The Differences Between US And European Colocation Prices

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A Telecom market research company has released figures which would suggest vast differences between the colocation prices of US providers and those in Europe.

It would seem that the European customers have a much better deal with prices likely to be 6 times higher for those seeking to take advantage of the service in the US.

However, the report also cautioned those US clients who feel they may be getting a bad deal on their Houston colocation against reading too much into the initial figures as they do not relate to the overall rental costs in major cities but consider what the individual costs might be if they were purchased individually.

For example, the overall cost of a cabinet with a power density of 4 kilowatts and a one fiber cross-connect would be approximately $1,100 per month. However, if the same size and specification fiber cross-connect would cost approximately $350 per month meaning that a tiny component of the overall service when purchased alone would cost up to 30% of the total value when purchased together.

The varying prices were discussed in length by TeleGeography who carried out the survey; “Operators surveyed charge between $251 and $322 for a fiber cross-connect in colocation facilities in the U.S., but only $33 to $59 per month in Europe,” said an analyst “Colocation providers in the U.S. see connectivity as a part of their revenue stream, while operators in Europe rely more heavily on space and power charges to generate revenues.”