Market patterns aren’t the only forces impacting carriers. Shifts in strategy, corporate structure, assets, and regulation can also have noteworthy consequences.
We’re seeing this across Latin America right now.
As network requirements balloon, global IP transit prices continue to decline. Even in the face of a global pandemic.
But the pace of price erosion over the past three years and the factors driving it vary throughout the world. Declines have been greatest in emerging markets, where prices are highest. Increases in volume, local traffic exchange, and number of suppliers can improve economy of scale, underlying transport cost, and competition, respectively. In established global hubs, prices continue to fall at a significant pace, largely a result of escalating volume and declining unit cost.
Welcome back to the third installment of our mythbusting series, where we break down legends in telecom pricing and see if they hold water. (Don’t miss our investigations on tall tales in local access budgeting and MPLS/DIA pricing lore.)
With the update of data and analysis within our Global Bandwidth Research Service comes a refreshed look at our network pricing intel.
Yes, operators are racing to keep revenue margins ahead of eroding prices, while bandwidth demand and supply continue to grow across global routes. Abundant supply and increasing competition have led to this robust price erosion throughout the global bandwidth market.
New 100 Gbps-equipped submarine cable systems and upgrades to existing networks have further lowered unit costs. And this has driven down both 10 Gbps and 100 Gbps wavelength prices. Across critical global routes, weighted median 10 Gbps and 100 Gbps prices fell an average of 14% and 23% compounded annually since 2016.
In case you missed my previous post, we here at TeleGeography love busting telecom myths. But we haven’t turned our analytical tools toward common WAN pricing myths—until now!
In this second installment, I’m going to investigate whether MPLS IP VPN and dedicated internet access (DIA) prices have become one and the same.
We have a years-long tradition of Mythbusting here at TeleGeography. But it occurred to me that we’ve never tackled any of the WAN pricing myths floating around out there. That’s why I decided to do a series addressing some of the things I hear from WAN-sourcing and WAN-selling professionals.
Let’s see if these WAN pricing myths stack up against the data.
First up: is it true that, particularly for traditional MPLS networks, local access can account for upwards of 50% of the total cost of ownership (TCO) of WAN components?
Yes, we do know where to find good pricing data around here. (Great pricing data, actually.)
TeleGeography's Pricing Suite is a portal to all of our network pricing data and related analysis. It's fueled stories like this and this and even this.
Today we're answering a handful of quick questions about how we maintain our databases—and how you can get access.
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.
The telecom space is loaded with acronyms. (Take this from the people who recently published a post about the difference between IP VPN, DIA, and EVPN.)
Today our Business Broadband Research Service team is giving telecom newbies and pros alike the broadband acronym cheatsheet of their dreams.
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