Business Ethernet Thrived in 2008

According to a report by Vertical Systems Group, demand for business Ethernet ports grew at a 43% rate during 2008.  That’s a really nice growth rate of course, and it seems to be holding up well despite the cutbacks in telecom spending brought on by the recession.  Of course, that is because it does the job better and more cheaply than legacy technologies.  Overall spending may decrease, but at the same time more focus is shifted to things that save money and this one is often a no-brainer.

VSG also listed the eight service providers with 5% or more of the market from largest to smallest: AT&T, Verizon, TW Telecom, Cox, Qwest, Cogent, Time Warner Cable, and Level 3.  That didn’t change much from last year, Qwest and Cogent swapped spots and Level 3 edged its way onto the list for the first time.  But it does make you wonder how Level 3 managed to grow market share.  After all they started 2008 almost unable to provision much of their Ethernet portfolio, and their business markets division’s growth was flat all year.

Supposedly, much of the installs in the fourth quarter were just finishing up work in progress, as spending freezes took hold amidst the panic.  It remains to be seen just how the recession will affect business Ethernet this year, but of all the telecom and data services provided to the enterprise space this ought to be one of the very strongest.  Well, it ought to if logic applies, however logic hasn’t been terribly useful lately.

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Categories: ILECs, PTTs · Internet Backbones