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Forecast: Enterprise Ethernet Services, EMEA

Ovum, Feb 2009, Pages: 17


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The enterprise Ethernet services segment is a bright spot in EMEA’s telecom market, which overall faces a retrenchment phase due to the challenging macroeconomic situation. Ovum expects Ethernet services sales to expand at an 18% compound annual growth rate from 2008 to 2014, driven by substitution from older, slower, and more costly legacy data services. Revenues in 2008 were up strongly, increasing by more than 40% from the year before. Specific growth drivers include T1/E1 replacement, the development of a Gigabit Ethernet community, corporate hub and spoke services, and any-to-any connectivity applications. Ethernet services demand in EMEA is greatest in the UK, France, Germany, and Italy.



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