Case Study: Local Access Transport Optimization

BACKGROUND

A leading global carrier with more than $30 billion in revenues had launched a strategic initiative to significantly reduce the $10 billion in local access transport costs it was spending with the local telephone companies (LECs).

BUSINESS CHALLENGE

Look at feasibility for local access network optimization and LEC collocation expansion in markets with a strong existing fiber footprint, a limited existing fiber footprint, and no existing fiber footprint. Build a business case for network expansion across all market types with limited capital deployment and no required operational resource expansion.

NETWORK SOLUTION

CFN analyzed the carrier’s embedded access transport circuits, costs, and growth requirements at the facilities level for Las Vegas, NV; Norfolk, VA; and Houston, TX where the carrier was spending more than $25 million annual on special access and multiplexing services. Leveraging FiberSource ® CFN iterated the carrier’s capacity requirements and embedded cost structure against the available base of 3 rd party fiber and facilities infrastructure to establish optimized network designs in each of the markets. The CFN team built a business case for the carrier to implement networks in each of the three markets driving $18 million in annual special access cost savings and net transport savings of almost $10 million after deployment of a fully managed fiber transport network including expansion to 36 new LEC central offices.

The final solution included:

• Turnkey deployment of end-to-end fiber networks in 3 mark
• Interconnection of the carrier’s POP with 36 LEC collocations
• Gross access savings of more than 60% and net transport savings of more than 35%