Accelerating on Some Routes, Nonetheless Stalled on Others

We’ve witnessed an unprecedented slowing of bandwidth worth erosion globally over the previous few years, as community traders, carriers, and prospects grappled with delays in new community tasks, present system upgrades, and rising tools prices.

For the primary time, many shoppers discovered themselves asking if costs had been really rising and when worth declines would return to typical ranges.

Whereas the provision chain constraints and card shortages that spurred this development have resolved themselves, geopolitical points haven’t. Consequently, current worth developments fluctuate dramatically by area.

In line with new knowledge from TeleGeography’s Transport Networks Analysis Service, worth erosion has began to speed up on some routes, however stays stalled on others.

The determine under highlights the compound annual worth decline for 100 Gbps wavelengths from 2020 to 2023 (the darkish blue bars) versus the prior three years, 2017-2020 (turquoise bars).

Weighted Median Month-to-month 100 Gbps Wavelength Worth Erosion

Notes: Every bar represents the proportion decline of the weighted median worth, calculated as a three-year compound annual development charge for the listed route and time interval. Supply: © 2024 TeleGeography

Throughout all of the routes featured above, 100 Gbps wavelength costs decreased a median of 13% between 2020 and 2023. That’s in comparison with 18% over the prior three years (2017-2020). 

On routes with extra ample provide, worth erosion has returned to type as new excessive capability cables enter service.

On routes with extra ample provide, worth erosion has returned to type as new excessive capability cables enter service.

For instance, the U.S.-Latin America route continues to fall at a brisk tempo, nonetheless feeling the results of recent cables, numerous fiber pair possession, and upgrades to present methods. The route can be anticipating the launch of the Firmina cable later this 12 months.

Between 2020 and 2023, 100 Gbps wavelength costs on Miami-São Paulo decreased 28% compounded yearly. That has exceeded the 22% lower between 2017 and 2020.

Whereas not featured right here, Johannesburg-London, which noticed an enormous inflow of recent capability from the launch of Equiano final 12 months, recorded an annual 22% worth drop for 100 Gbps wavelengths over the previous three years. 

On routes with continued delays in new provide, worth erosion continues to be stalled.

On routes with continued delays in new provide, worth erosion continues to be stalled.

For instance, 100 Gbps costs on Marseille-Singapore and Hong Kong-Singapore decreased simply 2% and 6% yearly from 2020-2023. That’s in comparison with 28% and 16% yearly from 2017-2020.

The Europe-Asia and intra-Asia routes have been particularly impacted by current delays in provide. Whereas card shortages have resolved themselves, geopolitical points play a key position in delays of recent methods on each routes.

Till new methods begin coming into service this 12 months, obtainable stock goes for 2023 costs or probably larger.

Obtain the brand new Transport Networks Govt Abstract to maintain studying our newest evaluation.