Network migration cost study

Abstract

In this paper a cost analysis case study of migrating services from an SDH network platform into a packet based transport network is presented. The Net Present Value (NPV) of the costs of actively migrating the services is compared with the NPV of the costs of operating the SDH platform for the regular duration of all remaining services. Different cost contributors, including Capital Expenditures and Operational Expenditures, as well as different traffic scenarios are analyzed based on a realistic scenario. Different migration strategies are considered. In most cases active service migration is cost efficient. It can be shown that cost savings can be optimized if the traffic scenario, the migration time window and the migration speed are aligned.