Industry Analysis & Industry Trends
Largely due to mounting demand for low-latency data transport and exclusive network segments, the Dark Fiber Network Operators industry has grown rapidly in recent years. Over the past five years, industry players have added route miles to their networks through acquisitions, largely because of the high cost of installing new cables. This trend is anticipated to continue over the next five years. Consequently, the number of industry enterprises is forecast to decline over the period. Meanwhile, growing corporate profit and content delivery services will underpin industry revenue growth, while pricing difficulties associated with long-term contracts and mounting external competition will temper the industry's performance.... purchase to read more
Industry Report - Industry Investment Chapter
The Dark Fiber Network Operators industry operates with a high level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.88 to capital investment. The industry's level of capital intensity has increased dramatically over the five-year period, as the industry allocated $0.62 in capital expenditure per dollar in wages in 2010. With increasing downstream demand, dark fiber network operators have made capital investments in order to establish and grow communication networks.
Moreover, while wages account for a substantial share of revenue, estimated at 13.1% of the total in 2015, they have declined from 14.3% of revenue in 2010... purchase to read more