Optimal planning for optical transport networks

S. Lanning, D. Mitra, Q. Wang, Margaret Wright

Research output: Contribution to journalArticle

Abstract

In optical transport networks, recent development of new technologies has led to highly accelerated ('disruptive') increases in the capacity associated with a given investment cost. As a result, there have been dramatic decreases in the cost per unit of transport. We describe a nonlinear mixed-integer planning model that assumes both the continuous emergence of new systems and a constant-elasticity demand function. Optimization of the model with respect to price and technology acquisitions over time suggests that, with high elasticity and steeply dropping technology costs, a carrier will maximize net present value by frequently deploying new systems. This conclusion is in sharp contrast to the analogous results for voice networks, where demand is much less elastic and the rate of technology change is much slower.

Original languageEnglish (US)
Pages (from-to)2183-2196
Number of pages14
JournalPhilosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences
Volume358
Issue number1773
StatePublished - 2000

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planning
Planning
costs
elastic properties
Elasticity
Costs
Net Present Value
integers
acquisition
optimization
Maximise
Decrease
Unit
Integer
Optimization
Model
Demand

Keywords

  • Economic modelling
  • Network planning
  • Optical transport networks
  • Optimization

ASJC Scopus subject areas

  • General

Cite this

Optimal planning for optical transport networks. / Lanning, S.; Mitra, D.; Wang, Q.; Wright, Margaret.

In: Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, Vol. 358, No. 1773, 2000, p. 2183-2196.

Research output: Contribution to journalArticle

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