Guest Column

Fulfilling The Promise of MPLS: Ethernet Private Line Services Emerge as a First Killer App  (continued)

The new “killer” application for MPLS that is seeing significant demand by both service providers and corporate customers is Ethernet Private Line service. Enterprises have long relied on Ethernet as a primary method for transporting IP-based traffic. That reliance, combined with familiarity, bred the recent Ethernet invasion of the Metro. New technology and network architectures make it possible to extend Ethernet, a widely used and understood technology, beyond the reach of local and metropolitan networks.  The ability to transport Ethernet traffic over a service provider’s IP/MPLS backbone opens up the possibility of Ethernet Private Line service between remote sites. This leverages equipment already in place in the enterprise and the IP/MPLS infrastructure deployed by service providers. Ethernet Private Line service introduces a substantial revenue opportunity for service providers while supporting simple, fast, reliable connectivity for the enterprise.

MPLS and edge routing also enable new premium Internet services. For example, service provider customers have varied requirements for Internet access quality. These requirements can be met with Business-Class Internet Access, wherein service providers deliver differentiated service levels for traffic and charge customers at distinct billing rates. In addition to meeting customer demand, this offers service providers a way to improve upon their current low-margin Internet access service. Other new premium Internet services now possible include destination-aware services, where pricing is tied to geographical location, and on-net vs. off-net service, where providers can offer guarantees aimed at driving additional traffic onto their network.

Other service opportunities include provider-provisioned VPN services, which leverage the MPLS core to interconnect numerous customer sites in a hierarchical and scalable fashion, utilizing Border Gateway Protocol (BGP) and Label Distribution Protocol (LDP) to efficiently propagate connectivity information between them.  Provider provisioned VPNs present an opportunity for service providers to offer differentiated, revenue-generating services while benefiting enterprises that want to outsource VPN management.

This new architecture also enables service providers to offer bundled services to customers to further penetrate existing accounts and increase revenues. For example, they may bundle IP VPNs with existing Frame Relay or Internet access services.   This allows service providers to take advantage of the fact that Layer 2 and IP services can now be offered over a lower-cost, single infrastructure.  This results in cost savings that can either be passed along to the customer or added to the bottom line. 

The examples above illustrate some of the exciting new service opportunities and cost savings made possible by the new MPLS-enabled multiservice service provider network architecture. With the innovative combination of IP and MPLS technology, service providers can now adopt a new network architecture that goes far beyond mere capacity and connectivity. A multiservice, IP-based network architecture reduces infrastructure cost, enhances scalability and enables service providers to fulfill the promise of MPLS, giving them the tools they need to succeed in today’s competitive market conditions.

Stephen Vogelsang is Co-Founder and Vice President of Sales and Marketing for Laurel Networks.  Previously,  Vogelsang served as senior director of strategic and technical marketing at FORE Systems. He can be reached at sjv@laurelnetworks.com

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