| The soft economy and crash of the stock market has | | | | the bandwidth have decreased. This means that |
| also contributed to the reduction in DS3 prices. Since | | | | companies can supply the bandwidth at a lower cost. |
| the peak of the market in 1999 many companies have | | | | As bandwidth usage continues to increase as a result |
| gone out of business and no longer require service. | | | | of bandwidth hungry applications like video on demand |
| This means there's a smaller pie available and there | | | | and graphic heavy applications the price of bandwidth |
| are plenty of telecom providers trying to get their | | | | will continue to drop. The only factor that seems likely |
| share. Once again, the buyer is in control and can shop | | | | to inhibit prices from falling much further is the "last |
| until he or she finds the price that is right for them. | | | | mile" or the connection from the users premise to the |
| A final reason for the reduction in DS3 pricing is the | | | | service providers' POP (Point of Presence). But that's |
| fact that equipement costs and the cost of supplying | | | | best saved for another discussion. |