Sweet Spot for Ethernet over Copper is Around 10 Megabits

Implications: 1.      Most Ethernet over Copper (EoC) customers appear to be deploying somewhere between 2 to 45 megabits. 2.      About 70 percent of Ethernet over fiber service is at 10 megabits. 3.      EoC suppliers are increasingly mentioning the figure of the potential for 90 to 100 megabits capability.  

Analysis:  Actelis advertises that its products can “deliver up to 100 Mbps Ethernet service per customer.”  Hatteras has talked about several customers operating up to 90 megabits.  

Offering impressive bandwidth with EoC has apparently allowed Allied Telecom in Washington DC to get some wins.  When the president does a briefing in the pressroom of the White House, it is transported over EoC into CNN.  In addition, sometimes a business in the DC area will move to a new facility and it is supposed to have fiber optics there – and the building gets constructed quicker than Verizon can install the fiber.  Allied is there to potentially alleviate anxiety by providing up to 90 megabits over copper.  (Obviously, a potential usage for EoC could be in those cases in which a telco is not sure whether to invest in fiber right away.)  Other carriers that are offering up to 90 meg as well evidently include Telekenex in California and PowerTel in Australia.  In general, customers that are looking for a ubiquitous service offering will be more inclined to go to the higher speeds.