DS3 Price Trends
Like most telecommunications services in Salem, 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 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 low as it has ever been!
The soft economy and decline of the stock market has also contributed to the reduction in DS3 prices. Since the peak of the market in 1999 many companies have gone out of business and no longer need service. This means there's a smaller pie available 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.
The last 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 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 heavy applications the price of bandwidth will continue to go down. 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 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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Going forward, our wish is to regularly enhance our product offerings. We now deliver enterprise products usually employed by bigger firms, specifically: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our carriers also offer complimentary managed Cisco routers for multi-year contracts. Primarily, our objective is to build a bond with you - our customer - that will certainly last for years to come. Obtaining your trust is exactly what we do all the time. Saving you cash on inexpensive MPLS services is precisely how we keep it.