Cable operators are starting to become a force to be reckoned with in the business Ethernet services sector, according to the latest market share analysis by Vertical Systems Group (VSG).

While AT&T and Verizon hold the top-two market share spots with 22 percent and 17 percent, respectively, Cox grew its market share, based on ports, to 10 percent to maintain its position as the fourth-largest provider in the nation.

Cox became the first cable operator to enter the top tier of U.S. business Ethernet providers last year, with a mid-market share of 8.9 percent (story here). Cox attributed its success in this arena to its history of delivering Ethernet services to customers served by both fiber and hybrid fiber/coax (HFC).

"Ethernet services provide highly scalable and efficient communication capabilities to meet the modern data networking requirements of businesses," said Kristine Faulkner, VP of product development and management for Cox Business.

Time Warner Telecom placed third overall, with a 13 percent market share, followed by Cogent (with 7 percent) and Qwest (with 6 percent). Time Warner Cable checked into the top tier, in seventh place, with 5 percent or more of U.S. business Ethernet ports.

“Enterprise demand for Ethernet services spiked at the end of 2007, boosted by broader service availability, plus heightened competition from more MSOs, regional and global providers,” said Rick Malone, principal at VSG.

“Latest port share results show that while incumbent carriers hold a sizeable slice of the market now, MSOs and competitive providers are targeting diverse segments of this ripe and rapidly growing market,” Malone said. “As a result, major share shifts by provider, as well as by provider segment, are expected during the first half of 2008.”

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