A new report from Infonetics Research indicates that revenue from Ethernet and other wholesale services will continue to grow. In 2011, growth was 13%, to $50 billion worldwide, and that figure is expected to reach $81 billion by 2016. In a marketplace increasingly driven by cloud services, video, social media and other data-hungry functions, migration from legacy services to Ethernet (and wholesale services in general) will be a matter of necessity. Asia, in particular China and India, are expected to lead the market for these network technologies.

Tarifica’s Take

The statistics cited in the report are consistent with Tarifica’s contention that the enormous growth in data usage around the world will continue unabated for years to come, and that this will lead to greater demand for fixed line services. Such operators should therefore focus on maximizing the data utilization of their networks, including upgrading them if necessary, in order to be ready to handle and profit from a much higher demand for data traffic. In our view, this is the silver lining in the black cloud that has been hanging over the fixed line industry for years. Fixed line operators should keep in mind the old adage, at least when it comes to mobile providers, “if you can’t beat them, join them.” This is their opportunity to join in, and benefit from, the mobile revolution sweeping the planet.