GLOBAL INTERNET BACKBONE WORTH $8BN, SAYS DATAMONITOR.
The global internet backbone was worth $8.3bn in 1998 and its
value will rise to an estimated $19.4bn by 2002, according to research
by market analyst, Datamonitor. The figures account for all ISPs,
carriers and IP infrastructure provision. The US accounts for $3.9bn or
47% of the 1998 total, according to Datamonitor, with this expected to
fall to 36% by 2002. Europe can expect its share of the total market to
grow from 24% to 31%. But the report warns of the danger of the market
being dominated by a few big players such as MCI Worldcom Inc, Sprint
Corp and Cable & Wireless Plc, predicting industry self-regulation
to ensure the development of fair peering mechanisms. The report's
other major finding is that new wide-band technologies will drive
internet data transfer costs down to less than half a percent of the
current cost, or $300 per terabyte in 2003 compared to $80,900 per
terabyte in 1998.