DS3 Price Trends
Like most telecommunications services in Jeff Davis, DS3 prices (commonly known as a T3 line) have been declining for the last few 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 catch the attention of customers and keep them from going to competitors. Service providers are anxious to keep margins but even more desperate to keep customers. This competitive situation has created a buyers market for DS3 lines and pricing is as low as it has ever been!
The soft economy and crash of the stock market has also contributed to the reduction in DS3 prices. Since the peak of the market in 1999 many companies have gone out of business 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 finds the price that is right for them.
A final reason for the decline in DS3 pricing is the fact that equipment costs and the cost of supplying the bandwidth have dropped. 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 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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As we go forward, our goal is to regularly improve our product offerings. We now offer enterprise items normally employed by larger companies, specifically: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our carriers even supply complimentary managed Cisco routers for multi-year agreements. Primarily, our goal is to create a bond with you - our client - that will certainly last for years to come. Acquiring your trust is exactly what we do here. Saving you money on low-cost Ethernet services is precisely how we keep it.