The Ethernet Services Pricing Conundrum

By Rosemary Cochran

industryvoices-logoHow much does Carrier Ethernet service cost? That’s like asking how much a car costs. The answer is similar – it depends on what you need and what you can afford to spend. Ethernet pricing has been – and will continue to be – a conundrum for both service providers and business customers. Pricing for Ethernet services is highly volatile, with significant discrepancies from provider to provider, and from city to city.

Like shopping for a car, there are many different Ethernet models from which to choose and bottom line pricing is not often straightforward. Enterprise network managers are doing a lot of comparison shopping to obtain information on Ethernet service availability and costs, plus installation time frames.

Location is a major factor in Ethernet pricing. Metro¬†area services are generally less costly than Ethernet services that interconnect multiple metros, regions or countries. Contract length is another factor as longer term multi-year agreements yield higher discounts. Based¬†on¬†what enterprises are paying net of discounts and deals, we’ve¬†seen monthly bills for 10 Mbps Ethernet Metro LAN service for less than $240 per site in one U.S. city, and more than $1,900 in another.¬† Deployment time frames are also location-specific, with service installations ranging from weeks to several months.

  • Read the full article, The Ethernet Services Pricing Conundrum, at Fierce Telecom.

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Pricing research data by Ethernet service segment and speed is available with subscription to ENS @Ethernet Market Analysis Research Program. Click here for information.