ftp://ftp.fcc.gov/pub/Daily_Releases/Daily_Business/2013/db0917/DOC-323344A1.txt
Illustrative cost calculation for aerial plant in suburban areas
using model version 3.2
Fiber
Materials Placement
Structure
+ $0.444 /foot for 48-fiber bundle
+ $0.118 /foot material loading
= $0.562 /foot
+ $1.185 placement / foot
+ $0.0053 admin cost/foot
+ $0.230 engineering cost/foot
+ $0.540 splicing cost/foot
= $1.960 / foot
+ $214.61 per pole ? $1.25/foot
+ $86.56 per anchor ? $0.072/foot
+ $5.61 per guy ? $0.0046/foot
+ $0.131/foot for material loading
= $1.459 / foot pre-sharing
= $.7005 / foot including sharing
+ $452.97 per pole ? $2.64/foot
+ $184.25 per anchor ? $0.154/foot
+ $25.60 per guy ?$0.021/foot
+ $0.401 engineering cost/foot
= $3.22 / foot pre-sharing
= $1.54 / foot including sharing
Total construction cost per foot for suburban aerial plant: $7.20
Aerial cost per foot for suburban for ILEC: $4.77
Total cost
• Multiply all costs by Regional Cost Adjustment
• For routes where feeder and distribution overlap, suburban aerial
structure shared 78% of the time (i.e., less structure cost incurred)
• Addition of state specific sales tax on material
Additional
adjustments
13
Illustrative cost calculation for buried plant in suburban, soft rock
areas using model version 3.2
Fiber
Materials Placement
Structure
+ $0.466 /foot for 48-fiber bundle
+ $0.050 /foot material loading
= $0.515/foot
+ $0.00 placement / foot
+ $0.0053 admin cost/foot
+ $0.001 engineering cost/foot
+ $0.531 splicing cost/foot
= $.538 / foot
NA + $6.87/foot for labor
+ $0.979/foot for engineering
= $7.844 /foot pre-sharing
= $6.275 / foot including sharing
Total construction cost per foot for suburban, soft-rock, buried plant: $8.90
Buried cost per foot (suburban, soft-rock) for ILEC: $7.33
Total cost
• Multiply all costs by Regional Cost Adjustment
• For routes where feeder and distribution overlap, suburban aerial
structure shared 41% of the time (i.e., less structure cost incurred)
• Addition of state specific sales tax on material
Additional
adjustments
14
Illustrative cost calculation for underground plant in suburban,
soft rock areas using model version 3.2
15
Fiber
Materials Placement
Structure
+ $0.445 /foot for 48-fiber bundle
+ $0.057 /foot material loading
= $0.502 /foot
+ $2.289 placement / foot
+ $0.0053 admin cost/foot
+ $0.442 engineering cost/foot
+ $0.582 splicing cost/foot
= $3.319 / foot
+ $3084.38 per manhole ? $3.43/foot
+ $2.04 / foot for duct
+ $0.714/foot for material loading
= $6.18 / foot pre-sharing
= $5.48/ foot including sharing
+ $3131.12 per manhole ?
