This IDC study (which is a translation of the Japanese report IDC #J8230102,) analyzes the service trends of Japan wide area Ethernet in 2007 and provides the market forecast for such service between 2008 and 2012. The market analyses are based on the results in the main study, Corporate User's Demands Study of Japan Communication Services, 2007, as well as the resources from the service providers (SPs). With reference to this, the market forecast for Japan wide area Ethernet from 2007 to 2012 was updated by reflecting the newest changes in the market trends.

"The 2007 Japan wide area Ethernet market seemed to continuously experience steady growth in terms of the number of access lines and sales. The main factors of smooth growth are the pioneering of new demands targeting backbone small and medium-sized enterprises (SMEs) based on the low-price product lineups, the increase in speed and number of lines for the existing users, the deployment of combined networks (Modulated Network), and the changeover demands from low-speed IP VPN (64kbps, 128kbps) to large-capacity wide area Ethernet. As the future market matures, its growth is expected to slow down," analyzes George Hoffman, Group Manager, Communications, IDC Japan.