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WAN and Internet Service Spending Rises 26%, 
from $82B in 2002 to $103B in 2006

    SAN JOSE, CA, May 14, 2002 - Worldwide end-user WAN and Internet service expenditures grow 26%, from $82 billion to $103 billion between 2002 and 2006, according to a new study released today by Infonetics Research, User Plans for WAN and Internet Access, US/Canada 2002.

    WAN service expenditures grow steadily in US/Canada and more robustly in ROW, where there are many more businesses that are just starting to connect their organizations' sites with WANs. Internet service expenditures also grow more aggressively in ROW than they do in US/Canada through 2006; favorable regulatory environments and dense populations are driving mass broadband deployments in Europe and Asia Pacific, allowing for the delivery of IP services in small organizations and large organizations with remote offices.

    "The WAN and Internet access world is changing from one dominated by frame relay and TDM leased lines to one that uses a mix of frame relay, TDM, optical/Ethernet, and broadband technologies such as DSL, cable, and fixed wireless," said Jon Cordova, Infonetics Research analyst and lead author of the study. "Increasingly, organizations of all sizes are using multiple technology types along with Internet VPNs to build and secure their WANs."

    Sample Data

  • By 2004, 9% of respondent headquarter sites use optical technologies for their WAN connections
  • 65% of respondents with WANs use voice/data convergence by 2004
  • VPNs have penetrated the general population of this study: by 2004, an average of 70% of headquarter sites at large organizations have VPNs; small organizations show the most growth in VPNs, with use of all site types doubling by 2004
  • Leased lines are the primary Internet connection type at headquarter sites by 2004

    Synopsis
    The 299-page study is based on in-depth interviews with purchase decision-makers at 240 small, medium, and large organizations with WAN and/or Internet access connections, as well as 1,050 interviews with US and Canadian organizations conducted for Network Technology Adoption Forecasts, US/Canada 2002, published in January. The study examines end-user product requirements and implementation plans for WAN and Internet connections, including the benefits and problems of using these connections, which technologies are used, features looked for when selecting WAN and Internet access products, preferred manufacturers, etc.

    Forecast
    The study features a 5-year worldwide forecast of end-user expenditures through 2006 for Internet and WAN services, with expenditures for each broken out by leased lines, frame relay, ATM, and fixed wireless. The Internet expenditure forecast also includes DSL and cable breakouts. The worldwide forecast for WAN and Internet service expenditures shows US/Canada vs ROW spending, and the US/Canada forecast shows small vs medium vs large organization spending. For the table of contents and excerpts, or to purchase this study, please contact:

    Infonetics Research (www.infonetics.com) is a market research and consulting firm covering the networking and telecommunications industries, providing worldwide market share services and US/Canada and European demand-side research to network equipment and software manufacturers, service providers, chip and component manufacturers, and the investment community worldwide.

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Press Contact:
Jon Cordova, Directing Analyst
WAN, Internet, and New Metro Access
Infonetics Research, Inc.
(408) 298-7999 x237
jon@infonetics.com