Greater pricing disparity emerging for Ethernet services

18 June 2012 |


A report from research firm TeleGeography has shown that greater disparity is emerging both among regions and service providers for the price of Ethernet services.

Prices were found to be lowest and Ethernet services most readily available in Europe and North America.
 
In Q1 2012 the median monthly price of a GigE EoMPLS pseudowire circuit between Frankfurt and London was $3,448, down 29% from Q1 2011, while the median price from New York to Los Angeles was $8,000 per month, 12% lower than the previous year.

In contrast Ethernet circuits connecting Asian cities remain far more expensive, due to limited service availability, less robust competition and higher underlying transport costs.

The median price for a connection from Hong Kong to London in Q1 2012 was $40,138, down 17% from a year earlier, yet a circuit from Hong Kong to Tokyo cost nearly five times the comparable price of a link on the longer London-New York route, at $31,096.