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Bandwidth Prices are Eroding, Volume is Growing, and the Market Spins Madly on

By Jayne MillerSep 7, 2016

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Content network operators account for a growing portion of bandwidth on global routes.

Perhaps by now you’ve read what companies like Google, Microsoft, and Facebook are doing about it: they’re taking primary ownership shares of transoceanic systems, joining consortia, and taking major stakes in carrier-owned cables.

This trend has real implications for traffic flow, exchange points, and pricing in the market.

Despite all this, submarine bandwidth prices continue to erode – and there are several very good reasons why. Submarine cable ownership models are evolving and new cables are injecting large swaths of bandwidth into the market, just to name a few.

To truly understand the myriad factors that are lowering submarine bandwidth prices, pop over to Erik Kreifeldt’s latest piece for Lightwave.

 

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Erik Kreifeldt

Erik Kreifeldt

Principal Analyst Erik Kreifeldt tracks the international network services industry, advising global operators on market trends. With more than 20 years of industry experience—including over a decade of research with TeleGeography—he specializes in strategic decisions that require genuine data, analysis, and insight. Before joining TeleGeography, Erik was an optical networking industry analyst, trade reporter, and optical physics science writer. He continues to draw inspiration from the profound-yet-underappreciated work of maintaining infrastructure essential for global commerce—and awe at how it all gets done.

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