Ethernet pricing declines accelerate as service availability ramps, says TeleGeography
As service providers broaden the geographic availability of their Ethernet portfolios, service prices have continued to drop dramatically, according to TeleGeography's latest Ethernet Pricing report.
Between the first half of 2013 and the first half of 2014, the median monthly lease price for 100 Mbps point-to-point Ethernet over MPLS (EoMPLS) declined an average of 44 percent, compared to 26 percent annually since the first half of 2011.
"Both global and regional carriers are expanding their on-net coverage and adjusting their prices as they seek to position themselves in the market," said Brianna Boudreau, a TeleGeography analyst. "Buyers can expect to see further price erosion as service availability continues to grow."
Price declines vary by geography.
In Latin America and Asia, the median price of a 100 Mbps EoMPLS pseudowire between Buenos Aires and Miami fell 39 percent, to $5,321, while the median 100 Mbps EoMPLS price between Hong Kong and Tokyo dropped 46 percent, to $4,200 per month.
Similar price declines took place in the U.S. and Europe, where service providers' on-net EoMPLS coverage grew 12 percent and 10 percent, respectively. The median 100 Mbps EoMPLS price between Los Angeles and New York decreased 49 percent between the first half of 2013 and the first half of 2014, to $943.
- TeleGeography has this report
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