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

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...