New knowledge from TeleGeography’s Transport Networks Analysis Service tells a narrative about altering bandwidth pricing tendencies, the components that drive them, and what we would count on to see available in the market.
This is what we find out about wholesale pricing in 2025.
Provide chain constraints and geopolitical challenges dramatically slowed world value erosion over the previous few years. However with provide points within the rearview mirror, delayed methods are lastly coming to fruition. And their influence in the marketplace, notably by way of value, is beginning to be felt.
On a number of key world routes, value erosion is accelerating as new high-capacity cables enter service. On different routes, the place delayed methods are simply beginning to come into service and geopolitical challenges persist, value erosion continues to be gradual.
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.
Consequently, 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 value erosion to single digits.
In others, new provide has created intense value competitors.
As at all times appears to be the case, new initiatives that make the most of the most recent expertise influence value. Wavelength costs general in 2024 continued their regular decline. Between This autumn 2021 and This autumn 2024, weighted median 100 Gbps wavelength costs throughout the important thing world routes beneath decreased a median of 11% compounded yearly.
How these huge new investments are impacting every area varies. The determine beneath maps out the 100 Gbps wavelength value in the dead of night blue columns and the CAGR value decline within the crimson circles.
Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on International Routes
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, various fiber pair possession, and upgrades to current methods.
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 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 have been $32,272 month-to-month.
That’s 5.9 occasions the value of London-New York, in comparison with 7.5 occasions dearer simply three years in the past.
On different routes, deliberate cables are simply beginning to come to fruition, and geopolitical hurdles stay. Consequently, value erosion continues to be sluggish.
Routes connecting to (and inside) Asia are a first-rate instance. Between 2021 and 2024, 100 Gbps costs on Singapore-Tokyo and Marseille-Singapore decreased 6% and a pair of% yearly from 2021 to 2024, respectively.
That is starting to vary, although. With delayed methods beginning to enter service on the finish of 2024, these routes will obtain a considerable quantity of latest provide and rivals over the subsequent few years, possible setting the stage for rising value erosion.
