DS3 Price Trends
Like nearly all telecommunications services in Palo Cedro, DS3 prices (commonly known as a T3 line) have been falling for the last not so many years. This is due to several 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 attract customers and keep them from going to competitors. Service providers are anxious to keep margins but even more desperate to keep customers. This competitive arena has created a buyers market for DS3 lines and pricing is as low 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 to be had and there are plenty of telecom providers trying to get their share. Once again, the buyer is in charge and can shop until he or she finds the price that is right for them.
The last reason for the reduction in DS3 pricing is the fact that equipment costs and the cost of supplying the bandwidth have dropped. This means that carriers can supply the bandwidth at a lower cost. As bandwidth usage continue to increase as a result of bandwidth hungry applications like video on demand and graphic heavy applications the price of bandwidth will continue to drop. The only thing that seems likely to slow 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 matter 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 goal is to regularly improve our product offerings. We now supply business products usually used by larger companies, specifically: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our service providers also deliver complimentary managed Cisco routers for multi-year contracts. Mainly, our goal is to create a bond with you - our customer - that will last for years to come. Earning your trust is just what we do here. Saving you cash on inexpensive Ethernet services is just how we keep it.