DS3 Price Trends
Like the majority of telecommunications services in Ehrenberg, DS3 prices (commonly known as a T3 line) have been falling for the last few years. This is due to a number of 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 catch the attention of customers and keep them from going to competitors. Service providers are desperate to keep margins but even more anxious to keep 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 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 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 control and can shop until he or she finds the price that is right for them.
A final reason for the decline in DS3 pricing is the fact 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 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 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 matter for another article. Until then, enjoy those inexpensive DS3 lines and good luck finding a price that's right for you!
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Going forward, our objective is to constantly enhance our product offerings. We now offer business products usually employed by larger corporations, particularly: OC3, MPLS network service, fiber ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our service providers even provide free managed Cisco routers for multi-year contracts. Primarily, our goal is to create a bond with you - our customer - that will last for years to come. Acquiring your trust is exactly what we do here. Saving you cash on affordable MPLS services is just how we keep it.