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Market
Research
March
20, 2004
Service Providers investing in IP/MPLS
networks
UNITED
STATES -- According to Infonetics Research’s
latest market research study, Service Provider Plans
for IP, MPLS, and ATM Networks, many North American
and European service providers are planning transitions
from their current networks to next-gen MPLS converged
networks. Despite a lean capex environment, service
providers are increasing investments in IP, MPLS, broadband,
and metro Ethernet.
Kevin
Mitchell, analyst and lead author of the study, Infonetics
Research, said: "Vendors have done an admirable
job proselytising convergence over MPLS. Many of the
carriers we interviewed are gearing up for data network
convergence in an assertive way because the potential
payoffs are worth the investment. The biggest payoffs
include opex and capex savings through eliminating network
duplication, the ability to leverage a wider variety
of access methods, and, as always with IP/MPLS, the
promise of new revenue opportunities. It is still early,
and questions remain about the various convergence approaches,
but the movement to a unified MPLS core is not open
to question. A major theme of our study, in addition
to data network convergence, is the overall movement
to next-gen IP networks. Service providers are looking
to vendors for technology and equipment they can use
to build an IP network that is more reliable, more scalable,
and rich with service options for differentiable private
IP services like VPLS and MPLS VPNs."
According
to the report:
- Nearly
62 percent to 81 percent of service providers interviewed
are increasing their investments for IP/MPLS, broadband,
and metro Ethernet in the next year;
- IP/MPLS
traffic will grow 118 percent on average between 2002
and 2003, and will continue to grow through 2004;
-
The percentage of respondents doing some form of data
network convergence over IP or IP/MPLS has risen from
62 percent in 2003 to 86 percent in 2004; and
-
The average 2003 revenue is likely to be US $16.6
billion.
Contact:
Infonetics
Research
www.infonetics.com
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