mp) 8,925.5 2005 T1 ramp/month 339.9 2005 T2 ramp/month 218.5 2005 T ramp/month 558.4 2005 total (ramp) 15,625.8 (assumes all items are repriced yearly) (assumes the service % changes, but only for the new batch of customers for that year) Summary # Orders 212.6 1,564.1 4,384.7 8,925.5 15,625.8 Chapter 10 10.4 Key Findings for Net-Income- Generating Carriers We alluded previously to a full-fledged model to help you study all the intri- cacies of a business plan for a startup next-generation carrier. This section generalizes the modeling and focuses on one aspect: the cost elements faced by a carrier that wants to run a profit-making business. This section imports in a summarized manner SGA and operations expenses from the extensive model of Section 10.1. These two expenses are in the proximity of 18 and 17 percent, respectively, of the total budget. Ultradetailed modeling might show the SGA as 19 percent and the opex as 20 percent, but for the key points that we want to make here, these values will suffice. The results of this section are of fundamental importance. They make (or break) the business value proposition for next-generation carriers. A (small) set of key variables is embodied in this analysis. The important ones are as follows: The number of high-end broadband customers who can be secured in a single building The MRC that can be (is) charged to the customer The CPE cost in the building The cost of the spur (also known as lateral) into the building The metro backbone ring cost and buildings supportable on a ring (see the following list) SGA and operations costs The supportable buildings per ring are assumed to be as follows: Two 10-Mbps TLS per building 16 buildings Four 10-Mbps TLS per building 16 buildings Two 100-Mbps TLS per building 12 buildings Four 100-Mbps TLS per building 6 buildings One 1,000-Mbps TLS per building 2 buildings Two 1,000-Mbps TLS per building 1 building Three sets of runs are shown in this section: Run 1 Baseline parameters for a typical situation, with CPE costs of $20,000 per