The $39 billion US private line services market is expected to show modest 2.3% annual growth over the next five years, as demand for higher bandwidth private lines offsets the shift of lower bandwidth private lines to packet-based services, according to a market analysis study from Insight Research.
“Private lines are leased point-to-point circuits, which are used for a variety of applications including connecting enterprise locations and back-hauling cell towers to mobile switching centers,” the research company stated in its report, “Private Line and Wavelength Services, 2011-2016.”
“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,” said 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 added.
The study 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.
