Ethernet’s success in the corporate LAN, and subsequently in the MAN, is based on a number of factors, three of the most compelling ones being its low cost of ownership, its high bandwidth and scalability, and the fact that it is relatively easy to set up and use. These attractions, along with a few others such as any-to-any connectivity, the ability to run with different media such as copper, fibre and wireless, and the capability of integrating with technologies such as SONET/SDH, DWDM and DSL, are now sponsoring its increased use on a much larger network canvas.

This increased visibility can be expressed in generalist terms. "I see Ethernet developing in four directions: 'up', 'down', 'over' and 'across'", states Bob Metcalfe, the individual credited with inventing the packet-based networking technology. "Up in speed - whether we jump to 40Gbits/s or 100Gbits/s is more to do with the decision balance between telephone and computer companies than any limit to the technology. Telephone generations are traditionally four times faster while computer generations go up in tens. Ethernet is moving down to the 8bn processors shipped each year that are not yet networked. It's increasingly moving over wireless links - Wi-Fi, WiMAX, ZigBee and others - which is ironic as it was derived from the 1970 Alohanet packet radio network. And now it's moving even further across the telechasm between LANs and WANs with the development of Carrier Ethernet". Metcalfe, advisory director of the Metro Ethernet Forum (MEF), was speaking in April on the occasion of his organisation’s launch of ‘Carrier Ethernet’ and the associated introduction of a certification programme (click).

In terms of public network specifics, Ethernet has been moving out of the MAN for some time now in the form of national networks operated by service providers such as THUS in the UK and Korea Telecom (KT) in South Korea. Next up were regional and international services such as that operated in Europe by Colt Telecom.

A recent addition to the ranks of operators offering international connectivity is KPN which this month launched a new international Ethernet product providing customers with switched Ethernet services between worldwide locations with speeds of up to 1 Gbits/s. In launching this new service, KPN has extended its Dutch Ethernet service across its international EuroRings backbone network." In order to meet the demand for new services, we are continuing to innovate - in this case, by deploying native Ethernet over our next-generation MPLS backbone network", says John van Vianen, senior vice president connectivity services at KPN. "We are delighted that we can now offer our customers truly international Ethernet services with one service level, one delivery platform, one single point of contact, and one invoice".

On the OOF
A new US variation on the wide area Ethernet theme is out of franchise (OOF) services. According to 'Carrier Ethernet Is Ready for Expanding Ethernet Services: The US Out Of Franchise Opportunity', a new analysis from Infonetics Research, Carrier Ethernet products are the best universal transport solution to support OOF solutions.

Infonetics reasons that Ethernet services are a growing market because they are flexible and scalable enough to meet the needs of small and large businesses alike. But the company also notes that while most Ethernet services are sold to business customers today, a growing market for residential services offers the opportunity to add other services on top of a basic Ethernet connection, including voice over IP (VoIP), broadcast video, video on demand (VoD), and gaming. Infonetics argues that although these benefits provide incentive for incumbent carriers to develop new service offerings, the same benefits make the market attractive for carriers to expand outside their traditional serving area. By offering these services OOF, the competitive carrier can gain new sources of revenue and profits without having to be concerned with the cannibalisation of existing service revenue.

"Carrier Ethernet supports legacy and next-generation services over a single, converged network and is the most promising universal transport solution", judges Michael Howard, principal analyst and co-founder of Infonetics Research. "As providers accelerate the deployment of OOF solutions, they should consider Carrier Ethernet. Another benefit is that carriers can apply their OOF experience and knowledge to in-region deployments to offer new services, attract new customers, and retain customers, while driving operational expenses lower".

In the opposite direction, use of Ethernet is expanding mighty fast in the access network. Here Sweden’s Ericsson is a leading supplier of Ethernet over DSL technology, numbering among its customers in the last 12 months alone Greece’s Vivodi Telecom, Colombian operator Telebucaramanga, TeliaSonera in Denmark, Banyan Telecommunications in the Philippines, Hungary’s Magyar Telekom, Brasil Telecom, PT Telekomunikasi Indonesia, and Sweden’s B2 Bredbandsbolaget. The acquisition of the last named, Sweden 's second largest provider of broadband services with more than 340,000 broadband customers, was completed by Telenor of Norway in July.

