DS3 Price Trends
Like nearly all telecommunications services in Perkins, DS3 prices (commonly known as a T3 line) have been falling for the last few years. This is due to numerous 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 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 favorable as it has ever been!
The weak economy and decline of the stock market has also contributed to the drop 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.
The last 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 companies 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 drop. 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 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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Going forward, our goal is to constantly enhance our product offerings. We now deliver business products typically used by bigger firms, namely: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our suppliers also deliver cost-free managed Cisco routers for multi-year contracts. Primarily, our goal is to create a bond with you - our customer - that will last for years to come. Earning your trust is just what we do here. Conserving you cash on low-cost bandwidth services is how we keep it.