System and method for determining an evolving combination of network components to maximize the net present value of a provider's cash flow
First Claim
1. A method of maximizing a net present value (NPV) of a cash flow that results from provision of communication services between nodes of a network, wherein maximization is achieved through selection of an appropriate combination of network components and product prices over a plurality of consecutive time periods, the method comprising the steps of:
- (a) receiving constraint information regarding demand for products, prices of products, network topology, available technology, costs, and an initial state of the network;
(b) forming an expression that models revenue received as a result of sales of products at each time period T, wherein the revenue expression is a function of price and demand for each product p at each time period T;
(c) determining traffic capacity for each link at each time period T;
(d) forming an expression that models costs of providing communications services, wherein the cost expression is a function of demand for each product p at each time period T and of the number of rings and wavelengths bought, used, and retired, for each technology, circle, and time period T;
(e) forming an expression that models NPV as an objective function of revenue and costs; and
(f) optimizing the objective function.
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Accused Products
Abstract
A method and computer program product are presented for selecting and arranging an appropriate combination of network components, or elements, in a communications network. The selection of network components is done in a manner that maximizes the net present value of cash flow resulting from the provision of communications services between nodes of the network. The method comprises the steps of receiving information that constrains network design and price establishment, and then using the constraint information to select a combination of network components for each link in the communications network. According to the invention, the selection of network components is performed for each of several successive time periods, effectively planning the evolution of the network. The selections are made so that the network components satisfy demand over time while maximizing the net present value of the cash flow that results from the provision of communications services.
39 Citations
46 Claims
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1. A method of maximizing a net present value (NPV) of a cash flow that results from provision of communication services between nodes of a network, wherein maximization is achieved through selection of an appropriate combination of network components and product prices over a plurality of consecutive time periods, the method comprising the steps of:
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(a) receiving constraint information regarding demand for products, prices of products, network topology, available technology, costs, and an initial state of the network;
(b) forming an expression that models revenue received as a result of sales of products at each time period T, wherein the revenue expression is a function of price and demand for each product p at each time period T;
(c) determining traffic capacity for each link at each time period T;
(d) forming an expression that models costs of providing communications services, wherein the cost expression is a function of demand for each product p at each time period T and of the number of rings and wavelengths bought, used, and retired, for each technology, circle, and time period T;
(e) forming an expression that models NPV as an objective function of revenue and costs; and
(f) optimizing the objective function. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23)
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24. A computer program product comprising a computer usable medium having computer readable program code means embodied in said medium for causing an application program to execute on a computer that selects an appropriate combination of network components and product prices over a plurality of consecutive time periods to maximize a net present value (NPV) of a cash flow that results from provision of communication services between nodes of a network, said computer readable program code means comprising:
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(a) a first computer readable program code means for receiving constraint information regarding demand for products, prices of products, network topology, available technology, costs, and an initial state of the network;
(b) a second computer readable program code means for forming an expression that models revenue received as a result of sales of products at each time period T, wherein the revenue expression is a function of price and demand for each product p at each time period T;
(c) a third computer readable program code means for determining traffic capacity for each link at each time period T;
(d) a fourth computer readable program code means for forming an expression that models costs of providing communications services, wherein the cost expression is a function of demand for each product p at each time period T and of the number of rings and wavelengths bought, used, and retired, for each technology, circle, and time period T;
(e) a fifth computer readable program code means for forming an expression that models NPV as an objective function of revenue and costs; and
(f) a sixth computer readable program code means for optimizing the objective function. - View Dependent Claims (25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46)
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Specification