Private Line and Wavelength Services, 2008-2013

SUMMARY

Demand for wireless backhaul and new copper technologies are creating positive growth in the private line segment after several years of little or no growth. Industry consolidation has altered the competitive landscape and led to more stable pricing, while video distribution is emerging as a new killer application- with the potential to drive ever more traffic onto private lines.

A private line is a dedicated non-switched circuit or channel that is leased for a specified period. This channel provides a private and direct connection between at least two sites. Private Line & Wavelength Services 2008-2013 details revenue and circuit counts by carrier type, and defines the split between wholesale and retail sales of T-carrier (T1, T3) and OC-N circuits (OC-3, OC-12, OC-48, OC-192, OC-768), gigabit Ethernet, and wavelength services. INSIGHT's annual study illustrates how carriers and their customers continue to move to higher capacity circuits in order to reap the benefits of lower cost-per-bit transport.

TABLE OF CONTENTS

Chapter I

• Executive Summary
  • 1.1 What Drives Private Line Growth
  • 1.2 Competition in the Local Loop
  • 1.3 Traditional Private Lines
  • 1.4 Alternatives to Private Line Services
  • 1.5 Revenue Forecast for Private Lines: A Summary

Chapter II

• Background
  • 2.1 History and Development of Private Line Services
  • 2.2 Evolution of Private Line Technology
    • 2.2.1 Transition to Digital Networks
    • 2.2.2 SONET and Optical Carrier Transmission
    • 2.2.3 Internet Protocol
    • 2.2.4 Private Line Emulation
  • 2.3 Types of Providers
    • 2.3.1 IXCs
    • 2.3.2 Local Exchange Carriers
  • 2.4 Description of Traditional Private Line Services
    • 2.4.1 Circuit Types
    • 2.4.2 Circuit Ordering
    • 2.4.3 Circuit Layout
    • 2.4.4 Redundancy & Restoration

Chapter III

• Trends, Applications, and Markets
  • 3.1 Overview
  • 3.2 Traditional Applications
    • 3.2.1 Dedicated Private Line Networks
    • 3.2.2 Interexchange Private Line
    • 3.2.3 Local Private Lines
    • 3.2.4 Adding Voice to Data
    • 3.2.5 Packet Networks
    • 3.2.6 VPNs
    • 3.2.7 Special Access
  • 3.3 The Newer Applications
    • 3.3.1 Internet Access
    • 3.3.2 Integrated Access
    • 3.3.3 Wireless
  • 3.4 Regulation
    • 3.4.1 FCC
    • 3.4.2 Future Regulatory Considerations
  • 3.5 Industry Consolidation
    • 3.5.1 IXCs
    • 3.5.2 ILECs
    • 3.5.3 CLEC
    • 3.5.4 Wireless
    • 3.5.5 ISPs
    • 3.5.6 Other Long Haul Carriers
  • 3.6 New Entrants (CATV and Fixed Wireless)
    • 3.6.1 Cable MSOs
    • 3.6.2 Fixed Wireless
  • 3.7 The Video Era
  • 3.8 Markets
  • 3.8.1 Wholesale vs. Retail Markets
  • 3.8.2 Retail
  • 3.8.3 Consumer Impact

Chapter IV

• Emerging Private Line Services
  • 4.1 Ethernet Services
    • 4.1.1 Ethernet Services Technology
    • 4.1.2 MPLS
    • 4.1.3 Ethernet Over Copper
    • 4.1.4 Impact on Private Line Markets
  • 4.2 Wavelength Services
    • 4.2.1 Carrier Segment
    • 4.2.2 Large Enterprise Segment
    • 4.2.3 Development of Wavelength Services
    • 4.2.4 Wavelength Services Technology
    • 4.2.5 Impact on Private Line Markets
    • 4.2.6 Example Wavelength Service Providers
    • 4.2.7 Wavelength Services Market Direction

Chapter V

• Network Providers
  • 5.1 Overview
  • 5.2 AT&T Corporation
    • 5.2.1 Network Architecture
    • 5.2.2 Private Line Services Offered
    • 5.2.3 Wholesale Private Line
    • 5.2.4 Other Services Offered
  • 5.3 Cox Business Services
    • 5.3.1 Private Line Services Offered
    • 5.3.2 Other Services Offered
  • 5.4 Global Crossing
    • 5.4.1 Network Architecture
    • 5.4.2 Private Line Services Offered
    • 5.4.3 Other Services Offered
  • 5.5 Level3 Communications, Inc.
    • 5.5.1 Network Architecture
    • 5.5.2 Private Line Services Offered
    • 5.5.3 Other Services Offered
  • 5.6 Optimum Lightpath
    • 5.6.1 Network Architecture
    • 5.6.2 Private Line Services Offered
  • 5.7 Qwest Communications International, Inc.
    • 5.7.1 Network Architecture
    • 5.7.2 Private Line Services Offered
    • 5.7.3 Other Services Offered
  • 5.8 Sprint
    • 5.8.1 Network Architecture
    • 5.8.2 Private Line Services Offered
    • 5.8.3 Other Services Offered
  • 5.9 Time Warner Telecom
    • 5.9.1 Network Architecture
    • 5.9.2 Private Line Services Offered
    • 5.9.3 Other Services Offered
  • 5.10 Verizon Communications
    • 5.10.1 Network Architecture
    • 5.10.2 Private Line Services Offered
    • 5.10.3 Other Services Offered
  • 5.11 XO Communications
    • 5.11.1 Network Architecture
    • 5.11.2 Private Line Services Offered
    • 5.11.3 Other Services Offered

