TAILIEUCHUNG - Reducing Financial Risk

When taking into account all costs associated with DS1 service delivery, copper-based systems such as those using HDSL2 are far less expensive to implement and own than fiber-based systems for up to eight circuits to a single location. | Reducing Financial Risk in DS1 Service Delivery white paper Executive Summary When taking into account all costs associated with DS1 service delivery copper-based systems such as those using HDSL2 are far less expensive to implement and own than fiber-based systems for up to eight circuits to a single location. Comparing Costs for Copper and Fiber DS1 Service Delivery pt to pt hw maint cable 20000 25000 15000 10000 5000 Number of DSls U o U HDSL2 FLE SONET Data from North American service providers show that maintenance costs on copper circuits are higher than for fiber circuits. However the data also show that capital outlays for fiber DS1 system hardware and cabling are higher than that of copper systems such as HDSL2. Taken together the data show a lower cost of ownership for copper DS1 circuits. For network planners the only sure bet is uncertainty because what the customer orders today may not at all reflect what that location needs tomorrow. The financial risk of choosing a DS1 delivery technology based upon an initial order can actually be enormous because from one to eight DS1 circuits to a single location the cost difference between copper and fiber DS1 technologies varies greatly with the number of circuits. Given this variable demand in the segment of customers using between one and eight DS1 circuits copper solutions are far more economical and present far less Comparing Costs for Copper and Fiber DS1 Service Delivery SONET ext hw maint cable Number of DS1 Circuits HDSL2 - FLE SONET financial risk than all other fiber based solutions. Introduction DS1 remains a steadily growing business for service providers. In July 2002 Gartner Group projected a compound annual growth rate for leased T1 DS1 services at through 2006. Yet even as DS1 services are deployed service providers still face important decisions in how those services are delivered in the access network Does the service provider use copper or fiber infrastructure What is the most .

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