Ethernet Service Distribution is still a significant opportunity for communications service providers. While telecom companies have solved the problem of delivery, ethernet monetization is still a big potential revenue source.
For that reason, more and more companies are using automation and orchestration. As computing power becomes cheaper and more plentiful, these are obvious options to choose. Engineers and product managers are now more skilled at automating processes to increase firm outputs. Companies are attending webinars on how to monetize ethernet to take action and achieve their goals.
Ethernet Service Distribution for Commercial Services
The gold mine in the industry seems to be in commercial services. These ethernet connections can serve thousands of people at one time. For that reason, CSPs are investing in technologies that serve this market at scale for a low-cost. In particular, they are building automated tools that calibrate the network and respond to surges, data demand or power outages. Furthermore, the providers orchestrate the different nodes in the system with every other point on a regular basis.
That increases the amount of data to store for further analysis. Companies can monetize this data in many ways. It can lead to the company providing a more streamlined service pack. This way it’s more appropriate for the client’s needs yet also has a higher margin for the CSP. But also, they can package data and sold it to interested third party vendors. Lastly, companies can provide data analytics services to others. They can do this by repacking the existing orchestration data and selling it to enterprise customers. Organizing this data and providing explanation and consulting around it can provide a whole new business line to CSPs.
Cable Operators vs. Telcos
Cable operators are gaining market participation in the Ethernet market vs. telecom providers for several reasons. The most important reason is their investment and use of automated responder technology. This helps to provide the solution automatically to the customer that they need. Whether it be network management, outages or poor service. Cable operators also have a closer relationship with customers. This is because of their integration with content providers and the more congenial view from customers of cable firms.
Monetization occurs by adding these extra services to cable plans for businesses and individuals. An opt-out policy makes it easier to distribute these services and increase revenue.
DOCSIS 3.1 and Full Duplex DOCSIS
New cable technology like DOCSIS 3.1 and Full Duplex DOCSIS are also important to automation. These provide much more power and flexibility to the provider. In fact, they provide symmetric multi-Gigabit service over the ethernet. That means that automation and orchestration are even simpler. The reason is operator can apply them in tandem, rather than as a multi-step procedure.
The decreased amount of power required to perform operations reduces the cost of delivery. CSPs can thus earn more money for offering the same service. While there is an initial investment for the upgrade and installation, it pays itself.