TeleGeography’s Anahí Rebatta recently presented “A Tale of Prices: Latin America vs. The Rest of the World” during LACNIC 29/LAC Peering Forum. In this presentation she explored the cost of connection and the impact that new submarine cables are having on Latin America.
What set this one apart from other recent presentations Anahí has done about the region?
For starters, this one was a bedtime story.
Andy the Little Carrier wanted to buy bandwidth. But Andy was sad. Bandwidth was so expensive! Then, something magical happened. Prices fell. Yay! “I wonder what happened?,” thought Andy.
The classic fairytale dilemma of falling bandwidth prices in Latin America.
Anahí’s presentation covered the factors powering the price declines seen throughout the region:
- New supply and competition fuel price erosion, particularly on less developed routes
- Transit is more expensive in markets that remain dependent on long-haul links to Europe or the U.S.
- Ye old “pipe-and-port” scenario
The moral of this bedtime story is that prices are falling in Latin America. However, it’s still cheaper to buy transit in the U.S. (And there are a lot of other costs to consider.)
To peruse Anahí’s entire presentation, click here.
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Anahí Rebatta
Anahí is a Senior Analyst at TeleGeography. As part of the infrastructure team, she heads the Global Internet Geography research service. Her regional focus is on Latin America and the Caribbean.