A customer site is 7.5 blocks from the service providers fiber network. His company is interested in getting fiber optics connectivity to the network in downtown New York. If the service pro
networking practice test / quiz
ITM 318 – Spring 2023
Business Case Analysis and Justification for fiber built ( 10 points )
A customer site is 7.5 blocks from the service providers 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 customers 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 cost $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 customers location?
The service providers policy is at the end of the contract if the revenue exceeds the expense, they will construct.
Equipment costs and revenue expectation 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: ( 3 points )
CONSTRUCTION COST: ( 1 point )
EQUIPMENT COST: ( 1 point )
TOTAL EQUIPMENT AND CONSTRUCTION COST: (1 point )
REVENUE EXPECTION: ( 2 points )
BREAK EVEN MONTHS: ( 2 points )
SHOULD CONSTRUCT ( ) SHOULD NOT CONSTRUCT ( )
Please provide you reason(s) for this decision:
Requirements: As needed
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