Multiservice provisioning platform (MSPP)-based SONET/SDH networks that are used to provide commercial Carrier Ethernet and residential triple-play services provide faster payback in Tier 2 and Tier 3 cities than Carrier Ethernet directly over fiber, contends a new study from Network Strategy Partners (NSP).

Using existing SONET/SDH networks for Carrier Ethernet in smaller cities costs less over 5 years than deploying an overlay Carrier Ethernet directly over fiber or DWDM transport, say NSP analysts.

“Smaller cities already have existing SONET/SDH networks deployed for TDM/PDH traffic,” explains Peter Fetterolf, NSP partner and author of the study. “Carrier Ethernet and triple-play services can be implemented quickly and cost-effectively using Ethernet cards on MSPP SONET/SDH nodes. The rollout of a separate Carrier Ethernet network cannot be justified in the short term because smaller cities do not have sufficient fiber connectivity, density, or demand,” he reports.

The study models a rich set of commercial and residential service offerings and calculates revenue, capex, and opex for three cities-Boston, MA; Stockton, CA; and Springdale, AR-representing Tier 1 through 3 cities, respectively. Financial metrics include cash flow, NPV, ROI, and payback.

The study also finds that:

• Payback for MSPP networks was 2.5 to 3.6 years for Tier 2 and Tier 3 cities, respectively, versus 4.7 to 5.0 years for Carrier Ethernet directly over fiber or DWDM.
• Payback for Tier 1 cities was 1.9 years for MSPP networks versus 1.8 years for Carrier Ethernet directly on fiber, justifying immediate build out of a separate network.
• All cities offering video-on-demand should consider using a dedicated Carrier Ethernet ­network.