Is Mombasa 100G Metro Wave Pricing Sustainable Long Term?
Probably not. Right now carriers are charging $7K to $9K per month for a 100G wave linking IColo1 and IColo2. This is the pricing of a cozy oligopoly, not a competitive market. Moreover, the carriers have inflated their costs by using brand name hardware when comparable products like Smart Optics offer 50% to 60% discounts on both the price tag and operating expenses (there is good Layer 1 networking gear with no recurring costs in the form of port activation fees or licensing). I can refer you to a smart optics VAR. In contrast, you can lease today recently manufactured dark fibre pairs between IColo 1 and IColo 2 for $1,100 per month for the 18 kilometer primary path and $1,400 for the 23 kilometer backup path. So for $2,500 a month on a 3 year contract you can get a fully diverse fibre ring between these two important data centers. Moreover, it is unlikely you need long range optics. Each fibre pair can do 10 to 20 terabits.