SITUATION
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). Apcela needed to examine the feasibility of its local access network optimization and LEC collocation expansion in markets with a strong, limited and non-existent fiber footprint. Apcela needed to build a business case for network expansion across all market types with limited capital deployment and no required operational resource expansion.
SOLUTION
Apcela 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 annually on special access and multiplexing services. Leveraging FiberSource®, Apcela iterated the carrier’s capacity requirements and embedded cost structure against the available base of third-party fiber and facilities infrastructure to establish optimized network designs in each of the markets.
RESULTS
The Apcela team built a business case for the carrier to implement networks in each of the three markets. This drove $18 million in annual special access cost savings and net transport savings of almost $10 million after deployment of the fully managed fiber transport network including expansion to 36 new LEC central offices. Apcela provided the global carrier:
- Turnkey deployment of end-to-end fiber networks in 3 markets
- 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%
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