TeleGeography Logo

International VPN Coverage Grows, but On-Net Coverage Remains Limited

14 Feb 2012

With the adoption of cloud-based services, CRM systems, and VoIP and video conferencing, enterprises are expanding their wide-area data networks to offices around the globe. In response, telcos are scrambling to offer wide-area network (WAN) services, such as IP VPN and Ethernet, in diverse locales.

New data from TeleGeography’s Global Enterprise Networks research service reveal that the availability of Ethernet-based services (EoMPLS, EoSDH, and VPLS) increased more than 40 percent between Q3 2010 and Q3 2011, while international IP VPN service availability grew 8 percent. Although Ethernet services are expanding more rapidly, international IP VPN services were available nearly twice as often at Q3 2011.

Partnerships have played a crucial role in helping to extend the reach of telcos’ IP VPN services. “Only a small number of carriers possess the scale and network reach to deliver on-net VPN service in more than a handful of countries,” said TeleGeography analyst Greg Bryan.

TeleGeography found that carriers surveyed relied on a partner’s network to deliver international VPN service nearly 60 percent of the time. Only 4 of the 73 service providers in the study were able to deliver on-net VPN service in half or more of the 166 cities covered. Topping the list was Orange Business Services, which was able to deliver on-net VPN service in more than 90 percent of the covered markets. AT&T and BT Global Services followed, serving 61 and 60 percent, respectively, while Telstra International reached 55 percent. Sprint ranked fifth, delivering on-net service in 46 percent of cities.

“Global enterprise service providers such as Orange Business Services and AT&T have invested heavily in expanding MPLS IP VPN-enabled PoPs internationally,” said Greg Bryan. “In the coming years, expansion is more likely to focus on Ethernet services, particularly as Ethernet access networks become more widely available.”

To speak with an analyst, please call +1-202-741-0042 or email

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.


TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.