lows Statement of operations Equity positions Revenues Interest income Building and CO order costs Operations and facility administration expenses Operations and facility administration per employee costs Operations and facility administration assumptions Other facilities SGA expenses SGA per employee costs Sales employees needed SGA assumptions Interest expense Practical Design and Economic Parameters Fiber capitalization Equipment (fixed assets) summary Equipment and fiber cost calculation Order reaggregation to equipment Order fractionalization to cities The key costs for an operation using a multiarchitecture, multitechnol- ogy design are identified in Table 10-1. These numbers are simply repre- sentative and do not correspond to any particular vendor or platform. Table 10-1 Sub-element Unit cost Capex Assumptions Virtual LAN (VLAN) Customer Premises Equipment (CPE) $17,738 (with maintenance) CO (with maintenance) $160,646 Time-division multiplexing CPE (with maintenance) $38,210 (TDM) (next-gen SONET) CO (with maintenance) $91,708 Coarse wave division CPE (with maintenance) $41,312 multiplexing/WDM CO (metro master) (with maintenance) $44,920 (CWDM/WDM) Asynchronous Transfer CPE (with maintenance) $9,825 Mode (ATM) CO (with maintenance) $373,040 Private line $28,712 $102,367 Storage and hosting Servers and routers $309,200 Expansion modules $52,750 Common equipment CO (with maintenance) $165,656 PCs (apportioned per quarter) Telemetry (per market) $85,000 Proportional network operations $613,500 center (NOC) charge per market Proportional lab charge per market $500,000 Management information $92,500 (MIS) cost per market (LAN) system Test equipment (ATM) $85,000 Test equipment (other) $54,300 Operations support OSSs cumulative through year 1 $1,800,000 systems (OSSs) OSSs cumulative through year 2 $4,700,000 OSSs cumulative through year 3 $9,000,000 OSSs cumulative through year 4 $17,500,000 OSSs cumulative through year 5 $25,000,000 Chapter 10 Table 10-1 cont. Other assumptions Capex Assumptions Orders/buil