TeleGeography's Official Blog

The Decade Pricing Challenge

Written by Jayne Miller | Feb 13, 2020 1:02:00 PM

You've seen the decade challenge. Post a picture of yourself in 2010 and another in 2020. Compare. Contrast. See how far we've come. (Or reflect on a time lost, wondering aloud why youth is wasted on the young.)  

At PTC 2020, Brianna Boudreau thought it would be fun to do the same thing with TeleGeography's network pricing research. She came armed with data from our January 2010 workshop, as well as our latest and greatest analysis.

In 2010, we were talking about STM-1 pricing trends. And while those aren't the kind of price trends that are on the agenda in 2020, looking at 10G wavelength pricing today actually yields familiar results. There is some symmetry between our 2010 and 2020 reports.

Over the last three years, 10G prices on key global routes decreased about 15% compounded annually—not far off from the STM-1 trends we were watching a decade ago. And, again, we're seeing the highest rate of price erosion in markets with a recent injection of supply—like Los Angeles-Sydney.

However, this year's pricing report is a bit of a shift from previous presentations. Prices are still going down, but at a slower rate of price erosion than we've highlighted in previous workshops. 

Want to see all of Brianna's 2010 vs. 2020 price trends? Watch her full session below. Or download the slides here.