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Backbone Access Pricing Drops 50 PercentThe price paid by large corporations and ISPs to access the Internet at ultra-high speeds has dropped sharply in the last year, according to new data published in TeleGeography's Global Internet Geography research service. The average price for STM-1 (155 Mbps) connectivity to the global Internet has dropped 49 percent in European cities and 55 percent in U.S. cities over the last 12 months. Prices in Asia have declined at a comparable rate, but remain twice as high as those in Europe and the U.S.
Rapid Traffic Growth Brings Additional RevenueIn some cities, traffic may have grown fast enough to offset the effect of price declines on service provider revenues. For example, in Hong Kong, international Internet traffic grew over 350 percent while prices fell 50 percent, leaving room for substantial total revenue growth in the last year. However, in many other cities traffic grew at or below the same rates that prices fell -- indicating a flat market for backbone service providers. This new data is presented as part of a completely updated Global Internet Geography research service, which is available as either an updated annual online subscription or as a 384 page printed report. Our pricing coverage provides thousands of data points and detailed analysis including:
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