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Interconnection between operators - new business opportunities

Ethernet operators’ interconnection is now quite common, but Ethernet is mostly used only as a transport medium for IP transmission between two nearest network nodes. The actual interconnection of operators, ISPs and data centers is thus at the third OSI model layer, with IP playing the key role. However, there are many applications where IP ultimately does not meet application technical requirements, while also making solutions very expensive. Which is why we still use TDM-based circuits that meet high SLA customer demands. Carrier Ethernet connects these two worlds, i.e. the flexibility and the throughput of IP networks and SLA demands known from TDM networks. The Carrier Ethernet allows us to create a data circuit via multiple operators with an end-to-end measurement. Unlike TDM networks, the Carrier Ethernet offers higher throughput for much lower costs, even when compared with IP-based networks.

Services with guaranteed SLA demonstrate much higher value than non-guaranteed services. At the market there is a broad range of fast Internet connection services, with some operators guaranteeing certain minimum throughput. But if we need a line with a guaranteed throughput across multiple operators, the offer might be very limited. If we add strict SLA to our requirements to guarantee the delay, jitter, and packet loss, the resulting offer will probably be limited to TDM network operators only. This issue is addressed by the Carrier Ethernet; furthermore, many of the components are certified for the Carrier Ethernet and already used by operators in their networks.

The Carrier Ethernet (CE) opens a whole new business model for operators’ cooperation. Interconnection as per CE 2.0 enables operators own access technologies to offer access services with the guaranteed SLA. The value of such services is significantly higher than that of non-guaranteed Internet access. The circuit may consist of several pieces owned by different operators; any of these operators, including the transit operator, can offer the whole circuit to end customers. Each operator can thus offer data circuits across a wider territory, and provide guaranteed SLAs, including a customer portal to demonstrate that SLA has been maintained throughout the whole business period. The operator can measure SLA, end-to-end, without having to own the target device (EDD – Ethernet Demarcation Device).

Solution advantages:

  • New business opportunities for existing operators
  • Offer of services with high SLAs at affordable prices
  • Broad coverage through co-operating operators
  • Cost-efficient interconnection of corporate networks with guaranteed SLAs
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Interconnection between operators - new business opportunities

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