Survey ranks Dubai most expensive city for VPN link

Cost of connecting to a virtual private line in Dubai 27 is times more than in London and 19 times more expensive than Hong Kong

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Survey ranks Dubai most expensive city for VPN link According to Telegeography, the average cost of an an E-1 connection was $14,683.
By Staff Writer Published  March 16, 2010

Dubai is the most expensive city in the world for IP-based virtual private networks (VPNs), according to a survey conducted by research firm Telegeography.

Many international businesses use VPNs as a lower-cost alternative to traditional private lines, allowing them to securely connect offices in different locations to a firm's network.

Telegeography surveyed carrier prices in 102 cities, and it found that the fees vary significantly.

In London, the average cost of a 2Mbps E-1 port was US$532 per month, while in Hong Kong, the average port charge for an E-1 was $753.

In contrast, the median cost in Dubai of an E-1 connection was an "astonishing" US$14,683.

"The high cost of VPN service in Dubai is a reflection of the other key driver of costs: local competition," said Telegeography analyst Gregory Bryan

"The local telecom market in the UAE is uncompetitive, and, despite adequate submarine cable supply, enterprise providers must pay high local access charges to connect customers in Dubai to their network."

The research team found that prices tend to be higher outside North America and western Europe, and that the main factors determining international IP-VPN prices are the underlying cost of international network capacity and the competitiveness of the local communications market.

"We are conditioned to think of global IP networks as ubiquitous and uniform, yet local access regulations and regional transport costs remain critical factors that drive the cost of connecting businesses in a city," added Bryan.

3440 days ago

Agreed with both comments. Services and quality of services of Etisalat have NEVER been something to revere to. Poor business, lucky for them there's nothing that can be done by users.

3442 days ago

I agree with Mr. bassem 110% ,being here for 15 years in IT industry ..many cost cutting technologies used everwhere else on this planet are useless here when calculating the operational running costs in uae --I stopped personally being intrested in any VOIP products ,seminars,courses,events becuase simply its not allowed or its illegal to do voip here and you know what is the funniest part here ??some voip events are sponsored by etisalat ..LOL

3442 days ago
Bassem AK

Being in the IT industry, prices of leased lines and MPLS links here (and in the region) have been a major hurdle to all the innovations and trends that are so common nowadays in most developed countries. A 1 GBPS link to the internet in Sweden costs 2,000 Euros which is less than what we pay for a 2 MBPS link in Dubai Internet City. How can an IT services company be competitive with such rates? Why do major technology based companies like host their sites and servers in the US? How can we use Shared Service Centers, SAAS or Cloud computing when the cost of connectivity overshadows the savings of centralizing or outsourcing. If you want the economy to prosper start by leveling the field with the rest of the developed world. The money a government would lose from telco revenues will come back in multiples with many new businesses, increased quality and customer service. That said, saying "Dubai" is very unfair. You should say the UAE cause Etisalat has the same rates in all Emirates and du is usually less expensive then Etisalat. The UAE might be better off than other GCC or ME countries but let's set our sight a little farther...

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