Since TNC started tracking network and telecoms price trends in 2005 we have seen a number of key constants across the majority of network and telecoms services:
- Declining cost
- Increasing demand
- Rapid replacement by new technology
TNC has a unique insight into the market as we are able to see a very broad range of pricing across multiple services, representing all major business sectors, differing scales and importantly numerous different service providers, including both the established dominant providers as well as niche or disruptive vendors.
TNC’s analysis of this data has enabled us to build a model which captures the trends we see repeated across almost all services. The key headline from this model is that, for the majority of services, we see pricing decrease over time until the plateau phase towards the end of the service’s life.
For some services the competitive and plateau phases can last many years whilst regulated services or uncompetitive markets can distort these trends.
The chart below shows TNC’s analysis of these price trends over time as services come into the market, mature and ultimately head towards retirement: