MOUNTAIN LAKES, N.J. /New York Netwire/ — The $39 billion US private line services market is expected to show modest 2.3 percent annual growth over the next five years, as demand for higher bandwidth private lines offsets the shift of lower bandwidth private lines to packet-based services, says a market analysis study from Insight Research.

Private lines are leased point-to-point circuits, which are used for a variety of applications including connecting enterprise locations and backhauling cell towers to mobile switching centers. The new study, “Private Line and Wavelength Services, 2011-2016,” provides an in-depth analysis of the US market, including a study of the transition from frame relay/ATM networking to IP networks and the uplift driven by new video and data applications. Private line revenues will increasingly be driven by data-based cloud computing and the demand for apps.

“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,” says Insight Research Director Fran Caulfield. “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,” Caulfield concluded.

“Private Line and Wavelength Services, 2011-2016” evaluates the total private line market and segments it by local and long distance private line service revenue, wholesale and retail private line revenue, revenue by type of carrier, revenue by T1, T3 or OC-n circuit class, as well as the number of T1, T3, and OC-n private lines sold. Estimates of wavelength revenues are also provided.

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