Collocation Facilities – Location is more important than you think!

I am working with a client right now that needs a 30Mbps private network to Asia.  They have a collocation facility in the US that will connect via this circuit to a collo facility in Hong Kong.

When businesses select collo facilities, they rarely think about proximity to a telecom hotel.  Why, you ask?  Because the local loop between the carrier and the collo facility is a significant part of your network cost.  For this example, the circuit cost came in at $8,200/mo, in large part, because of the local loop cost.

If the client used a collo facility that was also a telecom hotel, the cost went down to $3,850/mo, a difference of $53,200/year! The same logic applies to selecting new office locations: consider your local loop costs.

An independent consulting firm like SD-WAN-Experts can help you make the right decisions so that your long term objective are considered for your business.

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