Ethernet features prominently in the data network evolution plans and router and switch requirements of service providers in North America, Europe, and Asia Pacific, according to Infonetics Research. A new optical transport layer will emerge as carriers transform their networks in an effort to simplify network layers, use fewer technologies, build a more cost efficient infrastructure, and move to all-packet.

This new layer will be a fused Ethernet-WDM packet transport with circuit-like capabilities via Ethernet transport tunnels, also known as COE, or connection oriented Ethernet.

The service layer above the Ethernet-WDM transport will be simplified to IP/MPLS/Ethernet, and carriers will gradually reduce their dependence on SONET and SDH in transport and on ATM in service layers, while increasing their use of Ethernet in the service and transport layers. This means a growing IP router and carrier Ethernet switch market, the study says.

“COE Ethernet transport tunnel technologies like T-MPLS and PBT are seeing strong adoption given their early stage of development, and will be an essential ingredient of the service and optical transport layers, as they allow the displacement of SONET/SDH and enable carrier Ethernet switches to displace some routers,” said Michael Howard, principal analyst at Infonetics Research. “As a result, router and carrier Ethernet switch sales should continue strong as Ethernet and IP/MPLS traffic continues to grow, and at even faster rates than seen in a similar study we conducted last year.”

Other highlights from the study: