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