$3.48/foot
+ $0.71/foot for duct (no sharing)
+ $11.88/foot for excavation
+ $2.29 engineering cost/foot
= $18.36 / foot pre-sharing
= $14.75 / foot including sharing
Total construction cost per foot for suburban, soft-rock, underground plant: $28.37
Underground cost per foot (suburban, soft-rock) for ILEC: $24.05
Total cost
• Multiply all costs by Regional Cost Adjustment
• For routes where feeder and distribution overlap, suburban aerial
structure shared 67% of the time (i.e., less structure cost incurred)
• Addition of state specific sales tax on material
Additional
adjustments
Sources for aerial plant cost calculation
Fiber
Materials Placement
Structure
• Fiber Material: Size 24 Aerial Material cost:
$0.3135/foot * 1.42 for 48-fiber cable = $0.444
per foot
• Labor Rates and Loadings: AerialFO Total
Material Loadings: .265177 ? $0.118 per foot
• Material Labor: AerialFO Placing cost per foot:
$0.836 * .142 for 48-fiber cable = $1.185 per
foot
• Material Labor: AerialFO Telco admin cost per
foot: $0.0053
• Labor Rates and Loadings: AerialFO
Engineering rate: .1925 ? $0.230 per foot
• Splicing (see “Sources for Splicing” slide):
$0.540 per foot
• Structure Material: Size 35 Material cost per
pole: $214.61
• Engineering rules: Size 35 pole spacing: 200 feet
• Engineering rules: Typical aerial span: 1200 feet
?7 poles over 1200 feet
• Structure Material: $86.56 per anchor
• Structure Materials: $0.11 per guy per foot
• Engineering rules: Guy length to pole height
ratio: 1.5 ? $5.61 per guy (size 35 pole)
• Engineering rules: Typical guy span: 1200 feet
• Labor Rates and Loadings: Pole Total Material
Loadings: .098305 ? $0.131 per foot
• Plant Sharing Tables: Aerial 48%
• Structure Labor: Size 35 pole: $452.97 per pole
• Engineering rules: Size 35 pole spacing: 200
feet
• Engineering rules: Typical aerial span: 1200
feet ?7 poles over 1200 feet
• Structure Labor: Size 35 pole: $452.97 per pole
• Structure Labor: $184.25 per anchor
• Structure Labor: : $25.60 per guy
• Engineering rules: Typical guy span: 1200 feet
• Labor Rates and Loadings: Pole: .1425 for
engineering ? $.401 per foot
• Plant Sharing Tables: Aerial 48%
16
Sources for buried plant cost calculation
Fiber
Materials Placement
Structure
• Fiber Material: Size 24 Underground Material
cost: $0.32878/foot * 1.42 for 48-fiber cable =
$0.466 per foot
• Labor Rates and Loadings: BuriedFO Total
Material Loadings: .106440 ? $0.050 per foot
• Material Labor: UndergroundFO Placing cost
per foot: $0.00
• Material Labor: AerialFO Telco admin cost per
foot: $0.0053
• Labor Rates and Loadings: AerialFO
Engineering rate: .1925 ? $0.001 per foot
• Splicing (see “Sources for Splicing” slide):
$0.531 per foot
• NA • Structure Labor: Buried excavation, suburban
soft rock: $6.87 per foot
• Labor Rates and Loadings: Conduit: .1425 for
engineering ? $0.979 per foot
• Plant Sharing Tables: Suburban, buried: 80%
17
Sources for underground plant cost calculation
Fiber
Materials Placement
Structure
• Fiber Material: Size 24 Underground Material
cost: $0.31407/foot* 1.42 for 48-fiber cable =
$0.445 per foot
• Labor Rates and Loadings: UndergroundFO Total
Material Loadings: .127821 ? $0.057 per foot
• Material Labor: UndergroundFO Placing cost
per foot: $1.62* .142 for 48-fiber cable = $2.29
per foot
• Material Labor: AerialFO Telco admin cost per
foot: $0.0053
• Labor Rates and Loadings: AerialFO
Engineering rate: .1925 ? $0.442 per foot
• Splicing (see “Sources for Splicing” slide):
$0.582 per foot
• Structure Material: Size 3 manhole: $3084.38
• Engineering rules: Size 3 manhole spacing: 900
feet
• Structure Material: Duct cost: $2.04/foot
• Labor Rates and Loadings: Conduit: .130561 ?
