Europe undercuts Asia Pac in Ethernet costs

Ethernet services remain far more expensive in Asia than Europe and North America, as a result of limited availability and competition, research shows.
TeleGeography estimates that the median monthly price of a GigE EoMPLS connection from Hong Kong to Tokyo was $31,096 (€23,472) in 1Q, while a connection from Hong Kong to London was $40,138. Those compare to a median monthly price of $3,448 per month for a GigE EoMPLS pseudo wire circuit between Frankfurt and London, and $8,000 per month from New York to Los Angeles.
The research firm notes that Ethernet prices are declining around the world as more businesses adopt EoMPLS, spurring operators to expand their Ethernet footprints.
But while the median price of a Frankfurt-London connection has declined 29% from a year earlier, the median price of a Hong Kong-Tokyo connection is down just 3%.
There can also be dramatic price differences between different service providers in the same region, TeleGeography noted. The high cost of a Hong Kong-London connection was $52,500 in the first quarter, while the low cost was $16,704.
“While prices will continue to decline as wide area Ethernet services become more standardized and availability grows, large price disparities are likely to persist for years to come,” TeleGeography analyst Brianna Boudreau said.