DURANGO, Colo. /eNewsChannels/ — NEWS: The $30 billion U.S. private line services market has finally entered a period of no growth, says a market analysis study from Insight Research. Private line had always been a growth market for telcos and has been tracked by Insight for more than 18 years showing steadily increasing revenue growth.
Yet the market is expected to decline 2.3 percent over the next five years, as the shift to packet-based Internet services allow customers to get higher bandwidth at lower costs which, in turn, is putting downward pressure on private line revenues.
Private lines are leased point-to-point circuits that are used for a variety of applications, including connecting enterprise locations, backhauling cell towers to mobile switching centers, and providing video services to households and mobile devices. The new study, “Private Line and Wavelength Services, 2014-2019,” provides an in-depth analysis of the four major market drivers that are actually increasing equivalent circuit counts, even as revenues decline.
“We have reached one of those unique periods where demand is rising yet revenues are in decline. Price erosion and the shift to lower unit pricing at higher bandwidth tiers are to blame,” says Robert Rosenberg, President of Insight Research.
“This phenomena needs to be understood in the context of a mature market. Mature markets can be very profitable, and can remain viable for years or even decades-but mature markets do not exhibit growth,” Rosenberg concluded.
“Private Line and Wavelength Services, 2014-2019” 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. Estimates of wavelength revenues are also provided.
A free report excerpt, table of contents, and ordering information is available online at http://www.insight-corp.com/reports/pl14.asp. The full, 199-page report is available immediately in electronic format (PDF) and can be ordered immediately.
Visit our website ( http://www.insight-corp.com/ ) or call (973) 541-9600 for details.
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