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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: Frank A. Coluccio who wrote (3481)4/28/1999 10:56:00 AM
From: DenverTechie  Read Replies (2) of 12823
 
Hi Frank. Leave it to you to get right to the bottom line. But it's a good question and deserves a good answer. There's a few variables involved (aren't there always?) so I'm going to have to set the assumptions going in.

There are 2 basic variants to the system. Single family home, which contains 2 lines, and MDU (apartment units) which contain 12 lines or more. Since the individual pricing structures are proprietary information that I've signed non-disclosure agreements on, I can only give ballpark figures here (sorry about that, Chief). And this is the average over several different systems that are out there, not just Cornerstone (companies get so touchy over stuff like this you know, so I have to keep it as generic as possible).

The second assumption for pricing involves concentration. The headend unit can be set up non-concentrated or concentrated to provide many more subscribers per line and therefore lower per-subscriber cost. The headend HDT unit can handle 672 subs non-concentrated. As soon as you go 2:1 concentration it can handle 1344 subscribers.

Non-concentrated single family home (contains 2 lines): $540
Non-concentrated MDU (one line per sub): $300

Concentrated 2:1 single family home (2 lines): $470
Concentrated 2:1 MDU (1 line per sub): $230

This includes fully loaded field units, headend and operating software. It does not include any Class 5 switch cost or plant upgrade costs since these vary widely depending on if the plant was prepared initially for telephony or had to be bootstrap upgraded to handle it. Some of the upgrade variables include backup power supplies, power passing taps, fusing, status monitoring and network management.

Also keep in mind that these generic prices are about a year old, may be lower with mass production gearing up and open to negotiation with volume discounts for large (or in the case of TCI/ANTEC, humongous) orders over a period of time. But it will give you an idea of the general numbers involved. Hope that helps. Sorry I can't be more specific, but I might get hauled off to non-disclosure hell if I broke it down further.
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