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
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
Jerry Scharf wrote:
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.
Not true, long haul fiber *way* outways the initial ADM
investment over
about 1 years time frame, just not up-front. Remember: Dark
fiber is
a monthly re-occuring.....
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.
Only for small ISP's. This is not even *slightly* true of
transcontinental
runs. Reality check, it costs me *way* more to put up long
haul, than it does
local. Something needs to account for this....
But, what?
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.
Some of us see it as: We are overcharging customers who
don't use their
service much, to offset *not billing* enough for those who
do....
I don't call that archaic. But, I also don't think it is
going to change
anytime soon....
Richard