IP transit prices continue their downward trend

16 Nov 2010

New data from TeleGeography’s IP Transit Pricing Service reveal that prices for wholesale Internet access (IP transit) continue a years-long decline, even as international traffic volumes continue to grow more than 60% annually.

Although prices are declining throughout the world, both prices and the rate of decline vary sharply. In Hong Kong, the median price for a 1,000 Mbps GigE port has declined at a compounded rate of 15% over the past five years, to USD28 per Mbps. Prices have fallen more rapidly in other markets. For example, the median GigE port price in New York City has fallen at a compounded annual rate of 22% between Q2 2005 and Q2 2010, to under USD8 per Mbps—less than one-third the price of a comparable port in Hong Kong.

‘Prices often decline more steeply where they are high, in part because there is simply greater potential for decline,’ remarks TeleGeography analyst Erik Kreifeldt. ‘But for IP transit, the downward price trend has continued unrelenting for many years, even where prices are already lowest.’ Although median GigE prices offer a useful benchmark over time, prices for higher volumes of capacity can be much lower, he adds.

TeleGeography’s IP Transit Pricing Service provides buyers and sellers with the tools they need to make sound business decisions. Updated semi-annually, the database specifies prices anonymously by carrier, port capacity and committed data rate.

Key features include:

  • Online database of port prices from individual carriers for 58 cities worldwide
  • More than 225,000 price quotes from nearly 30 carriers, updated with 15,000 new quotes semi-annually
  • Prices for nearly 20 port capacity configurations from 10Mbps to 10Gbps, including full and partial port committed data rates
  • Semi-annual report of summary price statistics
  • Annual report analyzing global and regional trends in IP transit pricing

To view a more detailed description and to download samples, please visit:http://www.telegeography.com/product-info/ip_transit/index.php.

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