International IP/VPN port prices continue to decline

Multinational corporations looking for economical MPLS IP VPN connections will be happy to know that port prices are continually coming down in major U.S. domestic and international cities.

According to new data from TeleGeography's Enterprise Network Pricing Service, median port prices in competitive regional markets, including the U.S. and Europe, decreased by over 25 percent. In particular, higher capacity ports such as 155-Mbps STM-1/OC-3, 100 Mbps FastE, and 1,000 Mbps GigE port prices continue to drop rapidly.

TeleGeography IP VPN port prices 2011

In Latin America and Asia price declines were significantly less, but still were over 10 percent.

Another country to take a look at is Africa, a region that's been known for very high priced enterprise data services. In Cairo, for example, the median price of a 2 Mbps E-1 VPN port fell 33 percent to $5,514 per month, and in Casablanca, E-1 prices declined 23 percent to $8,067 per month. Despite the progress made, other regions like Lagos saw median E-1 port prices decline only 6 percent to $10,620 per month.

"Falling VPN prices reflect a number of factors," said TeleGeography Research Director Rob Schult, "These include price reductions by established carriers, the emergence of new competitors with more aggressive prices, and efforts by multinational carriers to accommodate local market conditions."

For more:
- TeleGeography has this article

Related articles:
TeleGeography: Service providers scramble to keep up with colocation space demand
TeleGeography: Long haul Ethernet service comes at a steep price
Ethernet is gaining traction as the preferred high speed access method to IP/VPNs

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