Metro Ethernet wide area network (WAN) services are steadily replacing ATM and frame relay (FR)-based leased lines in European cities, as more companies switch on to the advantages of quick provisioning and flexible bandwidth.

A report published yesterday by analyst Frost & Sullivan predicts that the Metro Ethernet Forum (MEF) certification combined with the standardisation of operation, administration and management functions will boost the numbers of service providers offering Metro Ethernet services in 2006.

Frost & Sullivan senior industry analyst for ICT Europe, Fernando Elizalde, said cost savings over other forms of leased line and WAN connections are possible but not guaranteed, however. The price of Metro Ethernet services is still very much dependent on the individual configuration required, whilst any savings are more likely to stem from lower-priced customer premise equipment (CPE) rather than lower monthly charges.

"Many enterprise customers are reluctant to switch things around or change their assets until they come to consider the cost. [Metro Ethernet] services per se may not be cheaper, but they are more flexible and richer in value add." Elizalde said.

Ethernet also makes more sense for service providers building next generation IP-based telecommunications infrastructure that are looking to avoid the expense of running separate networks, despite the prospect of cannibalising their existing revenues.

The majority of current Metro Ethernet services remain point to point, rather than point to multi-point or multi-point to multi-point configurations, and are also based almost exclusively on fibre optic rather than copper local loop networks.

This may deter firms connecting large numbers of sites in different locations, which are not served by fibre infrastructure, while many potential customers remain wary about Ethernet's ability to deliver the same quality of service to guarantee voice and video traffic as ATM or FR-based links.