Telecom Costs - IAC

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Telecom Cost Analysis – Rev. 1 Pat BurnsVP for IT

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Telecom Costs - IAC

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FY 09 Monthly Cost for Basic Service

  Campus Housing

Base monthly cost $11.13 $12.90

Number of units 7,525 3,813

Annual Revenue $1,005,039 $590,252

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FY

00

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

0

2,000

4,000

6,000

8,000

10,000

12,000

Number of Basic Service Users - 10 Years

Campus

Housing

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FY

00

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Basic Service Revenue - 10 Years

Campus

Housing

Loan payoff

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FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

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$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Operator Costs

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FY

00

FY

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FY

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FY

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FY

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FY

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FY

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FY

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FY

08

FY

09

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Project Expenses

Avg. = $521k

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FY

00

FY

01

FY

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FY

03

FY

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FY

05

FY

06

FY

07

FY

08

FY

09$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000 Annual Telecom Projects

Other

Equip.

Futures

E911

Switch

Phys. In-fra.

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Project Categories• Physical Infrastructure

▫ Wide area networking – fiber and optical gear

▫ Inter-campus fiber infrastructure - fiber

▫ Inter-building infrastructure – fiber and copper

▫ Building rewires• Switch – SL-100 upgrades• E911 – E911 phones,

video surveillance cameras

• Futures – Unified Messaging, VoIP

• Equipment▫ Vehicles & cable trailer▫ Fiber splicers▫ Fiber OTDR▫ Copper testers, 6a▫ Operator consoles

• Other▫ Internet costs in FY02▫ GSB shop remodel

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Average Annual Telecom Expenses

Phys. Infra.SwitchE911FuturesEquip.Other

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Project Details – Phys. Infra.• FY 99-00

▫ OIS Video $142,113▫ AS-12 $47,000 ▫ Clark $105,000

• FY 00-01▫ Wagar $42,000 ▫ Ayleswsorth $73,000 ▫ Atmos Sci Sim Lab $6,313 ▫ Weber $17,670▫ UV Phase 5 $15,529

• FY 01-02▫ OFCHS $25,507▫ CIRA $13,273▫ Chem Bio $5,188▫ Industrial Science $1,162▫ Weber AS.12 $3,000

• FY 01-02 (cont’d) - Fiber▫ Glover $3,019 ▫ Green Hall $2,480▫ Foothills $6,615 ▫ VTH $2,100 ▫ Rampart/Overland $2,175▫ Foothills $11,276▫ NRRC $972▫ NWRC $1,720

• FY 02-03▫ Tunnel Project $50,007▫ Gugg/Chem-Bio/VTH $1,349 ▫ Chem Bio $2,024▫ VTH $5,000▫ Foothills Generator $5,383 ▫ AS.12 Projects $299,000

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Project Details – Infrastructure (cont’d)

• FY 03-04▫ Housing

$13,253 ▫ Tunnel Project

$44,288▫ MRB CSUIITE

$4,109 ▫ ARBL to AIDL

$11,890▫ Aggie South

$5,023 ▫ AS.12 Projects

$369,768 ▫ CDOT

$23,493▫ Campus Fiber

Pitkin Ave

$17,540 Centre Ave

$15,917 Aggie North

$5,209 Campus Ring

$151,237

• FY 04-05▫ CSU/UW fiber

$185,000▫ CSUIITE Projects

$63,134▫ CDOT

$31,027 ▫ Tunnel Project

$380 ▫ Campus Fiber

Campus Ring

$8,887 Misc.

$27,199 • FY 05-06

▫ AS.12 Projects

$15,680▫ Campus fiber

Hughes

$2,007 Misc

$116,273

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Project Details – Infrastructure (cont’d)

• FY 06-07▫ CDOT $1,420▫ Campus fiber

Misc $59,921 555 S. Howes $8,119 Rampart Rd T $5,347 N. Lateral Loop $18,795 Pitkin Street $3,400 1500 UV $10,484

• FY 07-08▫ CSUIITE $30,000 ▫ CDOT $1,539 ▫ Glover $16,828▫ GSB $60,000

• FY 07-08 (cont’d) - fiber▫ Misc Fiber Projects $55,250▫ Overland Trail $47,309▫ 1500 UV

$43,027• FY 08-09 (budgeted)

▫ CSUIITE $100,000▫ Fiber Projects $150,000 ▫ CDOT $30,000 ▫ Adesta $215,000

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FY 09 BS Cost Comparison with CSU Peers(All currently have revenue from Housing)

