Next-generation Net access growing fast

August 22, 2005

Next-generation WAN/Internet access is growing fast, driven by new applications and lower prices, a new study reported.

The number of medium and large organizations in North America using high-speed access for Wide Area Network services will grow from 63 percent in 2004 to 83 percent in 2009, according to a forecast in Infonetics Research's latest study, "User Plans for High Speed Access, North America 2005."

This strong growth is being driven by unfaltering increases in the use of bandwidth, new applications -- especially video -- and the lowering costs per bit for services.

An even more interesting phenomenon is the current migration away from traditional high-speed access methods like frame relay, ATM and private line toward "next gen access" methods like Ethernet, SONET, WDM, DSL and PON for metro and WAN services.

"Organizations are bumping up against the capacity limits of legacy frame relay and private line networks, causing them to seek higher bandwidth, and next gen access options like Ethernet and optical networks are an attractive alternative," said Michael Howard, principal analyst at Infonetics Research.

"Many companies are lessening their dependence on traditional access and increasing their use of next gen access. They're looking at access services more as a commodity now, so higher bandwidth at lower cost-per-bit services are gaining in popularity."

Copyright 2005 by United Press International