Across Asia, increasing demand, new network investment, and widespread service availability are fueling rapid price erosion for IP transit services.
This IP transit market analysis breaks down regional pricing trends across Asia and is powered by data and analysis in TeleGeography's IP Networks Research Service.
Asia encompasses a wide mix of geographies and price trends, from the extremely competitive hubs of Hong Kong, Singapore, and Tokyo, to the rapidly growing markets of South Asia and India.
Between 2023 and 2026, across all the cities in Asia that we track, weighted median 10 and 100 GigE IP transit prices decreased 17% and 22%, respectively, compounded annually.
Singapore, Hong Kong, and Tokyo house a multitude of global and regional providers and ample venues for traffic exchange. As such, the three cities report the most competitive pricing in the region. Across all three markets, 100 GigE port prices decreased an average of 15% compounded annually between 2023 and 2026, with weighted median prices ranging from $0.25 in Hong Kong to $0.28 per Mbps in Tokyo. Singapore, which reports the fastest growth rates among the primary hubs, was $0.26 per Mbps. Across all three cities, low prices extend down to $0.15, with a significant number of providers recently making cuts to position themselves at the lower end of the range.
Carriers also report increasing demand in Taiwan, and prices have dropped 23% compounded annually between 2023 and 2026. In 2026, the weighted median 100 GigE price in Taipei was $0.42 per Mbps. That’s 1.6 times the price of a comparable port in Singapore, compared to 2.3 times the price just three years ago.
Weighted Median 100 GigE IP Transit Prices in Asian Hubs
Notes: Each line represents the weighted median price per Mbps in the listed city. Prices are in USD and exclude local access and installation fees. 100 Gigabit Ethernet (100 GigE) = 100,000 Mbps.
Unlike the U.S. and Europe, very few 400 GigE port sales are reported in Asia. And carriers are still refining their pricing models. For those providers who have set 400 GigE prices, price multiples were approximately 3.4 times the price for 4 times the capacity.
IP transit prices quickly escalate outside regional hubs. This reflects the varying levels of demand, competition, and government regulation in each market. Additionally, the incremental cost of underlying subsea capacity to access internet hubs, such as Singapore or the U.S., also drives local connectivity costs in these markets.
Weighted Median 100 GigE IP Transit Port Prices & CAGR Price Decline in Asia
This figure above compares weighted median 100 GigE IP transit port prices (the dark blue columns) and the CAGR price decline between 2023 and 2026 (red circle). A wide range of price points and trends are reported. Let's take a closer look:
With increasing customer requirements, 100 GigE ports now represent a majority of sales in the cities featured above. Price multiples, however, remain high when upgrading from 10 GigE. For example, in Manila and Jakarta, 100 GigE ports were 9.4 and 8.1 times the price of a 10 GigE port. This represents a significantly smaller cost savings to upgrade than the price multiple reported in Singapore (6). As demand and volumes increase, multiples should continue to erode across the region, making it easier for customers to upgrade their networks.
IP transit prices continue to decline throughout Asia, but price points and trends vary by market. Singapore, Hong Kong, and Tokyo continue to maintain the lowest prices on offer as customers continue to move to high capacity services. While sales are currently limited, providers are rolling out 400 GigE services across their backbone in response to increasing requirements from cloud service providers and ISPs. Outside of these hubs, service providers continue to expand their network footprints into South Asia and India. This–combined with reductions in the underlying cost of transport to hubs–has dramatically reduced IP transit costs in secondary markets. With a number of new network projects underway in Asia, we can expect to see price erosion continue for the foreseeable future.
This analysis is powered by data you can get in TeleGeography's IP Networks Research Service, which delivers data, analysis, and forecasts on international internet capacity, traffic, service providers, pricing, and revenues. Our IP Transit Pricing platform delivers pricing data and analysis on IP transit for various port sizes and committed data rates in cities around the world.