[AusNOG] IP Transit price collapsing

Bevan Slattery Bevan.Slattery at nextdc.com
Wed Feb 23 21:36:48 EST 2011


Guys,

Just to clarify, I've had a few emails from people asking me about my comment on IP transit and thinking I was smoking crack.

Yes - volume IP pricing is already at the $35/Mbps/month.  Tithe price of international IP has absolutely collapsed in the past 18 months.  Bandwidth has dropped from $250/Mbps 3 years ago to $150-200/Mbps 2 years ago, $80-$100/Mbps 1 year ago to $35 today.  I even heard $25 mentioned to me this week.  Australian pricing is now getting comparable to Hong Kong.  Great if you run a DC and want to get cloud operators here.  Bad if you sell IP.

Glad I'm not in the network game anymore! :)

[b]
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