Telecommunications Private Line Services Revenue Growth to Resume in 2013, Says Insight Research

MOUNTAIN LAKES, N.J., Dec. 17, 2010 /PRNewswire/ -- Though the $36 billion private line services market is expected to show little growth in 2011, demand for new private lines is expected to rebound in the years ahead as new 4G wireless applications increase demand, says a market analysis study from Insight Research.

Private lines are leased point-to-point circuits. They are used by cellular carriers to link their towers to land line networks and they are used by enterprises to link enterprise sites to each other and to the Internet. According to Insight's report, "Private Line and Wavelength Services, 2010-2015", the transition from frame relay/ATM networking to IP networks is putting a near term drag on private line revenue growth. However, in the forecasts' out years revenue growth is expected to rebound as video and new data applications on 4G wireless networks significantly increase the need for private lines to backhaul such data-intensive traffic onto backbone networks.

"The transition away from frame and ATM puts a break on overall private line industry revenue growth near term, but we anticipate that growth will resume two years down the road," says Insight president Robert Rosenberg. "The need to backhaul 4G services will create huge demand as will the local bandwidth for caching IPTV video services, and for facilitating VoIP. These areas are telecom's growth areas and they create demand for private lines, so we expect to see overall growth return to the private line sector by 2013," Rosenberg concluded.

"Private Line and Wavelength Services, 2010-2015" 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/pl10.asp. The full, 177-page report is available immediately for $3995 (hard copy). Adobe Acrobat (PDF) report licenses are also offered. Visit our website or call (973) 541-9600 for details.

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SOURCE Insight Research Corp.