EPON my word
Led by Asia and taking the form of Ethernet Passive Optical Networks (EPONs) Ethernet over fibre access is also on the rise. Two recent developments concerned deals struck by Japan ’s KDDI and KT with chip-maker Teknovus.

In the first Teknovus announced that it was supplying its 'TK3700-series' EPON chipset for use in KDDI's 'Hikari-Plus Home' nationwide fibre-to-the-home (FTTH) service.  "When we examined the architectural alternatives, it was clear that multi-service EPON was the only choice for our next-generation access network", observes Shigeo Morita, senior manager of KDDI's Broadband Engineering Department. "To compete in the Japanese market we must provide ultra-high-quality services, including copper-grade VoIP, advanced video services, and QoS-aware data services. At the same time, an EPON system must compete on cost with other broadband platforms, such as DSL".

" Japan is leading the world in deployment of FTTH. KDDI is the first example of a top-tier Japanese service provider using EPON to offer high-end voice, data, and video residential services that compete directly with cable-, DSL-, and satellite-based networks", offers Teknovus ceo Dr Rex Naden. At that juncture (March 2005) Teknovus had shipped more than 1mn EPON ports to more than twenty original equipment manufacturers (OEMs) in Asia, North America, and Europe.

In the second EPON development Teknovus teamed with Korea access specialist Corecess to supply KT with the 'TK3700-series' chipset and Corecess’ 'S5' scalable IP multi-service access platform and '3800-series Optical Network Terminal (ONT)'. KT, Korea ’s largest service provider, is using the equipment to build a nationwide broadband FTTH network for 2005 deployment that will deliver triple-play services - voice, data, and ultimately television - to residential customers.

CATV and hybrid fibre coax (HFC) networks are other areas being populated by Ethernet with solutions from companies such as Narad Networks and Riverstone Networks. Meantime, Finnish company Teleste is pushing what it terms Ethernet to the Home (EttH), a technology that provides next generation speeds for data access over cable networks and is claimed to overcome the bandwidth and cost restrictions of DOCSIS/EURO DOCSIS-based solutions. According to Teleste the ETTH system is a true end-to-end Ethernet network supporting triple play IP solutions. The offering includes products for transportation of Ethernet data at very high speeds (up to 100Mbits/s) from optical node to strategic locations in the coaxial cable plant. Teleste is reportedly running a field-trial with Dutch CATV operator Essent in Netherlands , and anticipates 100Mbits/s solutions in 2006.

Socket to me
Ethernet is also covering new ground back in-doors. Earlier this month Canadian home networking company Corinex announced that Spain ’s Telefónica had selected the Corinex 200Mbits/s 'AV Powerline' Ethernet adapters for use in its ‘Imagenio’ IPTV home entertainment and communications package. Corinex’s equipment will be used to connect ADSL modems sending IPTV signals to TV set top boxes via existing electrical wiring. According to Corinex, a major obstacle for telcos delivering IPTV has been sending the signal from DSL modems to other rooms in the home. Powerline technology carries signals throughout an entire home, eliminating the connectivity problem.

"Corinex is currently in tests and field trials with 17 carriers worldwide for IPTV deployment", states Corinex ceo Peter Sobotka. "Passing Telefónica’s rigorous testing procedures and field trials is a strong validation of the strength and fit of our 200Mbits/s product line for this market".

LAN mined?
But does the Ethernet vendor community’s growing interest in new market sectors indicate that demand in its original corporate LAN stomping ground is played out? Not at all if a new report from the Dell’Oro Group is correct. The Dell'Oro Group 'Ethernet Switch Quarterly Report' calculates that that revenues in the Ethernet switch market rebounded from two consecutive quarters of decline, growing 8% in 2Q 2005 to reach US$3.5bn. Dell’Oro says demand was very elastic, with port shipments surpassing previous quarterly highs in the wake of renewed price decreases. The report also indicates that prior to this quarter's decline overall market prices had been abnormally stable for the past year.

"The spate of new product introductions resulted in increased competition, which helped drive prices down. These price declines combined with a robust IT spending environment resulted in very strong port shipment growth", suggests Seamus Crehan, director of Ethernet Switch Research at Dell'Oro Group.
John Williamson