Competition drives down VPN prices

Staff writer
09 Jun 2011

Increased competition is driving down IP VPN prices in markets around the world, according to new data fom TeleGeography.

In the first quarter of 2011, the median monthly lease price of a gigabit Ethernet VPN port in Hong Kong fell 32% to $51,286 (about $6,590) per month. In Singapore, the price fell by 20% to $48,706 ($39,574).

Analyst Brianna Charpentier said new competitors offering lower prices have recently entered these markets, which is compelling established service providers to cut their service prices.

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