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New Study: IP Migration Forecast to Drive Revenue Growth for Data Services

New Study: IP Migration Forecast to Drive Revenue Growth for Data Services

Posted by Shara Evans in Press Releases 27 Apr 2006


Sydney, AUSTRALIA – April 27, 2006 – Corporate Australia’s hunger for data services will drive nearly 17% growth in data service revenues between 2005 and 2010, as companies migrate their data networks to next-generation technologies, according to new research published this week by Market Clarity.

Market Clarity forecasts that the total Australian retail and wholesale data services market, worth over $2.6 billion in 2005, will grow to more than $3 billion by 2010. Key predictions in the report include that between 2005-2010:

  • IP/MPLS revenue will grow by a total of 93.7%
  • Ethernet revenue will grow by more than 157%
  • Dark Fibre revenue will grow by 165.1%
  • Frame Relay revenue will fall by nearly 40%
  • ATM revenue will fall by 40.5%
  • Leased Line revenue will fall by 15.9%
  • Retail ISDN revenue will fall by 42.6%

“From SMEs all the way up to large corporate/government customers, Australia’s data users are at the beginning of a historic migration to next-generation services,” said Market Clarity’s CEO Shara Evans. “While there is a clear decline in traditional service technologies like Frame Relay, ATM and Leased Line services, we are predicting strong overall growth as customers implement next-generation technologies. In particular, customers are clearly moving to roll out Ethernet and IP/MPLS-based services.”

Evans identified hunger for bandwidth, the growth of business IP telephony and converged applications, as well as ongoing upgrading of carrier infrastructure as key factors driving the shift to next-generation data networking technologies.

“As businesses build converged enterprise networks, they look for carrier services that remove the boundary between LAN and WAN, and between voice and data,” Evans said. “Increasingly IP/MPLS and Ethernet are the solutions of choice.”

“At the same time, these services are now more readily and cheaply available due to the use of lower cost access technologies such as DSL and increased competition,” said Evans. “Australia’s carriers have spent the last few years upgrading and converging their own networks to prepare themselves for the growth of next-generation services.”

Evans believes however, that there will be some traditional services that survive the transition to next-generation networking, “While there will be some loss of connections and revenue in both the Leased Line and Frame Relay markets, these services will retain a foothold in the retail market as an access technology for IP/MPLS services and therefore will remain vital to wholesale customers.”


About The Australian Data Services Market

The Australian Data Services Market was released today and is now available from Market Clarity. The report investigates and analyses the performance of an extensive range of data services, with forecasts to 2010. Historical and forecast data is provided for IP/MPLS, Ethernet, Dark Fibre, Frame Relay, ATM, Leased Line, and ISDN data services.

The Australian Data Services Market is part of Market Clarity’s ongoing demographics and forecast publications covering every aspect of telecommunications in Australia. It is a 161-page report containing 69 Tables and 79 Figures, and was compiled through primary and secondary research covering more than 95% of Australia’s data service market.


About Market Clarity

Market Clarity is an award-winning telecommunications analyst firm founded in January 2006 by leading Australian telecommunications researcher and strategic consultant, Shara Evans. The firm covers all aspects of telecommunications, including traditional and converged services and technologies. Market Clarity’s extensive databases of technical and market information cover a wide range of facts and figures on the technologies and services that are shaping the Australian telecommunications market. Market Clarity’s GIS tools and research databases enable the correlation and presentation of highly complex information in an intuitive geographic (map) format.

Market Clarity’s insights are derived from a deep understanding of technology, coupled with comprehensive research, which examines each segment of a service’s value chain as well as underlying population demographics. By leveraging its engineering knowledge with an ongoing primary research program, Market Clarity provides insight, intelligence and advice on all aspects of the Australian telecommunications market including traditional, converged and future technologies. Market Clarity’s unparalleled market knowledge and research databases are brought to all consulting engagements.

Market Clarity’s contribution to telecommunications in Australia was recognised by the telecommunications industry’s peak body, the Communications Alliance, which awarded the company its 2007 ACOMMS award for Services to the Industry – Professional Services.

Market Clarity is headquartered in Sydney, Australia.