Description
The private line market remains strong despite a shift to packet-based Ethernet and IP/MPLS services. This study explores new optical and copper technologies that have extended PL’s life. Demand for more bandwidth and increasing backhaul requirements—particularly for 4G wireless backhaul circuits—had been the drivers of these services, but demand is slowing. This report provides detailed revenue & circuit counts by carrier type and defines the split between wholesale & retail sales of T-carrier & OC-N circuits, gigabit Ethernet, and wavelength services.
Hightlights
The private line market remains strong despite a shift to packet-based Ethernet and IP/MPLS services. This study explores new optical and copper technologies that have extended PL’s life. Demand for more bandwidth and increasing backhaul requirements—particularly for 4G wireless backhaul circuits—had been the drivers of these services, but demand is slowing. This report provides detailed revenue & circuit counts by carrier type and defines the split between wholesale & retail sales of T-carrier & OC-N circuits, gigabit Ethernet, and wavelength services.
Scope
1.1 Four Forces Are Driving the Private Line Market Today
The private line market has evolved through a number of phases. Each phase has been impacted by both advances in network technology and the development of new and innovative applications. The phase that we find ourselves in today is no different—though we are forecasting no growth in the years ahead, something we have not recorded since we began tracking this market in 1996.
Insight has taken months to put this study together, and during that period we have become convinced that four “forces” are driving the majority of data traffic today and will continue to do so through the forecast period. This report defines and analyzes how these forces impact the private line market. Insight uses the term force very deliberately; we want to emphasize how each of the identified trends together represent a paradigm shift in user behavior enabled by evolving technology and fostered by societal change. Each of these forces is quite distinct. They each utilize different bandwidth, different QoS, and utilize a different network topology. These forces are…….
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http://www.insight-corp.com/sendexec.asp?report=pl14&ReportName=Private Line and Wavelenght Services, 2014-2019
Market Segmentation
Private Line Revenue
By Service Type
Local
Long Distance
By Carrier Type
IXC
ILEC
CLEC
New Entrants (CATV & Fixed Wireless)
