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April 10, 2003 — (WEB HOST INDUSTRY REVIEW) — According to the results of a report released this week by research firm TeleGeography (TeleGeography.com) the struggling long-haul bandwidth industry appears to be reaching bottom after three years of ongoing bad news.
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TeleGeography’s report, ?International Bandwidth 2003,? says new network construction is at a standstill, consolidation is beginning to reduce the number of industry competitors and long-haul bandwidth prices in the US and Europe are finally stabilizing, after falling by as much as 70 percent in recent years. The report also refutes rumors of a price war among bankrupt carriers.
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“There’s no evidence to support the rumor that bankrupt telecom companies are waging a price war,” stated TeleGeography Research Director Stephan Beckert. “Based on the thousands of data points we’ve collected for our Bandwidth Pricing Database Service, we’ve found that the most aggressive pricing on competitive routes comes from established carriers, or those in financial difficulty but not bankrupt.”
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International Bandwidth 2003, says TeleGeography, is the company’s fourth annual survey of long-haul terrestrial and submarine network operators. Along with system-by-system descriptions and maps, each volume includes an analysis of long-haul network competition, pricing, technology and finance, as well as supply and demand statistics by region, route and city.
