New international capacity reduces wavelength prices

18 June 2012 |

A recent wave of submarine cable builds and upgrades have brought an influx of submarine cable capacity to traditionally high-cost markets.

Despite this, new wholesale bandwidth pricing data shows there are still vast regional disparities in terms of both pricing levels and rates of decline according to a report from TeleGeography.

Median lease prices for a 10Gbps wavelength between Los Angeles and Tokyo fell 35% between Q1 2011 and Q1 2012. During the same period, 10Gbps wavelengths between Hong Kong and Singapore fell 10% to $43,935 a month.

Heavy investment in new cable projects in India helped reduced prices of 10Gbps wavelengths between London and Mumbai by 22% between Q1 2011 and Q1 2012. Circuit prices between Latin America and the US have fallen significantly as a result of a five-fold increase in lit capacity between 2007 and 2011.

TeleGeography projects that several new cable projects, which are scheduled to enter service on the route over the next two years, will likely lead to further price declines.