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Quantitative Finance · Glossary

What is Indefeasible right of use?

Definition 13.8 Networks, Hardware and Trading Infrastructure · Chapter 13 — Long-Haul Fibre

An indefeasible right of use (IRU) is a long-term contract giving its holder the exclusive right to use specified fibres or capacity of a network for a fixed term, usually paid up front, without transferring ownership of the cable, and usually with a share of maintenance charged to the holder.

Illustrative prices, not quotes: the cumulative cost of a long-haul route bought as dark fibre (a 6-million IRU and 1.5 million of equipment up front, 0.3 million a year of operations and maintenance) and leased as a wavelength (90 000 a month). The lines cross after 9.6 years. Data: fig_fibre.py, nw_fibre.costs().
Figure 13.3. Illustrative prices, not quotes: the cumulative cost of a long-haul route bought as dark fibre (a 6-million IRU and 1.5 million of equipment up front, 0.3 million a year of operations and maintenance) and leased as a wavelength (90 000 a month). The lines cross after 9.6 years. Data: fig_fibre.py, nw_fibre.costs().
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