Abstract

Evolution of optical access networks promises to bring higher bandwidth to more customers. However, this evolution toward so-called next generation optical access (NGOA) networks also introduces additional challenges that operators and/or vendors have to address: how to properly estimate and compare different NGOA architectures and their evolutionary paths in terms of their economics. Calculating the total cost of ownership (TCO) for NGOA networks is a very complex target as it needs to involve good knowledge of the technology, the existing network infrastructure, and any migration-related processes. In this paper a complete methodology is presented for evaluating the TCO of the migration toward a NGOA network. It contains a detailed description of which key aspects have to be considered, which processes they affect, and how they are translated into costs in a logical manner. Finally, it also shows how this methodology has been applied to particular selected cases and how it gives a detailed view of all costs involved in migration. This approach opens up opportunities to cooperate in techno-economic research using it as a base. Both operators and vendors can also utilize this approach to get a useful economic background of their future investments and potential sales.

© 2013 Optical Society of America

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References

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  1. Full Service Access Network (FSAN) Group Forum [Online]. Available: http://www.fsan.org/ .
  2. “10-Gigabit-capable passive optical network (XG-PON) systems: Definitions, abbreviations and acronyms,” , 2012.
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    [CrossRef]
  4. Y. Luo, X. Zhou, F. Effenberger, X. Yan, G. Peng, Y. Qian, and Y. Ma, “Time- and wavelength-division multiplexed passive optical network (TWDM-PON) for next-generation PON Stage 2 (NG-PON2),” J. Lightwave Technol., vol.  31, no. 4, pp. 587–593, Feb. 2013.
    [CrossRef]
  5. C. Lange, D. Breuer, and R. Huelsermann, “Cost effectiveness of site reduction in optical access network: A CapEx based comparison of different technologies,” in Int. Conf. on Transparent Optical Networks, Azores, Portugal, June28–July 2, 2009.
  6. J. Li and G. Shen, “Cost minimization planning for Greenfield passive optical networks,” J. Opt. Commun. Netw., vol.  1, pp. 17–29, June 2009.
    [CrossRef]
  7. S. Kulkarni, B. Polonsky, and M. El-Sayed, “FTTH network economics: key parameters impacting technology decisions,” in 13th Int. Telecommunications Network Strategy and Planning Symp., Sept.–Oct. 2008, pp. 1–27.
  8. C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
    [CrossRef]
  9. K. Casier, “Techno-economic evaluation of a next generation access network deployment in a competitive setting,” Ph.D. dissertation, Ghent University, 2009.
  10. M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
    [CrossRef]
  11. L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.
  12. S. Turk, R. Radeke, and R. Lehnert, “Network migration using ant colony optimization,” in 9th Conf. on Telecommunications Internet and Media Techno Economics (CTTE), June7–9, 2010.
  13. F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.
  14. “Requirements for European next-generation optical access networks,” , June 2011 [Online]. Available: http://www.ict-oase.eu/index.php?page=120& .
  15. R. Hülsermann, K. Grobe, and D. Breuer, “Cost and performance evaluation of WDM-based access networks,” in Optical Fiber Communication Conf. and the Nat. Fiber Optic Engineers Conf., 2013, paper NTh3F.4.
  16. TONIC project 2000–2004, “Techno-economics of IP optimised networks and services,” European Union, EU IST, .
  17. O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.
  18. BPMN: Business Process Model and Notation [Online]. Available: www.bpmn.org .
  19. R. S. Kaplan and S. Anderson, “Time-driven activity-based costing,” Harvard Business Rev., vol.  82, no. 11, pp. 131–138, 2004.
  20. C. Mas Machuca, S. Krauß, and K. Casier, “Fault management and service provisioning process model of next generation access networks,” in Int. Conf. on Network and Service Management, Paris, France, Oct. 2011.
  21. C. Mas Machuca, “NGOA cost modelling and its application to HPON cost evaluation,” in Workshop on Techno-economic Comparison of Next Generation Optical Access Solutions for NGPON2 at 11th Conf. of Telecommunication, Media and Internet Techno-Economics, Athens, Greece, June 2012.
  22. “Market demands and revenues,” , June 2012 [Online]. Available: http://www.ict-oase.eu/index.php?page=120& .
  23. K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.
  24. C. Mas Machuca, S. Krauß, and M. Kind, “Migration from GPON to hybrid PON: Complete cost evaluation,” in Photonische Netze, Leipzig, May 2013.

