By Topic

An optimal investment strategy model for fiber to the home

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
Reed, D.P. ; Dept. of Eng. & Public Policy, Carnegie-Mellon Univ., Pittsburgh, PA, USA ; Sirbu, M.A.

Planning for the deployment of fiber to the home is made particularly difficult by rapidly changing network component costs and a multitude of system architecture alternatives. A modeling approach using dynamic programming to select an optimal investment strategy for rehabilitating existing copper plant with fiber to the home is described. The optimal time to invest is determined by a simple tradeoff: early deployment allows the carrier to receive additional revenues from video services more quickly; later deployment can be accomplished with less costly technology. Given the assumptions of the model about component cost trends and demand forecasts, and in the absence of competition, the model predicts that discounted profits to a local exchange carrier (LEC) are maximized by deferring investment in fiber to the home until well into the 21st century. The results are particularly sensitive to a few system parameters: the assumed rate of subscriber growth in broadband services, the cost of optical components, and the cost of network maintenance. Some policy implications of the study are examined

Published in:

Lightwave Technology, Journal of  (Volume:7 ,  Issue: 11 )