Asian bandwidth rates plummet, set to fall further

Asian bandwidth rates plummet, set to fall further

Robert Clark  |   June 08, 2010
telecomasia.net
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The gap is narrowing between Pacific and Atlantic bandwidth prices as a result of fresh cable capacity, according to research firm TeleGeography.
 
It says its latest research shows that capacity still costs five times more on key trans-Pacific and intra-Asian routes than across the Atlantic.
 
Carrier prices for a 10Gbps wavelength range from $9,000-$20,000 per month between New York and London, but $65,000-$80,000 between Tokyo and Los Angeles.

However, the rollout of the Google-backed Unity cable, the AAG and other systems is reducing the gap.

 
The research firm said 10Gbps wavelength prices between Los Angeles and Tokyo have fallen at a compounded annual rate of 21% over the past two years, and prices from Singapore to Tokyo have sunk by nearly 50% in the past year.
 
“Conversely, prices for 10Gbps wavelengths between New York and London have fallen at a compounded annual rate of only 3% — unusually stable, by the standards of the bandwidth market,” TeleGeography said.
 
“'We don’t expect that circuit prices in Asia will ever reach the exceptionally low levels seen in the Atlantic, but it’s certain that new cable construction in Asia and the Pacific will pull down prices,” said research director Rob Schult.
Robert Clark

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