----- Forwarded by Scott Bolton/Enron Communications on 03/16/00 08:27 AM 
-----

	Paul Burkhart
	03/15/00 09:39 AM
		 
		 To: Scott Bolton/Enron Communications@Enron Communications
		 cc: 
		 Subject: Re: Activate.net Costing Issues


----- Forwarded by Paul Burkhart/Enron Communications on 03/15/00 11:41 AM 
-----

	Merat Bagha
	03/15/00 12:51 AM
		
		 To: Paul Burkhart/Enron Communications@Enron Communications
		 cc: Billy Braddock/Enron Communications@Enron Communications, Matt 
Harris/Enron Communications@Enron Communications
		 Subject: Re: Activate.net Costing Issues

Paul,

Thanks for your note.

A few comments that correspond to yours:

The DS-3 pricing is not material since it is only used for sending encoded 
content to the EIN.  It is not directly part of the Internet transit 
proposal.  We are awaiting a price from our provisioning group (who gets it 
from other providers).
I am awaiting a proposal from a colocation provider at the Westin on pricing 
for Activate.net.  It is likely that we will NOT get involved and have the 
customer work directly with this provider.  As such, we should not have the 
headache as well as the worry about pricing this element.
We would actually need fiber riser between our suite at the Westin and the 
Meet-Me room at the Westin; not Gigabit Ethernet.  No pricing at this point 
but I would expect this to be $1K per month maximum
My estimate on the 6509's is $100K each installed for a total of $200K.  For 
a GSR, I would put this at $200K each for a total of $400K.
I am awaiting pricing from our provisioning folks for the dark fiber that 
would allow us to run Gigabit Ethernet over this infrastructure.  They are 
working with Level-3.  I have also asked for OC-12 pricing if we don't get 
the dark fiber.
See response #4.  The only difference is that we would need to pay Level-3 
for a rack to be placed at their end for our equipment.  Estimate for this is 
$1K per month.
Pricing from L-3 for Internet transit is approximately $250 per Mbit per 
month as measured on a 95% percentile.  This might go down as you may have 
heard from Dorn due to market conditions and our bulk buying power as well as 
some price configuration changes by Level-3 (e.g., pay $200/Mbit/month based 
on the higher of upstream or downstream measurements).

A Visio drawing, its equivalent bitmap rendering as well as an Excel 
spreadsheet containing a very preliminary estimate of pricing is also 
attached for your reference.




What has to be added as part of any pricing analysis is the IP & AFTS 
transport that we might provide in the future to carry some of the traffic 
outside of the Seattle-area because Internet transit there might not be 
sufficient or too congested.

Matt and I will do more work on this proposal on Wednesday & Thursday and 
will plan to keep you informed.  Again, we owe a term sheet to the customer 
later this week.

Merat





From: Paul Burkhart on 03/14/2000 04:34 PM CST

To: Merat Bagha/Enron Communications@Enron Communications

cc: Billy Braddock/Enron Communications@Enron Communications 

Subject: Activate.net Costing Issues

Below are the Activate.net pricing elements we need for the economic model 
that will be discussed during tomorrow's TDS (aka. Transaction Development & 
Structuring) meeting at 11AM Pacific Time.

Local Loop Pricing (DS-3 from Activate.net to Westin)
Total cost of co-location at Westin
Gig Ethernet Cross Connect from Westin router to EBS router
Installed cost for 6509 Router and GSR 12012 Router at Westin;  [WE NEED BOTH 
ESTIMATES DEPENDING ON WHICH LOCAL LOOP IS AVAILABLE]
Local loop from Westin to L3 gateway (Gig Ethernet on dark fiber and OC12); 
WE NEED BOTH ESTIMATES DEPENDING ON AVAILABILITY]
Installed cost for 6509 Router and GSR 12012 Router at L3;  [WE NEED BOTH 
ESTIMATES DEPENDING ON WHICH LOCAL LOOP IS AVAILABLE]
Pricing of Internet transit from L3 [Allen Hill and I need to talk to Dorn 
this afternoon and will address this pricing issue with him.]

Do you know if we will be able to have G Ethernet on dark fiber for local 
loop from Westin to L3?    I will look for the pricing elements tomorrow 
morning and we can discuss when I call you tomorrow at 8:30AM Pacific Time.  
Let me know if I can be of assistance in tracking down any of the information.

Thanks!

Paul
(713) 853-9557