TABLE OF CONTENTS The following pages delve into a "carrier-grade" scenario comparing the Net Present Values when planning for 36,000 DS0s in one location. Telco strategy over the past few decades has centered on concentrating as many DS0s as possible in one location.
Table 11-36 outlines the gross revenue for large long-distance carriers with 36,000 DS0s. Table 11-37 provides the purchase cost of Class 4 versus softswitch for 36,000 DS0s. Table 11-38 details the costs of purchasing a Class 4 or softswitch. The total benefits and costs of Class 4 and softswitch when purchasing 36,000 DS0s are shown in Table 11-39. Table 11-40 shows the salvage value of Class 4 and softswitch for 36,000 DS0s at 12 percent OCC.
| DS0s | Minutes/day | Price/minute | Days (2 yrs.) | Total benefit |
|---|---|---|---|---|
| 36,000 | 480 | .03 | 508 | $263,347,200 |
| Components of cost | DMS-250 | Softswitch Convergent Networks |
|---|---|---|
| System | $6,220,000 | $1,332,000 |
| Installation | $30,000 | $12,000 |
| Total (P = Co) | $6,250,000 | $1,344,000 |
| Component of cost | Class 4 DMS-250 | Softswitch |
|---|---|---|
| Collocation rent (annual) | $168,000 (14 racks) | $12,000 (1 rack) |
| Labor | $170,000 (2 engineers) | $140,000 (2 technicians) |
| Maintenance contract | $622,000 | $133,200 |
| IP circuits | $11,000,000 | $11,000,000 |
| Total | $12,395,400 | $11,473,360 |
| For life (j) of 2 years | $24,354,600 | $22,852,640 |
| Income tax component | Class 4 | Softswitch |
|---|---|---|
| Gross income | $263,347,200 | $263,347,200 |
| Business... |
