Best of the ISP-Lists

Bandwidth Keeps Getting Cheaper

Yes, demand may be rising, but the per-megabit price is going down, if you're paying for the fat pipes and looking in the right places.

[April 3, 2007]

On the ISP-Bandwidth list in January, JJ asked:

Other then Cogent, who else is doing sub $10/Meg on GigE commits these days for transit?

[MM replied] "I'm not sure if they get quite that low, but maybe Savvis."

CT wanted to know:

How far below $10 is Cogent _ACTUALLY_ (not rumors, ACTUAL contracts in hand) going, and at what commit levels?

[MK replied] "If you guys have a high demand for low-priced bandwidth and if you can live with 90+ ms latency overseas you should probably look into the Frankfurt or Amsterdam markets. 500 Mbps already below 10 USD from some transit-free carriers and many Tier 2s."

[BM added] "Based on what I have observed in the market, Cogent continues to improve their network and at those levels of low commitment you will likely not achieve a price point of less than $10/megabit and your overage would likely be at a rate of $15. Occasionally, Cogent releases different promotions to their sales staff which could potentially exceed those price points but this is what I have seen lately. They are, of course, a very large company and there are no doubt clients written at rates below what I have suggested. Unless you happen to be a great negotiator yourself and build a business case to explain why it is that they should write such a low commitment at such a low rate I'd bet that you just won't be able to walk in and do that. However, I don't believe based on the current market conditions that it is likely they will write an offer below the $10 rate unless you seek a multi-gigabit commitment. Good luck!"

[RD suggested] "Cogent started offering a full GigE for $10K/mth over 2 years ago (to ISP customers, not just the deals for universities and colleges). Cogent's SEC filings regularly mention continued price reductions for the services they offer. Cogent's website states, 'We'll Beat Any Price!'. Guys like HE have been advertising $10/Mbs on a 200 Mbps commit, so it is logical to assume Cogent will beat it.

However Cogent (like many other carriers) will try to sell you transit for twice that price if you don't negotiate well. I'd guess that besides HE, DT, and Telia will go below $10/mbps. Maybe VSNL/Teleglobe too."

— End