Abstract- Network operators are facing hard competition for opportunities in the telecommunications market, thus network investments must be carefully evaluated from the costs and revenues viewpoint before the decision making process. Since a great part of core network operators ’ revenues comes from the provisioned connectivity services, in this work we study the value expected to generate by optical networks when provisioning differentiated services in Shared Path Protection (SPP) environments. In this regard, two wavelength partitioning schemes are compared: the shared (sh-WS) and the differentiated (diff-WS). The benefits of both schemes are evaluated from an economic perspective defining costs and revenues models and using Net Present Value (NPV). We define the Optical Network NPV Optimization (OVALO) problem as a NPV maximization problem. To solve OVALO, a linearized version of NPV is proposed as objective function of the Integer Linear Programming (ILP) model and an iterative algorithm is used to finally solve OVALO. The partitioning schemes are numerically compared on two network topologies. From the results, we show that diff-WS maximizes resource utilization in the network without significantly increasing network costs, thus maximizing the network’s value.1

A great part of core network operators ’ gross profit comes from the provisioned connectivity services. In this work, we analyze the provisioning of differentiated services in current Shared Path Protection (SPP) environments. This analysis concludes that, with current resource assignment policies, only a very poor grade of service can be provided to the carried best effort traffic. Hence, we propose diff-WS, a resource partitioning scheme that differentiates those wavelengths supporting each class of service in the network. The benefits of diff-WS in front of current resource assignment policies are afterwards evaluated from an economic perspective. To this goal, we define the NORMA problem as a revenue maximization problem. To solve NORMA, we introduce statistical models to obtain, for a given grade of service, the highest traffic intensity for each supported class of service and resource assignment scheme. From the numerical results, we show that diff-WS maximizes resource utilization in the network and, thus, network operator’s profit.

Abstract not found