A t3 connection is a point-to-point dedicated line that provides 672 64-Kbps voice or data channels or in other words 28 T1 lines. A T3 is used to transmit digital signals at 44.736 megabits per second and has enough bandwidth to transmit full-motion real-time video, and very large databases over a busy network. A T3 line would be installed as a major networking channel for a large corporation or university with high volume network traffic.

When you need more capacity, you often have to buy it in the next available increment, which may end up costing more than you want or can afford to spend. Worse yet, with current, "bursty" application requirements, the need for additional bandwidth can often be as temporary as it is critical. By providing flexible capacity, or "bandwidth on demand," service providers can help customers deal with variations in traffic, and with avoiding a high fixed monthly payment. True bandwidth-on-demand services should allow for a wide range in capacity.

Although anybody can purchase a burstable T3, this type of connection can be costly, even as costly as a full 45Mbps connections. Burstable lines can be found at their lowest cost at a colocation facility. At a colocation facility, or "colo", many users share a large OC3 or OC12 pipe. As a customer you will not have to pay for a the fixed cost of such a large pipe, but will have the benefit of being able to burst up to very high speeds if necessary. If you need the reliability of a large pipe fur busty traffic but don't have the capital consider a colo. If you have a steady volume and are consistent, you may consider keeping services in house and going with a T3 connection. Whether you're considering a colocations facility or a T3 to the door, make sure you use a broker to help guide you through the providers and plans available.

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!