US Telecommunications Private Line Services Revenue to Plateau at $35 Billion in 2013, says Insight Research Corp.

BOONTON, N.J., March 27, 2013 /PRNewswire/ -- The $35 billion US private line services market is expected to decline one percent annually over the next five years, as the shift to packet-based services offsets demand for higher bandwidth private lines, says a market analysis study from Insight Research.

Private lines are leased point-to-point circuits that are used for a variety of applications, including connecting enterprise locations and backhauling cell towers to mobile switching centers. The new study, "Private Line and Wavelength Services, 2013-2017," provides an in-depth analysis of the US market, including a study of the transition from frame relay and ATM networking to IP networks and the uplift driven by new video and data applications. While private line revenues will decline modestly, equivalent circuit counts will continue to rise driven by cloud computing and the new video applications.

"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 Fran Caulfield, Insight Research Director. "The need to backhaul data-intensive wireless services and increased local bandwidth for wireline data and video services will prevent significant revenue erosion for the foreseeable future," Caulfield concluded.

"Private Line and Wavelength Services, 2013-2017" 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/pl13.asp . The full, 195-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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SOURCE Insight Research Corp.