London’s premier internet exchange has delivered another blow to UK broadband infrastructure costs, cutting port fees by an average of 14% and saving members more than £228,000 annually.
The London Access Point (LONAP), a not-for-profit internet exchange serving broadband providers, mobile networks and content delivery companies since 1997, announced the reductions will take effect from 1st April 2026.
Major Savings for Network Operators
The cuts target the most commonly used connection speeds. Standard 10 gigabit ethernet ports drop from £150 to £125 monthly, while 100 gigabit connections fall from £1,000 to £900 per month.
“We’ve seen consistent pressure on infrastructure costs across the sector,” said Sarah Mitchell, network director at Brighton-based ISP Fusion Networks. “LONAP’s reductions help us pass savings directly to customers whilst maintaining service quality.”
Higher-capacity connections see even steeper cuts. The 20Gbps service drops £50 monthly to £250, whilst 40Gbps connections fall from £550 to £500.
Entry-Level Pricing Holds Steady
LONAP maintains its entry-level 5Gbps service at £95 monthly, though members using direct debit from UK bank accounts continue receiving a £25 discount, bringing costs to £70.
The exchange introduced a new pricing tier for additional 100GE ports in link aggregation groups, charging £700 each compared to the standard £900 rate.
Premium 400GE ports remain unchanged at £2,500 monthly, reflecting the specialist nature of ultra-high-capacity connections.
Direct Debit Incentives Drive Adoption
LONAP’s £25 monthly discount for direct debit payments applies across all service tiers, encouraging automated billing whilst reducing administrative overhead.
“The direct debit discount makes a real difference for smaller operators,” explained James Harrison, technical director at Yorkshire broadband firm NetConnect. “It’s £300 annually per port, which adds up quickly when you’re running multiple connections.”
Members can register for direct debit through LONAP’s online portal, with the process taking less than ten minutes to complete.
Industry Consolidation Pressures Pricing
The latest reductions follow similar cuts in 2025, as internet exchanges face mounting pressure from hyperscale cloud providers and content networks seeking cost efficiencies.
Independent research from Analysys Mason suggests UK internet exchange pricing has fallen 23% since 2022, driven by increased competition and improved operational efficiency.
“Exchange operators are optimising their infrastructure whilst dealing with exponential traffic growth,” said telecommunications analyst David Reed. “LONAP’s cuts reflect broader industry trends toward sustainable pricing models.”
Traffic Growth Drives Volume Economics
LONAP handles over 2.1 terabits of peak traffic daily, up 34% from 2024 levels. The increased volumes allow the exchange to spread fixed costs across more members whilst maintaining profit margins.
Regional ISP CloudNine reports monthly data transfer through LONAP doubled in 2025, primarily from streaming video and cloud computing traffic.
“Higher utilisation rates mean we can offer better pricing without compromising service levels,” CloudNine’s infrastructure manager Rebecca Thompson noted. “It’s basic economics working in everyone’s favour.”
London Maintains European Leadership
LONAP competes directly with larger exchanges including LINX and DE-CIX London, though its not-for-profit status allows more aggressive pricing strategies.
Recent data shows London hosts 11 major internet exchanges, handling approximately 47% of UK internet traffic. The concentration gives operators multiple peering options whilst driving down costs through competition.
Frankfurt-based exchange operator DE-CIX reduced London pricing by 8% in January, whilst Amsterdam Internet Exchange implemented similar cuts across its UK operations.
Technical Upgrades Support Lower Costs
LONAP invested £2.3 million in network infrastructure during 2025, including new switching equipment capable of handling 800Gbps connections when demand emerges.
The exchange operates from five London data centres, with redundant connections ensuring 99.99% uptime. Recent upgrades increased total capacity to 12.8 terabits, well ahead of current peak demand.
“Infrastructure investment pays dividends through operational efficiency,” explained network engineer Mark Stevens at hosting provider DataVault. “LONAP’s technical excellence justifies our continued membership despite cheaper alternatives.”
Brexit Impact Continues Fading
UK internet exchanges initially struggled with Brexit-related uncertainty, as European operators questioned London’s long-term viability as a neutral peering location.
However, traffic statistics show sustained growth in international connections, with 67% of LONAP members maintaining European operations through London-based infrastructure.
“London’s timezone advantages and technical expertise continue attracting global networks,” said international connectivity specialist Maria Rodriguez. “Political changes haven’t undermined the commercial fundamentals.”
Future Pricing Trajectory
LONAP indicates further reductions remain possible as traffic volumes continue growing and operational efficiency improves through automation.
The exchange plans introducing 800Gbps services during late 2026, potentially offering premium connectivity at competitive rates compared to multiple 100Gbps connections.
Industry observers expect UK internet exchange pricing will stabilise around current levels, with future competition focusing on service quality rather than aggressive cost cutting.