By Wholesale vs. Retail
Wholesale
Retail
Market Share
Retail
New Carrier Type
Dominant
Other Long Haul
Regional
New Entrant
Private Line Circuit Counts
By Circuit Class
DS-1, T-1
DS-3, T-3
OC-3
OC-12
OC-48
OC-192
Wavelength Services Revenue
Table of Contents
Chapter I
EXECUTIVE SUMMARY
1.1 Four Forces Are Driving the Private Line Market Today
1.1.1 Enterprise Data Migration from IT to User
1.1.2 Increasing Traffic on ISP Distribution Networks
1.1.3 Mobility
1.1.4 Video on Demand
1.2 Increasing Traffic but Decreasing Revenue
1.3 Prospects for an Oligopoly
1.4 Private Line Defined
1.5 Traditional Private Lines
1.6 Private Line Revenue Forecast
Chapter II
BACKGROUND
2.1 History and Development of Private Line Services
2.2 Radical Upgrade to Network Technology Underway
2.2.1 SDN and NFV
2.2.2 Next Generation Roadmap
2.3 Evolution of Private Line Technology
2.3.1 Digital Networks
2.3.2 Optical Technology
2.3.3 Internet Protocol
2.3.4 Private Line Emulation
2.4 Cellular Technologies
2.5 Streaming Video
2.6 Regulation
2.6.1 New Chairman at FCC
2.6.2 Net Neutrality
2.6.3 Connect America
2.6.4 Fuzzy Copper Retirement Rules
2.6.5 FCC and the Name Game
2.6.6 IXCs
2.6.7 Local Exchange Carriers
2.6.8 FCC Historical Perspective
2.6.9 Future Regulatory Considerations
2.7 Description of Traditional Private Line Services
2.7.1 Circuit Types
2.7.2 Circuit Ordering
2.7.3 Circuit Layout
2.7.4 Redundancy & Restoration
Chapter III
TRENDS, APPLICATIONS, AND MARKETS,/p>
3.1 PL Market Networks Today
3.1.1 Enterprise Data Migration from IT to User
3.1.2 Increasing Traffic on ISP Distribution Networks
3.1.3 Mobility
3.1.4 Video on Demand
3.2 Evolution of the Private Line Market
3.3 Traditional Applications
3.3.1 Dedicated Private Line Networks
3.3.2 Interexchange Private Line
3.3.3 Local Private Lines
3.3.4 Adding Voice to Data
3.3.5 Packet Networks
3.3.6 VPNs
3.3.7 Special Access
3.4 The Newer Applications
3.4.1 Internet Access
3.4.2 Integrated Access for VoIP
3.4.3 VoIP Standards Based Integrated Access
3.4.4 Wireless
3.5 Industry Players and Consolidation
3.5.1 IXCs
3.5.2 ILECs
3.5.3 CLEC
3.5.4 Wireless
3.5.5 ISPs
3.5.6 Other Long Haul Carriers
3.6 New Entrants (CATV and Fixed Wireless)
3.6.1 Cable MSOs
3.6.2 Fixed Wireless
3.7 Markets
3.7.1 Wholesale vs. Retail Markets
3.7.2 Retail
3.7.3 Residential Consumer Impact
Chapter IV
ALTERNATE PRIVATE LINE SERVICES
4.1 Overview
4.2 Ethernet Services
4.2.1 Ethernet versus SONET
4.2.2 Ethernet Services Technology
4.2.3 MPLS
4.2.4 Ethernet Over Copper
4.2.5 Impact on Private Line Markets
4.3 Wavelength Services
4.3.1 Wholesale Segment
4.3.2 Large Enterprise Segment
4.3.3 Development of Wavelength Services
4.3.4 Wavelength Services Technology
4.3.5 Impact on Private Line Markets
Chapter V
NETWORK PROVIDERS
5.1 Overview
5.2 AT&T Corporation
5.2.1 New Network Architecture Proposed
5.3 CenturyLink
5.3.1 Network Architecture
5.3.2 Private Line Services Offered
5.3.3 Other Services Offered
5.4 Level3 Communications, Inc.
5.5 Sprint
5.5.1 Network Architecture
5.5.2 Private Line Services Offered
5.6 tw telecom
5.6.1 Network
5.7 Verizon Communications
5.7.1 Network Architecture
5.7.2 Private Line and Ring Services Offered
5.7.3 Other Services Offered
5.8 Windstream
5.8.1 Data Revenue
5.9 Zayo
Chapter VI
MARKET FORECASTS
6.1 Private Line Market Summary
6.1.1 Enterprise Data Migration from IT to User
6.1.2 Increased Traffic on ISP Distribution Networks
6.1.3 Mobility and Private Lines
6.1.4 Video on Demand and Private Lines
6.2 Methodology and Definitions
6.2.1 Methodology
6.2.2 Definitions
6.3 Forecasts and Analyses
6.3.1 Total Market
6.3.2 Local and Long Distance
6.3.3 Wholesale and Retail
6.3.4 Carrier Types
6.3.5 Wavelength Services
6.3.6 Circuit Class
List for Tables:
Table of Tables
Chapter II
II-1 Digital Services Hierarchy
II-2 SONET/Optical Carrier Hierarchy
II-3 Coordinated vs. Non-Coordinated Circuits
Chapter III
III-1 Continuing Industry Consolidation
III-2 ADSL, Fiber and Coaxial Cable: Number of High Speed Lines
Chapter IV
IV-1 SONET and Ethernet Defined Transmission Rates
IV-2 Wholesale Wavelength Market Segments
Chapter V
V-1 Carrier Network Architecture Comparison
Chapter VI
VI-1 Impact of “Forces” on Private Line Revenue
VI-2 Total Private Line Revenue
VI-3 Private Line Revenue, Local vs. Long Distance
VI-4 Private Line Revenue by Wholesale/Retail Segments
VI-5 Revenue for Local Private Line by Wholesale/Retail Segments
VI-6 Revenue for LD Private Line by Wholesale/Retail Segments
VI-7 ILEC Private Line Revenues, Local and Long Distance
VI-8 ILEC Private Line Revenues by Wholesale/Retail Segments
VI-9 CLEC Private Line Revenues, Local and Long Distance
VI-10 CLEC Private Line Revenues by Wholesale/Retail Segments
VI-12 Toll Carriers Private Line Revenues by Wholesale/Retail Segments
VI-13 New Entrants Private Line Revenues by Local and Long Distance Segments
VI-14 New Entrants Private Line Revenues by Wholesale/Retail Segments
VI-15 Private Line Revenue Totals by Carrier Type
VI-16 Wholesale Private Line Revenue Totals by Carrier Type
VI-17 Retail Private Line Revenue Totals by Carrier Type
VI-18 Private Line Revenue by Carrier Type Using New Segment Definitions
VI-19 Wavelength Services Revenue Totals
VI-20 Local Private Line, Estimated Circuit Count by Circuit Class
VI-21 LD Private Line – Estimated Circuit Count by Circuit Class
List for Figures:
Table of Figures
Chapter I
I-1 Typical Layout for a Full Circuit
I-2 Total Private Line Revenue, 2013-2018
Chapter II
II-1 Capacities of 64Kbit/s, T1, and T3 Circuits
II-2 Typical Layout for a Full Circuit
II-3 SONET Rings
II-4 Fiber-to-Fiber Redundancy
II-5 Cable-to-Cable Physical Redundancy
Chapter III
III-1 1990’s Data Network Compared to the Future
III-2 Typical ISP Distribution Network
III-3 Migration to Higher Tier Internet Services
III-4 PSTN in Transition
III-5 Cell Site Backhaul Speeds by Technology
III-6 Quarterly Mobile Voice and Data
III-7 Typical CDN network
III-8 Evolution of Private Line Market
III-9 Typical Circuit Switched Voice Network
III-10 Typical Packet Switched Network
III-11 CenturyLink’s Frame Relay Network
III-12 Typical IP Network
III-13 Interexchange Private Line Architecture
III-14 Integrated Services Architecture
III-15 Managed Packet Network – Virtual Private Line
III-16 Direct Internet Access Circuit
III-17 XO Communications VoIP (SIP) Solution
III-18 Typical Pre LTE Backhaul Configuration
III-19 Telephone Subscribers among Major Cable MSOs
Chapter IV
IV-1 Resilient Packet Ring Technology
Chapter V
V-1 AT&T Data Revenue Growth Year over Year
V-2 CenturyLink Fiber Network
V-3 CenturyLink Wholesale Revenue
V-4 Sprint Wireline Data Revenue
V-5 Sprint Global MPLS Network
V-6 tw telecom Network
V-7 Windstream Revenue
V-8 Windstream Average Price per PL Circuit
V-9 Zayo Network
Chapter VI
VI-1 Total Private Line Revenue
VI-2 Private Line Revenue Totals by Carrier Type
VI-3 Wholesale Private Line Revenue Totals by Carrier Type
VI-4 Retail Private Line Revenue Totals by Carrier Type