These models will compare three different long-distance providers, one small long-distance operator (480 DS0s), a mid-sized long-distance operator (4,032 DS0s), and a major long-distance carrier (36,000 DS0s). For brevity, the number of DS0s studied is per POP (a node on their network) and does not address the service provider's entire network. The pricing of the Class 4 switching solutions is based on testimony before the FCC where small configurations were priced at $500,000 for the basic chassis and $100 per DS0. Large configurations (100,000 DS0s) are priced at $1,000,000 per chassis plus $100 per DS0. ^[14] For the Class 4 switch, the Nortel DMS-250 is used strictly as an example of a Class 4 switch. The pricing of the softswitch solutions was provided by the softswitch vendors and is considered "street pricing."

The tables (in the following pages) detailing the comparison of acquisition costs list all the factors necessary to complete an installation of the respective switches. The parts contained are the system itself, an estimate of installation costs based on a per diem charge (often $1,500 per day per installer), and sales tax (state and local). Following the acquisition costs (P = C ₀), the operating expenses for the life of the project (N = 2 for a period of two years) are detailed. Sources for further costing information are as follows:

• Installation expenses at $1,500/day Nuera

• Acquisition costs Respective softswitch vendors for softswitch costs

• Class 4 acquisition...