DS3 Price Trends
Like most telecommunications services in Boston, DS3 prices (commonly known as a T3 line) have been falling 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 desperate to add 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 contributed to the drop 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 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 decreased. 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 intensive applications the price of bandwidth will continue to decline. 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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