DS3 Price Trends
Like most telecommunications services DS3
prices (commonly known at T3) have been falling for the last few 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 attract customer and keep them from going to competitors. Service providers are desperate to keep margins but even more desperate to keep
adding customers. This competetive 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 contributed to the reduction in ds3 price. 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 share. .
A final reason for the reduction in DS3 pricing is the fact that equipement 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
continues to increase as a result of bandwidth hungry applications like video on demand and graphic heavy applications the price of
bandwidth will coninue to drop. The only factor that seems tlikely to inhibit 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's and good luck finding a price that's right for you!
Related Products:
T1 Dedicated Phone Lines
T3 Dedicated Phone Lines
DS3 Dedicated Phone Lines
OC3, OC12, OC48, OC96 and OC192 Dedicated Phone Lines
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