Monday, February 27, 2006

Light at End of Fiber Slump


Image source: www.cybergeography.org


Joanna Glasner writes on Wired News:

A peculiar trend is sweeping the transatlantic fiber-optic cable industry.

After more than five years of rampant pricing declines, the cost of sending internet traffic from North America to Europe appears to be stabilizing.

"The competition has been so fierce that they relatively hit a price floor," said Robert Schult, analyst with TeleGeography, which tracks the fiber-optic telecommunications industry. Schult sees indications of further recovery ahead as internet traffic levels increase and operators of telecommunications networks upgrade their capacity.

More here.

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