Band-X bandwidth prices: Prices tumble as new capacity comes into service - Industry Trend or Event - Brief Article

Price movement on Pacific routes is generating real activity now, with market pricing, reflecting forthcoming capacity sales on the three new systems. This is not a time to be sitting on high-cost network. The North Atlantic news has been dominated by speculation about the in-service date of TAT-14. Will FLAG Atlantic be in service before TAT14 with greater capacity and a city-to-city product? It is certainly very possible. In Europe a number of operators are feeling the pinch of falling prices and sluggish sales--the "fig leaf" of swapping capacity with other carriers to bolster revenue targets is wearing thin. Although it's too early to say, we may see corporate casualties by the third quarter.

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