Optimal planning for optical transport networks

In optical transport networks, recent development of new technologies has l ed to highly accelerated ('disruptive') increases in the capacity associate d with a given investment cost. As a result, there have been dramatic decre ases in the cost per unit of transport. We describe a nonlinear mixed-integ er 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 maxim ize net present value by frequently deploying new systems. This conclusion is in sharp contrast to the analogous results for voice networks, where dem and is much less elastic and the rate of technology change is much slower.