Pricing Dark Fibre

POSTED NOVEMBER 16TH, 2010

Pricing dark fibre is very difficult for a variety of reasons.  First, the market rates are not really established between dark fibre providers (as often there is either none or just one such provider in a given market).  Secondly, the pricing pressure is related to the particular type of managed service a prospective client needs at the time of purchase.  Some clients need a 10Mb service, others may need a GigE.  In the case of dark fibre, the size or capacity of the circuit riding on the glass has no bearing on the cost of delivering the fibre.  Finally, the pricing of managed circuits is typically only impacted by circuit length for higher bandwidth services, whereas the cost of delivering fibre is in direct relation to the distance between the two service delivery points.   Essentially, pricing of dark fibre is an apples to oranges to kiwis exercise.  This issue does highlight the importance of carrier neutral data centres or other access points to the network, where interconnection services can be supplied closer to the end customer’s dark fibre demarcation.  A subject for a future blog…

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