Wholesale Bandwidth: The Price Is Still Right

Schoonover, Eric
July 2007
Business Communications Review;Jul2007, Vol. 37 Issue 7, p32
Trade Publication
The article discusses economic aspects of telecommunication wholesale carriers and service providers. The author suggests that despite consolidation of carriers and falling equipment prices, wholesale carriers cannot raise prices. Expenditures to build fiber optic networks led many carriers such as Global Cross and Worldcom to bankruptcy or to be acquired. Wholesale carriers plan to add wavelengths and fibers to upgrade service. Surplus wavelength capacity has led to a drop in prices. The author suggests carriers compensate for low circuit prices by charging more for quality of service assurances and managed services. The author suggests telecommunication service prices may decrease more.


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