Comments on: Boom or Not, Internet Bandwidth Prices Still Falling

By: Curtis Carmack

Curtis Carmack — Thu, 18 Nov 2010 15:35:33 +0000

So Brett, you’re saying that in NYC the price for a Gig-E port is $800/Mbps? I don’t know where you do your shopping, but you’d have to be pretty crazy to pay that price. Even fairly small customers here don’t pay more than $40/Mbps for a fairly small commitment on a Gig-E port.

By: Brett Glass

Brett Glass — Thu, 18 Nov 2010 06:51:49 +0000

Wrong (as usual), Om. Wholesale bandwidth prices here are two orders of magnitude higher than that and are not dropping at all.

By: Jeff Whitehead

Jeff Whitehead — Thu, 18 Nov 2010 04:36:46 +0000

Previous commenters are confused. Article clearly states “GigE ports,” from an ISP, meaning it’s for a whole 1000Mbit connection. The article isn’t clear if this is for a committed port (ie, 1000 * the price in the graph or ~$10k/month) or is a burstable price. Typically I see a commit required of at least 10% of port capacity, meaning you’d pay $1000 for the port, and $10/mbit for usage beyond the 100Mbit, based on the 95th percentile.

This is for data center and commericial customers, not end users/homes.

By: In 2014, You’ll Have Up to 10 Screens for Online Video: Tech News «

In 2014, You’ll Have Up to 10 Screens for Online Video: Tech News « — Wed, 17 Nov 2010 23:57:35 +0000

[...] 45 percent of households with broadband want to use it for at least some online video services, and why not, when speeds are increasing even as prices are trending down? [...]

By: Paul

Paul — Wed, 17 Nov 2010 15:36:28 +0000

I think there’s something wrong with this chart…pricing in Japan and Hong Kong is much lower to the consumer.

By: JoeData

JoeData — Wed, 17 Nov 2010 13:33:35 +0000

The key is that demand has more then kept pace with the pricing decline. In other words prices may have dropped 50% but demand has increase 200%. 50% and 200% are not the real numbers but you get the point. So although you’d think your local ISP should be able to lower prices, they actually have to pay the same and more likely more for their transit connection.

By: Rudolf

Rudolf — Wed, 17 Nov 2010 09:38:28 +0000

The first two comments already make the mistake of comparing wholesale prices to retail prices. That’s not what this is about. International bandwidth prices are only 1-3% of the costs of delivering broadband. Why you haven’t seen this reflected in your retail offer has a very simple reason, it’s not that important for you. Most of you however have seen it reflected in some other way, the steady decline of metered broadband (though not everywhere and not always).

By: TheM

TheM — Wed, 17 Nov 2010 00:17:35 +0000

What is the source of this data? It isn’t anything that I am experienced with. Looks skewed to make people think the US has cheap bandwidth (not true in my experience)

1. My parents pay $10 for 56Kbps dialup in US = $179 per Mbps
2. I pay $50 for 15Mbps = $3 per Mbps
3. I paid $50 for 100Mbps in Japan 3 years ago = $0.5 per Mbps

By: anon

anon — Tue, 16 Nov 2010 23:30:47 +0000

Transit bandwidth prices may have dropped but cable internet access has not dropped and the speed is paltry. One cable provider won’t outright tell you what their speeds are. I had to ask the customer service rep the exact upload and download.