Table Of Contents
Cisco ONS 15327:
Making Fiber to the
Building a Profitable Reality
The Internet continues to drive exponential data growth in public networks, resulting in the need for more bandwidth. Service providers are finding it necessary to deploy fiber into what was traditionally considered the access portion of the metro optical network to meet end user's bandwidth demands. Service providers are also finding that high-bandwidth users are frequently concentrated in locations such as multitenant units (MTUs), making it logical to deploy fiber directly to the building. Today, many individual buildings can use a full OC-48, or 2.5 Gbps of capacity.
Although the bandwidth demand is there, traditional Synchronous Optical Network (SONET) solutions do not make it feasible to deploy fiber to the building because of the cost. A traditional SONET Add Drop Multiplexer (ADM) used to cost well over $100,000 for OC-48 capacity. Because of the cost, it is unlikely that a service provider could sell most of the capacity of that ADM to one building, and it could take many years for the service provider to recover its investment. The service provider would probably have other opportunities to invest its capital that would generate a better return. Additionally, traditional SONET ADMs do not have multiservice capabilities, so bandwidth is wasted when they are deployed to deliver data services. Therefore, it does not make sense for a service provider to deploy fiber to the building (FTTB) with traditional SONET equipment.
Cisco ONS 15454 Metro Optical Transport Platform
The supercharged Cisco SONET technology, first introduced with the Cisco ONS 15454 Metro Optical Transport Platform, revolutionized not only the functionality of a SONET ADM, but also the price by reducing the cost of service delivery for an OC-48 by over 55 percent. This significantly reduced the time to pay off the capital costs of the equipment. The platform is also smaller than traditional ADMs and has multiservice functionality, such as Ethernet switching. FTTB became an application worth investigating because it could now be justified for large buildings. The Cisco ONS 15454 is optimized for FTTB applications such as metropolitan high-rise buildings that have a very large number of individual businesses that may each need a lot of bandwidth.
Cisco ONS 15327: The First Metro Edge Optical Transport Platform
Figure 1 shows the Cisco ONS 15327, the first metro edge optical transport platform offering supercharged SONET, integrated optical networking, and unprecedented multiservice interfaces to deliver radical economic benefits to service providers. The Cisco ONS 15327 platform is designed to scale from OC-3 all the way to OC-192; it supports ITU grid wavelengths and dense wave-division multiplexing (DWDM), and delivers TDM, Ethernet, and ATM services-all from a platform the size of a VCR.
Figure 1 Cisco ONS 15327
The Cisco ONS 15327 can be managed by the Cisco Transport Manager, the same management system that controls the entire Cisco ONS 15000 product line, including the Cisco ONS 15454. This allows service providers to rapidly provision and monitor services across a network comprising multiple Cisco ONS 15000 network elements.
Figure 2 shows how the Cisco ONS 15327 makes it feasible for service providers to deploy fiber to smaller buildings. At three rack units high, it is compact enough to fit in a closet in the basement of a maximum transmission unit (MTU). The multiservice functionality means that a service provider can light up an MTU and deliver TDM and Ethernet/IP service with one platform. The Layer 2 switching capabilities of the Ethernet cards enable service providers to maximize their bandwidth so they no longer need to dedicate a full STS-1 for a 10BaseT port or an STS-3c for a 100BaseT port. The platform is also scalable, so the service provider can deploy just the right amount of bandwidth that the customer needs and add more when necessary. At OC-48, the system is priced at over 70-percent less than a traditional SONET ADM. The Cisco ONS 15327 can be deployed in an MTU and have the capital costs of the equipment repaid within a few months. The market is demanding FTTB, and Cisco has solutions to address this demand that minimizes capital expenditure and increases revenue and profitability immediately.
Figure 2 The Cisco ONS 15327: Used to Deploy Fiber to Small Buildings
Recoup Your Cost Using the Cisco ONS Solution
The following Return on Investment (ROI) example shows how quickly service providers can recoup their cost using several Cisco ONS 15327s at customer premises and a Cisco ONS 15454 at a service POP. This model is based on the following assumptions:
•10 Cisco ONS 15327s at 10 different customer premises
•One Cisco ONS 15454 at the service POP
•A mixture of DS-1s, DS-3s, and 10/100 Ethernet services
•Begin by offering a total of 10 DS-1s (one for every customer premise), five DS-3s (one for every two customer premises), and five 10/100 Ethernet services (one for every two customer premises). Service offerings increased by 10 DS-1s, five DS-3s, and five 10/100 Ethernet services a quarter to a maximum of 40 DS-1s, 20 DS-3s, and 20 10/100 Ethernet services in the fourth quarter of year one. This maximum remains effective until the end of the fourth quarter of year three (the remaining time in the model).
•Revenues per each 10/100 Ethernet service are $1000/month, revenue per each DS-1 service is $600/month, and revenue per each DS-3 service is $3000/month.
•OAM&P, Sales, and Marketing costs are 25 percent of revenues for all services.
The ROI shown in Figure 3 is less than nine months—an extraordinary ROI using Cisco ONS 15327s! Also note that the service provider has plenty of room for growth. At a maximum, only four DS-1s per customer premise, two DS-3s per customer premise, and two 10/100 Ethernet services per customer premise. The service provider can still offer 240 more DS-1s, 20 more DS-3s, and 20 more Ethernet revenue-generating services.
Figure 3 Return on Investment in Less than Nine Months
The Cisco ONS 15327 is part of Cisco's unrivaled IP+Optical product line. Only Cisco combines the intelligence of Ethernet/IP with the capacity of optical transport to deliver radical economic benefits to service providers and end-users. Contact Cisco Systems to see how you can light up MTUs with the Cisco ONS 15327 and ONS 15454 to deliver Ethernet/IP and SONET services today and begin increasing your network profitability!