New knowledge from TeleGeography’s Transport Networks Analysis Service tells a narrative about altering bandwidth pricing developments, the elements that drive them, and what we would count on to see available in the market.
This is what we learn about wholesale pricing in 2025.
Provide chain constraints and geopolitical challenges dramatically slowed international value erosion over the previous few years. However with provide points within the rearview mirror, delayed programs are lastly coming to fruition. And their influence available on the market, notably when it comes to value, is beginning to be felt.
On a number of key international routes, value erosion is accelerating as new high-capacity cables enter service. On different routes, the place delayed programs are simply beginning to come into service and geopolitical challenges persist, value erosion remains to be sluggish.
Nonetheless, this isn’t anticipated to final for much longer.
Cable Funding Impacts on Bandwidth Pricing
Capability demand has been doubling practically each three years on many routes.
In consequence, funding in new submarine cables has surged. In some cases, delays in cable completion, for causes starting from geopolitics to produce chain disruptions, have slowed value erosion to single digits.
In others, new provide has created intense value competitors.
As at all times appears to be the case, new tasks that make the most of the newest know-how influence value. Wavelength costs general in 2024 continued their regular decline. Between This autumn 2021 and This autumn 2024, weighted median 100 Gbps wavelength costs throughout the important thing international routes beneath decreased a median of 11% compounded yearly.
How these massive new investments are impacting every area varies. The determine beneath maps out the 100 Gbps wavelength value in the dead of night blue columns and the CAGR value decline within the pink circles.
Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on International Routes
Supply: © 2025 TeleGeography
Understanding Worth Erosion in 2025
Worth erosion has returned to type on routes with extra ample provide as new high-capacity cables enter service.
For instance, the U.S.-Latin America route continues to fall briskly, reflecting the upcoming launch of Firmina, various fiber pair possession, and upgrades to current programs.
Between 2021 and 2024, 100 Gbps wavelength costs on Miami-São Paulo decreased 25% compounded yearly, to $12,000 month-to-month. Equally, Johannesburg-London, which noticed an enormous inflow of latest capability from the launch of Equiano, recorded an annual 15% value drop for 100 Gbps wavelengths over the previous three years. In This autumn 2024, weighted median 100 Gbps wavelength costs on the core Africa-Europe route had been $32,272 month-to-month.
That’s 5.9 occasions the worth of London-New York, in comparison with 7.5 occasions dearer simply three years in the past.
On different routes, deliberate cables are simply beginning to come to fruition, and geopolitical hurdles stay. In consequence, value erosion remains to be sluggish.
Routes connecting to (and inside) Asia are a major instance. Between 2021 and 2024, 100 Gbps costs on Singapore-Tokyo and Marseille-Singapore decreased 6% and a pair of% yearly from 2021 to 2024, respectively.
That is starting to alter, although. With delayed programs beginning to enter service on the finish of 2024, these routes will obtain a considerable quantity of latest provide and rivals over the following few years, possible setting the stage for growing value erosion.
