DS3 Price Trends
Like the majority of telecommunications services in Chico, DS3 prices (commonly known as a T3 line) have been declining for the last few years. This is due to numerous 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 desperate to keep margins but even more anxious 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 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 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 share. Once again, the buyer is in control and can shop until he or she finds the price that is right for them.
The last 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 heavy 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 searching for a price that's right for you!
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Going forward, our wish is to regularly improve our product offerings. We now supply business items usually used by bigger companies, specifically: fiber ethernet, MPLS network service, OC3, and cloud computing bandwidth delivered over a fiber optic backbone. Several of our carriers also supply complimentary managed Cisco routers for multi-year contracts. Mainly, our objective is to build a bond with you - our client - that will certainly last for years to come. Acquiring your trust is just what we do here. Conserving you cash on low-cost broadband services is how we keep it.