New information from TeleGeography’s Transport Networks Analysis Service tells a narrative about altering bandwidth pricing traits, the components that drive them, and what we would count on to see available in the market.
Here is what we find out about wholesale pricing in 2025.
Provide chain constraints and geopolitical challenges dramatically slowed international worth erosion over the previous few years. However with provide points within the rearview mirror, delayed programs are lastly coming to fruition. And their affect in the marketplace, notably by way of worth, is beginning to be felt.
On a number of key international routes, worth 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, worth 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 almost each three years on many routes.
Because of this, funding in new submarine cables has surged. In some situations, delays in cable completion, for causes starting from geopolitics to produce chain disruptions, have slowed worth erosion to single digits.
In others, new provide has created intense worth competitors.
As at all times appears to be the case, new tasks that reap the benefits of the newest expertise affect worth. Wavelength costs general in 2024 continued their regular decline. Between This fall 2021 and This fall 2024, weighted median 100 Gbps wavelength costs throughout the important thing international routes under decreased a mean of 11% compounded yearly.
How these large new investments are impacting every area varies. The determine under maps out the 100 Gbps wavelength worth at nighttime blue columns and the CAGR worth decline within the purple circles.
Weighted Median 100 Gbps Wavelength Costs & CAGR Value Decline on International Routes
Supply: © 2025 TeleGeography
Understanding Value Erosion in 2025
Value 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 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 recent capability from the launch of Equiano, recorded an annual 15% worth drop for 100 Gbps wavelengths over the previous three years. In This fall 2024, weighted median 100 Gbps wavelength costs on the core Africa-Europe route have been $32,272 month-to-month.
That’s 5.9 occasions the worth of London-New York, in comparison with 7.5 occasions costlier 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, worth erosion continues 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 couple 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 recent provide and opponents over the subsequent few years, seemingly setting the stage for rising worth erosion.
