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 and the large number of telecommunications companies 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 reveiw 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.

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Finding the Right DS3 Bandwidth Provider

Telecommunications contracts can be much like a marriage and as we all know there are good and bad marriages. The fact is, when you enter into a telecommunications contract with a DS3 Bandwidth provider for reasonable amount of bandwidth or voice service you will have to enter into a long term contract.

Telecommunications contracts for T1 and DS'3s/T3's typically range from 1 years to 3 years. Anything longer than a 3 year contract is usually only seen in very large applicatons like OC3 and OC12 or complex frame relay connections with many nodes. While the term of the contract will not be a problem if you have the right provider, the contract could prove extrememly burdomsome with the wrong provider.

We suggest using a broker to walk you through your options and show you the providers and services available. A broker or independent agent can help reduce the time it takes you to shop around for a DS3 provider by asking you the questions once and searching through multiple providers to get the service that is right for you. The agent helps steer clear of the bias you will receive when speaking with one vendor as the agent will be paid no matter which service you choose. As the agent doesn't work with a specific provider like AT&T or Sprint, he or she will not push you in that direction if they are not right for you.

Remember that the DS3 Bandwidth provider you select will be your partner for quite some time so take caution in your decision. The worst part of being with a bad provider is the fact that it will affect your business. Dropped calls or an internet connection that goes down can be disastrous to a business. We found that the larger companies like AT&T and Sprint will release companies from long term contracts it if is shown that the voice or data DS3 service was faulty on a regular basis, however the release from such a contract will not help recoup the damages of the lost calls and e-mails from the poor service. When shopping for a DS3 provider we suggest using a broker and asking for referals from current customers to give you an indication of what you can expect.

The Fundamentals of DS3

To meet the growing demands for speed and bandwidth in voice and data communications....companies are turning to high speed DS3 circuits to cover all their internet capacity and reliability requirements. Choosing DS3 is also cost effective as a single DS3 costs equal to 4-10 T1/DS1s. To better equip you to make and implement this critical business decision....we highly recommend you read the white paper "The Fundamentals Of DS3".

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