From Ben Edmond, CEO of Connectbase

Bandwidth pricing may seem straightforward, but behind that simple question lies a fragmented industry of staggering complexity. The global connectivity landscape involves over 11,000 physical last-mile network owners, connected to more than 23,000 ISPs, long-haul, and middle-mile providers, thousands of WISPs, Wireless and Satellite providers, all sold through a massive ecosystem of over 30,000 managed service providers, TSDs, and TSBs, in addition to direct from each provider. Each network brings its unique geography, pricing model, and operational reality. This fragmentation creates a market where pricing is neither uniform nor simple to predict.

The Challenge of a Fragmented Market

The core of the issue lies in the geography and capital intensity of network deployment. Every network is subject to the physical realities of its geography, and costs vary wildly depending on location. Dense urban environments may offer more affordable bandwidth options due to competition and high cost but close proximity to infrastructure, while rural or remote areas often see much higher prices due to the lack of available networks and higher deployment costs.

Adding to this complexity is the fragmented nature of the industry. Multiple network layers—last-mile, middle-mile, and long-haul—each contribute to the overall cost, often without coordination. Then, service providers add their margin on top of that, creating a pricing environment where the same bandwidth can vary significantly in price based on where it’s sold, who’s selling it, how it is sold and what infrastructure it relies on.

Drawing Parallels from Other Industries

This market complexity isn’t unique to the telecom industry. Other sectors, such as travel and freight, have faced similar fragmentation in their supply and respective end to end pricing models and have navigated these challenges through the development of market platforms. The transformation of the travel industry is an excellent analogy. Decades ago, booking a flight involved calling multiple airlines or agents, with opaque pricing and limited visibility. The rise of travel platforms like Expedia and Priceline brought transparency and simplicity to an otherwise chaotic market, giving consumers access to pricing, availability, and direct booking options in real-time. Similarly, freight logistics was once dominated by a few major players, each with unique routes and pricing. Market platforms like Freightos have introduced significant efficiency into this space, offering businesses the ability to compare rates and optimize shipping routes across multiple carriers.

Just as these industries have been transformed by platforms that bring together disparate providers and create a transparent marketplace, the telecom industry is ripe for a similar transformation. Connectbase's solution is to serve as that platform—bringing clarity to a fragmented connectivity ecosystem, uniquely serving each supplier with its own connected ecosystem that can be managed independently of others.

How Connectbase Helps Make Sense of the Market

At Connectbase, we’ve built a solution to simplify this complexity. Our Buyers Cloud aggregates data across the global connectivity ecosystem, offering actionable insights into network availability, pricing, and geography. This platform scales market insights to a level that helps service providers, buyers, and sellers make informed decisions in real-time, much like travel and freight platforms that have revolutionized their respective industries.

With the Buyers Cloud, ecosystems are created where providers can connect across the supply chain, expanding their reach and gaining a broader market perspective. This enables participants to break through the geographic and infrastructure challenges and discover new opportunities for growth. Our platform's data-driven approach provides users with the same level of transparency and efficiency that consumers now expect when booking a flight or shipping freight, but with the unique security of one for one MSA pricing flows.

Why This Matters for the Future

The importance of managing bandwidth pricing effectively is underscored by research from leading consulting firms. According to McKinsey, the digital transformation of industries will drive a significant increase in demand for data and bandwidth, which could grow exponentially in the coming years. EY highlights how connectivity is becoming critical for businesses across sectors, while Deloitte emphasizes the need for operational efficiency in managing network costs to stay competitive.

In industries like travel and freight, market platforms have enabled players large and small to compete with the customer experience driving growth, giving the access to the same data and pricing tools needed to win. Connectbase is doing this across the connectivity industry, offering visibility, efficiency, and real-time insights to participants with the unique ability to make secure #connections that enable one for one pricing flows. As the digital economy continues to grow, the ability to navigate this fragmented industry effectively will determine the winners and losers.

Connectbase is helping to lead that charge, providing the tools and insights needed to drive efficient, scalable, and more transparent network connectivity markets. Much like the platforms that have streamlined other industries, we are bringing a new level of clarity to bandwidth pricing.

In conclusion, while the question "How much is bandwidth?" may never have a simple answer, platforms like Connectbase help make that answer clearer, bringing visibility and efficiency to an increasingly critical market.

Sources:

McKinsey: Digital Transformation and Connectivity Growth

EY: Connectivity as a Business Enabler

Deloitte: Network Cost Efficiency in the Telecom Sector

#connectivity #bandwidth #telecom #digitaltransformation #Connectbase