DS3 Price Trends
Like the majority of telecommunications services in Mcnab, DS3 prices (commonly known as a T3 line) have been falling for the last not so many years. This is due to a number of factors. Competition has been heating up since deregulation in 1996. The number of companies offering service has exploded. With more competition in the marketplace, service providers have to reduce their prices to catch the attention of customers and keep them from going to competitors. Service providers are anxious to keep margins but even more desperate to add customers. This competitive situation has created a buyers market for DS3 lines and pricing is as favorable as it has ever been!
The soft economy and decline of the stock market has also played a part in the fall in DS3 prices. Since the peak of the market in 1999 many companies have gone bankrupt and no longer need service. This means there's a smaller pie available and there are plenty of telecom providers trying to get their share. Once again, the buyer is in control and can shop until he or she gets the price that is right for them.
A final reason for the decline in DS3 pricing is the reality that equipment costs and the cost of supplying the bandwidth have decreased. This means that companies can supply the bandwidth at a lower cost. As bandwidth usage continue to go up as a result of bandwidth hungry applications like video on demand and graphic intensive applications the price of bandwidth will continue to decline. The only thing that seems likely to inhibit prices from falling much further is the "last mile" or the connection from the users premise to the service providers' POP (Point of Presence), but we'll save this issue for another article. Until then, enjoy those affordable DS3 lines and good luck finding a price that's right for you!
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Going forward, our wish is to continually enhance our product offerings. We now supply business items typically used by larger firms, namely: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our carriers even supply free managed Cisco routers for multi-year agreements. Primarily, our goal is to develop a bond with you - our client - that will certainly last for years to come. Acquiring your trust is what we do all the time. Saving you cash on low-cost MPLS services is just how we keep it.