I'm curious, why are high speed dedicated lines so expensive? I could understand maybe a grand or two per month, but 1/2 million dollars per month for an OC192??? Where does that price come from?
Dedicated Internet Lines (T1, T3, OC#) - why so expensive?
- Thread starter ThisIsMatt
- Start date
well t1 / t3 costs usually range around 1 to 2 grand per month. You have to understand that fibre optics is very expensive, and the OC192 has 192* the bandwidth of a t3 (44.736Mbps*192 = almost 10 Gbps :Q) according to here a t1 costs $750 - 850 per month, so $800*(192*3) = $460,800 per month
edit: actually the $750-850 is only for 1.544 Mbps, so if you do the math (44.736 * 192 / 1.544 = 5563, 5563 * 800), the total price would come to $4,450,400 per month. of course, its 10x as efficient to use an OC192 line then 5563 t1 lines, so the price drops down to around $445,040.
edit: actually the $750-850 is only for 1.544 Mbps, so if you do the math (44.736 * 192 / 1.544 = 5563, 5563 * 800), the total price would come to $4,450,400 per month. of course, its 10x as efficient to use an OC192 line then 5563 t1 lines, so the price drops down to around $445,040.
<< You have to understand that fibre optics is very expensive >>
Most of the cost isn't in the fiber itself but in laying down fiber and the high-speed switching equipment.
i wanted to get a DWDM line for my house but my mom said no, my dad was all for it. (i heard the whip, thats why he folded)
The lines you are refering to come with contracts guaranteeing availability. They will roll a truck within two hours usually of you losing connection. The connection is monitored at all times in addition. These lines are also where the telco's make all their profit.
As for the one time costs of installing the lines, that one time cost is a lot higher than you think it is. Qwests fiber network that connects more than 100 metro areas costs in the billions to build. Tack on a 12-15% interest rate on those bonds and you are looking at very high costs. When you buy OC-192 you are buying a whole single fiber, that means you have to be responsible for 1/5 of the install costs (fiber is usually installed in bundles of 5 strands), the interest on that cost, and all the maintenance and switching equipment (which costs in the 10's of millions) on the line. 0.5 million a month for OC-192 is totally understandable when you keep in mind the size of the network.
If you want a T1 line go order a 1.5up/1.5down SDL line from COVAD. It's $400 a month and gets you the bandwidth without the outage guarantees you have to pay for the on T1 line.
As for the one time costs of installing the lines, that one time cost is a lot higher than you think it is. Qwests fiber network that connects more than 100 metro areas costs in the billions to build. Tack on a 12-15% interest rate on those bonds and you are looking at very high costs. When you buy OC-192 you are buying a whole single fiber, that means you have to be responsible for 1/5 of the install costs (fiber is usually installed in bundles of 5 strands), the interest on that cost, and all the maintenance and switching equipment (which costs in the 10's of millions) on the line. 0.5 million a month for OC-192 is totally understandable when you keep in mind the size of the network.
If you want a T1 line go order a 1.5up/1.5down SDL line from COVAD. It's $400 a month and gets you the bandwidth without the outage guarantees you have to pay for the on T1 line.
<< i like my cable modem
>>my speed is just getting worse.
other than the usual capped u/l at 16k, d/l is becoming 35k during peak and 100k when no one is using.
this sucks.
i want my 300k d/l ave back, and where is the 650k i saw a couple times when i first got cable!!!
pffff, silly me, i forgot to mention what a DWDM line was.. its a 1.6 Terrabits line, probably fastest line known to man. it stands for "Dense Wave Division Multiplexing", multiple data signals - different wavelengths of light.
<< pffff, silly me, i forgot to mention what a DWDM line was.. its a 1.6 Terrabits line, probably fastest line known to man. it stands for "Dense Wave Division Multiplexing", multiple data signals - different wavelengths of light. >>
can i be as smart as you, please?
<< I'm curious, why are high speed dedicated lines so expensive? I could understand maybe a grand or two per month, but 1/2 million dollars per month for an OC192??? Where does that price come from? >>
Do you have any idea the amount of data a oc192 can push, and the equipment needed to handle it.
N8Magic
Lifer
- Dec 12, 2000
- 11,624
- 1
- 81
rahvin hit the nail on the head.
That is EXACTLY why dedicated lines are quite expensive. There are laser circuit packs that go into the ADM's that can cost over $100,000 each. In addition to the capital costs, you are paying for service. The larger connections are monitored 24/7, and a technician will be called out immediately to fix it should it go out of service.
As for why business lines are more expensive than residential? Similar story as above, you are paying for the service.
That is EXACTLY why dedicated lines are quite expensive. There are laser circuit packs that go into the ADM's that can cost over $100,000 each. In addition to the capital costs, you are paying for service. The larger connections are monitored 24/7, and a technician will be called out immediately to fix it should it go out of service.
As for why business lines are more expensive than residential? Similar story as above, you are paying for the service.
I can understand start up costs, but $500,000 a month? That's $6 million for one year + whatever the installation was. Say I've got a business set up in an already "wired" town, how can it cost SIX MILLION DOLLARS??
Go back and read Rahvin's post. There's not just startup costs, but maintenance as well. If you think you can provide cheaper bandwidth that's just as reliable, then go for it.
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<< Now wait a minute son, ya payin' no attention. Ya startin' too big. Ya gotta walk before ya can run. Start small, look at me when I'm talking to ya son. I say start small and work up. Now try again boy. Kids nowadays they know it all >>
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<< Now wait a minute son, ya payin' no attention. Ya startin' too big. Ya gotta walk before ya can run. Start small, look at me when I'm talking to ya son. I say start small and work up. Now try again boy. Kids nowadays they know it all >>
<< I can understand start up costs, but $500,000 a month? That's $6 million for one year + whatever the installation was. Say I've got a business set up in an already "wired" town, how can it cost SIX MILLION DOLLARS?? >>
You do understand that OC192s are what connect continents togeather.
Like the lines under the atlantic are 0c192.
<< hehe that would be very useful if there were harddrives to keep up with it sinnister >>
DOH, i hope my ata33 drive can keep up.
<< well t1 / t3 costs usually range around 1 to 2 grand per month. You have to understand that fibre optics is very expensive >>
IIRC, T1 and T3 are copper.
<< my house cost 20 bucks or so but if i want to add another phone line in a business its 40 bucks?? >>
Business has always subsidized residential.
Russ, NCNE
<< IIRC, T1 and T3 are copper. >>
T1 uses twisted-pair, coaxial cable, or optical fibre, while a T3 runs on coaxial cable(that i was not aware of
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