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Business Models

Business Models. Marla Meehl. 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

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Business Models

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  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 • O&M • Pay up-front • Pay annual • Pay monthly • Protection in case of bankruptcy

  4. Options Cont’d • Buy fiber outright • Pay up-front • O&M • Outsource or maintain yourself • Life of fiber – when can abandon

  5. Options Cont’d • 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 – don’t just depend on addresses • Look for disparate paths if redundancy is your goal • Don’t be afraid to ask non-traditional vendors for dark fiber • Largely justify on pay-back costs over leased services

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