Telecommunications and Bonded Copper Report

PRLog (Press Release) – May 27, 2008 – The market for Ethernet over Copper is about to take off after a period of trial deployments. Consumers and businesses seemingly insatiable demand for increased bandwidth is driving a new round of plant investment, and while the business case for fiber will be positive in certain instances, upgrading existing copper certainly offers a near-term solution to the market’s demand for more bandwidth. Many service providers have already deployed copper bonding equipment, and others are focused on evaluating its advantages.

This report takes a look at several applications for carrier Ethernet over Copper technology including cellular backhaul, Ethernet services, DSLAM backhaul, and IPTV distribution. This report looks at the key technologies utilized by vendors in this space and analyzes the pros and cons of each. Ethernet Over Copper forecasts equipment and service revenue, and charts the course of this emerging technology.

Report Excerpt

1.1 Market Overview

Fiber-optic based communications is the end game since nothing matches its information-carrying capacity, which is theoretically unlimited.  Around the world, carriers are investing billions of dollars to push fiber ever closer to the customer’s premise and to link the ever increasing number of cell towers to backbone networks.  But when a potential investment in fiber can not show a reasonable return on investment (ROI), a new technology that bonds copper circuits together to create a very high bit rate link is becoming a viable alternative to fiber— and one that  research suggests will become increasingly important in the months ahead.
Consider that in 2000 only about 8-10 percent of US office buildings were wired with fiber. Carriers were willing to invest in the deployment of fiber to those building because those buildings supported about 50 percent of the telecom business spending.  Between 2000 and 2007 fiber continued to be deployed— but it still available only in about 12-14 percent of US office buildings, leaving high-speed data services essentially unavailable to the remaining 86 percent of business locations.

Analysis suggests that three applications will drive the high speed data over copper market:
Ethernet data services;
Cellular backhaul; and
DSLAM (Digital Subscriber Line Access Multiplexer) backhaul.

Ethernet data services is the largest of market opportunity for bonded copper products, but it is the one that our research suggests will taken the longest to mature since major service providers who offer Ethernet data services must adopt a new technology—always a slow and cautious process.

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