A customer site is 7.5 blocks from the service provider's fiber network. His company is interested in getting fiber optics connectivity to the network in downtown New York. If the service provider is willing to construct fiber optics to this customer's location, the customer is willing to sign up for 20 DS-0s, 30 DS-1s, 3 DS-3s, and 4OC-3s. and 2 OC-12 services. He is willing to sign a 2-year service for all-optical services and just a 1 year for all electrical services. 

 

If it costs $80 per foot to construct fiber in downtown NY and each block is approximately 300 feet long, will you, as a service provider, construct to this customer's location? 

 

The service provider's policy is at the end of the contract if the revenue exceeds the expense, they will construct.

 

Equipment costs and revenue expectations are as follows:

 

Equipment: ( Cost to service provider )

 

Each OC-48 equipment cost = $ 60,000

Each OC-12 equipment cost = $ 40,000

Each OC-3 equipment cost   = $ 20,000

Each M1:3 equipment cost    = $ 15,000

Each M0:1 equipment cost    = $ 10,000

Services: ( Revenue expected from the customer )

Each DS-0 service   = $    100 per month

Each DS-1 service   = $    450 per month

Each DS-3 service   = $ 2,500 per month

Each OC-3 service   = $ 3,000 per month

Each OC-3c service = $ 3,300 per month

Each OC-12 service = $ 3,500 per month 

 

 

 

Show all calculations you made to derive to your answer.

 

Draw the equipment breakdown at the customer site, including tracking of spare capacity in each service equipment

Answer rating: 100% (QA)

Feasibility Analysis for Fiber Optic Construction Cost Calculation Fiber Installation Distance 75 blocks 300 feetblock 2250 feet Installation cost 80f... View the full answer