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Bandwidth Trading and Brokering Markets Poised to Surge to $12 Billion |
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New analysis from Frost & Sullivan Wholesale Bandwidth Services Market, reveals the industry generated total revenues of $142.5 million in 2000 and is projected to surge to $12 billion by 2007.
SAN ANTONIO —June 12, 2001—
Bandwidth trading, brokering and on-line exchange services are rapidly becoming the cost-efficient alternative to traditional, bilateral negotiations for bandwidths.
New analysis from Frost & Sullivan (www.telecom.frost.com), U.S. Wholesale Bandwidth Services Market, reveals the industry generated total revenues of $142.5 million in 2000 and is projected to surge to $12 billion by 2007.
"Among the energy companies-turned-telecom upstarts, the brokers and online exchanges, there is a great deal of excitement about the future of the bandwidth services market," says Frost & Sullivan Industry Analyst Rod Woodward. "As carriers start to show more overt interest in the market, a 'snowball effect' will occur. Carriers will rapidly explore bandwidth trading as a potential option for buying and selling bandwidth."
Attracted by the high profit potential, utility/energy companies are becoming more involved in the market, their services appeal to the traditional carrier's desire to reduce selling, general and administrative (SG&A) costs by allowing a middleman to handle all aspects of bandwidth negotiations
"While this market is still very young, participation from service providers, utility/energy companies and e-commerce businesses is expected to propel the industry as consumers realize the full financial benefit of utilizing such services," says Woodward. "It would be of little surprise to see the number of competitors double or even triple in 2001."
While the entrance of new market participants will encourage growth, the increased competition will be a threat to total profits. Industry participants are encouraged to enter the field while it is still in its infancy in order to capture a greater market share, while building a loyal consumer base.
Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the wholesale services industry. These market specific awards are presented to: Aquila Broadband Services, Bandwidth Markets, Dynegy, Enron Broadband Services and Telephone.com.
Frost & Sullivan is a global leader in international strategic market consulting and training. This ongoing research is part of the Wholesale Telecom Market Service, which also includes market analysis on U.S. Utility Telecommunications Service Market and U.S. Wholesale Long Distance Service. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.
U.S. Wholesale Bandwidth Services Market
Report: 6336-63
Contact:
Kristi Grier
P: 210.247.2403
F: 210.348.1002
E: kgrier@frost.com
www.frost.com
© 2001 Frost & Sullivan, All Rights Reserved. |
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