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by: Wireline Competition Bureau

October 1, 2012 - 05:00 PM

Please provide comments to the issue below as part of the 2012 WCB cost model virtual workshop for inclusion in the record. Comments are moderated for conformity to the workshop’s guidelines.


The Bureau believes most of the hardware necessary in each wire center is captured by the requirements for voice or inter-office transport.

Hybrid Cost Proxy Model: The HCPM envisions a network that requires a circuit switch for voice calls, digital loop carriers (DLCs), and serving area interfaces (SAIs). The HCPM also includes the costs associated with the main distribution frame (MDF), the purchase and installation of power equipment costs, and appropriate engineering costs.

CQBAT: The CQBAT model includes costs for an all-IP network, including routers, Ethernet switches, and rack space, in addition to costs for buildings, land, and power. For fiber-to-the-premises (FTTP) configurations, the cost of optical line terminators (OLTs) is also included.

Questions for Comment

  1. If we adopt a green-field model, the Bureau proposes to use the CQBAT cost categories. Is there any reason to deviate from CQBAT's approach? Are there other categories that should be added, or some categories that should not be included in a forward-looking cost model?
  2. If we adopt a brown-field model, what costs should be removed or added?


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Updated: October 19, 2012 - 05:17 PM
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