---
title: "The New Connectivity Playbook: Maximizing Growth and Innovation in Carrier Ethernet Services"
description: Competitive Strategies Shaping the Next Era of Carrier Ethernet Services
image: https://go.frost.com/hubfs/Images/2026/ICT/FR/KC4E/ICT%20FR%20KC4E%20%20tump.jpg
---

# The New Connectivity Playbook: Maximizing Growth and Innovation in Carrier Ethernet Services

Competitive Strategies Shaping the Next Era of Carrier Ethernet Services

Carrier Ethernet continues to be one of the most widely adopted enterprise connectivity services, used by businesses for its scalability, reliability, consistent performance, and secure connectivity. However, the ecosystem is currently experiencing slower revenue growth over the last few years. Now, innovation in security, application performance, and deterministic connectivity are proving to be table stakes to effectively serve segments like healthcare, finance, state and local governments, education, and telecommunications.

At the same time:

- Enterprises are transitioning to higher capacity services with an increasing demand for 10 Gbps and 100 Gbps configurations, and higher.
- Dynamic bandwidth, cloud connectivity and self-service experiences are becoming the new competitive differentiators.

| Growth Snapshot |  |
| --- | --- |
| 2025 Revenue | **$4.93 Billion** |
| **Evolving Enterprise Priorities** | 49% of businesses currently use Ethernet as part of their network infrastructure. 38% view Ethernet to be a key component of their connectivity strategy in the next two years. |
| **Growth** Scenario | Pricing pressures, ecosystem maturity, and evolving WAN architectures are expected to negatively impact the growth rate with **CAGR of -5.0% through 2030.** |
| **Competitive** **Differentiators** | - High-capacity Ethernet services - Ethernet-on-Demand and dynamic bandwidth capabilities - Self-service portals and real-time network control - Fiber expansion and accelerated service delivery - Integrated security and managed service capabilities |

### Grab Your Ethernet Advantage

Featured Companies

AT&T

Cogent Communications

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Zayo

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##### Where will the next wave of growth come from?

Hybrid and Multi-cloud Connectivity

Organizations are increasingly distributing workloads across public cloud platforms, hosted environments, and private data centers, which continues to drive the demand for secure, high-performance Ethernet connectivity is expanding.

AI-driven Network Services

AI-powered applications are moving data faster between branches, cloud environments, and data centers. Emerging applications like the Internet of Things (IoT), augmented reality (AR), virtual reality (VR), and advanced analytics are likely to drive demand for 100 Gbps and, eventually, 400 Gbps services.

Dynamic Connectivity Services

Provides enterprises with the ability to provision, scale, and manage bandwidth with Service Level Agreement (SLA) backed performance and security through Network-as-a-Service (NaaS) and Ethernet-on-Demand solutions, giving them greater control of network resources.

##### *Are you equipped to capitalize on the next ethernet growth opportunity? *

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##### Learn how leading providers are responding to changing customer expectations, investing in network modernization, and differentiating their Ethernet service portfolios.

![Carrier Ethernet Services](https://go.frost.com/hubfs/Images/2026/ICT/FR/KC4E/KC4E%201.jpg)

### Frost Radar™: Carrier Ethernet Services in North America, 2026

A Benchmarking System to Spark Companies to Action - Innovation That Fuels New Deal Flow and Growth Pipelines

[Instant Access](https://store.frost.com/frost-radar-carrier-ethernet-services-in-north-america-2026.html?utm_campaign=ICT03_TG09_KC4E_Jul26)

![Enterprise Network](https://go.frost.com/hubfs/Images/2026/ICT/FR/KC4E/KC4E%202.png)

### Top 10 Growth Opportunities in Enterprise Network Services, 2026

Agentic AI, Embedded Security, Sovereignty, Quantum Readiness, and Software-driven Infrastructure Navigate Network Modernization Efforts

[Instant Access](https://store.frost.com/top-10-growth-opportunities-in-enterprise-network-services-2026.html?utm_campaign=ICT03_TG09_KC4E_Jul26)

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