Layer-2 Ethernet
Many small to mid-sized service providers have opted to deploy a layer-2 Ethernet network for the provision and transport of Ethernet network services. When implementing a layer-2 (Ethernet) network there are several issues to consider.

Pros
- Low cost devices – with features limited to layer-2 functionality,
pure Ethernet equipment is generally more cost effective than equipment
that contains higher-level protocol support (IP, etc.)
- Network is a single “domain” – with a single traffic
forwarding entity, the configurations and operation complexity incurred
with a segmented network is avoided
- Customer interface can be layer-2 or layer-3
Cons
- Spanning tree – slow re-convergence, problematic robustness, and
blocked links reduce overall bandwidth capacity
- MAC addresses propagated – with a layer-2 network, MAC addresses
are propagated across the network in order to build forwarding tables.
In carrier networks, the number of MAC addresses can easily overwhelm typical
Ethernet switches.
- No traffic engineering – Ethernet provides limited ability to manage
traffic flows.
- Limited QoS and customer traffic segregation features – 802.1P/Q
provides basic segregation and quality of service parameters, but cannot
provide guaranteed (hard) performance.
Many providers implement a layer-2 network initially - in order to gain
experience with the Ethernet services market, business model (cost/revenue
calculations) and operations, a low cost infrastructure is a reasonable option.
Ultimately though, a pure Ethernet, layer-2 only network is suitable for
small networks, but falls short for mid-sized and large network operators.
These larger operators require more control and performance from the network
infrastructure than Ethernet alone can provide.