DS3 Price Trends
Like most telecommunications services in Clinch, DS3 prices (commonly known as a T3 line) have been falling for the last few years. This is due to several 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 desperate to add customers. This competitive situation has created a buyers market for DS3 lines and pricing is as low as it has ever been!
The weak economy and decline of the stock market has also played a part in the reduction in DS3 prices. Since the peak of the market in 1999 many companies have gone bankrupt and no longer require 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 charge and can shop until he or she finds 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 declined. 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 intensive applications the price of bandwidth will continue to drop. The only factor 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 issue for another article. Until then, enjoy those inexpensive 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 normally utilized by bigger corporations, specifically: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our suppliers also provide complimentary managed Cisco routers for multi-year agreements. Mainly, our goal is to develop a bond with you - our client - that will last for years to come. Obtaining your trust is what we do all the time. Saving you money on economical Ethernet services is just how we keep it.