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 T1 provider for reasonalble amount of bandwidth or voice service you will have to enter into a long term contract. Telecommunications contracts for T1's and 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 T1 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.

Remeber that the t1 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 T1 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 T1 provider we suggest using a broker and asking for referals from current customers to give you an indication of what you can expect.

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!