Ethernet WAN is the most significant advancement in business broadband since T1 service prices dropped. What exactly is Ethernet WAN, and why should you care?

Ethernet has become the dominant standard for Local Area Networks (LANs). You could say that Ethernet is everywhere. An RJ45 Ethernet jack is standard on every desktop and laptop computer. You might not get a CD-ROM drive, probably won’t get a floppy disc drive, and may never use the phone modem jack again. However, you will have an Ethernet connection. That connection’s speed has increased from 10 Mbps to 100 Mbps to 1 Gbps, and soon 10 Gbps.

Now, imagine your company’s LAN running at 1 Gbps. Your computer’s Ethernet drop is probably running at 100 Mbps, while your connection to the outside world is a whopping 1.5 Mbps. You read that correctly: 1.5 Megabits per second, not 1.5 Gigabits per second. This is the standard dedicated Internet bandwidth for many small and medium-sized businesses. It’s the bandwidth of a T1 line, which has a 1.5 Mbps upload and download speed. That’s less than 2% of your computer’s bandwidth capacity.

There are a few good reasons for this. First, many more computers on a company LAN typically access external resources simultaneously. This means that the LAN backbone requires significantly more bandwidth than the WAN (Wide Area Network) connection. Second, WAN bandwidth is exponentially more expensive than LAN bandwidth. Only in recent years have T1 line price reductions made T1 connections affordable. Larger businesses may combine multiple T1 lines for greater bandwidth or upgrade to DS3 bandwidth at 45 Mbps.

The recent increase in demand for higher bandwidths, driven by the need to move larger files faster and the convergence of voice and data onto a single network, has altered the landscape. VoIP telephony eliminates the need for a separate phone network but strains the data network’s LAN and WAN bandwidths. Video uploads and downloads, as well as overnight file backups for off-site storage, can overwhelm a WAN connection.

Ethernet WAN is the service that offers the best chance of relieving this network bottleneck. It’s exactly what it sounds like: Ethernet extended off-premises or into the Wide Area Network. How broad is it? A single town or metropolitan area is served by Metro Ethernet. Long Haul Ethernet can easily span the country or the globe. It is not unreasonable to connect two or more locations thousands of miles apart and have the network function as if they were next to each other. That is the beauty of Ethernet. There is no need for complex protocol conversion to transport it over legacy telephone company services like SONET OC3, OC12, OC48, and so on. It is delivered to you via an RJ45 jack that connects to your switch or router. If you can connect two buildings on your property, you can connect the New York office to the one in Los Angeles. This long-distance service is also known as Carrier Ethernet, and many carriers offer it.

The other significant advantage of Ethernet WAN service is that it is far less expensive than traditional fiber optic services per Mbps. A Fast Ethernet vs. DS3 connection, a Gigabit Ethernet or GigE connection vs. SONET OCx service, and even traditional T1 lines can save you up to half the price. Prices and availability differ. Metropolitan areas have the most connections, with competitive carriers already wiring many buildings for Ethernet service. If you work in one of these office buildings or within a mile or two, you could save a lot of money on your bandwidth right now. Wireless Ethernet is becoming available at very appealing prices and with quick installation times, even if your area is not served by fiber optic cable.

So, how can you profit from Ethernet WAN services? You can use our handy Ethernet Buildings Instant Locator to look for fiber-lit buildings near you. Whatever the outcome, speak with our Ethernet consultants to see what we can do to get you a better deal on voice and data network pricing.