PTC 2026 Telecom Workshop

Why It Matters

Understanding these pricing dynamics helps telecom operators and investors anticipate margin pressures, plan capacity upgrades, and navigate a market increasingly shaped by hyperscaler control and uneven regional demand.

Key Takeaways

• Global 100G wavelength prices fell ~11% annually over three years.
• Price erosion varies: 22% drop in Miami‑São Paulo, only 2% in Marseille‑Singapore.
• Slower demand growth in 2025 reduces future price declines.
• New cable projects diversify routes but hyperscalers limit wholesale competition.
• 400G services gaining market share, dark fiber becoming attractive option.

Summary

The final session of the PTC 2026 Telecom Workshop featured Teleography’s deep‑dive into global bandwidth pricing trends and the outlook through 2026. Presenter Briana outlined current 100G wavelength price trajectories, highlighted the uneven erosion across routes, and introduced the emerging dynamics of 400G services and dark‑fiber demand.

Data showed an average 11% compound annual decline in 100G prices over the past three years, but regional disparities are stark: Miami‑São Paulo saw a 22% drop, while Marseille‑Singapore fell only 2%, keeping the latter 4.4 times more expensive than the London‑New York benchmark. Demand growth has slowed markedly—2025’s bandwidth growth is 25% lower than 2020—dampening the traditional price‑down pressure. Meanwhile, 400G capacity now dominates sales mixes in Europe and the U.S., and dark‑fiber is gaining traction for customers seeking higher capacity control.

Briana emphasized two levers that could reverse price erosion: throttling demand and delaying new supply. Historical episodes, such as post‑COVID cable delays, showed that uncertainty can flatten prices. Upcoming cable investments exceeding $14 billion will diversify routes, especially across the Pacific, but hyperscalers now dominate new builds, reducing wholesale competition. The presentation cited a 0.92 R² correlation between used bandwidth and price, underscoring how volume drives cost.

The outlook remains bearish for prices, with continued erosion expected despite short‑term supply constraints. Carriers must balance investment in higher‑capacity services, monitor hyperscaler‑driven market concentration, and consider dark‑fiber strategies to maintain margins. Stakeholders should prepare for modest volatility but anticipate that long‑term price trends will stay downward as global demand, though slower, remains positive.

Original Description

TeleGeography Chief Research Officer Tim Stronge, Senior Research Manager Brianna Boudreau, and Senior Research Manager Jon Hjembo dive deep into pricing, interconnectivity, and networks at the 2026 PTC conference.

Get the full experience and download the slides from this workshop: https://www2.telegeography.com/ptc