Scottsdale, AZ — Revenues for the overall backbone connection market will have a compound annual growth rate (CAGR) of 16.82 percent between 1999 and 2004 while the number of backbone connections will have a CAGR close to 23 percent during the same period, according to Cahners In-Stat Group ( http://www.instat.com ). The high-tech market research firm finds that the difference between the growth rates in revenue and connections can be attributed to the continued decline in the cost of bandwidth.
A backbone connection is not only essential to the performance of an ISP, but the overall performance of the Internet. The backbone market is at the heart of the Internet, allowing the networks that make up the Internet to exchange traffic. This market is one of the oldest markets in the Internet industry and its growth rate reflects its maturity. “T-1 and T-3 connections will continue to play an important role in the backbone connection market”, says Daryl Schoolar, Industry Analyst at Cahners In-Stat Group. “Both connection speeds will have a CAGR of around 21 percent between 1999 and 2004. OC-3 and higher speed connections will have even greater growth rates, but will only account for 18 percent of all backbone connections by 2004.”
Cahners In-Stat Group also identifies the following backbone connection trends:
∑ Currently ISPs are using more than one carrier to connect to the Internet
∑Bandwidth prices continue to come down
∑ UUNet and Sprint still have the largest share of the backbone connection market
The report, Connecting U.S. ISPs The State of the Backbone Market (IS0007IF) provides forecasts for backbone connections and revenues, carrier market share, carrier profiles, and strategies for selecting a carrier. To purchase this report or for more information, please visit http://www.instat.com/catalog/cat-ia.htm#is0007if or contact Matthew Woods at 617.630.2139; [email protected] The report price is $1,995 USD.
Cahners In-Stat Group also offers other reports that cover this topic:
Digital Divide http://www.instat.com/catalog/cat-ia.htm#is0006sp
Broadband Consumers – Profiles and Strategies – http://www.instat.com/catalog/cat-ia.htm#is0005sp
The U.S. ISP Industry: Revenues and Services – http://www.instat.com/catalog/cat-ia.htm#is0004sp
Cahners In-Stat Group ( http://www.instat.com/ ) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.