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Pressure Mounting: Wireline Transport Services 2005
In-Stat/MDR, Dec 2005, Pages: 25
While business data traffic continues to grow, expenditures as a whole for transport services are not. We forecast that total US business end-user data service expenditures will grow marginally to $36.6 billion by the end of 2005. However, by 2008, we forecast total data service expenditures will start to decline as a result of mounting pricing and competitive pressure. The services that make up this forecast are Internet access, private line, frame relay, ATM, and IP VPN.
The wireline transport arena is becoming increasingly dynamic as many businesses migrate to lower-cost data services, such as IP VPN, and service providers of traditional data services respond with lower prices and shrinking margins. However, not all data services are declining. Business customers enjoy more alternatives and have the ability to increase bandwidth capacities without a proportionate increase in total cost of ownership. The result is increasing pressure on service providers to create tangible value for business data services users.
This report contains forecasts through 2009 for data expenditures in the areas of Internet access, private line services, ATM, frame relay, and IP VPN segmented by size of business and provides insights on how service providers can lessen the effect of negative revenue pressure.
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