DS3 Price Trends
Like nearly all telecommunications services in Wharton, 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 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 soft economy and crash of the stock market has also played a part in 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 control and can shop until he or she gets the price that is right for them.
A final 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 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 decline. The only thing 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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As we go forward, our wish is to regularly enhance our product offerings. We now provide business items normally employed by bigger corporations, particularly: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers also provide cost-free managed Cisco routers for multi-year contracts. Primarily, our goal is to create a bond with you - our customer - that will certainly last for years to come. Acquiring your trust is what we do all the time. Saving you cash on low-cost MPLS services is just how we keep it.