Skip to main content

MPLS Service Spending to Reach $2.4 Billion by 2015

Wireline telecommunications data services is a growing business communications category that includes expenditures on wide area network (WAN) data transport services.

These enterprise communication services include dedicated cable, DSL, network-based IP VPN, T1, frame relay, ATM, and Ethernet services. MPLS (multiprotocol label switching) service is also part of this group.

It's a high-performance telecom network offering that directs and carries data from one network node to the next with the help of labels -- making it easy to create virtual links between distant nodes.

According to the latest market study by In-Stat, MPLS network services are becoming more popular and business spending will reach $2.4 billion in 2015.

“MPLS is communication protocol agnostic and highly scalable,” says Greg Potter, Analyst at In-Stat.

It was designed to provide a unified data-carrying service for both circuit-based clients and packet-switching clients. A number of different technologies were previously deployed with similar goals, such as frame relay and ATM services.

Newly collected market data suggests that the increase in MPLS spending has had a negative impact on some of these other communication technologies.

In-Stat's latest market study insights include:
  • Frame relay spending will decline 55 percent from 2010 to 2015.
  • Spending on cable data services will increase 34 percent over the forecast period.
  • Small businesses (20-99 employees) will spend a little over $6.2 billion in 2012.
  • The healthcare and social services vertical will experience the largest overall gain, increasing $1.2 billion over the forecast period.

Popular posts from this blog

The Evolution of Personal Computing in 2025

The personal computing device market continues to demonstrate remarkable resilience despite recent fluctuations. According to the latest worldwide market study by International Data Corporation (IDC), global PC shipments are projected to reach 273 million units in 2025—a modest but significant 3.7 percent increase over the previous year. This growth reflects the market's adaptation to post-pandemic realities and evolving technology needs across the globe. Personal Computing Market Development While COVID-19 initially triggered unprecedented demand for computing devices during the shift to remote work and online education, we now see a more measured growth pattern. IDC has slightly adjusted its projections downward, indicating a market growing steadily rather than explosively. "In light of so many challenges around the world, Japan is a much-needed source of double-digit growth this year. Enterprises there as well as SMBs have been quickly replacing PCs in advance of the Window...