Boom or Not, Internet Bandwidth Prices Still Falling

9 thoughts on “Boom or Not, Internet Bandwidth Prices Still Falling”

  1. Transit bandwidth prices may have dropped but cable internet access has not dropped and the speed is paltry. One cable provider won’t outright tell you what their speeds are. I had to ask the customer service rep the exact upload and download.

  2. What is the source of this data? It isn’t anything that I am experienced with. Looks skewed to make people think the US has cheap bandwidth (not true in my experience)

    1. My parents pay $10 for 56Kbps dialup in US = $179 per Mbps
    2. I pay $50 for 15Mbps = $3 per Mbps
    3. I paid $50 for 100Mbps in Japan 3 years ago = $0.5 per Mbps

  3. The first two comments already make the mistake of comparing wholesale prices to retail prices. That’s not what this is about. International bandwidth prices are only 1-3% of the costs of delivering broadband. Why you haven’t seen this reflected in your retail offer has a very simple reason, it’s not that important for you. Most of you however have seen it reflected in some other way, the steady decline of metered broadband (though not everywhere and not always).

  4. The key is that demand has more then kept pace with the pricing decline. In other words prices may have dropped 50% but demand has increase 200%. 50% and 200% are not the real numbers but you get the point. So although you’d think your local ISP should be able to lower prices, they actually have to pay the same and more likely more for their transit connection.

  5. Previous commenters are confused. Article clearly states “GigE ports,” from an ISP, meaning it’s for a whole 1000Mbit connection. The article isn’t clear if this is for a committed port (ie, 1000 * the price in the graph or ~$10k/month) or is a burstable price. Typically I see a commit required of at least 10% of port capacity, meaning you’d pay $1000 for the port, and $10/mbit for usage beyond the 100Mbit, based on the 95th percentile.

    This is for data center and commericial customers, not end users/homes.

    1. So Brett, you’re saying that in NYC the price for a Gig-E port is $800/Mbps? I don’t know where you do your shopping, but you’d have to be pretty crazy to pay that price. Even fairly small customers here don’t pay more than $40/Mbps for a fairly small commitment on a Gig-E port.

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