News

The global Carrier Ethernet access  platform (CEAP) market grew 38 percent, from US$1.06 billion in 2009 to $1.46  billion in 2010, according to Heavy Reading’s newly published CEAP   Quarterly Market Tracker. The market climbed 10 percent quarter-over-quarter in  the fourth quarter of 2010 and has been up sequentially in six out of the last  seven quarters. Growth is being driven by deployments related to increasingly  popular Ethernet business connectivity, mobile backhaul, DSLAM backhaul and  other applications. An estimated 650-plus service providers and other companies  worldwide have deployed CEAP platforms.

 
 The CEAP market tracked by Heavy Reading consists  of several next-generation equipment sub-segments: (1) Ethernet-over-fiber   switch/intelligent demarcation platforms; (2) Ethernet-over-bonded copper pair  (G.shdsl.bis and MIMO on DTM) platforms; and (3) Ethernet-over-TDM access  circuit platforms. We currently do not include estimates for revenue generated  from Ethernet-over-PON, Ethernet-over-wireless, or Ethernet-over-DSL products.
 All CEAP categories posted quarter-over-quarter growth in  the fourth quarter of 2010, but E-o-fiber access sales were particularly strong   following softness in the previous quarter. E-o-fiber platform sales grew at 12  percent sequentially, followed by E-o-TDM access platform sales (up 3 percent  sequentially) and E-o-bonded copper pair platform sales (up 1 percent  sequentially).

 
 I frequently see a lot of network solutions providers claiming  to be Carrier Ethernet access platform leaders, so I would like to walk readers  through our latest view of the top players.

 
 The overall CEAP leadership picture is complicated a bit  by this week’s news regarding the merger of Overture Networks and Hatteras   Networks. The new Overture Networks appears to have a legitimate claim to be  the No. 1 overall CEAP supplier when one considers the combined estimated 2010  revenues of Overture and Hatteras. The private companies have closely guarded  their sales figures, so it is difficult for outsiders to know for sure.

 
 If we consider market leadership prior to the news of the   Overture-Hatteras merger, this is what we see for the overall CEAP market and  its three sub-segments for 2010:

• For       the overall CEAP market in 2010, Ciena slightly edged Cisco and Huawei for       the top spot. This is due to Ciena’s explosive E-o-fiber access platform       sales in in the first half of the year that were fueled primarily by       mobile backhaul applications. The share difference among these three       players was less than 1 percent for the year.

• For       the Ethernet-over-bonded copper pair segment, Hatteras and Adtran tied for       the market lead and Actelis came in third.

• For       the Ethernet-over-TDM access circuit segment, Overture had a commanding       lead, followed by RAD and ANDA.

• For       the Ethernet-over-fiber access platform segment, Ciena had a slight lead,       followed by Cisco and Huawei.

Detailed annual and quarterly share  information, market forecasts, and other information on key suppliers can be  found in the Heavy Reading’s CEAP Tracker.

The Light Reading audience will have the  opportunity to hear from important suppliers of next-gen Carrier Ethernet  access technologies during the upcoming Ethernet Europe event held in London on April 12 &  13, 2011.

 — Stan "EtherMan" Hubbard, Senior Analyst, Heavy Reading, and Chairman, Ethernet  Europe 2011
 (From lightreading)