| How much do OCx Circuits cost and what | | | | circuits. Generically, if it's ON-NET for the carrier and |
| components determine these costs? This is a tough | | | | there are no buildout costs to get the fiber to his |
| question. One of the things that is required for OC-x | | | | location, an "average" price would be about $53K, |
| level of bandwidth is a FIBER connection, since those | | | | compared to if it's NOT on-net for the carrier and it's a |
| levels of bandwidth cannot be maintained on copper. | | | | pain to get fiber there, where the cost would be about |
| (Whereas copper is more than adequate and can | | | | $126k plus any buildout costs. OC192 is a carrier-grade |
| meet the carrier's SLA (Service Level Agreement) for | | | | circuit and even in the best case would be precariously |
| anything from a T1 up to and including a full DS3). | | | | close to a half million per month. Again, heavily location |
| In most cases for T1 thru DS3, it is the LEC's (local | | | | dependent. |
| exchange carrier) choice. You see, the LEC is | | | | Customers needing this kind of bandwidth typically also |
| responsible to the carrier chosen by the customer to | | | | like to consider collocation, where they get that |
| provide connectivity for the "last mile" to the | | | | bandwidth but it's cheaper if they go to a carrier hotel, |
| customer's location. If the LEC has fiber in the ground | | | | the carrier's pop, the carrier's data center, etc., |
| already, they can use fiber, or they can use copper. | | | | because then the LOOP component no longer exists |
| Nobody really cares since performance can be | | | | and is replaced by the cross-connect charge and the |
| guaranteed for T1 thru DS3 on either copper or fiber, | | | | amount charged for rack space, power, UPS, etc. |
| within single-digit milliseconds. | | | | within the colo center. But sometimes the customer |
| But with OC-x circuits, it requires fiber. The two pricing | | | | wants this level of bandwidth into their office, which |
| components for OCx circuits are the PORT charge | | | | can also be done. |
| and the LOOP charge. The PORT charge is what the | | | | A customer needing this level of bandwidth should also |
| specific carrier has negotiated with the LEC for that | | | | consider Ethernet, which is much better bang for the |
| location for a particular level of bandwidth from their | | | | buck and is much more easily SCALED than a flat |
| CO (Central Office). The LOOP component is a | | | | OCx circuit ... IF that level of Ethernet is available there. |
| function of distance in miles from the carrier's POP | | | | One more thing - as you get into this level of circuit, |
| (Point Of Presence) to the installation location, although | | | | you are going to need to be located near a major city, |
| that is usually a pretty much fixed figure for loop | | | | because the LEC typically does not have the facilities |
| distances up to about 25 miles. | | | | in their CO in Podunk Idaho to deliver this level of |
| The OC-x pricing is like real estate - it's all about | | | | bandwidth as opposed to almost certainly having it |
| location, location, location. In downtown Chicago for | | | | available in downtown Seattle, Chicago, Denver, New |
| example, I can get a full OC-3 circuit for under $10k | | | | York or another major city. |
| per month. Pricing is pretty much a multiple of that, | | | | OCx circuit prices are hard to generalize in an article |
| although the customer usually gets a "quantity | | | | simply because it's all about location, location, location. |
| discount" for larger circuits; i.e., an OC12 is 4 times as | | | | For example, a business located in downtown |
| much bandwidth as an OC3, but is only slightly less | | | | Manhattan, price ranges you would quote as |
| than 4 times the cost. That is NOT a standard figure | | | | "average" would be too high for Manhattan, but would |
| because again it depends on location, heavily. | | | | probably be too low for ... say a smaller major city, say |
| I just priced out "generic" figures for a customer who | | | | Ft Lauderdale or San Jose. |
| wants *several* OC48 circuits and *several* OC192 | | | | |