cisco didn't pay too much attention to the market initially, but it does now, after it realized there was great growth potential there. Nortel understood the market early on and worked hard to develop its share.

Recently, major telephone companies--including AT&T, BellSouth, and SBC Communications--have all rolled out Ethernet Metro services aimed primarily at medium and large businesses. In his report, Perrin divides the market into four segments, representing four different equipment approaches to the Ethernet metro market:

  • The Ethernet over Metro wave division multiplexing (WDM), which delivers very high bandwidth at pricing that can be very inexpensive.
  • Ethernet over Synchronous Optical Network/Synchronous Digital Hierarchy (SONET/SDH) multiservice provisioning platforms (MSPPs.) This market is evolutionary and is tied to older broadband technologies.
  • Layers 2 and 3 switches being replaced and upgraded by Ethernet Metro architecture.
  • Routers also being replaced and upgraded by Ethernet Metro architecture.