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Topic # 27079 13-Oct-2008 17:29
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Anyone have an idea of how much the new Telecom roadside cabinets cost; including all equipment & installation? Just after an approximate figure or price range.
I could do the maths on $1.4 billion divided by 3600 cabinets = $390,000. So is a few 100k per cabinet a good guess, or am I way out of whack here?




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  Reply # 170905 13-Oct-2008 17:52
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I would've thought several thousand for the equipment (maybe $20k?), a couple of thousand for cabling if needed, and couple of thousand paid in wages to the installers. A few more thousand might go on resource consent etc. $100,000 just for one cabinet seems way too high to me.
But hey, i have no idea at all about the costs - so its a stab in the dark.

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  Reply # 170914 13-Oct-2008 18:16
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Nearly $400k seems like a ridiculous amount of money to spend per cabinet (when many service less than 100 houses each)




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  Reply # 170917 13-Oct-2008 18:19
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A cabinet shouldn't cost that much, really it's just a stack of d-link modems wired together




Hmmmm


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  Reply # 170920 13-Oct-2008 18:38
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I think you will find the cost of the cabinets and the immediate equipement is no where near the whole cost. A very large figure is involved in the fibre that feeds them, the cost of laying is the biggie not the fibre itself. Then there is the cost of the MPLS network that sits behind it all.

I would have thought a pure hardware figure more like 50-80k, then there is a labour cost to install it, then there is a cost to feed it (ie fibre laying), then the infrastucture behind all that (MPLS network of switchs and routers) to glue it all together, this is probably where a lot of the cost sits.

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  Reply # 170928 13-Oct-2008 19:15
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As tempting as a DIY paper napkin approach to costing might be, have to agree with Cyril - aside from the raw equipment cost there's bound to be network upgrade costs in the project, plus additional maintenance and support required for 3900 extra cabinets - not to mention the cost of power to each one (and how much would it cost to get power to 3900 new cabinets)? Off the top of my head I can think of the following:

equipment,
resources consent,
installers,
traffic management (if required during installation),
fibre,
power,
on-going maintenance,
24x7 on call support,

The setup costs for the last two would have to be factored in to the cost of the project as I guess you couldn't expect existing maintenance or support processes to simply absorb 3900 new cabinets and the kit that's in them (at least I hope not as its not as if the downers and transfield guys aren't already stretched as it is). Opex costs though would have to come from revenue since the project budget would be a one off?

If that is the case then I imagine a fair amount of the cost is personnel - engineers and techs to install the kit, plus ongoing maintenance and support. How much would the personnel costs for that be?


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