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. 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 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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Definition 1. - T3 Allerton service is a digital, dedicated private-line service giving you high capacity for any combination of data, voice or video applications. The versatility of T3 makes it ideal for data-intensive users with large backbone applications or private networks requiring channelized transport. The point-to-point structure of T3 Service affords greater economies of scale by combining 28 DS1s or 672 separate 64 Kbps channels onto one communications path.

Definition 2. - Digital carrier with a speed of 45Mbs. Equivalent of 28 DS1s. Also called T3.

Definition 3. - For many years, the fastest, and unfortunately, the most expensive way to connect to the outside world was through a ds1 or T1 connection. DS stands for Digital Signal or Digital Service. Now more commonly used and not near as expensive as it used to be, T3 or Data Service Level 3 is the connection of choice for many large companies and places that require a lot of bandwidth. DS3 technology is used for T3 lines and allows connections to the Internet to reach speeds of up to 44.736 megabits per second.

Definition 4. - Digital Signal Level 3. Framing specification used in transmitting digital signals at 44.736-Mbps on a T3 facility (United States) or at 34.368-Mbps on an E3 facility (Europe).

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