Are Wavelength Services in Your Future?

When does wavelength service make sense for your company? When you want the most data capacity with the lowest per-unit cost.

A Time Warner Telecom customer, also a Fortune 1000 company, recently evaluated its wavelength technology options. The company employs an IT staff, so it had the resources to learn the intricacies of building and maintaining its own system. Staff explored the idea of installing their own network and dark fiber for future capacity. After completing an analysis, the results showed that Time Warner Telecom's wavelength services were less complex and cost-effective. With Time Warner Telecom's services, the company didn't have to pay for dark fiber, fiber maintenance contracts, equipment or specialized training to manage its network.

The company was also interested in local/metro wavelength services in addition to long-haul applications. Regarding long-haul, the company felt more secure with Time Warner Telecom's protected pathway option and its first-class service guarantees. In addition, the company could use Time Warner Telecom's network for both long-haul and metro applications. A long-haul analysis revealed that the option of building its own local/metro wavelength network would be cost-prohibitive for the company due to expensive DWDM equipment requirements.

Until recently, wavelength services were sold primarily through long-term Indefeasible Right of Use (IRUs) over 10- to 25-year periods. These contracts were typically treated as a capital lease, so the company could gain tax advantages by depreciating the asset. Time Warner Telecom does not transfer asset title for this service; however, not making a large up-front IRU payment more than offsets the lost tax advantage.

The company is pleased with its customized wavelength services from Time Warner Telecom. Think your company might benefit from Time Warner Telecom services? Review the following table to start your evaluation.

Key Differences from SONET:

For more information or to set up a consultation, please visit www.twtelecom.com.

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