In addition to the roll-out plans, accompanying
economic measures are also asked for. Some of
these are illustrated in Figure 5 a) and b).
Trying to predict a future situation, most of the
values are associated with uncertainties. There-
fore, carrying out sensitivity analyses becomes
essential. By these analyses one reveals which
parameters are significant and which ones have
less influence on the overall results. In addition,
one may also assess which scenarios are more
robust with respect to changes in the input data.
A major concern is that the demand stated by
users will likely depend on the conditions they
experience. Basically, two types of conditions
are recognised – the technical performance lev-
els, and the charges. These are illustrated in Fig-
ure 6. The performance level incorporates issues
such as effective throughput bit rates, informa-
tion loss ratios, etc. The tariffs decide the
charges facing a user and would thereby influ-
ence the interest a user has in invoking services.Figure 5 Examples of
economic measures for
a ten year build-out plan200150100500-50123 4567 8910Time period (year)Million Cost unitsRevenues
Cash Flow
Profits
Cash Balance45040035030025020015010050(^0) 123 4567 8910
Time period (year)
Investments
Running costs
Depreciations
Million Cost units
Figure 4 Illustration of a
roll-out plan for three
types of network
elements (in a 6 year
study period)
123456
400
350
300
250
200
150
100
50
0
Access nodes
Edge routers
Core routers
Time period (year)
Number of units
a)
b)