RE: flat vs non-flat charging

["Bill St. Arnaud" <bill.st.arnaud () canarie ca>]

Jerry:

You are absolutely right.  I have pulled together some numbers on public
pricing for long haul WDM (including right of way) showing that if you out
IP over WDM the cost of bandwidth drops by a factor of 100 to 1000.  On
local loops it is more dramatic - with new WDM technology from companies
like Cambrian and Ciena gigabit ethernet or OC-48 SONET on a 5km local loop
should cost about $2500 per YEAR.

A number of our regional networks have already pulled their own fiber and
our realizing these costs in the real  world.

Fibre - $4 to $6 per meter
      20 year economic life and 10% maintenance per year
      48 strands NZDSF
Right of way $0 -$10 per meter per year (up to $200 per meter on long haul)
but
    common solution is to offer right way owner free use of a couple of
strands instead of paying cash
Installation $25 per meter underground in cities
      $6 per meter on poles (maintenance costs 20% year)
Twenty year amortized cost with 10% cost of money plus maintenance plus
right of way costs at $10/year per meter
  $17 per year per meter for 48 strands
  $1.50 per year per meter per strand
   $.50 per year per meter per wavelength
A 5 km OC-48 local loop should cost about $2500/year


Bill

-------------------------------------------
Bill St Arnaud
Director Network Projects
CANARIE
bill.st.arnaud () canarie ca
http://www.canarie.ca/bstarn

 

 



> -----Original Message-----
> From: owner-nanog () merit edu [mailto:owner-nanog () merit edu]On Behalf Of
> Jerry Scharf
> Sent: Friday, May 29, 1998 12:07 PM
> To: nanog () merit edu
> Subject: flat vs non-flat charging
>
>
> I think the idea of distance charging is going away in many
> cases. With WDM,
> the cost of the WDM and SONET eqiupment on the ends of a fully
> populated 32
> channel per fiber, 144 strand pull vastly outweight end-to-end
> fiber costs of
> anything pulled through the ground. When you add routers and the
> like on top
> of that, the distance issue really goes away and it becomes on of network
> topology hops. Can anyone with figures for new intercontinental pulls say
> whether this is true there as well (project oxygen marketing claims this,
> but...)?
>
> Using archaic telephone pricing models to argue cost of providing bulk IP
> services is just not right.
>
> jerry