Internet Traffic Growth Slows by Half in 2005

After a decade of remarkable growth, the international Internet is showing substantial signs of maturity. According to TeleGeography's latest survey of Internet backbone providers, global cross-border internet traffic grew by just 49 percent in 2005, down from 103 percent in 2004. The Internet's fastest growing regions, Asia (64%) and Latin America (70%), produced only modest traffic growth by previous years' standards.

The rate of traffic growth going forward may hinge most on the underlying growth in broadband subscribers, which has begun to slow in many developed markets. As of mid-2005, the combined average traffic on all cross-border backbone routes stood at just under 1 Terabit per second (Tbps). TeleGeography projects that average traffic will range from 2 to 3 Terabits per second by 2008.

An important secondary sign of market maturity is stabilization in Internet backbone access pricing. TeleGeography's latest pricing survey shows that in the 12 months up to mid-2005, prices fell less sharply than in previous years. In 2004, backbone access prices around the world fell about 50 percent over the previous year. This year prices fell between 23 and 33 percent, and many providers have stated that they have no plans to reduce prices further.

This new research is presented as part of the completely updated Global Internet Geography, available as either an updated online subscription service or as a 414 page printed report. Key features include:

- Internet traffic and bandwidth forecasts through 2008
- Review of traffic by application: Web/P2P/email/VoIP
- Analysis of backbone growth, geographic coverage, and pricing
- Profiles of 77 backbone operators, including network maps
- Top routes, traffic, and users for 64 countries

To learn more about this area of research and related services, please visit our web site:

http://www.telegeography.com/products/gig

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Press Releases

	2005
15 December Brazil and Nigeria Fastest-Growing VoIP Destinations 10 November International Voice Market Improving 31 October Level 3, WilTel, and Price Stability 19 October Quarterly Wireless ARPU Down Worldwide 6 October TeleGeography Update: Vonage IPO 22 September TeleGeography 2005 Colocation Rankings 7 September International Internet Rankings for 2005 23 August Internet Traffic Growth Slows by Half in 2005 25 July VSNL Buys Top VoIP Carrier: TeleGeography's View 15 July Stability in the Atlantic Capacity Market? 15 June 30% of U.S. Broadband Subscribers Have Never Heard of VoIP 31 May U.S. Residential VoIP to Exceed $1bn in 2005 9 May Top and Bottom Wireless Markets 28 April PriMetrica, Inc. Acquires Singapore-based MMS Consultancy 20 April Most Intercity Bandwidth Still Unlit 7 April Bandwidth Demand Outpaces Price Declines 17 March Who Still Sells IRUs? 24 February TeleGeography Wholesale Market Predictions for 2005 16 February High Mobile Termination Rates in Europe Draw Carrier Interest 26 January Metro Fiber Price Exceeds Long-haul

Press Release Archive