DS3 Price Trends
Like the majority of telecommunications services in Safford, 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 attract customers and keep them from going to competitors. Service providers are anxious to keep margins but even more desperate to add customers. This competitive situation has created a buyers market for DS3 lines and pricing is as favorable as it has ever been!
The weak economy and decline 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 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.
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 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 intensive applications the price of bandwidth will continue to go down. 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 affordable DS3 lines and good luck finding a price that's right for you!
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Going forward, our goal is to continually improve our product offerings. We now provide enterprise products usually utilized by larger corporations, particularly: MPLS network service, fiber ethernet, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our suppliers even offer cost-free managed Cisco routers for multi-year agreements. Mainly, our goal is to build a bond with you - our client - that will last for years to come. Obtaining your trust is exactly what we do all the time. Conserving you money on low-cost bandwidth services is how we keep it.