Since the Internet was first commercialized during the Clinton Administration, bipartisan policies have helped promote private sector investment in residential broadband service. There also has been massive investment to deliver broadband to U.S. businesses of all sizes, which has been integral to the success of the overall Internet economy. These growth trends are documented in the first of three USTelecom white papers examining the business broadband marketplace.

Today’s businesses increasingly use high-speed services for applications like data center interconnection, disaster recovery, video services, and access to cloud services, in addition to the day-to-day applications like voice and broadband Internet access. New bandwidth intensive applications are fueling the demand for high capacity connections to businesses, which increasingly means fiber. A decade ago, only an estimated 11 percent of the buildings with 20 or more employees had fiber, but today more than 42 percent have fiber, with significant expansion underway.

There also is an increasing adoption of higher capacity Ethernet services, which are expected to grow from $7 billion to $20 billion over the next five years, and a major migration away from the traditional slower-speed business data, or “special access” services, that rely on access to carrier networks. These markets will be explored in detail in the second white paper.

Despite significant evidence of marketplace competition, some in Washington seek greater regulation for some portions of the network that support the Internet economy, claiming a lack of competition. A move to further regulate a market that is demonstrating significant growth and diversity of entrants is unnecessary, which will be explored in the third white paper.

See the white papers for a fuller discussion: