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Ethernet To Dominate City Broadband

Posted: 27th May, 2003 By: MarkJ
Analyst firm Gartner has become the latest group to prophesise the eventual dominance of metropolitan Ethernet networks over the likes of broadband xDSL etc. While this may ultimately end up being true, the road to Ethernet is not an easy one:

Neil Rickard, research director at analyst firm Gartner, said, "Metro Ethernet in the UK is still in its early stages and, although a few companies are using metropolitan Ethernet networks, they tend to be the biggest companies in the larger cities." This is a result, he said, of BT's stronghold on fibre networks and high costs. Although the costs seem reasonable on BTs website, this only applies when sites on the network are within a few kilometres of the same exchange.

Costing is complex but, as a rule of thumb, initial connection costs about £1,000 per end, or £2,000 to make a connection between two sites. Both sites must be within 5km of the exchange. Annual rental is £4,000 per end but if the network jumps from one exchange to another the costs mount. At £2 per metre, a 2km hop adds £4,000 to the bill. Corporates are generally the only organisations that can afford to connect from one side of a city to the other.

"I think this will change and there will be a slow trickle down as metro Ethernet gains more extensive use," Rickard said. "Although the links are expensive, the spread of Ethernet makes the system as easy to manage as a large campus network, meaning one administration policy and one support team. And the fact that Ethernet is already a mass-market technology means the hardware is cheaper."


Ethernet's ability to offer data rates of up to 100Gbps (in the next few years) will ultimately help in its ability to replace existing leased-line and flexible broadband (ADSL etc.) services.

Quite how long it will be before residential users get a taste is much harder to answer. More @ CW360.
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