Ericsson ramps up Ethernet speeds

Ericsson is raising the stakes in the Ethernet market with the unveiling of a 32Gb point-to-point node, despite concerns that the market for Gb equipment remains unproven.
The firm’s EFN432 is compatible with TR-101/WT-201 standards and uses an in-house network-processor Ericsson says will simplify roll-out of new features and standards by broadband providers.
Although the node will eventually offer the ability to provide Gb data-rates to homes, it will initially offer 100Mbps when launched in 3Q10.
Ericsson says broadband operators in Western Europe, Singapore, the US, and Scandinavia have all expressed interest in deploying the node.
The high level of interest in the node could be good news for chip makers, which are currently struggling to sell 10Gb silicon to infrastructure suppliers, the Wall St Journal reports.
Network equipment vendors spent just under $130 million (€95.7 million) on 10Gb silicon in 2009, up from $100 million in 2008, but barely enough to go round a large number of chip manufacturers, the US daily states, quoting figures from Dell’Oro Group.
The slow progress is likely to disappoint venture capitalists, who have pumped a total of $800 million into companies producing 10Gb chips since 2001.