Telecoms companies, ISPs and large enterprises in North America and Western Europe have access to abundant and affordable network capacity. But companies with large international bandwidth requirements still face significant challenges elsewhere.
Data from TeleGeography’s Wholesale Bandwidth Pricing Database reveal that stark price differences persist around the globe. For example, the median price of a 2Mbps E-1 circuit between London and Johannesburg in Q4 2008 was nearly USD15,000. For the same price, a bandwidth buyer could lease a 10Gbps wavelength—500 times the capacity of an E-1—between London and New York.
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'The high price of international capacity can have a significant impact on the strategies of bandwidth intensive businesses,' said TeleGeography analyst Erik Kreifeldt. 'Bandwidth buyers seeking capacity outside of their home markets need to understand how prices vary by region, and how these prices are likely to evolve.'
Circuit prices vary for a number of reasons, including geography, service provider, circuit capacity and type. The most expensive routes are to countries that grant few international gateway licenses, or that are dominated by an incumbent service provider.
TeleGeography’s Wholesale Bandwidth Pricing Database has been a vital resource for bandwidth buyers, sellers, and investors since 2002. Our database provides more than 150,000 anonymous carrier price quotes on 150 key routes for bandwidth products ranging from E-1 to Gigabit Ethernet and 10Gbps wavelengths.