Carrier Ethernet, CE 2.0, and Life Cycle Orchestration (LSO)

Carrier Ethernet and CE 2.0

CE 2.0 is a Metro Ethernet Forum (MEF) standard of carrier Ethernet that is more advanced from CE 1.0 on services like E-Line, E-LAN, E-Tree, and E-Access, multi-CoS supportive, interconnect facility and manageability features. This is a part of Third Network where CE 2.0 in collaboration with SDS (software defined services) orchestration plays the critical role to telecom network and services. Jointly it supports more on-demand and customized services. CE.20 includes devices optimization, access switches, and converged platform to manage entire service lifecycle specified by MEF.

Whereas CE 1.0 provides standardized carrier-class services over one provider’s network, CE 2.0 represents network elements that connect to transport Carrier Ethernet services for all users, locally and worldwide. Carrier Ethernet services are carried over physical Ethernet networks and other legacy transport technologies.

MEF also provide means to re-architect legacy OSS/BSS to next generation based like cloud centric, centrally managed, API driven services, and NFV and SDN powered application. The OSS/BSS platform only needs to service provisioning like open source third party APIs for new services and applications. The new OSS/BSS functions promises to produce better return on investment with business agility. It allows integration of RESTful API with transition networks NIDs and switches with existing OSS/BSS on both front and back office to offer innovative services.

Life Cycle Orchestration (LSO)

LSO is a third network standard defined by MEF that will be accomplished several OSS/BSS systems to orchestrate lifecycle services including fulfillment, performance, control, assurance, usage, analytics, security, and network policy.

LSO poised to develop network interoperability and service standards along with APIs and promises to modify features end to end services, increase service quality, and guarantees service security. Legacy OSS/BSS need to be changed. MEF suggests a layered approach splitting complex problems domain by domain and layer by layer.

Impact on Next Generation OSS/BSS

MEF initiatives such as LSO will impact Operational Support Systems (OSS) and Billing Support Systems (BSS), collectively referred to as OSS/BSS.

Operational Support Systems (OSS) are the essential set of tools required for a Communications Service Provider (CSP) to design, deploy, monitor and maintain the content, networks and services that their customers pay to use. There are significant changes underway in the CSP industry that are causing fundamental re-evaluations of business models, technology stacks and service offerings. These disruptions to the status quo are similarly influencing, and being influenced by, OSS.

CSPs are adopting next generation OSS/BSS systems for many reasons including integration with new IP-based frameworks, emerging applications, and the need to continuously improve upon customer service and retention efforts.  Other factors include the need for network operators to rationalize legacy systems into common support frameworks while simultaneously seeking differentiation relative to competition.  These Next Generation OSS/BSS will often be realized as Real-time virtualized OSS/BSS.

Consolidated global OSS and BSS market includes both legacy and next generation OSS/BSS software solution markets. With the changing network preferences from traditional networks to next generation packet based networks the practices of operating and managing network business will change a lot.  Consolidated figures of OSS & BSS markets showcase total market for OSS & BSS in changing scenario. The change in operating and managing networks that we have seen through 2016 will continue.

There is a need for integrating new IT infrastructure with legacy systems will be a strong growth area within OSS/BSS as vendors will pursue their strategies to provide end-to-end solutions rather than partial services. Support systems for networks like M2M, IoT, Third Network, Carrier Ethernet, LSO, etc. will increase with additional demand for software systems that will provide solutions.

Future Market Outlook

Clearly, additional revenue opportunities increase as a direct result of faster networks with the fastest growing area representing 100G bandwidth.  However, it is important to recognize that the 3rd network will have a big impact on the entire ICT ecosystem including the following:

  • 75% of the world’s business bandwidth by 2017 will be Ethernet
  • $350B CE revenue in next 4 years including $200B in CE Services

How does this translate into market opportunities?  Our research indicates it will not just be the obvious infrastructure providers and service providers that will benefit.  We also see ancillary areas such as Data Center Storage and Software Defined Security as direct beneficiaries.  This is because the more robust 3rd Network will engender the need for more secure storage for content, commerce, and communications-enabled applications.

We see strong growth in Data Center Storage, with 3rd Networks as a key contributor to this growth as illustrated in the below regional forecast:



The Third Network is too important to ignore.  Many organizations we talk to within the wireless ecosystem get too enamored with next generation non-wired technologies such as 5G.  While important, it is important to recognize that not all access will be wireless and also the back-haul component for many wireless networks will remain wired for many years to come.

Third Network based services represents a logical alternative that allows for OpEx expenditures that scale as the business grows thanks to the Cloud “as a Service” model.


The Mind Commerce report, The Third Network, Carrier Ethernet, and Lifecycle Orchestration, evaluates the role of Cloud Computing relative to the emerging 3rd Network, Carrier Ethernet, CE 2.0, and Lifecycle Orchestration.

This report assesses the impact of these technologies and provides forecasts for ancillary areas not addressed anywhere else. The report also includes an overview of supporting signaling technologies including SS7 for TDM networks and SIP for IP networks.

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s