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Evaluation of the techno-economic viability of point-to-point dark fiber access infrastructure in Europe

Marlies Van der Wee (UGent) , Sofie Verbrugge (UGent) , Mathieu Tahon (UGent) , Didier Colle (UGent) and Mario Pickavet (UGent)
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Abstract
Upgrading telecommunications access networks requires large investments in deploying new optical infrastructure, especially in terms of construction works and costs to reach the end-user, which seem only affordable in densely populated areas. By evaluating a cost-benefit analysis for the deployment of a point-to-point dark fiber infrastructure, this paper investigates how the economic risk of dark fiber deployment can be estimated and/or reduced in different settings. By applying the model on specific scenarios, which differ in area type, demand uptake, and revenue scheme, it is concluded that the business case is only viable in a dense urban area with an aggressive takeup. In the other scenarios, the paper investigates possibilities and opportunities to improve the business case and hence decrease the investment risk. Examples of this improvement include prolonging the planning horizon, ensuring revenue from the start of the project by performing demand aggregation, or examining where public funds might help.
Keywords
Techno-economics, IBCN, ECONOMICS, NETWORKS, COSTS, Cost-benefit analysis, Next-generation access networks, Passive infrastructure

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Citation

Please use this url to cite or link to this publication:

MLA
Van der Wee, Marlies et al. “Evaluation of the Techno-economic Viability of Point-to-point Dark Fiber Access Infrastructure in Europe.” JOURNAL OF OPTICAL COMMUNICATIONS AND NETWORKING 6.3 (2014): 238–249. Print.
APA
Van der Wee, M., Verbrugge, S., Tahon, M., Colle, D., & Pickavet, M. (2014). Evaluation of the techno-economic viability of point-to-point dark fiber access infrastructure in Europe. JOURNAL OF OPTICAL COMMUNICATIONS AND NETWORKING, 6(3), 238–249.
Chicago author-date
Van der Wee, Marlies, Sofie Verbrugge, Mathieu Tahon, Didier Colle, and Mario Pickavet. 2014. “Evaluation of the Techno-economic Viability of Point-to-point Dark Fiber Access Infrastructure in Europe.” Journal of Optical Communications and Networking 6 (3): 238–249.
Chicago author-date (all authors)
Van der Wee, Marlies, Sofie Verbrugge, Mathieu Tahon, Didier Colle, and Mario Pickavet. 2014. “Evaluation of the Techno-economic Viability of Point-to-point Dark Fiber Access Infrastructure in Europe.” Journal of Optical Communications and Networking 6 (3): 238–249.
Vancouver
1.
Van der Wee M, Verbrugge S, Tahon M, Colle D, Pickavet M. Evaluation of the techno-economic viability of point-to-point dark fiber access infrastructure in Europe. JOURNAL OF OPTICAL COMMUNICATIONS AND NETWORKING. 2014;6(3):238–49.
IEEE
[1]
M. Van der Wee, S. Verbrugge, M. Tahon, D. Colle, and M. Pickavet, “Evaluation of the techno-economic viability of point-to-point dark fiber access infrastructure in Europe,” JOURNAL OF OPTICAL COMMUNICATIONS AND NETWORKING, vol. 6, no. 3, pp. 238–249, 2014.
@article{4443369,
  abstract     = {Upgrading telecommunications access networks requires large investments in deploying new optical infrastructure, especially in terms of construction works and costs to reach the end-user, which seem only affordable in densely populated areas. By evaluating a cost-benefit analysis for the deployment of a point-to-point dark fiber infrastructure, this paper investigates how the economic risk of dark fiber deployment can be estimated and/or reduced in different settings. By applying the model on specific scenarios, which differ in area type, demand uptake, and revenue scheme, it is concluded that the business case is only viable in a dense urban area with an aggressive takeup. In the other scenarios, the paper investigates possibilities and opportunities to improve the business case and hence decrease the investment risk. Examples of this improvement include prolonging the planning horizon, ensuring revenue from the start of the project by performing demand aggregation, or examining where public funds might help.},
  author       = {Van der Wee, Marlies and Verbrugge, Sofie and Tahon, Mathieu and Colle, Didier and Pickavet, Mario},
  issn         = {1943-0620},
  journal      = {JOURNAL OF OPTICAL COMMUNICATIONS AND NETWORKING},
  keywords     = {Techno-economics,IBCN,ECONOMICS,NETWORKS,COSTS,Cost-benefit analysis,Next-generation access networks,Passive infrastructure},
  language     = {eng},
  number       = {3},
  pages        = {238--249},
  title        = {Evaluation of the techno-economic viability of point-to-point dark fiber access infrastructure in Europe},
  url          = {http://dx.doi.org/10.1364/JOCN.6.000238},
  volume       = {6},
  year         = {2014},
}

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