DS3 Price Trends
Like most telecommunications services in Lancaster, 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 desperate to keep margins but even more anxious to add customers. This competitive situation has created a buyers market for DS3 lines and pricing is as favorable as it has ever been!
The soft economy and crash 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 out of business 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 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 reality 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 go up as a result of bandwidth hungry applications like video on demand and graphic intensive applications the price of bandwidth will continue to decline. The only thing that seems likely to inhibit 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 searching for a price that's right for you!
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Going forward, our objective is to constantly enhance our product offerings. We now deliver business items usually utilized by larger firms, namely: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our service providers even supply cost-free managed Cisco routers for multi-year contracts. Mainly, our goal is to build a bond with you - our customer - that will last for years to come. Obtaining your trust is just what we do here. Conserving you money on affordable MPLS services is how we keep it.