Hatteras Networks enables an emerging market segment referred to as Mid-Band Ethernet. The Mid-Band Ethernet service allows Carriers to deliver the Metro Ethernet services over the existing copper infrastructure to businesses whose application requirements fall within the bandwidth gap between T1 and T3. While the Hatteras solutions deliver up to 45 Mbps over 8 copper pairs, the Mid-Band Ethernet service sweet spot is 2-20 Mbps (the gap between T1 and where fiber deployment becomes economically viable). Mid-Band Ethernet services are exactly the same as those enabled by Metro Ethernet: Transparent LAN Services (TLS), Direct Internet Access (DIA), Voice over IP (VoIP), Ethernet Private Line, Storage Area Networks (SANs), etc…. Therefore, an essential requirement of Mid-Band Ethernet equipment is the ability to transparently extend existing Metro Ethernet services beyond fiber.

Click the image for a larger view

Vertical Systems Group estimates that the U.S. market for Mid-Band Ethernet over the next 5 years is nearly a million business access points, which includes the migration of existing Frame Relay services plus the conversion of T-1 and T-3 circuits.  This results in an addressable market of $2.4B for Mid-Band Ethernet equipment revenue in the U.S. alone.  Hatteras Ethernet Service Edge solutions are aggressively positioned to enable this new market segment that is expected to generate over $8B per year in service revenue for U.S. Carriers. The opportunity in Europe and other international markets is the same order of magnitude.