Optimizing the date of an upgrading investment in a data network

Frédéric Morlot (), Benoît Fourestié and Salah Eddine Elayoubi ()
Additional contact information
Frédéric Morlot: Orange Labs [Issy les Moulineaux] - France Télécom
Benoît Fourestié: France Telecom Division R&D [Issy-les-Moulineaux] - France Télécom
Salah Eddine Elayoubi: Orange Labs [Issy les Moulineaux] - France Télécom

Post-Print from HAL

Abstract: Due to the introduction of new services, the volume of data transferred in mobile networks is rapidly growing and operators periodically face the necessity to upgrade their network. Such upgrades allow them to increase the capacity and provide adequate Quality of Service (QoS). In this paper we propose a general framework for deriving the optimal date for a network upgrade. We show that this date is the result of a compromise between the decrease of upgrade investment cost with time and the loss of profit generated by insufficient capacity. The upgrade should hence be performed when the loss of profit, derived using analytical capacity expressions, exceeds the expected discount. The model presented herein accounts for the randomness of the demand and upgrading cost functions, and results are given for a HSDPA network.

Keywords: data flows; brownian motion; quality of service; customer satisfaction (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://hal.science/hal-00627087
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in VTC Fall 2007, 2007, United States

Downloads: (external link)
https://hal.science/hal-00627087/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00627087

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().