IP migration puts temporary dent into private line revenue

Private line services have enjoyed years of steady growth, but it appears that the $34 billion market segment is about to enter a short period of decline.

While enterprises and wireless operators used private lines to connect their business sites to the Internet and wireless operators used them to connect towers to wireline networks, Insight Research's report "Private Line and Wavelength Services, 2009-2014," reveals that the ongoing migration from legacy services (Frame Relay and ATM) to IP networks is coming at the expense of shrinking private line revenue.  

Despite the initial slowdown, Insight Research's president Robert Rosenberg says that private lines still have plenty of utility and revenue will eventually rebound in a big way.

"The transition away from frame and ATM will put a break on overall private line industry revenue growth for a couple of years," said Rosenberg in a release. "However, private line demand remains strong for wireless backhaul, local bandwidth for caching IPTV video services, and for facilitating VoIP. These are the growth areas for private line, and will be in the years ahead."

For more:
- see the release here

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