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Ethernet point-to-point applications:
Ethernet point-to-point lines can transfer many types of information from one location to another efficiently. This includes video streaming, access to central data centers, video conferencing, email communication, and voice (telephone) traffic. Point-to-point has traditionally enjoyed the reputation of being the most secure bandwidth circuit between two locations. However, with advancements in encryption technology and because MPLS (multiprotocol label switching) is maintained over the private network of telecom providers, many consider MPLS to be as secure as point-to-point. Because of this, many major businesses, like bank chains, now routinely trust their important information transfers to MPLS networks.
Ethernet advantages:
Point-to-point lines can be facilitated by many types of circuits. These include T1, DS3, OC3 and Ethernet. Ethernet circuits commonly provide all of the advantages of T1, DS3 and OC3, and often offer added advantages as well. Ethernet circuits usually carry the same service level guarantees as T1, DS3, and OC3, but often provide much more bandwidth for a far lower price. Also, T1, DS3 or OC3 bandwidth is usually static at 1.5 mbps, 45 mbps, or 155 mbps respectively. By contrast, Ethernet can be provided in virtually any increments, like 3, 5 10, 20 ….up to 1000 mbps. Additionally, Ethernet bandwidth can often be burstable; this is not the case with T1, DS3 or OC3. When ethernet is provided over fiber, it can often be burstable. This allows a customer to commit to and pay for a minimum amount of bandwidth but burst above the minimum as needed to accommodate peak business needs. For example, a business can commit to pay for 100 mbps, but during peak times, bandwidth usage can burst as high as 1000 mbps when needed. When bandwidth bursts above the minimum bandwidth committed to by a business, the customer only pays extra for the amount of bandwidth above 100 mbps that is actually used, and they only pay for the time that they use the extra bandwidth. Another advantage of Ethernet over the other types of bandwidth mentioned, is that technology has improved to the point where customer premise routing equipment does not need to be as sophisticated and therefore is commonly far less expensive than customer premise routers required to facilitate T1, DS3 or OC3.
Ethernet point-to-point compared to MPLS:
Ethernet point-to-point and MPLS each provide advantages over the other depending on the need of the business. For two location networks, that are relatively close geographic (less than a thousand miles), point-to-point can be less expensive than MPLS. With point-to-point there is a mileage charge for the “long haul” (distance) between locations. There is no long haul charge associated with MPLS, so for networks, which include locations that are many miles apart, MPLS is often less expensive than point-to-point.
With MPLS, telecom providers commonly provide completely managed networks. Points to point circuits are usually not managed by providers. For this reason, companies who do not have IT staff to manage their circuit, i.e., buy routers, configure routers and maintain the routers, or if a company would prefer their IT staff to focus on more proactive endeavors, managed MPLS networks are often the preferred choice.
MPLS networks can include CoS (class of service), often referred to as QoS (quality of service). With the packet prioritization provided by CoS, MPLS networks can facilitate multiple applications, such as voice (telephone), video conferencing, centralized data access, video streaming, and/or email over a single circuit. Point-to-point circuits do well with single applications, but MPLS is often the preferred choice for companies which choose the efficiency of multiple applications on one circuit.
MPLS offers any-to-any network connectivity. For example, if a network serves 10 business locations, any location on the network can communicate with any other location on the network. Because of the built in redundancy, with MPLS, if one location goes down, the other nine locations on the network can continue to communicate with each other. In comparison, each point-to-point circuit can only connect to one other location. For this reason, in order for a network to have any-to-any connectivity, dozens of point-to-point circuits would be needed for a 10 location network. All of these point-to-point circuits are usually far more expensive than a single MPLS network would be. A less expensive alternative for a network comprised of point-to-points, would be a hub and spoke architecture. The weakness of the hub and spoke however is that if the central (headquarters) location goes down, all locations on the network loose communication with each other. For this reason, businesses with large networks, and value natural redundancy, commonly prefer MPLS.
In short, point-to-point serves well for two location networks that are relatively close and transfer single applications. MPLS is better suited for multi-location provider managed networks that utilize multiple applications, and/or are separated by long distances.
Ethernet point-to-point availability and pricing:
Ethernet service can be provided over dry copper pairs (also used for phone lines), DS1 circuits, DS3 circuits, or fiber. Ethernet over phone lines is the least expensive option for circuits smaller than 20 mbps. However, despite continual progress in this technology, this type of access continues to be limited by distance to the central office, and can only be facilitated by telecom central offices that are fiber fed. Ethernet over DS1 and DS3 has a greater distance range, but cost more per mbps than ethernet over copper. By far, the least expensive option per mbps is Ethernet over fiber. This access is limited to buildings that are “lit” with fiber (have fiber running to them). For buildings that are not lit, fiber can be run to them, but this can be extremely expensive, depending on how far the business is from the nearest fiber route or central office. Some providers offer special sales which include free fiber build out for short distances.
Assessing Ethernet availability and pricing is a complex process that requires expertise and special tools. We offer this assessment for free and without obligation. For a free assessment of Ethernet point-to-point or MPLS availability and pricing, please complete the short pricing tool at the top of this page.
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