Thinking about this again, let's take Jay at his word that he can make a 
"passing" for $700-800.  Unfortunately, the ISP or service provider does not 
pay for a passing, they pay for an entry.  After all we can't let them make 
their own entry or we will have everyone and their brother in our splice case.  
We will also have third world aerial spaghetti as they all run their own drop 
cables using God knows who as "skilled labor".  I will take my home here in 
residential Chicago as a best case example because the neighborhood is dense.  
All of our utilities here are aerial so there are no underground conduits 
available to you.  I assume to keep costs down you are going to try to use 
what's there and go aerial.  If you are in the suburbs that cable is all 
underground so at a minimum you will need a directional boring machine and put 
in the necessary pedestals and hand holes.  In this county you are required to 
use conduit every time you go under a public street as well.  I digress though, 
let's take the easy case.  

1.  You need to decide how many strands you are going to drop to my home.  You 
could drop a single fiber or pair but then you have to put mux equipment on the 
end of it.  After all I want choice and that might include TV from provider X, 
phone from provider Y, and high speed data from provider Z.

2.  Since you are the sole provider of the physical layer, you now have to roll 
a two man crew with a bucket truck and an experienced splicer.  By the way, 
this is Chicago so we have to have a two man crew at a minimum and they are 
both IBEW union contractors since this city will NEVER hire non-union labor.  
Figure they might have a 20-30 minute drive here is traffic cooperates.  They 
get paid hourly so they don't much care how long it takes but let's say they 
are feeling frisky today and only take about two hours on the job itself plus 
the hour of travel.

3.  Let's assume that the best case exists and the splice case is directly in 
my alley behind my house.  Your crew needs to splice a drop cable in at the 
splice case (you did pay to install the splice cases right?) and run it about 
100 ft to the back of my house and anchor it to my brick home at the prescribed 
height above ground.  You can't get the bucket truck in my yard so they break 
out the extension ladder.  In most case though the splice case will not be that 
close and certainly can't afford to put a case at every home at $700 per 
passing.  So in reality that cable probably runs to the alley and several poles 
down the block, they have to anchor that cable at every poll so Tarzan can't 
use your fiber for fun.

4.  Now that they have the cable at my house you have to place a MPOE (minimum 
point of entry) device on my house.  That box probably costs a couple bucks and 
has to be anchored into brick.

Are we getting closer to that $2,400 per home yet?  What if this is the suburbs 
and you have to direct bury enough cable to reach the pedestal on the corner 
and cross my one acre lot with it?

Steven Naslund
Chicago IL



 
-----Original Message-----
From: Jay Ashworth [mailto:j...@baylink.com]
Sent: Monday, March 24, 2014 12:25 PM
To: NANOG
Subject: Re: Level 3 blames Internet slowdowns on Technica

----- Original Message -----
>> From: "Steve Naslund" <snasl...@medline.com>

>> What do you mean by average monthly bill? That is the issue here. The 
>> average monthly bill includes the services you are getting. In the 
>> Chicago area a fiber optic access circuit unbundled from the 
>> imcumbent carrier to a competitive carrier is something like $10 a month or 
>> so.
>> How could you possibly think you can fund a build out in a new area 
>> for that price? It may be possible to pay for that over 20 years. The
> problem is that no one goes into business to break even over 20 years.

>Well, Steve, happens we had this conversation in some detail last year when I 
>was up for a City IT director position, and contemplating fibering
>12,000 passings.

>The magic number is apparently $700-800 per passing, not the $2400 you seem to 
>suggest...

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