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  Study Focuses on Bandwidth Prices
Time: 21:32 EST/02:32 GMT | News Source: Associated Press | Posted By: Guillaume Hébert

A continuing bandwidth glut on long-haul telecommunications networks continues to erode revenues at large telecoms, pushing down prices by 70 percent a year for the past three years, according to research released Tuesday. According to research firm TeleGeography, the data transmission market remains unstable. Prices change so quickly and vary so widely across routes and carriers that telecommunications companies have little conception of a market price, said Stephan Beckert, TeleGeography's research director. "Bandwidth prices are no longer driven by supply and demand," he added. Low prices have been good news for Internet service providers who buy the bandwidth and resell it to their customers, but price fluctuations have left them wondering whether to lock in long contracts or buy for the short term.
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