This paper examines a network design problem that arises in the telecommuni
cations industry. In this problem, communication between a gateway vertex a
nd a number of demand vertices is achieved through a network of fiber optic
cables. Since each cable has an associated capacity (bandwidth), enough ca
pacity must be installed on the links of the network to satisfy the demand,
using possibly different types of cables. Starting with a network with no
capacity or some capacity already installed, a tabu search heuristic is des
igned to find a solution that minimizes the cost of installing any addition
al capacity on the network. This tabu search applies a k-shortest path algo
rithm to find alternative paths from the gateway to the demand vertices. Nu
merical results are presented on different types of networks with up to 200
vertices and 100 demand vertices.