Long-Haul Carrier Ethernet Pricing Drops
Ethernet services are most readily available, and prices are lowest, in Europe and North America, according to TeleGeography Research. In the first quarter of 2012, the median monthly price of a GigE EoMPLS pseudowire circuit between Frankfurt and London was $3,448, down 29 percent from the first quarter of 2011, while the median price from New York to Los Angeles was $8,000 per month, 12 percent lower than in the previous year.
By contrast, Ethernet circuits connecting to Asian cities remain far more expensive due to more limited service availability, less robust competition, and higher underlying transport costs. The median price of a GigE EoMPLS connection from Hong Kong to London in Q1 2012 was $40,138, down 17 percent from a year earlier, while a circuit from Hong Kong to Tokyo cost $31,096 per month, more than five times the price of a comparable link on the longer London-New York route.
Price differences among service providers can be just as dramatic as price differences among regional markets, with the variance between the high and low prices on some lower-cost routes just as great, or greater, than on more expensive routes. For example, in Q1 2012, the high price of a GigE circuit from Hong Kong to London was $52,500—approximately three times greater than the low price of $16,704. The range of prices on the much less costly London-New York route is far wider: the highest price quoted to TeleGeography, $17,250 per month, was 10 times more than the low price of $1,729.
Tags: carrier ethernet, TeleGeography