Metro Fiber Prices Exceed Long-haul

Although metro bandwidth markets have become increasingly competitive over the last decade, the net effect on local bandwidth prices has been much less dramatic than on long distance connections. As a result, local connectivity often accounts for 80 percent or more of total circuit costs.

For example, the median price of a 3,000 mile OC-3 (155 Mbps) circuit from Los Angeles to New York in mid-year 2004 was $7500 per month. In comparison, the cost of a three mile "on-net" OC-3 in either city was approximately $1200 to $2000. These metro prices can be much higher if the circuit connects to an "off-net" building where a third party provider or new build is required to complete the connection.

TeleGeography's latest research on local network competition, Metropolitan Area Networks (MANs), presents new data and analysis on the role of local connections in end-to-end circuit pricing as well as a review of metro network capacity supply relative to bandwidth demand in cities around the world. The report also contains a comprehensive collection of network maps and service descriptions for hundreds of bandwidth providers.

For a complete description of the coverage and additional analysis in Metropolitan Area Networks, please visit:
http://www.telegeography.com/products/mans/

Detailed samples, summaries, and tables of contents can be found by following the link above.

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