February 8, 2002—The perceived security and reliability of private data lines will sustain wholesale demand for these services through the current economic downturn, predicts analysts from Frost & Sullivan.
The findings reveal that companies in a wide range of businesses will continue to use private data lines for mission critical applications to ensure maximum network uptime and to prevent possible breaches. Especially in the wake of the recent terrorist events, many companies will select “tried-and-true” solutions they consider secure rather than seeking out less established data service solutions.
Until recently, wholesale private line providers primarily consisted of either long haul carriers or local providers. Yet regional carriers from utility and energy companies have regional pipelines and power-based rights-of-ways where fiber could be implemented.
“With established brands, access to buildings, and deep financial backing, regional providers will continue to act as a new competitive threat in the private line service markets,” says Frost & Sullivan Research Analyst Rod Woodward.
