| Hard times have fallen on the US business-oriented ISP market. Many of the major service providers are facing uncertain futures, with some having already filed Chapter 11. However, despite these troubles, service revenues continue to grow, just slower than they have in the past.
In-Stat/MDR forecasts that the US Internet backbone market will have virtually no growth over the next five years, but business access services will continue to grow at a low single digit rate.
In-Stat/MDR also found, based on a survey of 200 US based ISPs, that Internet access remains the number one revenue source for business-oriented ISPs. Access services generate approximately 46.9% of revenues. The most common access services sold by business-oriented ISPs remain dial-up and dedicated access.
Other services generating significant service revenues include Web hosting and value-add services, such as IP-VPN and managed security.
This report contains a five-year revenue forecast for business access and Internet backbone services. Market share for each service is also included. This report also contains results of the In-Stat/MDR 2002 ISP survey. Survey questions include - types of access sold, percent of revenues by service, and ISP attitudes toward selling DSL and cable modem services.
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