Low-cost access circuits that connect businesses with their service provider's point of presence (PoP), according to TeleGeography, will be found most often in the United States, Japan, India, and the United Kingdom.
The average price for a T-1 circuit from local telco Verizon (NYSE: VZ) in New York City is $300, while in London, businesses pay $398 for an equivalent E-1 circuit. In Hong Kong, the price of an E-1 is $469 month.
Similar to other services such as IP/VPNs and 10G wavelengths, the price for T1/E1 circuits in other cities, including Shanghai, Moscow, and Sao Paulo, are much higher.
A business in Shanghai must pay $836 a month, almost three times higher than in New York and Tokyo. At $1,566 a month, Sao Paulo has the highest local circuit prices.
"Local access prices vary widely, even among major business centres," said Greg Bryan, a TeleGeography analyst. "While prices are highly dependent on the amount of competition within a customer's building, other factors such as the physical density of a city; the level of infrastructure development; and the tax, legal, and regulatory regimes also play an important role in shaping prices."
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