 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
1 edit | Vast difference in colo / wide-area network CapEx and OpEx Does anybody do investigative journalism anymore?
The operational costs at the head-end where cross-connects are contained to the same building is a vastly different case from operating and maintaining miles of infrastructure.
I highlighted the elements I had direct costs for here:
»Re: I think we are seeing how TWC will try to "educate" people
If the gains were really 2500% (as Karl Bode  suggests), you couldn't beat venture capitalists off with a stick if you expressed interest in starting up a new service provider.
I'm not saying there is no profit in the system, but to argue it's 2500% is absurd. If that were the case all of these muni-ISPs wouldn't be having financial troubles. |
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 hitachi369Embrace Your RightsPremium
join:2001-10-03
Grand Rapids, MI
kudos:4
 ·AT&T U-Verse
| said by espaeth:Does anybody do investigative journalism anymore? The operational costs at the head-end where cross-connects are contained to the same building is a vastly different case from operating and maintaining miles of infrastructure. I highlighted the elements I had direct costs for here: » Re: I think we are seeing how TWC will try to "educate" peopleIf the gains were really 2500% (as Karl Bode suggests), you couldn't beat venture capitalists off with a stick if you expressed interest in starting up a new service provider. I'm not saying there is no profit in the system, but to argue it's 2500% is absurd. If that were the case all of these muni-ISPs wouldn't be having financial troubles. are they charging overages? |
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 DarkLogixPremium
join:2008-10-23
Baytown, TX
kudos:3 | reply to espaeth
After the hardware has reached ROI then it will use roughly the same power day and night and the fees become fairly static month to month
a large number of people start downloading well the power usage might go up a little but at that point they are paying pennies on the gig (or might have a peering agrement and have not cost
the 2500% would of course cause ROI to be reached faster but then its loads of profit (unless the upgrade their equ) |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| said by DarkLogix:After the hardware has reached ROI then it will use roughly the same power day and night and the fees become fairly static month to month Not quite.
Even assuming the oversubscription ratios remained the same (ie, the portion of low:high users is fixed), network utilization is growing at 50-60% per year. So let's assume that D1.1/D2.0 providers are finally starting to bump up against the limits of single 38mbps channels after being deployed for a decade. DOCSIS 3.0 deployments are currently bonding 4 channels, so they get a 400% increase in capacity.
If you model that as: 4.00 = 1.50^(t) (ie, 50% growth with utilization equals 1 is (1*1.5), do that year after year leading to t in years)
If you solve for that you get 3.4 years. So, a 400% increase with a DOCSIS 3.0 rollout buys them 3.4 years of time before they are in the same capacity crunch needing to upgrade again.
said by DarkLogix:a large number of people start downloading well the power usage might go up a little but at that point they are paying pennies on the gig (or might have a peering agrement and have not cost Look at my link again. We're not talking about the CapEx costs of a company like Level(3) who, ironically enough, just turned their first quarterly profit in 6 years after firing a bunch of people. The pennies per GB is the cost to deliver that bandwidth within the confines of a "lit" building, the expansion building block is 10GigE interfaces, and the effort involved to expand capacity is often a matter of installing a line card and some patch cables.
On the DOCSIS side you need to free frequency space, potentially run new fiber / place nodes, adjust amps, etc which requires not just the capital outlay to upgrade but involves a considerable amount of manpower to accomplish.
Hardware is cheap, people are expensive. The number of people required to perform even minor upgrades in the DSL/DOCSIS space is much greater than the number of people required to perform massive bandwidth upgrades in a carrier facility. |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Clear Wireless
| reply to hitachi369
I'm not sure I understand which "they" you are asking about? |
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