So says a recent report from The Yankee Group, which predicts that value-added retail services based on Ethernet will make up $2 billion out of a total $4 billion market for Ethernet services in the U.S. by 2006.
"We expect several value-added services will see explosive growth in the next three to four years, including storage-area networks, IP VPNs [virtual private networks], and content delivery," writes Yankee senior analyst Nick Maynard. "Although other value-added services like [voice over IP] and video conferencing will be an important part of the overall product strategy, they will not be long-term drivers of significant revenue growth for Ethernet providers."
The report cites the following key players: Cogent Communications Inc., FiberCity Networks Inc., GiantLoop Network Inc., IntelliSpace, XO Communications Inc. (Nasdaq: XOXO), and Yipes Communications Inc. These are carriers Yankee identifies as the "survivors of the metropolitan provider shakeout."