It appears the global enterprise WAN market has been evolving rapidly over the past year. According to TeleGeography, IP VPN port pricing has been falling as usual, but for low capacity ports it has been falling much more steeply. Here’s their chart:
Apparently, since Q3 of last year 10Mbps IP VPN pricing in Singapore fell by 44% in Singapore, 25% in Mumbai, 38% in London, and 27% in Mexico City. According to Telegeography, this reflects customer demand and competition.
Greater demand is always good, but lower pricing means lower margins. We’ll have to keep an eye on which has been dominating the trend.
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