However, this section attempts to provide a simple CAPEX model for EoMPLS. EoMPLS
CAPEX is generally high relative to other Carrier Ethernet solutions. This is the result
of the increased functionality and complexity of EoMPLS platforms relative to other
solutions. As noted previously, many carriers in fact use EoMPLS in the core of their
networks to enable the network to scale, but use alternative mechanisms for the access
layer. However, over time the cost of MPLS platforms will continue to fall, with the
result that the MPLS layer will expand toward the edge of carrier networks.
There are two main costs to consider in an EoMPLS network: the cost of the PE device
and the cost of transport across the MPLS backbone (including the cost of the networkfacing
ports on the PE device). The cost of PE devices is typically dominated by the cost
of the MPLS-enabled Ethernet port to which the customer connects either directly or via
a carrier-owned non-MPLS aggregation device. Typical end-customer prices for Gigabit
Ethernet ports today are in the range of $1000??”or $1 per megabit. Transport across
an MPLS network is more expensive??”and costs are highly dependent on the equipment
used, the number of hops in the network, and the cost of the transmission links
interconnecting the equipment.
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