Monday, August 1, 2005

Verizon Sees Rapid Rise in Ethernet Demand

Verizon will begin offering three new class-of-service options for its corporate Ethernet services in New York City and Washington, D.C. -- basic data, priority data or real-time communications. The new Ethernet class-of-service options will enable customers to converge their voice and data applications. These options are designed to allow for service-level guarantees that will be implemented at a later date. Verizon plans to expand the service to additional states throughout the year.

Verizon noted that its Ethernet service grew by 50% in 2004.

"Businesses are increasingly migrating their networks to Ethernet from a frame relay architecture that's less flexible. That's part of the reason for last year's red-hot growth," said Michael Tighe, director of Verizon's Ethernet product portfolio.

According to Tighe, large businesses' bandwidth needs are growing 10 percent to 20% a year and for the first time, Verizon is selling more 100 Mbps Ethernet service than 10 Mbps service.

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