April 5, 2007 -- (WEB HOST INDUSTRY REVIEW) -- A new report by independent research firm Tier1 Research (tier1research.com) shows that recent growth in Internet traffic has caused a spike in interconnection and has considerably increased the demand for cabinets in top colocation facilities. As a result, numerous colocation companies are competing for business in the interconnection facility market.

"The carrier-neutral colocation market is continuing to develop in North America, and leadership in this market is up for grabs," says Daniel Golding VP and senior analyst at T1R and lead author of the report. "Over the next four years, we believe there are several trends that will have a significant impact on interconnection growth and the carrier-neutral colocation market ? and on the companies that are looking to 'make it or break it' in this market."

The 37-page report, titled 'Carrier Neutral Colocation 2007,' is an in-depth, competitive analysis of the carrier-neutral colocation market. Among the key public and private carrier-neutral colocation companies included in the report are Equinix, Switch & Data, Telehouse America, Telx, Terremark, Digital Realty Trust, CRG West and 365Main.

The trends covered in this report include stagnant conventional voice interconnection, the proliferation of competitive local exchange carriers, the increased growth in Internet traffic, an increasing number of entities wishing to interconnect, a subsequent increase in the absolute number of cross connects in interconnection facilities and the resolution of the network neutrality issues currently under intense debate.