Friday, December 10, 2010
IP Backbone Traffic: Volume Up 54%, Price-Per-Bit Down, 25% Per Year
The companies that run the world's IP backbone networks are used to two trends: Traffic grows every year and the price-per-gigabit declines every year. IP transit prices, one of the best ways to quantify the cost of using global backbone networks, have declined by 25 percent per year, on a cost-per-bit basis, in major hub cities since 2007.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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2 comments:
What are the bit-prices?
Price depends on which specific route. TeleGeography says median prices in the second quarter of 2010 were $10 per megabit per second, per month, in New York and London, but more than $50 per megabit per second, per month, in Sao Paulo. Hong Kong was maybe $30 per megabit per second of capacity, per month.
Those are median prices, so half were higher, half were lower.
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