Abstract
This paper discusses the influence of the maturity of the photonic component industry (PCI) in the business prospects of optical access network deployments. Using the TONIC techno-economic tool, the business prospects of such deployments (in terms of traditional investment indexes such as the Net Present Value – NPV or Internal Rate of Return – IRR) are related to the several factors which characterize the maturity of the PCI such as production volumes and component cost evolution. The analysis shows that even if the cost of Fiber-to-the-Home/Office (FTTH/O) and Fiber-to-the-Curb scenarios are mainly influenced by fiber installation costs, the price reduction rate of photonic components may also affect the investment strategies. To speed up the cost reductions, telecom carriers should therefore invest on optical technology research and development.
Chapter PDF
Similar content being viewed by others
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
References
Organisation for Economic Co-operation and Development (2340), http://www.oecd.org/document/9/0,en_2649_37441_37529673_1_1_1_37441,00.html
Monath, T., et al.: Economics of fixed broadband access network strategies. IEEE Commun. Mag. 41, 132–139 (2003)
Frigo, N.J., Iannone, P.P., Reichmann, K.C.: A view of fiber to the home economics. IEEE Commun. Mag. 42, S23 (2004)
Van Caenegem, R., et al.: From IP over WDM to all-optical packet switching: Economical view. J. Lightwave Technol. 24, 1638–1645 (2006)
Le Rouzic, E., Gosselin, S.: 160-Gb/s optical networking: A prospective techno-economical analysis. IEEE J. Lightwave Technology 23, 3024–3033 (2005)
Livas, J.: Optical transmission evolution: From digital to analog to network trade offs between optical transparency and reduced regeneration cost. J. Lightwave Technology 23, 219–224 (2005)
Korotky, S.K.: Network global expectation model: A statistical formalism for quickly quantifying network needs and costs. J. Lightwave Technology 22, 703–722 (2004)
Chen, E., Lu, D.: The economics of photonics manufacturing. J.P. Morgan H&Q Equity Research (2001)
Varoutas, D., et al.: Business opportunities through UMTS-WLAN networks. Ann. Telecommun. 58, 553–575 (2003)
Katsianis, D., et al.: The financial perspective of the mobile networks in Europe. IEEE Pers. Commun. 8, 58–64 (2001)
EU TONIC, Techno-economics of IP Optimised Networks and Services, IST-2000-25172. Available at http://www-nrc.nokia.com/tonic/
ECOSYS, techno-ECOnomics of integrated communication SYStems and services, Available at http://www.celtic-ecosys.org/
Wright, T.P.: Factors affecting the cost of airplanes. J. Aeronautic Science 3, 122–128 (1936)
Stordahl, K., Ims, L.A., Moe, M.: Broadband market - the driver for network evolution. In: Proc. Networks 2000, Toronto, Canada, September 10-16 (2000)
Stordahl, K., et al.: Broadband access network competition - analysis of technology and market risks. In: Proc. Globecom ’98, Sydney (1998)
Varoutas, D., et al.: A hedonic approach to estimate price evolution of telecommunication services: Evidence from Greece. To appear in Applied Economic Letters, Taylor and Francis
Author information
Authors and Affiliations
Editor information
Rights and permissions
Copyright information
© 2007 IFIP International Federation for Information Processing
About this paper
Cite this paper
Varoutas, D., Kamalakis, T., Katsianis, D., Sphicopoulos, T., Monath, T. (2007). Importance of the Maturity of Photonic Component Industry on the Business Prospects of Optical Access Networks: A Techno-Economic Analysis. In: Akyildiz, I.F., Sivakumar, R., Ekici, E., Oliveira, J.C.d., McNair, J. (eds) NETWORKING 2007. Ad Hoc and Sensor Networks, Wireless Networks, Next Generation Internet. NETWORKING 2007. Lecture Notes in Computer Science, vol 4479. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-72606-7_80
Download citation
DOI: https://doi.org/10.1007/978-3-540-72606-7_80
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-72605-0
Online ISBN: 978-3-540-72606-7
eBook Packages: Computer ScienceComputer Science (R0)