Communications and Technology Industry Research

Market predictions in a new study from Insight Research reveal that the US private line services market, which is a $39 billion dollar industry, will display a moderate 2.3 percent annual growth in the coming five years. The study also indicates that the modest growth rate will be due to the increasing demand for higher bandwidth private lines which has effectively offset the conversion of lower bandwidth private lines to packet-based services. 

In a release, Insight Research Director Fran Caulfield, said, "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. 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.”

Used in a number of applications, private lines are essentially leased point-to-point circuits which can help in connecting enterprise locations and backhauling cell towers with mobile switching facilities. The new study, "Private Line and Wavelength Services, 2011-2016," analyzes the US market, and also throws light over the migration from frame relay/ATM networking to IP networks and the advancements and benefits delivered by new video and data applications. Revenue for private line is based primarily on data-based cloud computing as well as on the demand for apps.

The "Private Line and Wavelength Services, 2011-2016" report looks at the outlook for the complete private line market and categorizes it based on local and long distance private line service revenue and revenue for wholesale and retail private line service as well as revenue based on the carrier type.