DS3 Price Trends
Like nearly all telecommunications services in Bixby, 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 low 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 require service. This means there's a smaller pie to be had 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 gets the price that is right for them.
The last 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 heavy 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 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 wish is to continuously improve our product offerings. We now supply enterprise products normally used by larger firms, particularly: gigabit ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers even offer free managed Cisco routers for multi-year contracts. Primarily, our objective is to develop a bond with you - our customer - that will definitely last for years to come. Obtaining your trust is what we do all the time. Conserving you cash on affordable MPLS services is exactly how we keep it.