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AUGUST 7, 2007 -- The $40 billion private line services market is posting solid growth for the second year in a row, reveals a new market analysis study from INSIGHT Research (search for INSIGHT Research). Private lines are point-to-point circuits leased by enterprises from telecommunications carriers in order to link enterprise sites to each other and to the Internet. Private lines also are used by cellular carriers to link their towers to landline networks.
According to INSIGHT's report, "Private line and wavelength services 2007-2012," continued growth in the segment will come as a result of the strong demand for private lines used to backhaul 3G wireless services from cell towers to switching centers; increased demand for local bandwidth needed to cache IPTV video services; and as a consequence of the industry consolidations that created price stability in the marketplace.
In the study, INSIGHT reports that from 2007 to 2012, the overall private line market will grow at a compound annual rate of 3.8%, reaching $48 billion in revenue by 2012.
"In the U.S., over 90% of wireless backhaul is accomplished using leased private lines," reports INSIGHT president Robert Rosenberg, "and as 3G wireless services increase, so too will the need to backhaul ever greater amounts of traffic over private lines. Fortunately, new copper bonding technologies are appearing that seem ready to take up the slack in those cell tower locations where the economics will not permit fiber installations, so the growth in the private line segment is going to continue for several more years," he concludes.
"Private Line and Wavelength Services 2007-2012" evaluates the total private line market and segments it 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, and OC-n private lines sold.
Visit INSIGHT Research Corp.
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