Telecommodities Indices - Long-Term Downward Trend in Bandwidth pricing Seems Back on Track

Channel Partners

June 1, 2000

1 Min Read
Telecommodities Indices - Long-Term Downward Trend in Bandwidth pricing Seems Back on Track

Posted: 06/2000

Long-Term Downward Trend in Bandwidth
pricing Seems Back on Track

The RTBX*RPI has tracked the current weighted average price of coast-to-coast DS-3 pricing since July 1998.

During that time, bandwidth pricing has decreased more than 55 percent from $60,000 to its current level of $26,988.

The bandwidth index took a brief upturn during January and February rising from $23,250 to $30,250; however, it began falling again in March and April. At the close of our cycle, the decline has brought the RTBX*RPI almost back to its pre-January levels.

In the international termination rate market, price movements were mixed. For example, rates to France (-7 percent), Germany (-7 percent) and the Philippines (-10 percent) decreased, while rates to the Netherlands (+10 percent) and Italy (+3 percent) increased.

Rates to the majority of routes listed in the accompanying chart remained unchanged from the previous month.


Graph: DS-3 Bnadwidth RTBX*RPI
and RTBX*RFP*360 Indices

Top International Spot Rates

Country

CurrentMonth

LastMonth

Change

%

Austria

$ 0.0825

$0.0825

 $ –

0%

Brazil

$ 0.0500

$ 0.0500

$ –

0%

China

$ 0.0550

$ 0.0525

$ 0.0025

5%

Colombia

$ 0.0925

$ 0.0925

$ –

0%

Dominican Republic

$ 0.0750

$ 0.0750

$ –

0%

France

$0.0450

$0.0483

$(0.0033)

-7%

Germany

$0.0425

$0.0455

$(0.0030)

-7%

Hong Kong

$ 0.0425

$ 0.0425

$ –

0%

India

$ 0.2500

$0.2500

$ –

0%

Israel

$ 0.0950

$ 0.0950

$ –

0%

Italy

$0.0775

$0.0750

$0.0025

3%

Japan

$ 0.0950

$ 0.0950

$ –

0%

Korea, Democratic People’s Republic of China

$0.0950

$0.0950

$ –

0%

Mexico

$0.0600

$0.0620

$(0.0020)

-3%

Netherlands

$0.0550

$0.0500

$0.0050

10%

Philippines

$0.1300

$0.1450

$(0.0150)

-10%

Taiwan,Province of China

$ 0.0400

$ 0.0400

$ –

0%

United Kingdom

$ 0.0450

$0.0450

$ –

0%

The top international spot rates-per-minute cost of terminating a call
from the United States to a given country are the best offers to sell
voice minutes capacity at RateXchange as of Feb. 15, 2000.

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