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PSTN NETWORK COSTS

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    Roderick Beck
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    I am doing a primitive cost analysis of long distance voice traffic for a VoIP industry report. I am a former AT&T industry analyst.

    My example is designed to show that the PSTN is highly cost efficient. We already know given wholesale interlata voice traffic is about 1.5 cents per minute, but I want a numerical example to illustrate for the reader’s sake.

    I assume a point-to-point fiber link between two cities with a 4E with an OC-48 worth of ports and 25
    capacity utilization. The ports are $135 plus $1 million for commone components given a total price tag of $5 million. In addition there are SONET multiplexers, priced at $48,000. On top of this is dark fiber and optical amplifiers. Besides signalling gear, what other components have I left out? Can any one tell me the cost of an optical amplifier and how far a part they must be spaced.

    I am also getting a per minute depreciation cost on the swtiches assuming a six year economic life of only 5/100ths of a penny. Comments. Help. All is appreciated!

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