Suppliers’ shift to predominantly 100 Gbps web backbones continues to scale back the common value of carrying visitors, enabling profitability at decrease costs. In consequence, worth erosion stays the common norm, reflecting the introduction of competitors into new markets and the response of costlier carriers to decrease costs.
Traits within the IP transit market usually mirror regional traits of the transport market, which is pushed by new infrastructure and applied sciences that allow higher scale and effectivity. As a result of IP transit depends on these high-capacity hyperlinks, when transport costs decline, we usually see IP transit costs observe go well with.
And whereas IP transit costs proceed to say no worldwide, the bigger story in essentially the most established hubs has been the bottoming out of reported low costs, as a rising variety of carriers place themselves on the decrease finish of the worth vary.
Throughout the cities included within the determine under, 100 GigE costs fell 12% compounded yearly from Q2 2022 to Q2 2025.
Weighted Median 100 GigE IP Transit Port Costs & CAGR Value Decline in Key International Cities
The activation of large-scale subsea cable methods drove essentially the most vital worth declines in traditionally costly growing markets, equivalent to Africa and South Asia. These high-capacity methods scale back unit prices, fostering intense competitors. Elevated native peering and content material localization additional enhance community efficiency and scale back the subsea value part of IP transit.
Established worldwide community hubs equivalent to Miami, London, and Singapore have lengthy had an ample variety of suppliers providing service, host a considerable amount of content material, and already report among the lowest costs globally. In these markets, the bigger story has been the bottoming out of reported low costs and rising variety of carriers positioning themselves on the decrease finish of the worth vary. In Q2 2025, the bottom 100 GigE costs on supply in essentially the most aggressive markets remained regular at $0.05 per Mbps monthly. The bottom for 10 GigE additionally held at $0.07 per Mbps monthly.
In 2025, suppliers indicated {that a} majority of their gross sales combine in key U.S., European, and Asian hubs have been now 100 GigE. However carriers in these hubs are additionally within the means of rolling out 400 GigE companies throughout their community, and buyer demand has began to materialize.
In the meanwhile, suppliers report that the service represents a really small portion of their gross sales combine (assume single digits) and is especially restricted to the biggest world hubs in Europe and the U.S. Throughout key cities within the U.S. and Europe, 400 GigE costs vary from $0.08 to $0.09 per Mbps. That’s a median of three.3 occasions the worth of a 100 GigE port throughout key cities. As networks scale to fulfill growing demand, worth erosion for IP transit stays a certainty in practically all markets for the foreseeable future.
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