The bandwidth services market continues to grow at an average rate of 30%
year to year, which, is certainly cause for optimism in light of today's
depressed telecom market. The flip side however is that service providers have
found it difficult to generate a profit from this sector. With depressed
economic times usually comes downward pricing pressure. However, CIR's research
has found a range of misconceptions about which services are needed within
different market segments and how those services can best fulfill the needs of
particular customers. CIR's research also finds that:
- The RBOCs still operate the majority of wholesale service termination
points, and will continue to do so over the next four years. This translates
into the lion's share of the wholesale wavelength and SONET services market...
- When it comes to supplying retail services, particularly in metro/access,
the LECs, large and small, are their own worst enemies...
- In spite of all the negative hype about route swapping and IRU accounting
practices, the trend of building a business that relies on suppliers as
customers is still going strong...
- By 2006, wholesale services will have a revenue of nearly $1.9 billion, but
retail services is the more rapidly growing segment, and will see revenue of
$2.0 billion in 2006...
- It is worth noting that, although some have said that the growth in
wavelength sales has, or will, bring an end to sales of dark fiber, this is
clearly not happening...
- Long-distance SONET private lines will grow as corporations add intercity
capacity to match faster access circuits. However, as is the case with wholesale
private lines, OC-48 and OC-192 will grow more slowly as they compete for
customers with wavelengths...
- In spite of all the noise about wavelengths and Ethernet, OC-3 SONET is
still the preferred upgrade path for a metro DS-3 customer...
This new CIR report, Bandwidth Services Forecasts: 2003-2006, presents
detailed market forecasts of the bandwidth services market over the next four
years, based on analysis of demand trends, and interviews with end-users and
service providers. The report is a deliverable from CIR's Bandwidth Services
track. The market forecasts found within this report are divided into wholesale
and retail sectors, then further into the long haul and metro/access markets, by
protocol (WDM, SONET and others), and by data-rate, channel count, and reach
where appropriate. Graphs are included to show key aspects of each market
at-a-glance.
List of Exhibits
- U.S. Bandwidth Services Revenue
- U.S. Wholesale And Retail OC-n And Wavelength Services Revenue
- U.S. Wholesale And Retail OC-n Services Revenue
- U.S. Wholesale and Retail Wavelength Services Revenue
- U.S. Wholesale Long-Haul OC-n Revenue
- U.S. Wholesale Long-Haul Wavelength Sales
- U.S. Wholesale Long-Haul Wavelength Revenue
- U.S. Wholesale Metro/Access OC-n Revenue
- U.S. Wholesale Metro/Access Wavelength Revenue
- U.S. Retail DS-3 Revenue
- U.S. Retail Long-Haul OC-n Revenue
- U.S. Retail Long-Haul Wavelength Revenue
- U.S. Retail Metro/Access OC-n Revenue
- U.S. Retail Metro/Access Wavelength Revenue
- U.S. Other Retail Services Revenue
- U.S. Retail ATM Revenue
- U.S. Retail Ethernet Revenue
- U.S. Retail PON Revenue
- Number of U.S. Wholesale Long-Haul OC-n Service Termination Points
- Number of U.S. Wholesale Long-Haul Wavelength Service Termination Points
- Number of U.S. Office Buildings with Access to Fiber
- Number of U.S. Tenants in FTTB Office Buildings