Hint to telecoms: build Ethernet, not landlines

Telephone companies could cut their operating costs by 23% a year by using Ethernet services in their metropolitan area networks instead of traditional telecommunications services, according to a new study. The study, scheduled to be released Monday, found that carriers could reduce their operational costs by 18% during the first year of a three-year network implementation.

Telephone companies could cut their operating costs by 23% a year by using Ethernet services in their metropolitan area networks instead of traditional telecommunications services, according to a new study. The study, scheduled to be released Monday, found that carriers could reduce their operational costs by 18% during the first year of a three-year network implementation. The potential savings rise to 20% in the second year and roughly 24% in the third year, according to the study, which was commissioned by the Metro Ethernet Forum, a marketing group made up of equipment vendors and service providers.