Global Internet Capacity and Pricing Trends

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Global Internet Capacity and Pricing Trends

Alan MauldinResearch Director, TeleGeography

Caspian Telecoms – IstanbulApril 20, 2012

http://www.telegeography.com/


Operators Are Rapidly Adding New Capacity



Pace of Regional Growth Varies

Notes: Data reflect Internet bandwidth connected across international borders including links between countries in each region. Data is the compound annual growth rate between mid-2007 and mid-2011.



How the World Connects



Continued Decentralization



A Broad Range of Prices Exist

Notes: Shaded area represents price range between low and high price by individual carrier; line shows median

High, Low, Median London GigE IP Transit Prices by Carrier



IP Transit is Not Always Cheap



IP Transit Prices Are Under Pressure, Especially in Asia



Trends in the Caspian/CIS Region

• Major global backbone operators may expand their IP backbones from Eastern Europe into the Caspian/CIS region, bringing new competition and cheaper prices.

• The majority of content will continue to be located outside of the region due to more favorable regulatory environments and lower power/space costs in Western Europe.

• Rich peering and interconnection opportunities in Western Europe will remain a major attraction for carriers — there is no equivalent of DE-CIX or AMSIX in the Caspian/CIS region.



Appetite for Bandwidth Should Remain Strong

We are here



Thank YouAlan Mauldin

Research DirectorTeleGeography

[email protected]+1 202 470 0135


mailto:[email protected]

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Global Internet Capacity and Pricing Trends