| This is not correct. Say you have a HOA with 100 houses and you got the last mile wired with fiber. There is probably some place ( such as community center ) that is owned by HOA itself. You get 100 pairs to that building. 10G LR SFP+ are $40 a pop all day. So you need $80 per link once. 48x 10G port switches are $3k all day. So it is 24x edges with a reasonable fabric oversubscription - so you need 5 of those because you want to oversubscribe core rather than the edge as edge requires interaction with a customer while core requires simple internal upgrades. In reality we are goig to do 1Gbit/sec to every drop delivered over 10G so we only need 100Gbit/sec to the edge. Lets spend another $10K on the "core switches" - which in reality are going to be the same as the edges but we will provision them in a way where should this take off we could replace core with 40 and 100G. All of this is going to cost us very little money. Hell, lets pretend it costs us $50K just for the sake of the argument because we like buying really expensive stuff We can ride a single fiber pair ( remember, this is a residential service, so screw redundancy ) to one of the major interconnect centers because we can drop DWDM gear on our side ( prisms are cheap as hell ) and rent a rack in that interconnect location. Monthlies: $10K/mo ( worst case scenario ) DF to interconnect point
$2.5K/mo ( rack at the interconnect point ) This gives us the L2 access. But that's not a problem. The problem is that 100Gbit/sec of non-congested IP transit is abou 55c per mbit/sec so that is $55K/mo. So your cost is $67K/mo to provide 100 houses in a HOA with 1Gbit/sec of IP. Lets say that you are in a magic place called say... NYC and it just happened that this wonderful thing is a building located right next to one of the big interconnect points and the developer who developed this highrise owns both buildings. You nuke dark fiber monthly cost. Hell, lets even pretend that the developer who owns both buildings lives in a building that we are wiring and he wants high speed internet connectivity to be able to watch NetFlix and PornTube. So there's not only no cost for dark fiber but there's no rack cost. You are still at $55K/mo of non-congested IP to provide 1Gbit/sec access to every one of those 100 apartments. |
When you pay $50/mo for an internet connection you aren't paying for guaranteed bandwidth, you're just hoping the ISP has enough capacity to meet peak demand - not much different from your local electric provider.
It'd cost me roughly ~$3000/mo for a 10Gb point-to-point link from Boise to Equinix in Seattle from Zayo, and about another $2500/mo for a 10Gb transit connections from Hurricane Electric. You could serve quite a lot of households from that, 50-100:1 oversubscription is pretty common for residential/small business service - so that 10Gb connection could pretty safely serve 500 households reducing your fixed costs to $11/customer/mo.