Could Ethernet over Copper Gear be Sold Directly to Enterprises?

Implications: 1.      An Ethernet over Copper (EoC) supplier, such as Hatteras Networks, sells to service providers and mobile operators that either own or have access to copper facilities through special access, leased lines, UNE-Ls and LLUs. 2.      Hatteras is not thinking of selling straight to the enterprise market. 3.      It partners tightly with Cisco Systems to allow carriers to offer a managed service.

Analysis:  For every dollar that Hatteras sells, it pulls through about $6.85 of network equipment for Cisco Systems – including PIX firewalls, 2800 routers, and IADs.  Their first sale together was in early 2007.  

At least in the U.S., it is hard to imagine an enterprise leasing a copper line like it would an optical fiber.  The level of quality on copper lines can be wide ranging and significant degradation can happen within a relatively short period of time.  Unless there is a cable break, glass fibers can remain in pristine condition indefinitely.   In addition, it would be difficult for corporations to take on the operational complexity of EoC.  All of the tools necessary to make it work might not be worth the expense and effort.  However, if the bandwidth on an EoC product could be increased substantially, leasing of reasonably new copper probably cannot be ruled out – especially for a limited amount of time.