DS3 Price Trends
Like nearly all telecommunications services in Polk, 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 carriers 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 anxious to keep margins but even more anxious to add customers. This competitive arena 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 fall in DS3 prices. Since the peak of the market in 1999 many companies have gone bankrupt and no longer need service. This means there's a smaller pie available and there are plenty of telecom providers trying to get their share. Once again, the buyer is in charge 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 heavy applications the price of bandwidth will continue to decline. 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 affordable DS3 lines and good luck finding a price that's right for you!
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As we go forward, our objective is to continuously improve our product offerings. We now deliver business items usually utilized by bigger corporations, namely: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our providers even deliver complimentary managed Cisco routers for multi-year agreements. Primarily, our objective is to create a bond with you - our client - that will certainly last for years to come. Obtaining your trust is just what we do all the time. Saving you cash on inexpensive Ethernet services is just how we keep it.