NXTcomm08
New Edge Networks Launches Private Label MPLS VPN Service Featuring DSL Access for SMBs
| Jun 18, 2008 | Wholesale Telecom Services | Show Update
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Analyst: David Hold
Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: Low |
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Event Summary
June 17, 2008 – New Edge Networks, the business communications unit of EarthLink Inc., says it plans to begin selling through selected communications network providers its breakthrough service for prioritizing business data communications traffic over DSL access using up to five MPLS classes of service.
Analytical Summary
• Current Perspective: Positive on New Edge Network’s plan to offer its MPLS IP-VPN service with DSL access on a wholesale basis for carriers, because this will help to grow sales and drive revenue-generating traffic onto the New Edge IP/MPLS backbone network. New Edge had previously developed a full-featured MPLS IP VPN network service complete with QoS and the ability to mix and match T1, DSL and private line access based on the need at different customer locations (see “New Edge Networks Launches MPLS CoS Support for ADSL,” April 15, 2008). However, since most carrier VPN services have been aimed at medium to large enterprise customers, New Edge is trying to make the same service more economical for smaller customers that have multiple locations that are sensitive to the significant pricing differential between DSL and T1.
• Vendor Importance: Moderate to New Edge Networks, because the company can combine its extensive local access presence in second and third-tier cities with its national MPLS backbone network to develop a network service for smaller businesses that can be private-labeled by wholesale customers. This opens up an additional sales channel that can reach a more extensive and diverse customer base than New Edge would be able to reach by selling directly.
• Market Impact: Low on the national market for business network services, since this is a niche service offered by a small carrier that will not have a major impact on sales of competing IP VPN services. However, this action by New Edge could make other carriers realize the untapped potential of bringing Layer 3 VPN services to the small and medium business (SMB) market, where customers typically have little choice beyond T1, frame relay or the Internet for business communications.
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Current Perspective
Competitive Positives and Concerns
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