International IP VPN port prices experience global decline

01 December 2011 |


Research from TeleGeography has revealed that MPLS IP VPN port prices are declining rapidly in major cities around the world.

Between Q3 2010 and Q3 2011, median port prices in competitive regional markets, including the US and Europe, fell by more than 25%. Declines were more modest in Latin America and Asia, but still exceeded 10%. Prices of high capacity ports, including 155Mbps STM-1/OC-3, 100Mbps FastE, and 1,000Mbps GigE ports, are falling particularly rapidly in competitive markets.

VPN port prices were found to be falling in Africa, which remains a diverse and fragmented market, and which has long been one of the world’s most expensive markets for corporate data services. The Egyptian capital, Cairo, reported the sharpest declines with the median price of VPN ports falling by 33% to $5,514 per month. In Casablanca, E-1 prices also declined by 23% to $8,067 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."