What’s the price of Internet backbone capacity?
October 01, 2009
IP transit is one of the most widely bought and sold wholesale communications services. However, data from TeleGeography’s IP Transit Pricing Service demonstrate that IP transit prices vary greatly by location, by service provider, and by port capacity and committed data rate.
IP transit prices continue to vary widely by service provider within a given market. For example, in Q2 2009, the price of a fully committed GigE (1,000 Mbps) port in New York ranged between $8 and $21 per Mbps per month, with a median of $9.
Median monthly IP transit prices for GigE ports in major North American and European cities averaged around $10 per Mbps. In contrast, the median monthly price per Mbps of a GigE port in Q2 2009 was $31 in Tokyo, $52 in São Paulo, and $80 in Mumbai.
Port capacity and committed data rate significantly influence the price of IP transit service. In Q2 2009, the median unit price of a fully committed FastE (100 Mbps) port in New York was nearly twice as high as the unit price of a GigE port.
Wholesale GigE Internet Access Prices, 2009
Telegeography’s IP Transit Pricing Service provides buyers and sellers with the tools they need to make sound business decisions. Updated quarterly, the database contains more than 175,000 price quotes in more than 55 major cities worldwide. Prices are detailed by carrier, and by port capacity and committed data rate.
To speak to an analyst, please call 202-741-0042, or email press@telegeography.com.
