Rim Semiconductor Company (fka RSMI)

[bobide1$$$]

In the example given in the meeting they are talking about 45mbps over 10560 feet: its nice to see that the specs of their "new" technology is probably better then the "old" BS tech.

Comments welkom as usual

At Anytown Telco, this new order is not greeted with enthusiasm. Financially, it is a disaster. The T1’s were actually provisioned over a bundle of copper wires that were first trenched into Widget’s building in 1979. Hundreds of wires had been run from Anytown Telco’s central office in the city core out to Widget’s plant, 2 miles away(10560 feet), in anticipation of continued growth in T1 service. With the copper plant fully depreciated, and the maintenance cost of a T1 near zero, Anytown was making 90% gross profits on Widget’s eight T1 lines.

To fulfill the DS3(45mbps) order, Anytown Telco will buy two Fiber Optic Terminals equipped with one DS3 each, dispatch a Technician to provision and administer the line, and trench fiber, for a total Cap Ex of $950,000. Anytown’s per month amortization expense is $16,00. Their revenue per DS3 per month is $10,000, so they lose money to the tune of $6,000 per month. I don’t care how you account for capital expenditures, this is a bad deal.

Bob