TeleGeography's Official Blog

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

Written by Jayne Miller | Sep 7, 2016 2:07:00 PM

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.