IP Transit Prices Fall Steadily as Competition Intensifies Across Global Markets
From Q2 2023 to Q2 2026, 100 GigE IP transit prices dropped 17% annually across major cities, with the lowest offers holding at $0.03 per Mbps per month. Price declines vary by region, ranging from 11% in São Paulo to 35% in Mumbai. New subsea cable deployments and increased local peering are driving down costs in emerging markets.
The pricing data reveals a widening gap between mature and emerging markets. While global hubs like London, New York, and Singapore saw annual declines of 11-13%, emerging markets experienced steeper drops, with Mumbai leading at 35% annually. This divergence stems from new high-fiber-count subsea cable systems entering service in Africa, Latin America, and Asia, which introduce additional carriers and reduce reliance on international transport segments.
A notable shift is occurring in port technology adoption. Although 100 GigE remains the dominant sales tier, carriers report substantial growth in 400 GigE sales, concentrated in U.S. and European markets where hyperscaler demand and AI-related traffic preparation are driving upgrades. The price multiple between 400 GigE and 100 GigE ports averaged 3.5 in Q2 2026, though adoption in emerging regions remains minimal and is not expected to accelerate for several years.
Sustained IP transit price declines could lower operational costs for cloud providers, streaming services, and enterprises relying on global connectivity, potentially translating into cheaper digital services for end users. Emerging markets may see the greatest benefit, as reduced wholesale prices could enable local providers to expand access and improve network performance. However, established carriers facing margin compression might consolidate or reduce investment in less profitable regions, which could temper long-term competition in some markets.