ntl:Telewest Business Launches a National VPLS-based Ethernet Service to Score Differentiation Points Against Rivals
| Jul 28, 2009 | Business Telecom Services - Europe | Competitive Intelligence Report
| Analyst: Joel Stradling
Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: High
Event Summary
July 28, 2009 -- ntl:Telewest Business launched its national Ethernet VPN. The carrier has offered metro Ethernet VPN since 2003, and this move extends this range nationally. The national Ethernet VPN offer supports Virtual Private LAN Services (VPLS) and Hierarchical VPLS (H-VPLS) to give customers any-to-any topologies. Up to seven CoS are possible based on the 802.1p standard, and online reporting based on Alcatel SAM provides customers with performance visibility.
Analytical Summary
• Current Perspective: Positive on the launch of a nationally available VPLS-based Ethernet product by ntl:Telewest Business, because the carrier is scoring a unique sales point based on its any-to-any Layer 2 E-LAN offering plus strong on-net coverage in the UK. Very few competitors are capable of matching the company’s nationally available Ethernet VPLS over the same level of on-net geographical coverage.
• Vendor Importance: Moderate to ntl:Telewest Business, because the carrier needed to extend its VPLS-based E-LAN Ethernet product to a national audience to drive its Ethernet strategy forward and score differentiation points in a highly competitive landscape. This event represents the natural evolution of the carrier’s any-to-any L2 Ethernet concept, and the operator needed to prove to the market that it has met its self-stated objective of launching a national E-LAN product backed by VPLS.
• Market Impact: High on the UK Ethernet services market, because ntl:Telewest Business’ Ethernet portfolio is one of the most comprehensive, and moreover is backed by strong network penetration and large-scale human resources and operational clout. Competitors are now under considerable pressure to respond with like-for-like national E-LAN announcements.
CLIENTS ONLY
Current Perspective
Competitive Positives and Concerns
Recommended Vendor Actions
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Recommended Competitor Actions
• Competitors in the UK should be communicating to their customers and prospects any plans afoot for delivering national-level E-LAN services. Failure to address this area quite frankly gives ntl:Telewest Business a runaway lead.
• Cable & Wireless can point out that its national VPLS product, ‘Ethernet VPN,’ is available via an extensive multi-service platform (MSP). C&W’s VPLS service was launched alongside its VPWS service, branded ‘Ethernet Wireline,’ during April 2008. C&W can present to prospects a solid network reach case, with its MSP footprint comprising more than 87 PE nodes, as well as investment to expand this to 95 nodes by March 2010. Clients should also be made aware that its VPLS and VPWS offerings are available via direct fibre links to MSP PEs. Finally, C&W can also use its SDH assets (comprising 300 Ethernet-enabled SDH nodes) to extend reach, and its microwave network augments reach to remote locations where fibre is not an option.
• Exponential-e, Global Crossing, BT, C&W and COLT Telecom can point out that they also offer Ethernet VPLS and have been doing so for a number of years; therefore, ntl:Telewest Business is gaining no advantage with this announcement. Solid E-NNI partners will allow such rivals to match the reach of ntl:Telewest Business’ national any-to-any capabilities, and in fact ntl:Telewest Business should be on the list of potential E-NNI partners.
Recommended End User / Customer Actions
• Enterprise customers should certainly be looking at ntl:Telewest Business’ Ethernet VPN proposal for certain applications, such as multi-site connectivity and some neat modern features, such as flexible bandwidth; a converged single pipe for running voice, data and video; and a full-mesh topology for stability.
• A number of other providers have VPLS capabilities, and inquiries should be made with a number of ntl:Telewest Business’ competitors, such as BT, COLT, Global Crossing, Exponential-e and C&W, to understand and evaluate the various options in the market. ntl:Telewest Business is likely to have the greatest on-net national E-LAN capability, but various competitors can leverage both on-net assets as well as strategic E-NNIs to counter ntl:Telewest Business’ unique strengths.
• Ethernet VPLS might not be the ideal solution depending on a business’ particular needs. For example customers that have invested in expensive IP/MPLS equipment to run a L3 IP VPN need not dump the investment, but consider investing in various Ethernet circuit options where practical. Certainly, customers should ask service providers how L2 Ethernet will deliver cost-savings and/or greater bandwidth for the same existing price in order to do more with the access, such as cloud-computing and SaaS.
CLIENTS ONLY
Current Perspective
Competitive Positives and Concerns
Recommended Vendor Actions
| Client access - Full report in Business Telecom Services - Europe | More information
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