According to the study (The Business Case for Carrier Ethernet over MSPP SONET Networks), using existing SONET/SDH networks for Carrier Ethernet in smaller cities costs less over five years than deploying an overlay Carrier Ethernet directly over fiber or DWDM transport.
"Smaller cities already have existing SONET/SDH networks deployed for TDM/PDH traffic," said NSP's Peter Fetterolf, Partner and author of the study. "Carrier Ethernet and Triple Play services can be implemented quickly and cost effectively using Ethernet cards on MSPP SONET/SDH nodes. The rollout of a separate Carrier Ethernet network cannot be justified in the short term because smaller cities do not have sufficient fiber connectivity, density or demand."
The study models a rich set of commercial and residential service offerings and calculates revenue, CAPEX, and OPEX for three cities- Boston, MA; Stockton, CA; and Springdale, AR-representing Tier 1 through 3 cities respectively. Financial metrics include cash flow, NPV, ROI, and Payback.
Study Highlights
* Payback for MSPP networks was 2.5-3.6 years for Tier 2-Tier 3 cities
respectively versus 4.7-5.0 years for Carrier Ethernet directly over
fiber or DWDM
* Payback for Tier 1 cities was 1.9 years for MSPP networks versus 1.8
years for Carrier Ethernet direct on fiber justifying immediate build
out of a separate network.
* All cities offering Video on Demand (VoD) should consider using a
dedicated Carrier Ethernet network.
See "Whitepapers" at http://www.nspllc.com to download the study.
Network Strategy Partners, LLC
Peter Fetterolf
Email: pfetterolf@nspllc.com
Phone: (510) 655-2894
About Network Strategy Partners
Network Strategy Partners, LLC (NSP) - management consultants to the networking industry - helps equipment vendors, service providers, and enterprises around the globe make strategic decisions, mitigate risk and affect change through custom consulting engagements. NSP's consulting includes business case and ROI analysis, go-to-market strategies, development of new service offers, pricing and bundling as well as infrastructure consulting. NSP's consultants are respected thought-leaders in the networking industry and influence its direction though confidential engagements for industry leaders and through public appearances, whitepapers, and trade magazine articles. Contact NSP at http://www.nspllc.com.
