DS3 Price Trends
Like nearly all telecommunications services in Kaiser, DS3 prices (commonly known as a T3 line) have been falling 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 catch the attention of customers and keep them from going to competitors. Service providers are desperate to keep margins but even more desperate to keep customers. This competitive arena 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 require 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 gets the price that is right for them.
The last 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 decline. The only thing 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 inexpensive DS3 lines and good luck finding a price that's right for you!
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As we go forward, our wish is to continually improve our product offerings. We now provide business items usually utilized by bigger firms, namely: gigabit ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our suppliers also supply free managed Cisco routers for multi-year agreements. Primarily, our objective is to build a bond with you - our client - that will last for years to come. Acquiring your trust is exactly what we do here. Conserving you cash on economical MPLS services is precisely how we keep it.