DS3 Bandwidth is Getting Cheaper!
While many people predicted the end of price erosion for DS3
bandwidth it continues to fall. Service providers are up against
stiffer competition and are desperate for new customers to fill
their pipes and turn a profit. Are you ready to negotiate for a
rock bottom price? Before you do, consider a few of the reasons
for the drop in price on DS3 bandwith.
DS3 bandwidth pricing had reduced as companies have gone out of
business or merged....and the large number of telecommunications
companies left are fighting for a place in a smaller market.
While many service providers did have room to lose margin, many
have come dangerously close to the edge of selling circuits at a
loss and many have gone beyond this point. It seems that in the
race to the bottom many providers failed to learn the lesson
that selling at a loss does not create a long lasting and
healthy company no matter how many circuits or widgets you sell.
Many companies selling at a loss have already been in bankruptcy
and look like they will repeat this exercise as they did not
learn from their first go around. So, solvency of the DS3
bandwidth provider should be a consideration when looking at
great bargains.
Another consideration in bargain shopping for DS3 service is the
fact that all DS3's are not created equal. Many providers are
convinced (and rightly so) that customers are focused on price
and are not concerned with quality of service. Many providers
are now oversubscribing DS3 service connections as though they
were DSL connections. This means you may not get the bandwidth
you thought you would get. Make sure when you look for that
bargain price you also review the SLA (Service Level Agreement)
and make sure the contract protects you and guarantees you will
get the bandwidth to which they committed. Remember, when
bargain hunting for DS3 service you'll most likely get what you
pay for.