DS3 Price Trends
Like the majority of telecommunications services in Pike, 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 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 desperate 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 low as it has ever been!
The weak economy and decline of the stock market has also played a part in 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 available 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 fact 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 go down. 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 inexpensive DS3 lines and good luck searching for a price that's right for you!
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Going forward, our objective is to regularly improve our product offerings. We now deliver enterprise items usually utilized by larger companies, specifically: gigabit ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our suppliers even offer free managed Cisco routers for multi-year agreements. Primarily, our objective is to build a bond with you - our client - that will certainly last for years to come. Earning your trust is what we do all the time. Saving you money on economical broadband services is precisely how we keep it.