2013 (2)

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

Y. Luo, X. Zhou, F. Effenberger, X. Yan, G. Peng, Y. Qian, and Y. Ma, “Time- and wavelength-division multiplexed passive optical network (TWDM-PON) for next-generation PON Stage 2 (NG-PON2),” J. Lightwave Technol., vol.  31, no. 4, pp. 587–593, Feb. 2013.
[CrossRef]

2012 (1)

C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
[CrossRef]

2009 (2)

H. Kuwahara and J. Theodoras, “Series editorial optical communications,” IEEE Commun. Mag., vol.  47, no. 11, pp. s2–s4, Nov. 2009.
[CrossRef]

J. Li and G. Shen, “Cost minimization planning for Greenfield passive optical networks,” J. Opt. Commun. Netw., vol.  1, pp. 17–29, June 2009.
[CrossRef]

2004 (1)

R. S. Kaplan and S. Anderson, “Time-driven activity-based costing,” Harvard Business Rev., vol.  82, no. 11, pp. 131–138, 2004.

Anderson, S.

R. S. Kaplan and S. Anderson, “Time-driven activity-based costing,” Harvard Business Rev., vol.  82, no. 11, pp. 131–138, 2004.

Autenrieth, A.

O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

Breuer, D.

R. Hülsermann, K. Grobe, and D. Breuer, “Cost and performance evaluation of WDM-based access networks,” in Optical Fiber Communication Conf. and the Nat. Fiber Optic Engineers Conf., 2013, paper NTh3F.4.

C. Lange, D. Breuer, and R. Huelsermann, “Cost effectiveness of site reduction in optical access network: A CapEx based comparison of different technologies,” in Int. Conf. on Transparent Optical Networks, Azores, Portugal, June28–July 2, 2009.

Büllingen, F.

F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.

Casier, K.

K. Casier, “Techno-economic evaluation of a next generation access network deployment in a competitive setting,” Ph.D. dissertation, Ghent University, 2009.

C. Mas Machuca, S. Krauß, and K. Casier, “Fault management and service provisioning process model of next generation access networks,” in Int. Conf. on Network and Service Management, Paris, France, Oct. 2011.

Chen, J.

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
[CrossRef]

Effenberger, F.

Eiselt, M.

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

Elbers, J.-P.

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

El-Sayed, M.

S. Kulkarni, B. Polonsky, and M. El-Sayed, “FTTH network economics: key parameters impacting technology decisions,” in 13th Int. Telecommunications Network Strategy and Planning Symp., Sept.–Oct. 2008, pp. 1–27.

Grobe, K.

R. Hülsermann, K. Grobe, and D. Breuer, “Cost and performance evaluation of WDM-based access networks,” in Optical Fiber Communication Conf. and the Nat. Fiber Optic Engineers Conf., 2013, paper NTh3F.4.

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.

Grunert, K.

L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.

Hillebrand, A.

F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.

Huelsermann, R.

C. Lange, D. Breuer, and R. Huelsermann, “Cost effectiveness of site reduction in optical access network: A CapEx based comparison of different technologies,” in Int. Conf. on Transparent Optical Networks, Azores, Portugal, June28–July 2, 2009.

Hülsermann, R.

R. Hülsermann, K. Grobe, and D. Breuer, “Cost and performance evaluation of WDM-based access networks,” in Optical Fiber Communication Conf. and the Nat. Fiber Optic Engineers Conf., 2013, paper NTh3F.4.

Kaplan, R. S.

R. S. Kaplan and S. Anderson, “Time-driven activity-based costing,” Harvard Business Rev., vol.  82, no. 11, pp. 131–138, 2004.

Kind, M.

C. Mas Machuca, S. Krauß, and M. Kind, “Migration from GPON to hybrid PON: Complete cost evaluation,” in Photonische Netze, Leipzig, May 2013.

Kipouridis, O.

O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.

Krauß, S.

C. Mas Machuca, S. Krauß, and M. Kind, “Migration from GPON to hybrid PON: Complete cost evaluation,” in Photonische Netze, Leipzig, May 2013.

C. Mas Machuca, S. Krauß, and K. Casier, “Fault management and service provisioning process model of next generation access networks,” in Int. Conf. on Network and Service Management, Paris, France, Oct. 2011.

