Cost optimization methods in the design of next generation networks

Halldor Matthias Sigurdsson*, Saemundur E. Thorsteinsson, Thomas K. Stidsen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)


A key development of telecommunication systems during the past two decades has been the evolution from the circuit-switched network toward the packet-switched network paradigm. Many operators are now migrating their PSTNs from circuit switched into multipurpose packet switched networks. This new approach is often called the next-generation network (NGN). NGN enables network operators to run ali services (i.e., voice, data and video) on one network. In this article the migration of Iceland Telecom's circuit-switched PSTN toward NGN will be described. A cost model of the telecommunications system has been developed to enable cost and benefits analysis of transforming the network to NGN. Methods of optimization and their application to determine the optimal number and position of nodes in the future network will be described. The optimization produces a network structure with the lowest possible total cost of ownership, and the model can also indicate how deviations from the optimum affect cost. The feasibility of NGN can be assessed by comparing the cost of NGN migration to that of maintaining the current circuit-switched network.

Original languageEnglish
Pages (from-to)118-122
Number of pages5
JournalIEEE Communications Magazine
Issue number9
Publication statusPublished - Sept 2004


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