Dark Fiber Network Operators In The US Industry Market Research Report Available From IBISWorld Now
Despite a marginal setback during the recession, the Dark Fiber Network Operators industry has maintained strong growth, due to growing broadband use. Expanding broadband connections and rebounding corporate profit will continue to support revenue growth in the next five years. Further, industry players are engaging in strategic acquisitions to gain a competitive edge. For these reasons, industry research firm IBISWorld has added a report on the Dark Fiber Network Operators industry to its growing industry report collection.
Los Angeles, CA (PRWEB) - Firms in the Dark Fiber Network Operators industry lease or sell their unused fiber-optic cables to telecommunications or internet-based companies for the purpose of creating a communications network. The existence of dark fiber networks has been around for as long as fiber-optic cables. According to IBISWorld industry analyst Nikoleta Panteva, “As the amount of data and broadband use has grown, demand for networks that support communication has increased as well, thus supporting industry revenue growth.” Over the five years to 2012, IBISWorld estimates that revenue will grow at an average annual rate of 3.7% to reach $986.2 million.
While revenue stagnated during the recession due to the discounted rate at which dark fibers were offloaded, growth has been substantial in the years that have followed. In 2010, Dark Fiber Network Operators industry revenue grew an estimated 6.6%, followed by an additional 7.3% increase in 2011. IBISWorld expects revenue to continue on its upward trajectory during 2012, growing by 7.7%. Says Panteva, “The combination of increased broadband connections and rebounding corporate profit has supported strong revenue growth during the past five years.”
The industry's largest players have outpaced overall industry growth because of their strategic acquisitions. To gain resources (e.g. fiber-optic cables), players often buy the capital of smaller companies because it is too costly to install new cables. As a result of the acquisition activity, the number of participating firms has declined each year on average since 2007 to 165 in 2012. The trend is likely to continue over the five years to 2017 – though at a less pronounced rate. The industry is considered to have a low level of concentration. But as operators continue to seek out a competitive advantage by providing an expansive dark fiber network for large telecommunications companies that allows them to improve their products and services, industry concentration will increase over the next five years. Meanwhile, growing corporate profit and demand for data transfer will continue to underpin industry revenue growth. For more information, visit IBISWorld’s Dark Fiber Network Operators in the US industry report page.