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Robust
revenue growth from the sale of private line circuits sold by local telcos
to other carriers suggests that there is still market demand for
high-capacity circuits, despite an industry recession attributed to excess
network capacity, says a new market research study by Insight Research
Corporation.
According to Insight Research’s industry analysis, Private
Line Services 2003-2008,
the ever-increasing demand for high-bandwidth circuits required
to handle data transmission and Internet applications is a primary factor
driving private line market growth. Overall,
the private line market is forecasted to grow at a compounded rate of 7.7
percent from 2003 to 2008, although growth will be very uneven across
market segments.
Insight’s market
analysis examines retail sales of private lines to enterprise customers,
and wholesale sales between carriers.
The market research study further classifies private lines sales
according to whether private line circuits are terminated as local or long
distance circuits, and reveals uneven growth across industry segments.
“The nature of the
private line market has changed,” says Robert Rosenberg, Insight
Research President . “Instead
of providing the typical end-to-end long distance circuit, private lines
are now being sold as a series of local channel circuits used to connect
businesses to shared data networks or to the Internet,” Rosenberg
continues. “The ILECs, with
their extensive metro network, are the beneficiary.
They are doing a land-office business selling to other carriers and
ISPs, while long distance private line markets are suffering,” Rosenberg
concludes.
Private
Line Services
examines historical and current market trends,
future applications, network providers, and forecasts private line
industry revenue and circuit counts over a five-year period.
Forecasts are segmented by local and long distance private line
service revenue, wholesale and retail private line revenue, revenue by
type of carrier, revenue by T1, T3 or OC-n circuit class, as well as the
number of T1, T3, OC-n private lines sold.
An excerpt of this
private line market research report, table of contents and ordering
information are online at www.insight-corp.com/pl2003.asp.
This 90-page report is available immediately for $4,195 (hard
copy). Adobe Acrobat (PDF)
licenses are also offered; visit our Web site or call 973/541-9600 for
details.
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Private
Line Services
2003-2008
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Telecom
Market
Research,