Kulkarni, S.

S. Kulkarni, B. Polonsky, and M. El-Sayed, “FTTH network economics: key parameters impacting technology decisions,” in 13th Int. Telecommunications Network Strategy and Planning Symp., Sept.–Oct. 2008, pp. 1–27.

Kuwahara, H.

H. Kuwahara and J. Theodoras, “Series editorial optical communications,” IEEE Commun. Mag., vol.  47, no. 11, pp. s2–s4, Nov. 2009.
[CrossRef]

Lange, C.

C. Lange, D. Breuer, and R. Huelsermann, “Cost effectiveness of site reduction in optical access network: A CapEx based comparison of different technologies,” in Int. Conf. on Transparent Optical Networks, Azores, Portugal, June28–July 2, 2009.

Lehnert, R.

S. Turk, R. Radeke, and R. Lehnert, “Network migration using ant colony optimization,” in 9th Conf. on Telecommunications Internet and Media Techno Economics (CTTE), June7–9, 2010.

Li, J.

Luo, Y.

Ma, Y.

Mahloo, M.

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

Mas Machuca, C.

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
[CrossRef]

L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.

C. Mas Machuca, S. Krauß, and K. Casier, “Fault management and service provisioning process model of next generation access networks,” in Int. Conf. on Network and Service Management, Paris, France, Oct. 2011.

C. Mas Machuca, S. Krauß, and M. Kind, “Migration from GPON to hybrid PON: Complete cost evaluation,” in Photonische Netze, Leipzig, May 2013.

O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.

C. Mas Machuca, “NGOA cost modelling and its application to HPON cost evaluation,” in Workshop on Techno-economic Comparison of Next Generation Optical Access Solutions for NGPON2 at 11th Conf. of Telecommunication, Media and Internet Techno-Economics, Athens, Greece, June 2012.

Peng, G.

Polonsky, B.

S. Kulkarni, B. Polonsky, and M. El-Sayed, “FTTH network economics: key parameters impacting technology decisions,” in 13th Int. Telecommunications Network Strategy and Planning Symp., Sept.–Oct. 2008, pp. 1–27.

Qian, Y.

Radeke, R.

S. Turk, R. Radeke, and R. Lehnert, “Network migration using ant colony optimization,” in 9th Conf. on Telecommunications Internet and Media Techno Economics (CTTE), June7–9, 2010.

Roppelt, M.

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

Shen, G.

Stamm, P.

F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.

Stetter, A.

F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.

Theodoras, J.

H. Kuwahara and J. Theodoras, “Series editorial optical communications,” IEEE Commun. Mag., vol.  47, no. 11, pp. s2–s4, Nov. 2009.
[CrossRef]

Turk, S.

S. Turk, R. Radeke, and R. Lehnert, “Network migration using ant colony optimization,” in 9th Conf. on Telecommunications Internet and Media Techno Economics (CTTE), June7–9, 2010.

Wosinska, L.

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
[CrossRef]

Yan, X.

Zhao, R.

L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.

Zhou, L.

L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.

Zhou, X.

Harvard Business Rev. (1)

R. S. Kaplan and S. Anderson, “Time-driven activity-based costing,” Harvard Business Rev., vol.  82, no. 11, pp. 131–138, 2004.

IEEE Commun. Mag. (2)

C. Mas Machuca, J. Chen, and L. Wosinska, “Cost-efficient protection in TDM PONs,” IEEE Commun. Mag., vol.  50, no. 8, pp. 110–117, Aug. 2012.
[CrossRef]

H. Kuwahara and J. Theodoras, “Series editorial optical communications,” IEEE Commun. Mag., vol.  47, no. 11, pp. s2–s4, Nov. 2009.
[CrossRef]

J. Lightwave Technol. (1)

J. Opt. Commun. Netw. (1)

Opt. Switching Networking (1)

M. Mahloo, C. Mas Machuca, J. Chen, and L. Wosinska, “Protection cost evaluation of WDM-based next generation optical access networks,” Opt. Switching Networking, vol.  10, no. 1, pp. 89–99, 2013.
[CrossRef]

Other (18)

L. Zhou, C. Mas Machuca, R. Zhao, and K. Grunert, “Migration towards fiber to the home: Key cost factors,” in Asia Communications and Photonics Conf. and Exhibition (ACP), Shanghai, China, Dec. 2010.

