Methodology for a cost evaluation of migration toward NGOA networks

Evolution of optical access networks promises to bring higher bandwidth to more customers. However, this evolution toward so-called next generation optical access (NGOA) networks also introduces additional challenges that operators and/or vendors have to address: how to properly estimate and compare different NGOA architectures and their evolutionary paths in terms of their economics. Calculating the total cost of ownership (TCO) for NGOA networks is a very complex target as it needs to involve good knowledge of the technology, the existing network infrastructure, and any migration-related processes. In this paper a complete methodology is presented for evaluating the TCO of the migration toward a NGOA network. It contains a detailed description of which key aspects have to be considered, which processes they affect, and how they are translated into costs in a logical manner. Finally, it also shows how this methodology has been applied to particular selected cases and how it gives a detailed view of all costs involved in migration. This approach opens up opportunities to cooperate in techno-economic research using it as a base. Both operators and vendors can also utilize this approach to get a useful economic background of their future investments and potential sales.