Ethernet pricing disparities continue between regions, service providers: Telegeography

While it is clear that the availability of point Ethernet over MPLS (EoMPLS) and Ethernet Virtual Private Line Services (EVPLS) continues to grow as businesses migrate from traditional SDH/SONET-based private line networks, TeleGeography reveals that price varies widely between regions and service providers.

Europe and North America, not surprisingly, are the two regions where there's an abundant amount of low cost Ethernet services available.

For example, a business that wants to purchase a GigE EoMPLS-based pseudowire circuit between Frankfurt and London would pay $3,448, a 29 percent decrease from the same period last year. Likewise, the cost of a GigE EoMPLS link between New York and Los Angeles is $8,000 per month, 12 percent lower than Q1 2011.

In Asia-Pacific, EoMPLS circuit costs are significantly higher due to three key factors: limited service availability, less competition, and higher transport costs. A GigE EoMPLS connection between Hong Kong to London in Q1 2012 cost $40,138, down 17 percent from the same period in 2011. However, a Hong Kong to Tokyo circuit cost $31,096 per month, over five times the price of the London to New York route.

"Prices of enterprise WAN services often vary far more widely than prices of wholesale carrier services," said TeleGeography analyst Brianna Boudreau. "While prices will continue to decline as wide area Ethernet services become more standardized and availability grows, large price disparities are likely to persist for years to come."

Telegeography GigE pricing 2012

For more:
- here's TeleGeography's report

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