Comparing total cost of ownership of backhaul systems
We recently talked about how to choose between PMP and PTP from a technical perspective, so now let’s have a look at this choice from a financial standpoint.
The following slides work through a simplified version of the TCO model we use with new customers, detailing all the assumptions we make.
We believe the total cost of ownership is by far the best way to make a rational choice between different types of equipment.
After all, it is no use having very low cost equipment if the spectrum rental to operate it is extortionately expensive.
Likewise free spectrum sounds fantastic, but if the equipment that operates in that band is itself very expensive the overall solution cost is not likely to be optimal.
As shown on slide 10, PMP begins to show very significant TCO savings as soon as the average number of sites per backhaul hub increases beyond one or two.
In networks we deploy today, this average is usually 5 or 6 links per hub, and this number is steadily rising as networks continue to densify.
For our bigger customers, the savings realised run into millions of dollars per annum!