DS3 Price Trends
Like most telecommunications services in Mason, DS3 prices (commonly known as a T3 line) have been declining for the last not so many 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 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 favorable as it has ever been!
The weak economy and crash of the stock market has also played a part in the fall 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 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 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 heavy applications the price of bandwidth will continue to drop. The only factor that seems likely to slow 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 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 constantly improve our product offerings. We now supply enterprise products normally employed by bigger companies, namely: MPLS network service, gigabit ethernet, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers also deliver complimentary managed Cisco routers for multi-year agreements. Mainly, our objective is to develop a bond with you - our customer - that will certainly last for years to come. Obtaining your trust is just what we do here. Conserving you cash on low-cost bandwidth services is just how we keep it.