10G wavelength pricing is declining. So is 100G—faster, even, than 10G.
At PTC 2019 Senior Analyst Mike Bisaha illustrated the extent to which prices are dropping on core routes using a series of images representing the last three years of price movement.
Our 2019 pricing update again managed to highlight the biggest trends in telecom—like these declines—in under 20 minutes. (Scroll to the bottom to watch the whole thing.)
And there was a lot to talk about in under 20 minutes.
The majority of core global routes have seen price declines of over 30 percent across the last three years; this is much faster than its 10G counterpart, where declines of around 20-25 percent are more common.
But there is one route that has managed to buck that trend.
This marks the first time we've seen an instance where 100 and 10G have fallen at approximately the same rate on a specific route.
London-New York prices have seen a rate of decline of 21 percent, compounded annually, for both 10G and 100G. This marks the first time we've seen an instance where 100 and 10G have fallen at approximately the same rate on a specific route.
What does this mean? It indicates that we have relatively mature markets for both 10G and 100G for different market segments on this transatlantic route.
Knowing this, you might not be surprised to learn that the multiple between 10G and 100G is compressing over time. On the low end we're seeing 4.2x, while on the higher end we're getting a multiple upward of 6x.
According the Mike, there are two interesting things to note here. The first is that, for the majority of global routes tracked by TeleGeography, the multiple rate is between 4x and 5.5x. And that range is getting smaller and smaller over time.
The second notable item is that the multiple itself is still falling, almost universally.
These pricing factoids only cover the first five minutes of Mike's presentation. Download TeleGeography's workshop slides here and click below to enjoy the full 2019 pricing update.
Mike Bisaha is a senior analyst at TeleGeography. Mike's research include both wholesale and enterprise telecommunications services with a focus on North American and European markets.