September 9, 2004 — (WEB HOST INDUSTRY REVIEW) — The cost for large corporations and ISPs to access ultra-high speed Internet has significantly dropped, according to new data published in TeleGeography’s (telegeography.com), Global Internet Geography research service.
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The average price for STM-1 (155 Mbps) connectivity to the global Internet has dropped 49 percent in European cities and 55 percent in US cities over the past 12 months. While prices in Asia show similar results, costs remain twice as high as those in Europe and the US.
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In some cities, traffic may have increased rapidly enough to offset the effect of price declines on service provider revenues. Meanwhile, traffic in other cities grew at or below the same rates that prices fell, which shows a flat market for backbone service providers.
