The real cost of using the MSE

crawler

Ok so you want to be a fixed line ISP in the fixed line business...

You think, I know, I'll buy some kit and flog my wares to the nation...so you head off with the shopping trolly...

Your shopping bill for 20 business customers, per annum would be :-

1 X 19km MAN Ring €38,000.00
FE backhaul from ESB €50,000
Once off install costs etc €18000.00
Tail Circuit eircom €6000.00 2Mbps circuit ( approx, each so X20 )
Co-Lo space €5,000.00
Internet access port €15000.00
Electronics €80000.00 ( Routers mainly, metro gear )

TOTAL €326,000.00
BASE COST PER CUSTOMER €16,300.00 per annum

and this is all before you actually set up and run your business!!!

Naturally you could do your own digging and take eircom out of the loop altogether giving better margins in later years or you could become a wireless ISP etc...

If you go for residential the the costs of LLU added to the relevant parts of that above make it prohibitive.

If you go for only extremely high data capacities ( high end blue chip type Companies ) then the cost of backhaul for an STM-4 from ESBs published pricing is €400,000 per annum, making it prohibitive...

So can someone explain to me if I won the lotto in the morning how I could possibly make money by using the MSE as an investment?

As I mentioned above the "doing your own dig" thing works for telcos coz your margins improve year on year, while renting they dont - if you aquire a customer and retain them for 5 years then it's €2 per metre for each and every year you retain the customer - may be best to dig in that instance...

Muck - do you have an opinion?

spongebob

crawler wrote:

Muck - do you have an opinion?

Don't forget that Comreg are about to regulate/reregulate/deregulate (all of at the same time) the High Capacity circuit market ..... which will affect the fibre carriers to a considerable extent and seem minded to drop costs in the copper tail market instead which will affect Eircom seeing as they own almost all of it Nationally .

This could dramatically change the pricing basket between the fibre and copper ends .It may even make high capacity (STM1 and up running at 155Mbit and up ) into a competitive market within Ireland as has happened from Dublin outwards since the large capacity fibre/co lo investments in 1998-2000 such as Global Crossing and Hibernia .

The consultation I refer to ran from June to July ......and has closed. It was quite a significant analysis should any of the new committee wish to edumacate themselves on the Large Capacity Circuit and Leased line ( 64k -2 2Mbit mainly) in Ireland. I would expect to see where Comreg is heading with it in the next few months. The document is Here .
I have italicised certain elements in Crawlers basket where prices should be affected during year one of the bizniss plan .

1 X 19km MAN Ring €38,000.00
FE backhaul from ESB €50,000
Once off install costs etc €18000.00
Tail Circuit eircom €6000.00 2Mbps circuit ( approx, each so X20 )
Co-Lo space €5,000.00
Internet access port €15000.00
Electronics €80000.00 ( Routers mainly, metro gear )

HTH :)

M

SkepticOne

Comparison with Sweden.

"1 X 19km MAN Ring €38,000.00"

The equivalent fee from the Stocab pricelist in Sweden appears to be €22484.28 .

See page 7 of their pricelist. Note that this calculated on a straight line between points; not along the meandering route.

http://www.stokab.se/upload/download/prislistor/Standard%20price%20list.pdf

Connection fee appears to be EUR 2,213.25 for a single fibre.

SeaSide

SkepticOne wrote:

Comparison with Sweden.

"1 X 19km MAN Ring €38,000.00"

QUOTE]

LOL

U wont c much change out of 60k

:eek: