Local access prices vary widely – even among major business centres

19 Jun 2013

Local access circuits, which connect a customer’s building to its service provider’s local network point of presence (PoP), are a key factor in the total cost of enterprise communications networks, often costing more than network ports or international circuits. New data from TeleGeography’s Local Access Pricing Service reveal that the price of local access varies enormously in major business centres around the world.

Some of the lowest access prices can be found in major cities in the US, Japan, India, and the United Kingdom. Average monthly prices ranged from USD300 for a T-1 in New York to USD398 for an E-1 in London. The average price of an E-1 circuit in Hong Kong was only slightly higher, at USD469 per month. Johannesburg and Sydney came in near the middle of the pack, at USD655 and USD665 per month, respectively.

Local access in Shanghai, Moscow, and Sao Paulo is far more costly. The USD836 per month price of an E-1 in Shanghai was more than twice the price of a comparable circuit in Delhi and London, and nearly three times higher than in New York and Tokyo. Similarly, at USD964 per month, E-1 circuits in Moscow were far more expensive than in the more developed and competitive markets of western Europe. Sao Paulo was especially expensive, with an average E-1 monthly lease price of USD1,566.

‘Local access prices vary widely, even among major business centres,’ said TeleGeography analyst Greg Bryan. ‘While prices are highly dependent on the amount of competition within a customer’s building, other factors such as the physical density of a city; the level of infrastructure development; and the tax, legal, and regulatory regimes also play an important role in shaping prices. These are crucial considerations for customers pricing out large multinational networks.’

TeleGeography’s Local Access Pricing Service provides local access price benchmarks and trend analysis for Ethernet and leased line circuits in more than 180 major cities in 76 countries around the world. Data reflect over 34,000 actual transaction prices.

To speak with an analyst, please call +1-202-741-0042, or email press@telegeography.com.