We're going to talk about cost of the optical fiber and the distances that the optical fiber will support so this is a large table that i've developed i don't expect you to memorize this i've outlined different standards for one gig for 10 gig for 40 gig and for 100 gig and then across the top is the different types of fibers different type of fiber optic cable and how far it will go so for example if you have let's say om3 fiber installed on your campus and you want to provision gigabit service you can see the top two lines there's two standards there thousand base sx and a thousand base lx both of those run one gigabit you can see the cost of the optical interface the lx is one and a half times the cost of sx and then with om3 you can see it will support one kilometer using a thousand base sx optics it will support 500 meters using a thousand base lx optics now notice that most of these optics they're either multi-mode or single mode the thousand base lx is one of the exceptions here but if you do single mode it will support 10 kilometers using a thousand base lx so 10 gig hopefully you're starting to become familiar with 10 gig standards there's the two multi-mode standards a 10g base sr and 10g base lrm you can see the sr optics a little bit cheaper it won't support long distances so even if you have om4 the most modern baseband kind of multi-mode fiber you can only go 550 meters you know that is the downside of multi-mode fiber is distance and the faster you go the shorter the distance is now looking at the lower two the 10g lr and the 10ge are those are single mode only you can see that they're only supported with os2 and again they'll go 10 kilometers or if you do the er it'll go uh 40 kilometers there's a couple of standards that i've listed here i have not talked about by the way and i don't show in this table the 25 gig standards there are 25 g base standards i didn't put them in this table because this table was already big enough and that is typically going to be used for servers in a computer room is often what you'll see with the 25 gig so 40g base sr4 again it's a 40 gig standard the sfps are inexpensive it does require eight optical fibers and notice if you have the legacy om1 or om2 you cannot support sr4 at all with om3 fiber and om4 fiber indeed that fiber will support the 40 gig but for very very limited distance the 40g base lr4 quite a bit more money it only requires two fibers and it goes 10 kilometers on single mode fiber similar kind of thing with sr4 with hundred gig so you have a hundred g base sr4 100 bucks a piece it requires again eight fibers and very distance limiting with OM3 and OM4 fiber. The 100Gbase LR4 is quite a bit more expensive, about six times the cost of the multimode, but again it will support 10 kilometers which is great for campuses. Now Imake sure I point out a couple of things in this: number one is these costs. If you've bought equipment lately you're going to say well I never saw that level of cost. Those are, you know, those costs are unattainable because Cisco or Juniper wants to charge me so much more. Thisis the cost from an optical firm that we buy most of our optics from at the University of Oregon, it's called the Fiber Store it's at fs.com and they're dramatically cheaper than vendor supplied optics even though often the optical interface itself is all produced in the samefactory. You know Cisco will have the factory produce their optics for them and they'llsell them to it and come out Cisco branded. This is probably from the same factory. It hasa special uh magic code burnt into them that says that they're Cisco optics. And finally the 40gig and 100 gig, I already mentioned 25 gig, there are a lot of other options on those standards that go a variety of distances with a variety of fiber. These are the two most common but there's half a dozen more of each to 40 and 100 gig. Now we just took a look at what it costs and how far it went for the optical interface. What does it cost for the actual cable itself? So theseare prices that I obtained in September of 2020 and I've listed the cost per kilometer of the individual types. You can see that OM1, a legacy fiber, is actually more expensive than the 50 micron OM2 legacy. It's somewhat more expensive but the OM3 andOM4 fiber cables are dramatically more expensive than any of those. And finally you see OS2 single mode at $922 per kilometer, about a tenth the cost of OM4. Now remember from the previous slide that distances with OM4 get very short as yougo faster whereas with single mode fiber the distances stay the same So not only is OS2 amuch better fiber from a distance perspective, it's a much better fiber from a cost perspective.It costs a tenth, almost a tenth of what OM4 costs. Single mode is clearly a winner in terms of cost, distance and speed. We note that the multi-mode optical interfacesare less expensive than single mode, in some cases quite a bit less expensive but forthe most part it's not that much. Equipment manufacturers and cable installershave traditionally tried to direct you to installmulti-mode fiber. And I have seen multi-modefiber in many many installations across the emerging world and even places in the U.S.where people believe the equipment manufacturers and they believe the cable installers and they installed some nice multi-mode fiber, for example, they installed OM4. Don't do this. It's, youknow, OS2 is so much cheaper and has so much morecapability particularly over time as you want to go faster and faster you want to choose singlemode for virtually every application. I need tonote that none of our examples that we're going tolook at show the cost of the switch or router portto place the optical interface in. If you rememberin my previous talk about fiber, I showedyou a photo of some equipment withthe optical interfaces pushed into the equipment weare just looking at the cost of the optical interface and the cost of the fiber, not the costof the equipment because believe me a switch orrouter that supports 100 gig interface is goingto be dramatically more expensive than a switch or router that only supports one gig. So keep inmind as we look at these costs that the 10 gig or 100 gig capable switch will be more expensive than something that only does, for example, one gig.
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