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The explosion of network traffic in China is forcing network operators and network equipment
manufacturers (NEMs) to seek higher-speed technologies to break the bandwidth limit. The
proliferation of higher bandwidth applications has popularized 10GbE networks, while the 40/
100GbE market is also anticipated to witness considerable growth. Owing to the rapid uptake of
these networks, the Ethernet test equipment market is expected to exhibit double-digit growth
rates till 2018.

New analysis from Frost & Sullivan, Chinese Ethernet Test Equipment Market, finds that the
market earned revenues of $109.5 million in 2011 and estimates this to reach $264.9 million in

Despite its obvious benefits, some end users are deterred by Ethernet’s high prices, especially
in the current straitened circumstances. In the 1GbE and 10GbE test equipment market, service
providers and carriers are the biggest end-user groups. Therefore, their cost consciousness
affects the market for test equipment.

“Due to the increasing price-performance ratio of instruments, test equipment vendors are
competing on price while offering the highest level of product performance,” said Frost &
Sullivan Research Analyst Wei Wei. “In addition, they offer specialized customer service and
technical support to ensure quality of service.”

“Additionally, the deployment of a 10G passive optical network for mobile backhaul traffic
will boost the Ethernet test equipment market,” noted Wei. “Telecom infrastructure upgrades
enhance the need for testing and thereby, push up the sales of Ethernet test equipment.”

Chinese Ethernet Test Equipment Market is part of the Test & Measurement Growth
Partnership Services program, which also includes research in the following markets: general
purpose test equipment, wireless test equipment, and fiber optic test equipment. All research
services included in subscriptions provide detailed market opportunities and industry trends
that have been evaluated following extensive interviews with market participants.

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