On Sun, 7 Nov 2010 01:07:17 -0700 "George Bonser" <gbon...@seven.com> wrote:
> > > > > > Yes, I really don't understand that either. You would think that > the > > > investment in developing and deploying all that SONET infrastructure > > > has been paid back by now and they can lower the prices > dramatically. > > > One would think the vendors would be practically giving it away, > > > particularly if people understood the potential improvement in > > > performance, though the difference between 1500 and 4000 is probably > > > not all that much except on long distance ( >2000km ) paths. > > > > Careful, you're rapidly working your way up to nanog kook status with > > these absurd claims based on no logic whatsoever. > > My aploligies. It just seemed to me that the investment in SONET, > particularly the lower data rates, should be pretty much paid back by > now. How long has OC-12 been around? I can understand a certain amount > of premium for something that doesn't sell as much but the difference in > prices can be quite amazing in some markets. Some differential might be > justified but why so much? > > An OC-12 SFP optic costs nearly $3,000 from one vendor, list. Their > list price for a GigE SFP optical module is about 30% of that. What is > it about the optic module that would cause it to be 3 times as expensive > for an interface with half the bandwidth? A 4-port OC-12 module is > 37,500 list. A 4-port 10G module is $10,000 less for 10x the bandwidth. > > In other words, what is the differential in the manufacturing costs of > those? I don't believe it is as much as the differential in the selling > price. > > > Once the base manufacturing cost is covered, supply and demand dictate the price a.k.a. "you charge what the market will bear." While at least one person/organisation continues to pay sonet/sdh pricing, that's what will be charged.
