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ISP BACKBONE MARKET TO REMAIN FLAT THROUGH 2002 ACCORDING TO IN-STAT/MDR.

Despite their crucial role in carrying traffic to and from the various ISPs, the last 12 months has brought diminishing market capitalization to many of the biggest names in the ISP backbone market, according to Cahners In-Stat/MDR (www.instat.com).

The high-tech research firm reports that in the face of a forecasted zero percent growth in the number of backbone connections used by Internet Service Providers (ISPs) in the year 2002, backbone providers will need to focus on key decision criteria used by ISPs (such as price, reliability, company reputation, company stability, and availability of service) in selecting their backbone providers.

According to Daryl Schoolar, senior analyst with In-Stat/MDR, "The backbone market along with the total wholesale ISP market will experience little growth in 2002. The economy is affecting, not only the structure of the backbone provider market, but also the services they offer, and to whom they are offered.

"Backbone providers are being careful in not repeating the mistakes they made with the free ISP market."

In-Stat/MDR also found that:

At the end of 2000, 10 backbone providers generated 92 percent of all wholesale ISP revenues. WorldCom had the largest market share with 44 percent. The next two largest wholesale ISP service providers were Genuity and Sprint with 12.5 percent and 9.4 percent market share respectively.

T-1 remains the most common speed used in backbone connections. This is followed by T-3.

The report, "Watching the Bandwidth Flow - The 2001 ISP Backbone Market" (No. IS0109IF), examines the ISP backbone and wholesale ISP markets and covers such topics as backbone service provider selection criteria, speed of backbone connections, and method of connection.

Along with market share of the top 10 wholesale ISP service providers, this report also includes 5-year forecasts for the number of backbone connections, speed of the connections, and wholesale ISP revenues. [sections]

To purchase this report, or for more information, visit http:// www.instat.com/catalog/cat-is. The report price is $1,995 USD. [sections]
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Comment:ISP BACKBONE MARKET TO REMAIN FLAT THROUGH 2002 ACCORDING TO IN-STAT/MDR.
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Jan 28, 2002
Words:332
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