DS3 Price Trends
Like the majority of telecommunications services in Janesville, 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 catch the attention of 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 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 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 reduction 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 go down. The only factor that seems likely to slow prices from dropping 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!
