Shift from leased lines to networking services continues

Dec. 1, 1997

Shift from leased lines to networking services continues

Total bandwidth for Asynchronous Transfer Mode (atm) and frame relay services will surpass leased line bandwidth in the United States by the year 2000, according to atm & Frame Relay Industry Update, a newly released report by Vertical Systems Group of Dedham, MA.

The report also predicts that frame relay will become the second-largest data-networking service in the world this year, after leased lines and ahead of the Consultative Committee International for Telegraphy and Telephony standard X.25.

According to the report, atm and frame relay markets combined will reach $22 billion worldwide by the end of the decade. atm services and equipment will grow at a compound annual growth rate of 57% between 1996 and 2000 to $7.3 billion, and frame relay services and equipment will increase to $14.6 billion in the same time, representing a compound annual growth rate of 43%.

The leased-line market in the United States is growing at an average annual rate of 5%, and is projected to reach $11.8 billion by 2000. The report is based on independent research with users and service providers, and contains actual market figures for 1995 and 1996 and projections for the years 1997 through 2000.

Equipment market projections and analysis are provided for nine separate equipment segments, and the report includes more detail for developing product categories such as frame relay assemblers/ disassemblers.

For more information, contact Erin Dunne, manager of research services, at 3 Allied Drive, Dedham, MA, 02026; tel: (781) 329-0900; fax: (781) 329-6471; or www.verticalsystems.com.u

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