Business Models

1
Business Models

• Marla Meehl

2
Business Plan/Model

• Pretty random
• Started picking up most desirable and/or easy to
  get pieces
• Working for cost savings, flexibility,
  redundancy, growth
• Building piece by piece
• FRGP and/or individual organization based
• Note that the FRGP is not a formal organization
  so UCAR is the purchasing agent
• Learned about buying fiber on the fly still
  learning
• Shared costs as appropriate
• Large one-time capitol costs are difficult to
  handle in our system
• Each purchase is unique
• Still working out the kinks and changes with time

3
Options

• Indefeasible Right of Use (IRU)
• Duration (7, 14, 20 years)
• Pay up-front
• Pay annual
• Pay monthly
• OM
• Pay up-front
• Pay annual
• Pay monthly
• Protection in case of bankruptcy

4
Options Contd

• Buy fiber outright
• Pay up-front
• OM
• Outsource or maintain yourself
• Life of fiber when can abandon

5
Options Contd

• Build/Construction Costs
• Usually not included in IRU
• Usually pay up-front
• Metro vs. lateral vs. riser vs. cross-connect
• Separate costs for all pieces
• Make sure you know all the costs

6
General issues

• Look at physical path dont just depend on
  addresses
• Look for disparate paths if redundancy is your
  goal
• Dont be afraid to ask non-traditional vendors
  for dark fiber
• Largely justify on pay-back costs over leased
  services