S. Turk, R. Radeke, and R. Lehnert, “Network migration using ant colony optimization,” in 9th Conf. on Telecommunications Internet and Media Techno Economics (CTTE), June7–9, 2010.

F. Büllingen, A. Hillebrand, P. Stamm, and A. Stetter, “Cable industry strategies for the NGA world,” , Feb. 2012.

“Requirements for European next-generation optical access networks,” , June 2011 [Online]. Available: http://www.ict-oase.eu/index.php?page=120& .

R. Hülsermann, K. Grobe, and D. Breuer, “Cost and performance evaluation of WDM-based access networks,” in Optical Fiber Communication Conf. and the Nat. Fiber Optic Engineers Conf., 2013, paper NTh3F.4.

TONIC project 2000–2004, “Techno-economics of IP optimised networks and services,” European Union, EU IST, .

O. Kipouridis, C. Mas Machuca, A. Autenrieth, and K. Grobe, “Street-aware infrastructure planning tool for next generation optical access networks,” in 16th Int. Conf. on Optical Network Design and Modeling, Colchester, UK, Apr. 2012.

BPMN: Business Process Model and Notation [Online]. Available: www.bpmn.org .

C. Mas Machuca, S. Krauß, and K. Casier, “Fault management and service provisioning process model of next generation access networks,” in Int. Conf. on Network and Service Management, Paris, France, Oct. 2011.

C. Mas Machuca, “NGOA cost modelling and its application to HPON cost evaluation,” in Workshop on Techno-economic Comparison of Next Generation Optical Access Solutions for NGPON2 at 11th Conf. of Telecommunication, Media and Internet Techno-Economics, Athens, Greece, June 2012.

“Market demands and revenues,” , June 2012 [Online]. Available: http://www.ict-oase.eu/index.php?page=120& .

K. Grobe, M. Roppelt, A. Autenrieth, J.-P. Elbers, and M. Eiselt, “Cost and energy consumption analysis of advanced WDM-PONs,” IEEE Commun. Mag., vol. 49, no. 2, pp. s25–s32, Feb. 2011.

C. Mas Machuca, S. Krauß, and M. Kind, “Migration from GPON to hybrid PON: Complete cost evaluation,” in Photonische Netze, Leipzig, May 2013.

Full Service Access Network (FSAN) Group Forum [Online]. Available: http://www.fsan.org/ .

“10-Gigabit-capable passive optical network (XG-PON) systems: Definitions, abbreviations and acronyms,” , 2012.

S. Kulkarni, B. Polonsky, and M. El-Sayed, “FTTH network economics: key parameters impacting technology decisions,” in 13th Int. Telecommunications Network Strategy and Planning Symp., Sept.–Oct. 2008, pp. 1–27.

C. Lange, D. Breuer, and R. Huelsermann, “Cost effectiveness of site reduction in optical access network: A CapEx based comparison of different technologies,” in Int. Conf. on Transparent Optical Networks, Azores, Portugal, June28–July 2, 2009.

K. Casier, “Techno-economic evaluation of a next generation access network deployment in a competitive setting,” Ph.D. dissertation, Ghent University, 2009.

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Figures (8)

Fig. 1.
Fig. 1.

Example of the penetration curve and migrated users from an existing GPON toward NGOA in 2020 and cost categories considered.

Fig. 2.
Fig. 2.

Migration cost evaluation methodology.

Fig. 3.
Fig. 3.

Topology model.

Fig. 4.
Fig. 4.

Access and aggregation networks.

Fig. 5.
Fig. 5.

Different TCOs considered at each migration phase.

Fig. 6.
Fig. 6.

NP Brownfield alternatives for the particular case of an existing GPON 1 32 . (a) Scenario A, (b) Scenario B, (c) Scenario C, and (d) Scenario D.

Fig. 7.
Fig. 7.

Average (a) CAPEX and (b) OPEX per connected user per year [CU/year user].

Fig. 8.
Fig. 8.

Yearly total cost [CU] associated with each migration scenario (illustrated in Fig. 6) in one DU area.

Tables (3)

Tables Icon

TABLE I Access Network Cost Classification

Tables Icon

TABLE II Architecture Considered During Each Migration Phase at Each Scenario

Tables Icon

TABLE III Part of the Shopping List Corresponding to GPON 1 32 in Dense Urban Areas Without Node Consolidation