Week in research: Business Ethernet dominates legacy; Internet consumers break down borders

Business Ethernet surges: According to a new Vertical Systems Group report, Ethernet bandwidth purchased by businesses has surged since 2011, when it first surpassed the bandwidth purchased on legacy data networks. "Global growth for legacy bandwidth is flattening, while Ethernet bandwidth continues to mount at a healthy double-digit pace," said Rosemary Cochran, principal at Vertical Systems Group. Legacy networks include private line, frame relay, ATM, TDM and business broadband services, according to a 2011 VSG report. Increased availability of Ethernet, along with higher demand for applications like cloud computing, data backup and HD video are driving the move away from legacy networks.

Tear down this wall: Nearly 40 percent of U.S. consumers surveyed by Verizon in a new study were identified as "borderless consumers"--people who take their Internet-connected devices with them when they leave the house. The carrier's first in a series of consumer research surveys, the FiOS Innovation Index: Borderless Lifestyle Survey, reported that borderless consumers are found across every ethnic and age group. Consumers aged 18 to 34 made up the greatest number, and more than half of all borderless consumers are women.
Backhaul has room to grow: Macrocell mobile backhaul equipment will see slow but steady growth over the next five years, Infonetics Research says, reaching $9.7 billion by 2016.

"While Verizon Wireless (NYSE: VZ) and AT&T (NYSE: T) are winding down their first big wave of LTE deployments and their spending is slowing, this is a large market and there's still room for growth," said Michael Howard, principal analyst and co-founder of Infonetics. "We're expecting a cumulative $43.6 billion to be spent on macrocell mobile backhaul equipment over the 5 years from 2012 to 2016, as operators outside of North America buy up microwave gear to support rising capacity requirements."
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