Ethernet: fast, flexible, the future 

Centina chief Anand Gonuguntla says Ethernet is the area to watch in 2013 since it’s flexible, cost-effective and solves the real bandwidth crunch in the crucial last mile.

“There is no crunch on core networks, either fixed or mobile,” he says. “The only bandwidth scarcity exists in the last mile. For wireless, the backhaul link from the tower to [the] central office has been an issue, and most carriers are migrating to fiber and microwave solutions for backhaul, which are expensive upgrades.” 

Ethernet, on the other hand, doesn’t require a truck roll to customers to upgrade their bandwidth — it happens instantly. And unlike a T1, which is delivered in static increments of 1.5 MB, it offers the flexibility to move up or down as needed in terms of the amount of bandwidth delivered and paid for. 

“But carriers must assure the customer that with these benefits comes end-to-end service quality management,” Gonuguntla adds. “So, carriers will require next-generation bandwidth management implementations in order to optimize how that traffic is handled and prioritized ... to drive as much cost as possible out of the link and to meet SLAs [service-level agreements] in a wholesale environment.”

Regardless of the solution, technologies to tackle bandwidth issues are top-of-mind for network operators of all flavors, both to entice customers with greater throttling control and drive down CAPEX and OPEX (operating expenses). And while no one solution can tackle the astronomical rise in bandwidth demand or the ever-thinning profit margins involved in operating a network, a few will emerge as market leaders. Those with innovative ideas that allow operators to fatten up their existing margins have a juicy opportunity ahead of them in 2013 and beyond.