Local access prices range widely within markets

26 Nov 2013

New data from TeleGeography’s Local Access Pricing Service reveal that local access prices vary widely, not only across regions and by country, but even within a single metro area.

Some of the lowest access prices are found in South and East Asia. The median price for an E-1 circuit is USD144 per month in Delhi, USD224 per month in Hong Kong, and USD256 per month in Tokyo. However, despite their low medians, prices in these cities can range up to USD1,906, USD2,033, and USD1,410 per month, respectively. Similarly, in Beijing, the highest price charged for an E-1 is more than eight times the median price.

Median T-1/E-1 prices in western markets such as New York, London, and Frankfurt are often a bit higher than in Asian markets, but the price ranges are considerably narrower. The median monthly lease price for a T-1 in New York is USD260, while the high price is just over USD900 more at USD1,175. Similarly, in London, the median E-1 price is USD293 per month, while the high price is just over USD1,400. In Frankfurt, the difference between the median price and high price is USD$845.

Access prices in Africa and Latin America are often particularly high. The median price for an E-1 is USD669 per month in Johannesburg and USD1,166 per month in Sao Paulo, while their high prices are upwards of USD1,300 and USD2,700 per month, respectively.

‘Competition is the primary determinant of access prices,’ said TeleGeography analyst Greg Bryan. ‘The presence or absence of competitive providers within a metro area can have a great effect on the monthly price customers pay. For example, median prices in established markets in South and East Asia, and in many western cities, fall close to the lower end of their wide price range. The majority of prices paid by customers cluster closely near the bottom of the range, suggesting that the high end reflects only a few special situations. Conversely, prices in developing markets in Africa and Latin America are significantly higher overall, and fall near the middle of a range of more evenly-distributed prices.’

TeleGeography’s Local Access Pricing Service provides local access price benchmarks and trend analysis for Ethernet and leased line circuits in hundreds of metro areas in 101 countries around the world. Data reflect over 40,000 actual transaction prices.

To speak with an analyst, please call +1-202-741-0050 or email press@telegeography.com.

TeleGeography’s Local Access Pricing Service