Telegeography: 10G Wave Pricing Down Sharply In 2012

February 26th, 2013 by · 2 Comments

According to the telecom research firm Telegeography, 10G waves on major international routes saw substantial price cutting last year.  Between Q4/2011 and Q4/2012, their data say that median monthly prices for 10G waves between major global markets fell some 37%, while pricing for smaller pipes was somewhat more stable.  

telegeography22013While carriers are all looking ahead to 100G deployments, 10G waves will continue to be the industry workhorse for some time to come.  With pricing still falling so easily, one wonders just how long it will really take before 100G's economics really justify the upgrade for most of the industry.

The greatest pricing pressure came to and within the APAC region of course, as the capacity from all the new cables continues to drive overall pricing closer to that in the western hemisphere.  But it's interesting that Telegeography also saw Miami-Sao Paolo prices drop by some 27% and Frankfurt-London by nearly as much, while the transatlantic route (London-NYC) was rather more stable.

Of course these are some of the internet's most competitive links, I wonder what pricing has looked like on the somewhat less traveled routes.


Categories: Internet Backbones · Internet Traffic

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