NCIH 384 Speed Change and Cost Reduction



During the 2001-2002 fiscal year the state’s Information Resource Management Council (IRMC) established an Ad Hoc Committee to study funding strategies for reducing cost of the North Carolina Information Highway. Based on the recommendations of this committee, and endorsement by the NCIH Connectivity Council, ITS has been directed to reduce the cost to NCIH sites. After reviewing the recommendations and analyzing various alternatives it was concluded that changing the existing video transmission speed was the most direct and effective way to obtain significant savings. The savings for a standard NCIH site will be approximately $302 per month and $3,624 per fiscal year. Consequently, the NCIH implemented a change of video transmission speed from 768 kbps to 384 kbps during the summer of 2002.

Factors that were considered in making this change include:
1. Changing the speed of the network to 384 kbps would reduce the monthly line charges incurred by each NCIH site.
2. 384 kbps is the industry standard for videoconferencing.
3. Two simultaneous video channels can be supported over one NCIH circuit.
4. Additional data bandwidth will be available by converting to 384 kbps

The new NCIH rates are as follows:
DS-1 service with 1 video channel: $1,941.38 per month
New circuit installation fee: $2,326.61 (new sites only)
DS-1 data service: $340.01
DS-1 data service installation: $500.00 (new sites only)

DS-1 service with 2 video channels: $2,569.12
New circuit installation fee: $2,888.77 (new sites only)
New circuit installation fee for second video channel: $562.17
DS-1 data service with 2 video channels: $207.49
DS-1 data service installation fee: $500.00 (new sites only)

For more information on this project please contact an NCIH staff member.




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