Jun 11 2010
A recent Frost & Sullivan research report revealed that the U.S data transport services earned an estimated $33.0 billion in 2009 and expected to earn nearly $40 billion in 2014. The annual growth rate of the multi-billion dollar U.S data transport service market has been rapidly growing, driven by demand for synchronous optical networking (SONET) and Private Line services. The market for wholesale E-Line services will further be improved when Ethernet virtual private line (EVPL) is launched by most of the leading carriers.
SONET and Private Line (DS1/DS3) are expected to dominate a major share of the data transport revenue in the future. Due to demand from wireless service providers, DS1 and SONET services have continued to maintain a steady inflow of revenue.
In addition, Ethernet services and Multiprotocol label switching (MPLS) are expected to increase market revenues. The growth rate for Ethernet and MPLS for 2010 is expected to increase by 20-30% and 10-12% respectively. Competition in MPLS and Ethernet sector is expected to intensify when the service providers transform themselves to solution providers. Solution providers bundle products such as voice, Internet and VPN for data transport and a greater level of success in the SMB space will be achieved due to its cost-effectiveness. In the next four to six years, the market will witness a major change with solution providers gaining prominence over pure transport.
Roopa Shree H, research analyst in Frost & Sullivan stated that the wavelength services market was witnessing a growth spike since there is an escalating demand for higher bandwidth circuits.