Market Trend

Asian circuit prices slide, transatlantic prices stabilise

According to TeleGeography’s Wholesale Bandwidth Pricing Database, capacity costs five times more on trans-Pacific and intra-Asian routes than across the Atlantic.

Lease prices for a 10Gbps wavelength ranged from $9,000 to $20,000 per month between New York and London; the same product cost between $65,000 and $80,000 per month between Tokyo and Los Angeles, according to TeleGeography. However, a recent wave of network construction and upgrades in Asia and the Pacific has brought renewed pricing pressure to those markets.

10Gbps wavelength prices between Los Angeles and Tokyo have fallen at a compound annual rate of 21% over the past two years, and prices from Singapore to Tokyo have plummeted by nearly 50% in the past year.

Conversely, prices for 10Gbps wavelengths between New York and London have fallen at a compound annual rate of only 3% – unusually stable, by the standards of the bandwidth market, according to TeleGeography.

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