When pricing a global MPLS or VPLS wide area cable network, the cost of international bandwidth has a dramatic effect on the pricing of circuits. This is why connectivity to Asia or South America is so much more expensive that domestic circuits in the USA or circuits from the USA to Europe. TeleGeography is a research company that compiles all this pricing data, in addition to offering some wonderful maps.
A recent wave of new submarine cable builds and upgrades to existing cable systems has brought an influx of submarine cable capacity to many historically high cost markets, including Africa, the Middle East, Southern Asia, and Latin America. Nevertheless, new data from TeleGeography show that vast regional disparities persist in both price levels and rates of decline.
New cable builds in Asia have greatly increased both supply and competition in the region, driving down prices. Median lease prices for a 10 Gbps wavelength between Los Angeles and Tokyo fell 35 percent between Q1 2011 and Q1 2012, and at a compounded rate of 33 percent between Q1 2009 and Q1 2012. Prices of 10 Gbps wavelengths between Hong Kong and Singapore fell 10 percent between Q1 2011 and Q1 2012, to $43,935 per month, and declined at a compounded 31 percent annually between Q1 2009 and Q1 2012.
Navigating the procurement of a global MPLS network is complicated unless you do this work on a daily basis, since you don’t have benchmark pricing or insight into all the global cable system. Using SD-WAN-Experts to manage this process can not only save you money, but reduce the the time required to manage this process. In many cases, we have been able to provide twice the bandwidth the customer would have obtained if they managed the process on their own. To learn more, visit this link or contact us.
