By
Telecom Lead Team: Insight Research predicts that US
telecommunications private line services market will grow 2.3 percent annually
to reach $43 billion in 2016 as demand for higher bandwidth private lines
offsets the shift of lower bandwidth private lines to packet-based services,
says a market analysis study from Insight Research.
Currently
the market stands at $39 billion. Private line revenues will increasingly be
driven by data-based cloud computing and the demand for apps, the research
said.
“The
insatiable demand for data has kept the private line market relatively steady
over the past five years and we expect this trend to continue,” says
Insight research director Fran Caulfield. “The need to backhaul
data-intensive 4G wireless services and increased local bandwidth for wireline
data and video services will sustain the private line segment for the
foreseeable future,” Caulfield concluded.
The
new study,
“Private Line and Wavelength Services, 2011-2016,” provides an
in-depth analysis of the US market, including a study of the transition from
frame relay/ATM networking to IP networks and the uplift driven by new video
and data applications. Private line revenues will increasingly be driven by
data-based cloud computing and the demand for apps.
Private
lines are used for a variety of applications including connecting enterprise
locations and backhauling cell towers to mobile switching centers.
Recently
CenturyLink, a major player in private line services in the US, announced
it has won a multi-year task order valued at more than $250
million from the Defense Information Systems Agency/Defense Information
Technology Contracting Organization (DISA/DITCO) to provide private line
services for dedicated high-speed connections between military installation.
editor@greentechlead.com
