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Why is the Internet traffic exploding ? reason 3: the prices

In this series of posts, I will explain you the main reasons behind the growth of Internet traffic. In previous post, we have seen the impact of video, usages, and increase access to the Internet sustain Internet traffic growth from the user side. In this post, I will highlight the key factor for Internet traffic explosion: this one is rarely cited by experts, but it is essential to understand the evolution of the Internet.

Missed previous part of the series? There they are:
The predominant factor for the emergence of large content providers and the increase in the amount of traffic that they generate on the Internet is the erosion of Internet connectivity prices. This erosion has two direct consequences:
  • Content providers can send more and more traffic every year without increasing their connectivity budget.
  • To survive, some transit providers accept more traffic than they can send through their peering links… => congestion

The figure below shows the evolution of transit prices over the years... Pretty impressive isn't it?

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