New knowledge from TeleGeography’s Transport Networks Analysis Service tells a narrative about altering bandwidth pricing tendencies, the elements that drive them, and what we’d count on to see out there.
Here is what we find out 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 impression in the marketplace, significantly by way of 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 continues to be sluggish.
Nevertheless, 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.
Because of this, 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 reap the benefits of the most recent know-how impression value. Wavelength costs total 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 large new investments are impacting every area varies. The determine beneath maps out the 100 Gbps wavelength value at the hours of darkness blue columns and the CAGR value decline within the crimson circles.
Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on World Routes
Notes: Complete development prices of all worldwide and home submarine cables getting into service in designated years. Development prices exclude the price of subsequent capability upgrades and annual operational prices. 2025-2027 development prices primarily based on introduced contract values and TeleGeography estimates. Not all deliberate cables could also be constructed.
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 approaching launch of Firmina, numerous fiber pair possession, and upgrades to present 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 a large 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 instances the value of London-New York, in comparison with 7.5 instances dearer simply three years in the past.
On different routes, deliberate cables are simply beginning to come to fruition, and geopolitical hurdles stay. Because of this, value erosion continues to be sluggish.
Routes connecting to (and inside) Asia are a chief instance. Between 2021 and 2024, 100 Gbps costs on Singapore-Tokyo and Marseille-Singapore decreased 6% and a couple of% yearly from 2021 to 2024, respectively.
That is starting to vary, 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, seemingly setting the stage for rising value erosion.
