Wholesale bandwidth comes with a hefty price tag between Tokyo and Los Angeles, compared to the same capacity offered between New York and London, according to new figures from TeleGeography. In fact, capacity costs five times more on key trans-Pacific and intra-Asia routes than across the Atlantic, the research firm notes in its new Wholesale Bandwidth Pricing Database.
For example, leasing a 10gbps wavelength between New York and London runs an operator or enterprise between $9,000 and $20,000 per month. The same product between Tokyo and Los Angeles goes for between $65,000 and $80,000 per month, TeleGeography said.
However, recent network construction and upgrades in Asia Pacific have started to strong-arm pricing in those higher-fee markets, the research firm said on Thursday. To wit, charges for 10gbps from Singapore to Tokyo have plummeted by almost 50 percent in the last year. And, for the same service between Los Angeles and Tokyo, prices have dropped by a compound annual rate of 21 percent over the past two years.
In the trans-Atlantic region, though, costs remained stable, TeleGeography found. Wholesale users hoping to pay less for 10gbps wavelengths between New York and London are out of luck. Those prices fell at an annual compounded rate of a mere 3 percent, a drop TeleGeography called “unusually stable,” by bandwidth-market standards.
