Telecommodities Indices - Long-Term Downward Trend in Bandwidth pricing Seems Back on TrackTelecommodities Indices - Long-Term Downward Trend in Bandwidth pricing Seems Back on Track

Posted: 06/2000

Long-Term Downward Trend in Bandwidth
pricing Seems Back on Track

The RTBX*RPI has tracked the current weighted average price of coast-to-coast DS-3 pricing since July 1998.During that time, bandwidth pricing has decreased more than 55 percent from $60,000 to its current level of $26,988.The bandwidth index took a brief upturn during January and February rising from $23,250 to $30,250; however, it began falling again in March and April. At the close of our cycle, the decline has brought the RTBX*RPI almost back to its pre-January levels.In the international termination rate market, price movements were mixed. For example, rates to France (-7 percent), Germany (-7 percent) and the Philippines (-10 percent) decreased, while rates to the Netherlands (+10 percent) and Italy (+3 percent) increased.Rates to the majority of routes listed in the accompanying chart remained unchanged from the previous month.
Graph: DS-3 Bnadwidth RTBX*RPI
and RTBX*RFP*360 IndicesTop International Spot RatesCountryCurrent
MonthLast
MonthChange%Austria $ 0.0825 $0.0825 $ –0%Brazil$ 0.0500$ 0.0500$ –0%China$ 0.0550$ 0.0525$ 0.00255%Colombia $ 0.0925 $ 0.0925$ –0%Dominican
Republic $ 0.0750$ 0.0750$ –0%France$0.0450$0.0483$(0.0033)-7%Germany$0.0425$0.0455$(0.0030)-7%Hong Kong $ 0.0425$ 0.0425$ –0%India$ 0.2500$0.2500$ –0%Israel $ 0.0950$ 0.0950$ –0%Italy$0.0775$0.0750$0.00253%Japan$ 0.0950$ 0.0950$ –0%Korea, Democratic People’s Republic
of China$0.0950$0.0950$ –0%Mexico$0.0600$0.0620$(0.0020)-3%Netherlands$0.0550$0.0500$0.005010% Philippines$0.1300$0.1450$(0.0150)-10%Taiwan,
Province of China$ 0.0400$ 0.0400$ – 0%United Kingdom$ 0.0450$0.0450$ –0%The top international spot rates-per-minute cost of terminating a call
from the United States to a given country are the best offers to sell
voice minutes capacity at RateXchange as of Feb. 15, 2000.