Cost Performance Advantage of Ethernet over Copper

Most businesses have some type of bandwidth connections for credit card verification, email, online searches, location to location data transfers, procurement, research and a host of other needs. These connections run the gamut from information services such as DSL, Cable, satellite and wireless, to telecom services like T1, DS3, OC3 and Ethernet over Fiber. The new player, with cost vs performance advantages you should consider, is Ethernet over Copper.

Why Ethernet over Copper? First of all, this is a protocol that most closely matches what is running on nearly all networks today. That is, Ethernet. Most other services were designed back in day when voice was king and the public switched telephone network dominated worldwide communications. That’s no longer the case. The world has not only transformed from analog to digital, but has also moved from telephone conversations to email, texting, video downloads and streaming, search and Websites.

Voice landlines are on the decline. While users increasingly choose cellular calls, businesses are transforming desk phones to enterprise VoIP and carriers are quietly converting their core networks from circuit switched to packet switched architectures. Even the next generation of smartphones may choose VoIP over LTE rather than continue the proprietary GSM and CDMA voice channels. All of this means an increasing stampede toward Ethernet as the universal networking protocol.

Using Ethernet instead of some other telecom protocol improves network efficiency since no conversions are required and interfaces are simpler. It also enables Ethernet strategies such as layer 2 switching vs layer 3 routing to connect geographically separate LANs on one large bridged network. This strategy works not only in the metro area networks, but also nationwide through metro networks and worldwide through Ethernet exchanges. We’re not far from the day when Ethernet will the common denominator and all networks will be IP over whatever’s at the core.

Now you know why it makes sense to run Ethernet rather than some other protocol, such as T-carrier or SONET. But why Ethernet over Copper?

The beauty of Ethernet over Copper (EoC) is that it makes good use of existing infrastructure to avoid construction costs. Business phone lines and T1 line connect using twisted pair copper wire bundles that are routinely installed for every business. Ethernet over Copper uses the very same installed copper. How this works is that the EoC provider installs the EoC equipment at the central office and compatible customer premises equipment at your location. In between, they simply lease the unpowered or “dry” copper pair that is already in place. In most cases two or more pair are utilized.

There’s a correlation between how many copper pair are connected and the speed of your line service. The more pair, from 2 to 8 typically, the higher the bandwidth. The modulation efficiency of this equipment yields higher bandwidths than you get from T1 lines and typical DSL or satellite links. A very popular entry level EoC service is 2 or 3 Mbps. That’s easily increased to 10, 15 or 20 Mbps in most locations. Even 50 and 100 Mbps over copper is not unheard of.

The one tradeoff is speed for distance. The closer you are to the telco office where your copper terminates, the higher that bandwidth you can achieve. In unusual cases, your location is extended more than 2 or 3 miles and EoC service won’t work. In those cases, you may still be able to get Ethernet over DS1 using the same transmission technology as T1 lines.

It’s true that you can get higher download bandwidths using Cable broadband or some wireless services. However, upload bandwidth on these services tends to be maybe a tenth the download speed. Ethernet is symmetrical, meaning that upload and download speeds are the same. This is important if you upload large files or operate on-premises servers.

Beyond technology, pricing is a big advantage for EoC vs T1 and even fiber optic services. Remember that Ethernet over Copper can deliver large bandwidths that delay or even avoid the expensive construction of fiber optic connections. EoC typically delivers twice the bandwidth of T1 for about the same price. At higher bandwidth levels, the cost savings is even more striking.

Could your business benefit from EoC service? Find out by checking prices and availability of Ethernet over Copper bandwidth for your business locations. Sorry, no residential service available.

Why Ethernet is Cheaper

You may already know that T1 and DS3 line service prices have plunged over the last few years. But are you aware that there is an even better bargain available for companies that need bandwidths of 10 Mbps or more? It's a networking technology that you already know. It's Ethernet.

But isn't Ethernet a local area network protocol? Yes, but now it's a wide area network protocol as well. It goes by the names Ethernet WAN, Metro Ethernet, Carrier Ethernet and Ethernet Transport. All of these refer to an Ethernet connection provided by a carrier that plugs into your network router or switch. No special equipment is needed for you to use an Ethernet WAN connection. You just plug into the RJ45 connector and you have signal.

Ethernet in the WAN may seem like the height of convenience and probably worth paying a premium for. But the irony is that Ethernet service is cheaper, not more expensive, than traditional copper or fiber wireline services. How much cheaper? If all you need is a T1 line or T1 PRI for your PBX, then you are likely to get your lowest total cost with those services. But once you need to expand bandwidth for dedicated Internet service or point to point data transfers, Ethernet starts getting competitive. At the T1 line or DS3 service level of 45 Mbps, you might find a Fast Ethernet connection both faster and cheaper. The bandwidth of Fast Ethernet is 100 Mbps but the price might be half or less than a DS3 connection.

The difference is even more dramatic when you move up to Gigabit Ethernet or GigE service. That's 1,000 Mbps, a bandwidth that has been cost prohibitive for all but the largest companies. Up to now, anyway. SONET fiber optic service at the OC-24 level of 1.244 Mbps isn't all that common. Most likely you would need an OC-48 pipe running at 2.488 Gbps to transport your Gigabit bandwidth requirement. Costs can easily be into six figures per month for that level of optical transport. Bring in GigE service and you're 1,000 Mbps may be had for up to an order of magnitude less.

This can't be right, can it? Amazing as it sounds, Ethernet WAN bandwidth really is a huge bargain. The reason for this comes down to competitive carriers. If you need SONET service, at least the last mile fiber connection is likely to be provided by the incumbent local telephone company. Telcos developed the TDM or Time Division Multiplexing technologies that include SONET to bundle hundreds and thousands of telephone calls into compact digital trunk lines. They have a huge legacy investment in building out TDM networks.

But Ethernet is something new. It originated as a data networking rather than a telephony technology. Newer competitive carriers who built their regional and national fiber optic networks for IP data transport are leading the adoption of Ethernet as a metropolitan and long distance carrier service. They are completely separate from the telephone companies and provide all the connections, including the access jack at your business location.

The cost savings are thanks to very aggressive service providers who see Ethernet as the end-to-end digital service of the future and are anxious to build out their networks and acquire new business customers. Carriers such as XO communications, Telnes, Level 3 Communications, MegaPath, Cavalier, Nuvox and Time Warner Telecom are offering excellent rates on the type of bandwidth you need for video, high resolution image transmission, and CAD/CAM data downloads, to name a few Mbps-hungry applications.

So what are the best prices for various tiers of Ethernet service and which carriers serve your business location? You can find out easily with a quick online service query through Shop For Ethernet. In seconds, you'll get a map showing your location and how close you are to the nearest buildings already "lit" for fiber optic Ethernet service.