Peer Institution Basic Serv. ($/mo.)Colorado State $11.13 Oklahoma State $17.50 Ohio State $17.65 Iowa State* $19.00 Michigan State* $20.50 Purdue $22.60 Univ. of Illinois, Urbana Cham. $22.60 Oregon State* $23.00 Univ. of Colo., Boulder* $23.89 Washington State* $25.00 Univ. of Calif., Davis $26.50 N. Carolina State* $34.00

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* Includes Voice Mail

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FY 09 BS+VM Cost Comparison with Peers(All currently have revenue from Housing)Peer Institution Basic Serv. + VM ($/mo.)Colorado State $17.13 Iowa State* $19.00 Michigan State* $20.50 Oklahoma State $22.50 Oregon State* $23.00 Univ. of Colo., Boulder* $23.89 Ohio State $24.15 Washington State* $25.00 Univ. of Illinois, Urbana Cham. $26.60 Purdue $27.10 Univ. of Calif., Davis $29.50 N. Carolina State* $34.00

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Perspective – Most Successful Activities• AS.12 building rewires• On-campus fiber: buildings, backbone• Off-campus fiber: inter-campus, WAN• Optical networking

▫BiSON ring at multi Gbps• In a nearly cost neutral manner, the campus has

been provided▫Excellent physical infrastructure▫Excellent Internet access

• While maintaining the lowest basic service costs among all of our peers, with no additional funding!

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FY 10 Scenarios

•Scenario A: Housing eliminates room phones▫Loss in revenue = $590,252

•Scenario B: Housing retains ‘emergency’ phones in rooms▫At $6 per month for 9 months =

$205,902/yr.▫Loss in revenue = $384,350

•The following scenarios assume we eliminate the aforementioned telecom projects progressively

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Scenario A: No Phones in Housing(Cumulative Cost Reductions)

  Monthly Net

Base (revenue neutral) $18.77 $18.77

- Phys. Infra. $3.17 $15.60

- Switch $1.31 $14.29

- E911 $0.35 $13.94

- Futures $0.33 $13.61

- Equip. $0.21 $13.40

- Other $0.20 $13.20

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Scenario B: ‘Emergency’ Phones in Housing

  Monthly Net

Base (revenue neutral) $16.49 $16.49

- Phys. Infra. $3.17 $13.32

- Switch $1.31 $12.01

- E911 $0.35 $11.66

- Futures $0.33 $11.33

- Equip. $0.21 $11.12

- Other $0.20 $10.92

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Discussion of Scenarios A and B•Scenario A – range for monthly cost

increase▫Max = $18.77 - $11.13 = $7.64▫Min = $13.20 - $11.13 = $2.07

•Scenario B – range for monthly cost increase▫Max = $16.49 - $11.13 = $5.36▫Min = $11.92 - $11.13 = $0.79

•Question – what do we value, and what do we agree to fund?

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Upcoming Transition Costs• Telephone switch end of life in 2011• In 1993, costs for current telecom infrastructure

▫Switch cost = $3.0 million Enhanced to keep current @ $2.5 million

▫Octel VM system cost = $1.5 million▫Underground copper cost = $3.5 million (Qwest)

• 1-time costs for VoIP may be ~$3-5 million▫ ‘Hardening’ the network▫Backbone switch upgrade▫Adding UPSs and POE in the closets▫May be otherwise funded – consider separately?▫TBD in FY 2010

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Discussion• How do we fund

▫Wide area fiber and equipment▫Physical IT infrastructure upgrades▫Hardening the existing network

• Transition to integrated VoIP system or maintain analog phones?▫Adding VoIP infrastructure

Power over Ethernet UPS End user devices Aggregate VoIP infrastructure

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ConsequencesItem to be Eliminated Consequence

Phys. Infra. - $3.17/mo. Reduced ability to maintain IT physical infrastructure, both on and off campus

Switch - $1.31/mo. Transitional funding

E911 - $0.35/m. Liability and safety

Futures - $0.33/mo. How do we effect a transition to VoIP?

Equipment - $0.21/mo. Reduced ability to maintain infrastructure

Other - $0.20/mo. Reduced capacity to respond to immediate events

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Recommendations

•Maintain operators @ $0.89/mo.•Maintain at full amounts:

▫‘E911’ @$0.35/mo.▫‘Equipment’ @$0.21/mo.

•Redirect into VoIP portions of $4.77/mo.?▫‘Phys. Infra.’ @ $3.11/mo.▫‘Futures’ @ $0.33/mo.▫‘Switch’ @ $1.31/mo.

•Eliminate ‘ Other’ @ $0.20/mo.•Reduce VM/UM costs by ~$1/mo.

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