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ACG Research has done an interesting TCO of MPLS-TP versus IP/MPLS showing there is a huge reduction of  Total Cost of Ownership (TCO) in MPLS-TP versus IP/MPLS.  The analysis was done in two environments: Native Packet transport  on MPLS-TP versus IP/MPLS  and second one using TDM/Packet mix on MPLS-TP versus Circuit emulation on IP/MPLS.  The platform used for  MPLS-TP was from ECI Telecom.  Further and most importantly Mobile backhaul was chosen as the network for analysis purpose.’s-mpls-tp-npt-solution.aspx

The analysis proved a couple of  things:

1. The TCO ( CAPEX and OPEX) over 5 years  for pure packet transport using MPLS-TP is 55% lower compared to IP/MPLS.

2. When TDM services were added to the network. CAPEX on ECI NPT solution increased by 5% while the Circuit emulation addition on IP/MPLS increased its CAPEX by 37%. The 55%  OPEX saving in the first study increased to 64% when TDM traffic was added.

The high reason for the OPEX on IP/MPLS was attributed to the need for highly skilled technical staff needed to maintain IP/MPLS network compared to MPLS-TP.

Among OPEX, things like Network care, training, Network patches and upgrade, Cooling cost, Power cost, Service contract were compared. In all cases the OPEX cost for MPLS-TP were lower compared to IP/MPLS.

The results thus proved that MPLS-TP being a simpler technolgy contribute to much lower OPEX and CAPEX when used in metro networks and as such should be favored by the Operators if deployment is needed in Access or Metro areas.

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