Life cycle costs comparison and sensitivity analysis for multimedia networks

The provision of multimedia services implies a series of new requirements that the present telecommunication networks are not able to meet. Therefore the next-generation information infrastructures, commonly referred to as “information superhighways”, has to be put in place. This article focuses on the access segment of the network, that is the connection of the users to the first network node, where the challenges to be faced are harder. Actually this segment is the most comprehensive part of an entire telecommunications network and accounts for a considerable share of overall investment of a network operator. Moreover, its planning has to take into account the uncertainty on the multimedia services demands. A lively debate has been going on among network planners in order to identify the most cost-effective architecture for a so-called full service network, a network able to support both traditional services, like POTS, ISDN and video broadcasting, and the new multimedia ones. After a brief description of the future scenario in which a network operator will operate, the most promising full-service access network architectures are presented. Then, a life-cycle costs analysis of these network solutions is performed in a local exchange area by changing the foreseen services penetrations. Finally the architectures are compared from a technoeconomic point of view