DS3 Price Trends
Like nearly all telecommunications services in University, DS3 prices (commonly known as a T3 line) have been declining 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 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 arena has created a buyers market for DS3 lines and pricing is as low as it has ever been!
The weak 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 available and there are plenty of telecom providers trying to get their piece of it. 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 reduction 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 increase 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 factor that seems likely to slow 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 searching for a price that's right for you!
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As we go forward, our objective is to regularly enhance our product offerings. We now supply enterprise products normally used by bigger corporations, specifically: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers also deliver complimentary managed Cisco routers for multi-year contracts. Mainly, our goal is to develop a bond with you - our client - that will definitely last for years to come. Obtaining your trust is just what we do here. Saving you cash on affordable Ethernet services is just how we keep it.