Posted: 03rd Feb, 2009 By: MarkJ
Members of the
London Internet Exchange (LINX), which include hundreds of UK and European ISPs, have reportedly seen fees drop by 40% since the beginning of 2008. Falling service prices and exchange rates appear to be the cause.
A major contributor to this has been the range of price cuts implemented last September. At that time annual membership fees were reduced by 10% and the cost of 1 GigE and 10 GigE ports across LINX's two independent local area networks (LANs) were lowered by as much as 25%:
John Souter, LINX Chief Executive Officer said: "As a neutral, not-for-profit Internet exchange we aim to pass the benefits of our growth back to our members whenever we can. It's interesting to note that whenever we lower our prices it encourages even more new members to join LINX. This in turn will allow us to offer the membership even greater savings in the future."
For example, a large American content network with eight 10 Gb ports at LINX has seen prices drop from $30,000 per month in January last year to $16,900 now. Meanwhile European access networks with two 10 Gb ports have seen their costs lowered from 5400 in 2008 to 3200 today.