DS3 Price Trends
Like nearly all telecommunications services in Canadian, DS3 prices (commonly known as a T3 line) have been falling 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 keep customers. This competitive arena has created a buyers market for DS3 lines and pricing is as favorable as it has ever been!
The soft 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 bankrupt and no longer require 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 gets 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 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 go down. The only factor 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 affordable DS3 lines and good luck searching for a price that's right for you!
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Going forward, our objective is to continuously improve our product offerings. We now offer business items usually used by bigger corporations, namely: OC3, MPLS network service, gigabit ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our providers also provide complimentary managed Cisco routers for multi-year agreements. Primarily, our goal is to build a bond with you - our client - that will last for years to come. Obtaining your trust is what we do all the time. Conserving you money on affordable Ethernet services is just how we keep it.