Ethernet Keeps Growing

Ethernet continues to gain a more prominent role in networking capabilities being deployed by service providers in North America, Europe, and Asia Pacific, with most carriers reporting 90 to 100 percent increases in Ethernet traffic for the past two years, according to analysts at Infonetics Research. IP and MPLS traffic has grown 70 to 80 percent over the same period, Infonetics says.

A new optical transport layer also will emerge, Infonetics believes. This new layer will be a fused Ethernet-WDM packet transport with circuit-like capabilities via Ethernet transport tunnels, also known as COE, or connection oriented Ethernet. That means more adoption of T-MPLS and PBT, Infonetics believes.

There was a time when some argued that "connectionless" protocols such as IP would replace "connection oriented" protocols such as time division multiplex, SONET and asynchronous transfer mode. As it turns out, there's a reason why connection-oriented protocols, or at least protocols that emulate connections, are important. Some traffic types, especially video and voice, are susceptible to impairments that can arise when connectionless protocols are used.

Whither WiMAX?

It might seem odd to question just how big the WiMAX infrastructure market might be, given strong support from the likes of Intel and others who see a data device optimized broadband network as a huge opportunity. And maybe WiMAX ultimately will create a large enough global base of infrastructure that handset and device manufacturers will have a large opportunity.

But potential end user volumes matter, and matter a lot, in today's world. The issue isn't whether WiMAX will work. CDMA works. But global volumes for GSM networks are so large that device innovation is higher on the GSM than the CDMA sides of the ledger. Volume also is a factor for software developers, who prefer larger markets to smaller markets.

Sprint got people excited with plans to build a $5-billion, nation-wide network in the U.S. but that strategy is now in question. Sure, there's the rest of the world, but if you have followed mobile technology trends for any time, you are more careful about the installed base, and the potential installed base.

In the third-quarter, Infonetics Research says, worldwide WiMax equipment sales climbed a mere six percent to $206-million. Meanwhile, worldwide unit shipments of fixed and mobile WiMAX equipment rose 16 percent in the third quarter of 2007.

Still, Infonetics is looking for Wi-Max to see annual growth of 87 percent between 2006 and 2010 as more carriers embrace the fourth-generation technology.

The number of worldwide WiMAX subscribers (fixed and mobile) is expected to skyrocket to close to 60 million in 2010, led by the Asian region, Infonetics says.

Still, there is the historic example of iDEN and CDMA to consider. Devices are more important than networks these days. And one has to contend with the issue of sheer mass, in that regard. There's no question that WiMAX will work. But that's not the crucial question. The issue is how large the market for WiMAX devices might be, compared to GSM and its derivatives.