Follow the bandwidth

Following up on my yesterday’s post on Bandwidth demand and slow comeback of the industry, Sean Doherty of Odyssey Telecom writes:

bq. We’re hearing that there’s some cautious optimism reflected in the wholesale fiber buying habits of carriers – esp in contract term. The dominant practice during 2002-3 was single year contract terms (or even month-to-month) …allowing the carrier-buyer to negotiate more favorable pricing at renewal time each year. Now, more than a handful of larger carriers are once again committing to 3-5 year contracts for new infrastructure requirements. The smart carriers seem now to prefer locking in a nice discount for multi-year terms rather than relying on future market price declines that may not appear.
I’d say the rebound has arrived…it’s just not evenly distributed.

Comments have been disabled for this post