IP transit prices are still declining globally, but in bad news for 'net users of all kinds, the declines are slowing.
In what could be an indicator of continuing heavy demand for transit services, research company Telegeography says what was once a rapid fall in transit prices has eased considerably. The company says the 50 per cent year-on-year drops common just a few years ago are no longer in evidence.
“The median price of a 10Gbps Ethernet (10 GigE) port in Hong Kong, London, New York and Sao Paulo fell less than 15 per cent annually in each of the past two years,” the researcher says. “While high by the standards of many industries, these are the lowest rates of decline in the past five years, and far below the 50 per cent plunge experienced in many markets in 2012”.
Transit services are what allow ISPs to pass traffic to and from the big Internet backbones.
There are also big geographical differences in service price movements, the researcher found. Services to transit exchange points in New York and London fell just 4 per cent and 9 per cent respectively between 2013 and 2014, while in Sao Paulo prices declined 10 per cent, and in Hong Kong, 14 per cent.
Telegeography notes that New York and London also have the cheapest transit points in the world. In the former, it costs US$1.64 per Mbps per month to hand over Internet transit traffic, while in London it's down to US$1.36 per Mbps per month.
Honkers ISPs have to pay much more, at US$6 per Mbps per month, while Brazilians get waxed: their transit, at US$18 per Mbps per month, are 11 times higher than New York and 13 times higher than London. ®