Sliding leased circuit price in Asia remains crazy


Posted on June 8, 2010  /  1 Comments

TeleGeography has revealed the transpacific bandwidth costs five times more than the transatlantic price. The prices of a 10Gbps wavelength between London-New York (transatlantic) costs only US$9,000 to $20,000 per month.

The same product, however, varies from $65,000 to $80,000 per month in Tokyo and Los Angeles (transpacific) route although this price has fallen at a compounded annual rate of 21% during last two years.

Worst part of the story is – the same 10Gbps wavelength between Tokyo and Hong Kong is marginally less than the Tokyo-LA price (See the chart).

The transpacific bandwidth costs are expected to slide furthermore once the new cables get commissioned. TeleGeography Research Director Rob Schult has, however, warned:

“We don’t expect that circuit prices in Asia will ever reach the exceptionally low levels seen in the Atlantic, but it’s certain that new cable construction in Asia and the Pacific will pull down prices.”

The high tide of bandwidth cost across the Pacific is also washing away the digital fortune of the Indian Ocean region. Internet has become the oxygen of telecoms. More than 60% of the global population lives across the Asian coastal countries of the Pacific and Indian oceans. But less than 16% of them have access to the Internet.

Governments of these Asian countries have to immediately reform respective international gateway. Otherwise, most of the Asians shall remain far behind the people of North Atlantic coasts.

1 Comment


  1. Hello,

    Wow, how great it is to read an article like this. I totally agree that governments need to instigate some kind of reform if they want to keep with with the North Athlantic counterparts.

    Great perspective. Thank you so much for sharing.

    Regards,

    Motoko