DS3 Price Trends
Like the majority of telecommunications services in Phillips, DS3 prices (commonly known as a T3 line) have been declining 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 carriers 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 anxious to keep customers. This competitive situation has created a buyers market for DS3 lines and pricing is as favorable as it has ever been!
The weak economy and decline of the stock market has also contributed to the drop 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 piece of it. Once again, the buyer is in control 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 decreased. 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 factor that seems likely to inhibit prices from dropping 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 objective is to continuously improve our product offerings. We now deliver business items typically utilized by bigger companies, namely: OC3, MPLS network service, gigabit ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers also deliver free managed Cisco routers for multi-year contracts. Primarily, our objective is to build a bond with you - our client - that will certainly last for years to come. Obtaining your trust is exactly what we do here. Saving you cash on low-cost MPLS services is how we keep it.