Following through with the second leg of a one-two punch, euNetworks announced today a new ultra low latency route between London and Frankfurt. The new route is one of the shortest available, and brings latency between exchanges or other sites in each city to below 9 milliseconds round trip. As I understand it, that makes them competitive with the fastest routes in the marketplace right now depending on precisely which sites are being connected.
The London-Frankfurt route remains the major draw for low latency-sensitive bandwidth buyers in Europe, and the players in the game are those with substantial metro assets on both ends. There are only so many possible intercity routes in existence without digging new trenches to reduce that mileage, and we must be getting close to that point. I wonder if we will reach the point where the benefits of low latency to traders will justify new construction at that level.
Yesterday euNetworks announced a sub 500 microsecond route between London and Slough to the west, which is becoming a hot datacenter market. Combined with the new London-Frankfurt service, the company can offer an increasing set of products to the financial community. I'm curious to see what other markets pop up as low latency destinations in the region over the next year or two. It was just over a week ago that we saw Colt open the doors on a low latency Paris-Brussels route, as well as their own London-Frankfurt entry which checked in at 4.22ms one way.
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