To: Stephen B. Temple who wrote (2277 ) 1/11/1999 2:14:00 PM From: Stephen B. Temple Respond to of 3178
Ethernet over the WAN ?__________________Move over T-3 When NanoSpace Inc. of Palo Alto, Calif., licensed 28 route-miles of dark fiber from the city of Palo Alto in early December, few realized the company would have such a bright idea. The company was developing a new type of wide area network service that is based on wavelength division multiplexing, TCP/IP and Ethernet signaling. Carriers looking for a technology that provides a high-bandwidth, user-friendly service to customers in a metropolitan area may want to take a careful look at the NanoSpace solution. "All of the links we offer to our customers are 100 Mbps Ethernet connections," says NanoSpace CEO Frank Robles. "We said, 'Why offer 10Base-T Ethernet?' It's not that much of a savings to go down to 10 Mbps for the customer. This basically comes down to the fact that the cost of the equipment is coming down." NanoSpace's service uses TC Communications' WDM equipment, TC Communications' and Garrett Communications' media converters and Bay Networks' [NT] 100Base-T Ethernet switches. The media converters translate WDM signaling into 100Base-T Ethernet signaling, and provide fiber to copper connectivity. "The fact that we are putting Ethernet onto WDM is the interesting aspect, and the size of the pipe," Robles says. "We are offering a 100 Mbps service at a lower price than a T-3. A T-3 costs $65,000 to $70,000 a month. We are charging $3,500 a month for 100 Mbps, which is double a T-3." The service runs Ethernet over the WAN, which is unusual. TCI/IP is encapsulated inside of Ethernet packets and put on the WAN, Robles says. "I have not seen a service like this," says Chris Nicoll, principal analyst at Current Analysis, a consultancy in Sterling, Va. "It is kind of a unique service. There aren't many obstacles to doing it. The technology is very straight forward." "Security may be one issue to consider," Nicoll says. "Being able to tap into Ethernet is pretty easy. But Ethernet that is run over optical networking is much less so, because you would have to splice into the line to examine Ethernet packets. But there still is a security concern." Nicoll also says quality of service may be an issue. "Ethernet today doesn't have any quality," Nicoll says. "You've got to use [differential service] or RSVP for quality. They allow you to set up different priority levels for different packets. But up to this point, the protocols are not standardized or widely used." ...NanoSpace Backs Its Service With Guarantees NanoSpace has picked up on the fact that potential customers may have quality concerns, however. It uses RSVP, and it is willing to give customers committed information rates up to the 100 Mbps level on Internet access service. In addition to the $3,500 a month for access, NanoSpace charges $1,000 a month per 1 Mbps for a committed information rate. So a 10 Mbps CIR costs $10,000 a month. CIRs can get pricey if customers want even higher guaranteed speeds. Brian Davis, a systems administrator at Kana Communications, a software company in Palo Alto, says his company is using the NanoSpace service, and that quality has not been an issue. "So far, we love the service," Davis says. "We haven't had any problems with it. Before, we had standard frame relay and a DSL connection to the Internet. With DSL, if you have a 1.1 Mbps DSL connection versus a 1.1 Mbps T-1, the T-1 is faster. With fiber, all of the bottlenecks seem to vanish." NanoSpace currently has signed up five to six customers in Palo Alto. It is planning on launching services in San Francisco and Los Angeles, and two other metropolitan areas. NanoSpace would not reveal details about the timing of these new launches, or say which two cities it intends to market services in. Temp'