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.
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2 comments:

Anonymous said...

What are the bit-prices?

December 10, 2010 at 6:23:00 AM MST
Gary Kim said...

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.

December 10, 2010 at 7:45:00 AM MST

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