TeleGeography: 10 GigE port price declines continue to slow down

The global decline in IP transit prices in major cities has started to slow, according to new data from TeleGeography's IP Transit Pricing Service.

During the past two years, the median price of a GigE port in Hong Kong, London, New York and São Paulo fell less than 15 percent annually.

TeleGeography notes that these are the lowest rates of "decline in the past five years, and far below the 50 percent plunge experienced in many markets in 2012."

Despite the overall slowing of price declines, the rate at which prices are falling varies by each market.  

During the second and third quarter of 2014, median 10 GigE port prices in New York and London dropped only 4 and 9 percent, respectively, compared to 28 and 33 percent annually between 2009 and 2013. The lowest IP transit prices can be found in New York and London at $1.64 and $1.36 per Mbps per month.

"While the pace of IP transit price erosion varies from place to place and fluctuates from year to year, the recent slowdown in price declines represents an unusually broad trend," said TeleGeography analyst Erik Kreifeldt. "Many of the carriers surveyed by TeleGeography are making only modest price adjustments, and this pattern holds true in both mature and emerging markets around the world."

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