A report by Infonetics Research has revealed that companies around the world are removing old network systems and bringing in technology like Ethernet, which has higher bandwidth and can allow heavy VoIP traffic.

Worldwide Ethernet service revenue grew 33 per cent to $12.5 billion in 2007, while another modern technology, IP MPLS VPN, grew 20 per cent to $13 billion.

Infonetics Research feels the technologies will continue to grow through to 2011.

"Customers like these services because they offer considerably more bandwidth with little or no increased WAN costs compared to their legacy counterparts," said Infonetics Research's principal analyst Michael Howard.

He added: "Customers expect – and get – a better per bit cost for Ethernet services."

The first Ethernet network was designed and tested by Bob Metcalfe of Xerox Corporation in 1973.

Originally Ethernet described a single cable communication between devices on a network, and allowed devices to be attached to the network without modification to the network's existing devices.

Ethernet is a local area technology and previously could only connect devices within a distance of a few hundred metres, but now Ethernet networks can reach across tens of kilometres.