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DS3 Price Trends
Full and Fractional DS3 Service has never been cheaper
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!
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!
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July 6, 2009
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