A Multiperiod Expectation Model for Capital Expenditures in Optical Networks: Applicability and Limitations

We study a multiperiod expectation model which estimates capital expenditures of optical networks. Compared to cost optimization methods the expectation model speeds calculation times considerably up. However, for lightly loaded networks costs are underestimated by up to 44% compared to optimization. Albeit for multiperiod planning the expectation model leads to comparable overall capital expenditures, in some cases it hides the temporal costs allocations. Thus, for detailed multiperiod studies the use of optimization methods is recommended.