The IP transit market generated
As Internet service providers worldwide have gradually migrated from purchasing transit to establishing mostly free peering arrangements, the share of global Internet traffic connected via transit agreements declined from 47% in 2010 to 41% in 2014. As long as this relative decline of transit continues, TeleGeography forecasts that IP transit-related revenues will fall from
TeleGeography anticipates that peering will become increasingly common at the expense of transit as regions that currently rely heavily on transit gain wider access to peering. For example, while African Internet traffic is forecast to grow 36% annually over the next seven years, transit volumes will increase by only 28% compounded annually, while peering volumes will grow 67% — driving down the share of traffic routed via transit from 90% in 2014 to 61% in 2020.
Whether or not transit's share of Internet traffic volumes will decline is still a matter of speculation. 'While it may seem counter-intuitive for providers to pay for transit when peering relationships have become more widely available, there are hidden costs associated with peering,' said TeleGeography VP of Research
TeleGeography's new IP Transit Forecast Service provides detailed historical data and forecasts of IP transit volumes, prices, and revenues by country and region.
To speak with an analyst, please call +1-202-741-0040 or email firstname.lastname@example.org.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say