Bandwidth Buyers Face Significant Price Differences in the Global Market

Home / News

Bandwidth Buyers Face Significant Price Differences in the Global Market

By CircleID Reporter
May 20, 2009, 5:57 pm PDT Views: 7,246 Comments: 2

According to Data from TeleGeography‘s Wholesale Bandwidth Pricing Database, there are stark price differences around the globe for companies with large international bandwidth requirements. “For example, the median price of a 2 Mbps E-1 circuit between London and Johannesburg in Q4 2008 was nearly $15,000. For the same price, a bandwidth buyer could lease a 10 Gbps wavelength—500 times the capacity of an E-1—between London and New York.”

Circuit prices vary for a number of reasons, including geography, service provider, circuit capacity and type, according to TeleGeography. “The most expensive routes are to countries that grant few international gateway licenses, or that are dominated by an incumbent service provider.”

NORDVPN DISCOUNT - CircleID x NordVPN
Get NordVPN [74% +3 extra months, from $2.99/month]

By CircleID Reporter — CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.
Visit Page

Filed Under

Comments

Pretty ridiculous Alan Levin – May 26, 2009 9:16 PM

Did you notice on the left it says Johannesburg-London, basically it means South Africa -> rest of world. 10000/2 means that the IP route costs 5000 times the price of London-NY. Pretty ridiculous, but hopefully by September our competitive landscape will start to kick in. New government, new laws, >400 licensed telecoms operators, 3 new undersea cables and another 3 coming in the next 2 years, is all the news. Read more on Steve Songs update on Undersea African Cables

# 1 Reply | Link | Report Problems

Something even more ridiculous Brett Glass – May 31, 2009 4:47 PM

What is even more ridiculous is that Level3 wants more than $20,000 per month for 1 GB (not 10 GB!) of bandwidth between Laramie, Wyoming and Denver, Colorado—along an existing long haul fiber route and at an existing building.

Want to know why the US is behind in broadband deployment? It’s because of price gouging, market concentration, and refusal to deal in the backbone market.

# 2 Reply | Link | Report Problems

The Weekly Wrap

More and more professionals are choosing to publish critical posts on CircleID from all corners of the Internet industry. If you find it hard to keep up daily, consider subscribing to our weekly digest. We will provide you a convenient summary report once a week sent directly to your inbox. It's a quick and easy read.