Indian leased lines five times costlier than other Asian countries
Gartner Inc. released a report titled 'International Bandwidth Pricing Trends
Asia-Pacific', which stated that international leased line prices from India
are five times more expensive owing to factors like less competition, as compared
to hub routes like Singapore-Hong Kong or Singapore-Tokyo.
It also stated that international bandwidth prices in the Asia-Pacific region
will continue to decline by 20 to 25 percent annually in the next three years.
This is because of the large number of players aggressively competing for enterprise
business and the excess capacity across Asia.
For the fast growing Indian market, new submarine cables like TICS (Tata Indicom
Chennai Singapore), FLAG Falcon (Reliance) and SMW-4 will add capacity on both
the western routes towards Europe and eastern routes towards Singapore. This
will result in a 40 to 50 percent annual price decline for international connectivity
According to Gartner, the most competitive markets for international bandwidth
are Hong Kong, Singapore, Japan, Taiwan and South Korea, whereas the least competitive
markets are Indonesia, Malaysia and India.
The report however says that the price of intra-city leased lines in India is
one of the cheapest in Asia Pacific.
||Price for a 1 Mbps link
|Hong Kong - Tokyo
|Singapore - Hong Kong
|Singapore - Mumbai
|Singapore - Jakarta