Are Bandwidth Price Declines Slowing? July 28, 2005
Om Malik thinks that the broadband price declines witnessed over the past few years may be slowing. Here is some of the evidence he has uncovered:
You could find some evidence in the quarterly numbers reported by AT&T and Level 3. Ma Bell noted that ita data revenues (long haul) business declined 10.2% from the prior-year second quarter as a result of pricing pressure and technology migration. That’s not as steep as 30% declines a few years ago. Level 3, reported communications revenue of $342 million in the second quarter. Out of that the transport business was $122 million, down only $3 million from the second quarter sales in that specific business of $119 million. Not concrete evidence, but looks like the eye of the storm might finally have passed over bandwidth providers.
