Assuming, for example, a cost of $20,000 per 10-Gigabit
Ethernet link on a PE or P router and 4 P routers between the 2 PE devices at either end
of a pseudowire, it would cost approximately $20 per megabit in 10-Gigabit Ethernet
MPLS 467
port costs alone. Assuming 1:1 protection through the network, this rises to $40 per
megabit??”much higher than the $2 per megabit for the Gigabit Ethernet ports at
either end of the pseudowire. One factor to remember though is that utilisation levels on
customer-facing ports are typically much lower than on network-facing ports. In fact,
customers may often connect to providers over a Gigabit Ethernet link, yet only purchase
a few tens of megabits across that port. Where utilisations on customer-facing ports are
high and where customers buy point-to-point service, Ethernet over fibre or CWDM
are generally more cost-effective than Ethernet over MPLS for metro applications and
Ethernet over SONET/SDH is often more cost-effective for long-haul applications.
OPEX for Ethernet over MPLS is often considered to be high relative to other solutions.
This is because routers are generally considered to have higher OPEX than simpler
switches.
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