June 3, 2005 Arlington, VA -- After nearly two years of research and development, the Fiber Optics LAN Section (FOLS) of the Telecommunications Industry Association (TIA) has released its third-generation interactive cost model for estimating LAN infrastructure costs. The new model takes a broader scope, focusing on the support of converged networks.
The new model also features a simplified user interface to make it easier for users to understand and customize the tool. As with previous generations of the model, the results of the comparisons will depend on the users' unique input. However, when using the sample scenarios, the installed first costs of fiber-based solutions are shown to be either less expensive, or within 5% of the installed first costs of the traditional combined fiber backbone and UTP horizontal architecture.
The interactive cost model is posted on the group's Web site at www.fols.org as a Microsoft Excel spreadsheet. A comprehensive supporting document explaining the various scenarios and providing detailed instructions for use of the model is also available on the site. Both documents can be downloaded at no cost.
Gary Cawley, FOLS chair, says that the group's members redesigned the cost model to better reflect current market conditions.
"Since our second-generation model was released, in late 2003, new standards have been released which make the fiber-to-the-telecom enclosure architecture standards compliant, plus the costs for fiber electronics are lower," remarks Cawley. "The combination of these factors is changing the way customer-owned networks are designed because they have changed the installed first costs associated with building network infrastructure. When you look at the costs today, the case for deploying fiber is compelling."
The model compares the cost of a horizontal star architecture (UTP horizontal with fiber riser backbone) to three all-fiber architectures: centralized cabling (also called collapsed backbone), fiber-to-the-telecom enclosure (FTTE) low density, and FTTE high density.
According to a press release, rather than updating the second-generation of the model, FOLS members designed the new model from the ground up. According to the group, changes include: focus on network switches that enable converged network performance; inclusion of the new FTTE architecture, as it offers users a cost-effective and flexible network solution; comparison of standards-compliant architectures; the ability to create a completely customized comparison; a simplified user interface, incorporating drop-down menus to allow choices; and use of aggregate pricing data derived from publicly accessible databases such as www.peppm.org, an education and technology bidding program.
In all cases the pricing used in the model represents an average price taken from at least three different manufacturers, according to the group.
"Many people know that optical fiber offers several benefits over the life of the network - such as reduced maintenance costs, ease of upgrading and reduced downtime - but the model developed looks specifically at installed first costs," explains Dan Harman, the group's section vice chair. "Lower lifecycle costs are an important benefit of deploying fiber, but they are also more difficult to quantify. We felt that installed first costs were so critical to end users that we wanted to focus on them in the model. Additionally, the model directly dispels the myth that fiber-based networks are always more expensive than copper networks."
TIA FOLS is a consortium of leading fiber-optic cable, component, and electronics manufacturers. The group focuses on educating end users and influencers about the technical advantages and affordability that optical transmission brings to local area networks and fiber-to-the-desk applications. The group's member companies of the include 3M, ADC, Berk-Tek, CommScope, Corning, Corning Cable Systems, Leviton Voice & Data, OFS, Ortronics, Panduit, Sumitomo Electric Lightwave, TTelectronics/OPTEK, and Tyco Electronics.
The Telecommunications Industry Association (TIA) is the leading trade organization serving the communications and IT industry, focused on standards development, domestic and international public policy, and trade shows. Through its worldwide activities, the association says it facilitates business development opportunities and a competitive market environment. The association provides a forum for its member companies, the manufacturers and suppliers of products and services used in global communications. The association represents the communications sector of the Electronic Industries Alliance (EIA).