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

Digital Grids Reshape the Future of Electricity

What was once a simple, unidirectional flow of electricity from centralized power plants to passive consumers is evolving into a complex, intelligent network where millions of distributed resources actively participate in grid operations. This transformation, powered by smart grid technologies, represents one of the most significant infrastructure shifts of our time. It promises to reshape how we generate, distribute, and consume energy. At its core, the smart grid represents far more than mere digitization of existing infrastructure.  This bi-directional capability is fundamental to understanding why smart grids are becoming the backbone of modern energy systems, facilitating everything from real-time demand response to the integration of renewable energy sources. Smart Grid Market Development By 2030, smart grid technologies are projected to cover nearly half of the global electrical grid, up dramatically from just 24 percent in 2025. This expansion is underpinned by explosive gr...