2001 Business ISPs - Service, Size, and Share

The U.S. business-oriented ISP market continues to grow despite tough economic times. This year overall market revenues will grow 7% to $13 billion. For the years 2000 through 2005, the market will have an annual compound growth rate of 12.44%. This report looks at the trends and services that will grow these revenues. Included in this report are five-year forecasts for business-oriented ISP revenues such as access and Web hosting. This report also includes year-end 2000 market share for business access services.

Executive Summary

Methodology

Introduction

Market Trends

Ethernet MAN

DSL Loop Consolidation

The Economy

Business ISP Services

Access Services

T-1 Pricing Structure

Web Hosting

Non-hosting Value Added

Service Level Agreement

Service Forecasts

Market Share

Summary

List of Tables

Table 1. Key DSL Loop Suppliers, Q1 2000 to Q2 2001

Table 2. ILEC vs. CLEC U.S. DSL Market Share, Q1 2000 - Q1 2001

Table 3. Year 2001 Access Plans for Total Business-Oriented ISPs

Table 4. Year 2001 Access Plans for National Business-Oriented ISPs

Table 5. Year 2001 Access Plans for Regional Business-Oriented ISPs

Table 6. U.S. Business-Oriented ISP Revenues ($ Millions), 2000-2005

Table 7. Market Share for Business-Oriented Access Revenues, 2000

List of Figures

Figure 1. Total U.S. Business-Oriented ISP Service Revenues, 2000-2005

Figure 2. U.S. ISP Composition 2001 - National vs. Regional

Figure 3. Percentage of U.S. ISPs Selling Business Services - 2001

Figure 4. Local/Metro Bandwidth Bottleneck

Figure 5. 12-Month Stock Performance for AT&T

Figure 6. 12-Month Stock Performance for Cable & Wireless

Figure 7. 12-Month Stock Performance for InterNap

Figure 8. 12-Month Stock Performance for WorldCom

Figure 9. 12-Month Stock Performance for XO Communications

Figure 10. Year 2001 Revenue Breakout for Total Business-Oriented ISPs

Figure 11. Year 2001 Revenue Breakout for National Business-Oriented ISPs

Figure 12. Year 2001 Revenue Breakout for Regional Business-Oriented ISPs

Figure 13. Bundling of Port and Local Loop Charges by Business-Oriented ISPs

Figure 14. Bundling of CPE with Internet Port by Business Oriented ISPs

Figure 15. Internet Port Pricing Options

Figure 16. Percent of Business-Oriented ISPs Offering Web Hosting Services

Figure 17. Shared Server, Dedicated Server, and Co-Location as Offered by U.S. Business-Oriented ISPs

Figure 18. Web Hosting Tools Offered by Business-Oriented ISPs

Figure 19. Percent of U.S. Business-Oriented ISPs Offering Hosted Application Services

Figure 20. Hosted Applications Most Commonly Offered by ISPs

Figure 21. Percent of U.S. Business-Oriented ISPs Offering IP-VPN Services

Figure 22. Percent of U.S. Business-Oriented ISPs Offering IP-VPN for Intranets/Remote Access and Extranets

Figure 23. Percentage of U.S. Business-Oriented ISPs Offering Security Service

Figure 24. Percentage of ISPs Offering Managed Firewalls, Encryption, and Security Consulting

Figure 25. Percent of ISPs Offering Business Customers an SLA

Figure 26. Elements of Internet Service Covered by ISPs Offering SLAs

Figure 27. Percent of ISPs Offering SLAs That Also Offer Reparations

Figure 28. U.S. Business-Oriented ISP Revenues, 2000-2005