30,000 for 10- and 100-Mbps TLS and GbE TLS is important because running this model at higher values will show that the proposition quickly becomes untenable from a bottom-line standpoint. For this run, the same assumptions are used as in the previous case, except that the CPE costs have been reduced by half. So, how important is it to deprecate (next-generation) SONET in favor of some new technology as journalists in the trade press have a tendency to do? The reader can assess the impact by the tables and figures that follow. The bottom line is an improvement in the profitability of a few percentage points (4 percent); this assumes a 100 percent improvement in the cost of the equipment. See Table 10-12. Figures 10-7 through 10-12 represent the information in Table 10-12 graphically. Table 10-12 Financial Item Results of Run 2 Two 10-Mbps customers in a building on the backbone ring Typical total MRC/building (considers one end) $5,000 ($5,000 MRC per customer, but only $2,500 is generated at the building in question) Allocated ring cost per building/MRC (16 buildings) Allocated spur cost per building/MRC $1,500 Allocated CO equipment cost per building/MRC Allocated CPE cost per building/MRC Allocated riser costs per building/MRC Allocated network management costs per building/MRC Allocated SGA (= 18% of revenue) Allocated operations costs (= 17% of revenue) Total costs $5,594 Net profit (loss) ($594) Margin % Four 10-Mbps customers in a building on the backbone ring Typical total MRC/building (considers one end) $10,000 ($5,000 MRC per customer, but only $2,500 is generated at the building in question) Practical Design and Economic Parameters Table 10-12 Financial Item cont. Results of Run 2 Allocated ring cost per building/MRC (16 buildings) Allocated spur cost per building/MRC $1,500 Allocated CO equipment cost per building/MRC Allocated CPE cost per building/MRC Allocated riser costs per building/MRC $1,600 Allocated network management costs per building/MRC Allocated SGA (= 18% of revenue) $1,800 Allocated o