AT&T led the US business ISP market in September 2011 with 20% of all browser-based Internet page views (i.e. traffic), according to data released in November by comScore. Data from the study indicates that AT&T’s share was two-thirds higher than the next largest business ISP, Verizon, which garnered a 12% share of the market. CenturyLink ranked as the third-largest with 7% share, followed by TW Telecom (5%), Level 3 (5%) and Comcast (5%). Overall, the top 5 business ISPs drove 49% of business Internet traffic across the US, while the top 10 drove 69%.
Small Biz Sees More Competition
When examining the business ISP market according to the size of the business served (measured by number of employees per business), the small business segment proved to be the most competitive for business ISPs. In fact, nearly 40% of traffic was driven by ISPs ranking outside the top 10 carriers in this segment, compared to just 15% for large businesses and 27% for medium businesses. Furthermore, while AT&T led all ISPs for small businesses, its 13% market share was significantly lower than its share of the large (28%) and medium (24%) business segments.
Verizon Makes Inroads in Top Local Markets
Verizon took the top position in 3 of the top 10 US local markets in September, including New York, the largest local market, where it held 20% market share. AT&T was the top ranked carrier in a majority of the markets, although once again the competition was much more pronounced among smaller businesses. Within the small business segment, Comcast and AT&T each took the top spot in 4 of the top 10 local markets, with Verizon and Cablevision also leading in one local market.
Software & Tech, Telecom Industries More Fragmented
AT&T drove 30% of traffic in the Financial Services industry, ahead of Verizon (24%) and Level 3 (9%), and led the Healthcare & Medical industry by an even wider margin, its 31% share far ahead of CenturyLink/Qwest (10%) and Verizon (9%). However, the Software & Technology industry showed greater market fragmentation among ISPs, with AT&T (18%) narrowly taking the top spot, followed by Verizon (17%), and MZIMA (16%). Meanwhile, CenturyLink had the largest market share (13%) among all ISPs in the Telecommunications industry, beating out Internap Network Svcs (11%) and AT&T (11%).