Chapter VI

• Market Forecasts
  • 6.1 Private Line Market Summary
    • 6.1.1 Methodology
    • 6.1.2 Definitions
  • 6.2 Forecasts and Analyses
    • 6.2.1 Total Market
    • 6.2.2 Local and Long Distance
    • 6.2.3 Wholesale and Retail
    • 6.2.4 Carrier Types
    • 6.2.5 Wavelength Services
    • 6.2.6 Wholesale & Retail Using New Industry Structure
    • 6.2.7 Circuit Class

Table of Figures

Chapter I

• I-1 Typical Layout for a Full Circuit
• I-2 Total Private Line Revenue, 2008-2013

Chapter II

• II-1 Capacities of 64Kbit/s, T1, and T3 Circuits
• II-2 Typical Layout for a Full Circuit
• II-3 ISDN Switched Backup
• II-4 SONET Rings
• II-5 Fiber-to-Fiber Redundancy
• II-6 Cable-to-Cable Physical Redundancy

Chapter III

• III-1 Evolution of Private Line Market
• III-2 Typical Circuit Switched Voice Network
• III-3 Typical Packet Switched Network
• III-4 Typical IP Network
• III-5 Interexchange Private Line Architecture
• III-6 Managed Packet Network--Virtual Private Line
• III-7 Special Access Architecture
• III-8 Internet Access Architecture
• III-9 Integrated Services Architecture
• III-10 Verizon VoIP (SIP) Solution
• III-11 Typical Backhaul Configuration
• III-12 Telephone Subscribers among Major Cable MSOs, December '06 & '07
• III-13 Data vs. Video Traffic, 2005-2010 (Tbit/s)
• III-14 AT&T Data Transport Revenue Growth (2005-2008)

Chapter IV

• IV-1 Resilient Packet Ring Technology
• IV-2 Managed Wavelength Service Evolution Path

Chapter V

• V-1 Global Crossing Network Map
• V-2 Level3 Network Map
• V-3 Level3 Private Line Metro Service
• V-4 Qwest Network
• V-5 XO Private Line Network

Chapter VI

• VI-1 Enterprise Private Line Market Share

Table of Tables

Chapter II

• II-1 Digital Services Hierarchy
• II-2 SONET/Optical Carrier Hierarchy
• II-3 Coordinated vs. Non-Coordinated Circuits

Chapter III

• III-1 Continuing Industry Consolidation
• III-2 CLEC Mergers and Acquisitions, 2002-2006
• III-3 ADSL vs. Coaxial Cable: Number of High Speed Lines, 2000-2005

Chapter IV

• IV-1 SONET and Ethernet Defined Transmission Rates
• IV-2 Wavelength Market Segments
• IV-3 Typical Service Provider Offers for Native Wavelength Services
• IV-4 Typical Service Providers Offers for Wavelength Services Over SONET

Chapter V

• V-1 Carrier Network Architecture Comparison
• V-2 Qwest Metro Private Line Availability

Chapter VI

• VI-1 Total Private Line Revenue 2008-2013
• VI-2 Private Line Revenue, Local vs. Long Distance, 2008-2013
• VI-3 Private Line Revenue by Wholesale/Retail Segments, 2008-2013
• VI-4 Revenue for Local Private Line by Wholesale/Retail Segments, 2008-2013
• VI-5 Revenue for LD Private Line by Wholesale/Retail Segments, 2008-2013
• VI-6 ILEC Private Line Revenues, Local and Long Distance, 2008-2013
• VI-7 ILEC Private Line Revenues by Wholesale/Retail Segments, 2008-2013
• VI-8 CLEC Private Line Revenues, Local and Long Distance, 2008-2013
• VI-9 CLEC Private Line Revenues by Wholesale/Retail Segments, 2008-2013
• VI-10 IXC Private Line Revenue, Local and Long Distance 2008-2013
• VI-11 IXC Private Line Revenues by Wholesale/Retail Segments, 2008-2013
• VI-12 New Entrants Private Line Rev. by Local and LD Segments, 2008-2013
• VI-13 New Entrants Private Line Rev. by Wholesale/Retail Segments, 2008-2013
• VI-14 Private Line Revenue Totals by Carrier Type, 2008-2013
• VI-15 Wholesale Private Line Revenue Totals by Carrier Type, 2008-2013
• VI-16 Retail Private Line Revenue Totals by Carrier Type, 2008-2013
• VI-17 Wavelength Services Revenue Totals, 2008-2013
• VI-18 Wholesale Retail Private Line Revenue in New Industry Structure 2008-2013
• VI-19 Total Private Line Revenue Using New Industry Structure 2008-2013
• VI-20 Private Line Rev. by Carrier Type Using New Segment Def., 2008-2013
• VI-21 Local Private Line, Estimated Circuit Count by Circuit Class, 2008-2013
• VI-22 LD Private Line - Estimated Circuit Count by Circuit Class, 2008-2013