$0.714 per foot
• Plant Sharing Tables: Suburban, underground:
80% (conduits are not shared)
• Structure Labor: Size 3, soft-rock manhole:
$3131.12 per manhole
• Engineering rules: Size 3 manhole spacing: 900
feet
• Structure Labor: Underground excavation,
suburban soft rock: $11.88 per foot
• Structure Labor: Underground duct labor:
$0.71 per foot
• Labor Rates and Loadings: Conduit: .1425 for
engineering ? $2.29 per foot
• Plant Sharing Tables: Suburban, underground:
80% (conduits are not shared)
18
Sources for splicing cost
19
Closure and
setup
Aerial
• Material Labor: $83.85
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$16.14 per splice
• $0.084 / foot
Buried
• Material Labor: $87.60
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$16.86 per splice
• $0.088/ foot
Underground
• Material Labor: $121.80
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$23.45 per splice
• $0 .122 /foot
Occurrences per foot (typical) determined by model/topology: 0.00084 (1 per 1189 feet)
Splice cost • Material Labor: $9.72 / fiber
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$1.87 per splice
• $0.456 / foot
• Material Labor: $9.46 /fiber
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$1.82 per splice
• $0.443/ foot
• Material Labor: $9.83/fiber
• Labor Rates and Loadings:
Engineering rate 0.1925 ?
$1.89 per splice
• $ 0.460 /foot
Occurrences per foot (typical) determined by model/topology: 0.0393 (24 splices every 611 feet)
Number of splices driven by network topology – splices are assumed
wherever there is a branch (a “Y”) in the network or when the number
of strands drops enough to move to a smaller cable
Total • $0.540 / foot • $0.531 / foot • $0.582 / foot
Illustrative construction costs per foot assuming 48-fiber
bundles, 35-foot poles and no regional cost adjustment
23.74
4.617.20
24.31
5.367.20
27.75
6.997.20
Aerial Underground Buried
Normal
Soft rock
Hard rock Rural
Suburban
Urban
28.35
8.807.20
28.37
8.907.20
32.99
10.147.20
Aerial Underground Buried
33.37
10.84
7.20
33.37
10.84
7.20
38.85
10.84
7.20
Aerial Underground Buried
20
Calculating annual cost of initial investment: levelization using
Annual Charge Factors
• Annual Charge Factors (ACFs) relate the initial investment to the cost over the useful lifetime of
each asset
– Based on lifetimes for each asset class using retirement curves
– Includes future net salvage value or future net salvage cost as appropriate
– Captures capital recovery (DEPR), and post-tax cost of money (COM and TAX)
• The model tracks each asset class separately (despite prior cost per foot calculation)
• Output is a cost per month for each asset attributable to each census block. Asset classes
include:
– Aerial Fiber
– Buried Fiber
– Underground Fiber
– Conduit
– Circuit (network electronics)
• And excel-based model (called the “CapCost model”) is available to calculate ACFs for different
assumptions
21
Calculating operating expenses
22
Plant non-specific opex = total plant investment * (network PNS factor * (1 + size factor))
Overhead G&A = total plant investment * (overhead G&A factor * (1 + size factor))
Cust. ops & mark. opex = Customers * (Ops per customer * (1 + size factor))
Bad debt = Customers * (Bad debt per customer)
Plant specific opex = investment * ( opex factor * (1 + size factor))
Plant
type
Plant types:
• Aerial fiber optic
• Poles
• Buried fiber optic
• Underground fiber optic
• Conduit systems
• Circuit
Network plant specific opex (scales with investment in each plant type)
Non-network plant specific opex (scales with total investment)
Additional opex (scales with number of customers)
Plant
type
Plant
type
Network opex and G&A
per location per month
Illustrative investment and investment-driven operating
expenses per location by company*
23
PUERTO RICO TELEPHONE CO. 1,096
CINCINNATI BELL 1,146
HAWAIIAN TELCOM 1,674
CONSOLIDATED 1,729
CENTURYLINK 1,756
FAIRPOINT 1,998
WINDSTREAM 2,380
FRONTIER 2,404
ACS 3,457
2,809
Verizon 1,313
AT&T 1,364
MICRONESIAN TELECOMM
INNOVATIVE TELEPHONE (USVI) 2,060
7.44
7.82
10.81
10.60
10.55
11.20
13.20
13.56
20.37
22.58
9.07
8.99
17.09