News

27/8/2003

Ethernet in the First Mile: Provisioning Broadband on the Cheap

The worldwide number of residential Ethernet in the First Mile (EFM) subscribers will rise from 2.1 million in 2002 to 23.9 million in 2007, with most of these subscribers residing in the Asia Pacific region, reports In-Stat/MDR. The high-tech market research firm finds that since the end of 2000, there has been growing momentum for the use of Ethernet in the residential subscriber access network, owing to Ethernet's relatively low cost, simplicity, flexibility, ubiquity and high bandwidth.

Defined as the use of the Ethernet protocol in conjunction with either copper or fiber to provide a broadband service link between the service providerās Central Office (CO) and a subscriberās residence, EFM is currently being standardized by the Institute of Electrical and Electronics Engineersā (IEEE) 802.3ah Task Force, with completed standards for three physical layer topologies "point-to-point over copper, point-to-multi-point over fiber, and point-to-point over fiber" as well as a common Operations, Administration and Management (OAM) protocol, expected in the first half of 2004. A parallel effort to develop market awareness for the new technology is being undertaken by the Ethernet in the First Mile Alliance (EFMA), an industry association composed of twenty-four silicon suppliers, equipment vendors and service providers, from the US and various other countries.

In-Stat/MDR has also found that:

* EFM over copper will comprise the majority of deployments throughout In-Stat/MDRās forecast period, 86% in 2002, although EFM over Fiber to the Home (FTTH) will rise to 29% of deployments by 2007.

* Residential EFM is, currently, mostly an Asia Pacific phenomenon, and will largely remain so over the next 5 years. Reasons for this include: heavy reliance on Multi-Dwelling Units (MDUs), short local loop lengths, low labor costs, appropriate pro-active government support, and, particularly in the case of China, the need to deploy new infrastructure.

* Europe will be the second largest market for EFM, on a subscriber basis, with Scandinavia and Italy seeing particularly large deployments over the next five years. EFM deployment in the US will remain fairly limited and typically be deployed by alternative service providers, such as municipalities, utilities, property developers, and independent telcos.

The report, "Ethernet in the First Mile (EFM): Provisioning Broadband on the Cheap" (#IN030818RC),discusses the standards and technology enabling EFM and the worldwide market for EFM as a residential broadband access technology. Current deployments, key trends, market drivers and challenges, and five-year subscriber forecasts are given for the Asia Pacific region, Europe, and North America, as well as on an aggregated worldwide basis.

www.instat.com