DS3 Price Trends
Like nearly all telecommunications services in East Haven, DS3 prices (commonly known as a T3 line) have been declining 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 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 anxious 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 require 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 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 dropped. 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 intensive applications the price of bandwidth will continue to go down. The only thing 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 issue 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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As we go forward, our goal is to constantly enhance our product offerings. We now deliver enterprise items normally used by larger companies, namely: OC3, MPLS network service, gigabit ethernet, and cloud computing bandwidth delivered over a fiber optic backbone. Many of our service providers also offer complimentary managed Cisco routers for multi-year contracts. Mainly, our goal is to build a bond with you - our customer - that will last for years to come. Obtaining your trust is exactly what we do here. Saving you money on low-cost bandwidth services is how we keep it.