This assumes installing a single home on demand.

In reality, if you’re going to implement what Jay and I are suggesting, then 
you dig up a neighborhood at a time and drop a bunch of strands of fiber (I’d 
guess 8 or 16 as likely numbers) per household.

Owen

On Mar 24, 2014, at 11:57 AM, Naslund, Steve <[email protected]> wrote:

> 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:[email protected]]
> Sent: Monday, March 24, 2014 12:25 PM
> To: NANOG
> Subject: Re: Level 3 blames Internet slowdowns on Technica
> 
> ----- Original Message -----
>>> From: "Steve Naslund" <[email protected]>
> 
>>> 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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