Telegeography's Sample : IP VPN Prices

This time, Buenos Aires is highlighted. The prices in southern America usually belong to the "upperbounds", or at least positioned near these bounds :-D .. Not agree?

IP Virtual Private Networks (IP VPN), private lines (IPL), and dedicated internet access (DIA) have become crucial components of corporate wide area networks (WANs) and of telecommunications companies' product portfolios. However, WAN prices vary dramatically by service provider, by class of service, by location, and by technology.

SCCN : Prices & Capacity

Just know that Southern Cross (SCCN) has offered volume-based connection pricing :-D

the new Southern Cross price for 5 Gbps of restored capacity represents around US$0.28 per GigaByte downloaded from the US. This has reduced by 86%, from US$ 1.95 per GigaByte, in December 2003

10 Gig-E IP Transit Prices

Firstly, I want to quote this : "Tata Communications says that its recently launched 10 Gig-E service now offers large capacity users a saving of up to 60% per megabit of traffic when compared to traditional Gigabit Ethernet services" (Commsday). Now, we might want to ask ourselves, without having to call any sales personal, how much does it actually cost? Price is something strongly not linear :-D .. it depends on this, that, these, and those. And often such factors can not be explained easily (if not at all :-D). Na Und? just want to know how much! :-D ... okay, look at the table below, it's a very simple model.

Primetrica : Price Comparison

Primetrica has just released their sample database with regard to long distance bandwidth pricing.  The price spans from Europe - Africa connection at the most expensive side and Transatlantic (Europe - North America) at the cheapest. How about Asia ? Transpacific connections (case Hong Kong - LA) cost around 6 to 7 times higher than those for Transatlantic. Connections from Japan should be cheaper, but Europe - Asia connections might cost close to the figure for Europe - Africa. Note, that Primetrica has used their sample database for Q4/2008. Any comments on this ?


How much bandwidth does USD15,000 a month buy?

Bandwidth Price (4)

I just want to comment this local report. This is written by Arif Pitoyo (Bisnis) citing Galumbang Menak (CEO Gema Lintas Benua - a local Internet Service Provider). Below, I would use "GM|AP" to refer to this report. Summary of the report + my comments:

Bandwidth Price Points

According to Telegeography Research (2009B):

• Prices are declining due to growing supply, greater competition, liberalizing markets, and technological advancements
• Prices for higher-capacity products are dropping faster than lower-capacity products
• The more you buy, the less you pay per Mbps
• High capacity means high revenue
• Prices change in large steps
• Prices vary by geography, carrier, customer

Domestic Capacity Price (Possibly 2008B or 2007)

Below are some tables indicating domestic leased line prices, for 2007 or up to 2008M I guess. These currently shall be cheaper, after some pressures from the government middle of last year. This information is based on the work of Rajat K. published by LirneASIA.

How could they get this ? :-D

Telkom : Bandwidth, IP Transit Services, Price

December 2008, PT. Telkom has launched IP Transit services in 15 locations (11 cities), targeting corporates, schools/universities, ISPs, and the government.

• Coverage (12/2008) : Jakarta (Semanggi, Karet Tengsin, Gambir, Cyber Building), Surabaya, Yogyakarta, Solo, Bandung, Denpasar, Medan, Palembang, Pekanbaru, Batam, Semarang, Balikpapan
• 9 Customers (as of 12/2008) : Jaya Teknik, Departemen ESDM, Universitas Binus, Satcom, Pikanet, UI, ITS, Universitas Surabaya (?), Universitas Petra

Type of Telkom's IP transit service:

Bandwidth Price (3)

Recently, Primetrica published new data for their IP transit pricing service and stated that "prices for wholesale Internet access (IP transit) are falling rapidly, but continue to vary dramatically around the world". How much should IP transit cost ?? Currently, according to Primetrica :

• Median monthly IP transit prices for 1,000 Mbps Gigabit Ethernet (GigE) ports in major U.S. and European cities ranged from USD 10 to USD 14 per Mbps in Q2 2008
• The median price of a GigE port in major asian cities ranged from USD 30 per Mbps month in Seoul to USD 45 per Mbps per month in Tokyo
• IP transit service in Latin America is even more expensive, with median GigE port prices ranging from USD 73 per month in Buenos Aires/Sao Paulo to USD 86 per month in Santiago
  

Bandwidth Price (2)

Early this year (2008), as quoted by some local newspapers, both APJII and Kominfo gave the following bandwidth price range

• before 2008: USD 2,200 - 2,500 / Mbps
  
• since Q1/2008: USD 1,300 - 1,800 / Mbps
  

One day in late 2007, Divakar Goswami (formerly Lirneasia, currently Deloitte ??) mentioned some numbers as given in the pictures below.

Bandwidth Price (1)

This first "Bandwith Price" thread will cover only the case in African market. It it based on the talk given by Michael Ruddy / Terabit.

The current, second "boom" in submarine cable market is not only happened in Asia and Transpacific segments, but also in Africa. One of the most prominent drivers for investment in fiber infrastructure is the currently-quite-high "bandwidth price" in the regions. According to Michael:

Jakarta (IP) Bandwidth Price

I followed some traces left by Pak Meneer and was delivered to his records at Opisboy. This is claimed to be an "Informal ISP Technical ( dir-pji-like :p )" forum. Comments ? :-D Well, for non-local readers, "dir-pji" could be understood as "indonesian ISP Executives/VIPs" or as the forum of ISPs' owners/high-rank officials. It is "dir-pji-like" ? Personally, I would say "better-than-dir-pji" :-D Reasons? he..he..he. Don't take it seriously or even start thinking about that!! :-D

Back to bandwidth. According to Pak Meneer, the condition is as follows:

Broadband : Penetration & Pricing

There might be several definitions for the term "broadband". Here I use this term to refer to services which run on channels / infrastructures other than those utilized by traditional voice services. Usually it should be faster than 64 kbps. Practically it denotes services using xDSL, FTTx, Cable/HFC or novel state-of-the-art wireless technologies. Some numerical data presented in this post are taken from Point Topic and REACH. Those are actually rather outdated (2004). But some characteristics concluded from those might remain similar and could be used as an approximation for our current situation.

Domestic Bandwidth Price

According to APJII, the Indonesian ISP Association, this year the price of international Internet bandwidth in Indonesia tends to decrease (reported by detik.com on 29/January/2008). Last year the price was in the range of USD 2.200 - USD 2.500 for each Mbps. But since early 2008 it has been reduced to around USD 1.800 for fiber access and around USD 1.300 to USD 1.500 for satellite links.