As service suppliers and hyperscalers proceed to increase their service footprints, international visitors patterns are shifting, bringing content material nearer to finish customers, and offering a greater performing and more economical connection. This has created an atmosphere for regular IP transit worth declines—however the tempo of worth erosion and absolute worth factors fluctuate considerably by market.
This is an summary of what we’re seeing within the knowledge throughout international markets, with knowledge and evaluation from our IP Networks Analysis Service platform.
IP transit costs proceed to lower
Throughout the cities included within the determine under, 100 GigE costs fell 17% compounded yearly from Q2 2023 to Q2 2026. In Q2 2026, the bottom 100 GigE costs on provide in essentially the most aggressive markets remained regular at $0.03 per Mbps per thirty days. The bottom for 10 GigE additionally held at $0.07 per Mbps per thirty days.
Weighted Median 100 GigE IP Transit Port Costs & CAGR Worth Decline in Key World Cities
Observe: Notes: Every column represents the weighted median month-to-month worth per Mbps for an IP transit port within the listed metropolis. Circles symbolize the share decline of the weighted median worth calculated as a 3 yr compound annual development fee. Costs are in USD and exclude native entry and set up charges. 100 Gigabit Ethernet (100 GigE) = 100,000 Mbps.
Why IP transit costs are falling
In international hubs equivalent to London, New York, and Singapore, new transport applied sciences are the first driver of value (and worth) reductions. Between 2023 and 2026, 100 GigE port worth cuts ranged from 11% to 13% compounded yearly. A key development in these markets is the bottoming out of reported low costs and a rising variety of carriers positioning themselves on the decrease finish of the worth vary.
In markets in Africa, Latin America, and Asia, the deployment of upper fiber depend subsea cable programs is increasing connectivity to regional hubs. These programs have launched new competitors from a mixture of regional and international service suppliers competing to hold worldwide visitors. As well as, development in native peering and higher localization of content material in these areas means improved efficiency, but in addition {that a} smaller share of the IP transit worth is attributed to subsea prices. Between 2023 and 2026, worth cuts in these areas ranged from 11% compounded yearly in São Paulo to 35% in Mumbai.
Whereas a majority of gross sales globally are nonetheless on the 100 GigE degree, IP transit clients proceed to improve their networks, and carriers report vital development of 400 GigE gross sales pushed by huge demand from hyperscalers and firms upgrading their networks in preparation for future AI-related visitors. Key cities within the U.S. and Europe, the place present demand is targeted, all reported a weighted median worth of $0.08 per Mbps. In Q2 2026, worth multiples between the MRC for 400 GigE and 100 GigE ports averaged 3.5. Adoption of 400 GigE ports is extraordinarily restricted in Asia, Latin America, and Africa, however anticipated to take off throughout the subsequent few years. As networks scale to satisfy rising demand, worth erosion for IP transit stays a certainty in almost all markets for the foreseeable future.
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