Equilibrium bandwidth and buffer allocations for elastic traffics
IEEE/ACM Transactions on Networking (TON)
A game theoretic framework for bandwidth allocation and pricing in broadband networks
IEEE/ACM Transactions on Networking (TON)
Optimal strategy for graceful network upgrade
Proceedings of the 2006 SIGCOMM workshop on Internet network management
Investment decisions in the wireless industry applying real options
Telecommunications Policy
Proceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come
Valuing wireless data services solutions for corporate clients using real options
International Journal of Mobile Communications
Assessing network service profitability: modeling from market science perspective
IEEE/ACM Transactions on Networking (TON)
Real options and technology management: Assessing technology migration options in wireless industry
Telematics and Informatics
A compound real option and AHP methodology for evaluating ICT business alternatives
Telematics and Informatics
Automated Detection of Load Changes in Large-Scale Networks
TMA '09 Proceedings of the First International Workshop on Traffic Monitoring and Analysis
GRID '08 Proceedings of the 2008 9th IEEE/ACM International Conference on Grid Computing
Optimization of radio resource management schemes in UMTS using pricing
Computer Communications
Option-based dynamic management of wireless spectrum
NGI'09 Proceedings of the 5th Euro-NGI conference on Next Generation Internet networks
Cost versus flexibility of different capacity leasing approaches on the optical network layer
ONDM'07 Proceedings of the 11th international IFIP TC6 conference on Optical network design and modeling
Grid resources valuation with fuzzy real option
International Journal of High Performance Computing and Networking
Characterization of the busy-hour traffic of IP networks based on their intrinsic features
Computer Networks: The International Journal of Computer and Telecommunications Networking
Computer Networks: The International Journal of Computer and Telecommunications Networking
A grid resources valuation model using fuzzy real option
ISPA'07 Proceedings of the 5th international conference on Parallel and Distributed Processing and Applications
Broadband business by utilities infrastructure exploitation: A multistage competition model
Telecommunications Policy
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The existing telecommunications infrastructure in most of the world is adequate to deliver voice and text applications, but demand for broadband services such as streaming video and large file transfer (e.g., movies) is accelerating. The explosion in Internet use has created a huge demand for telecommunications capacity. However, this demand is extremely volatile, making network planning difficult. In this paper, modern financial option pricing methods are applied to the problem of network investment decision timing. In particular, we study the optimal decision problem of building new network capacity in the presence of stochastic demand for services. Adding new capacity requires a capital investment, which must be balanced by uncertain future revenues. We study the underlying risk factor in the bandwidth market and then apply real options theory to the upgrade decision problem. We notice that sometimes it is optimal to wait until the maximum capacity of a line is nearly reached before upgrading directly to the line with the highest known transmission rate (skipping the intermediate lines). It appears that past upgrade practice underestimates the conflicting effects of growth and volatility. This explains the current overcapacity in available bandwidth. To the best of our knowledge, this real options approach has not been used previously in the area of network capacity planning. Consequently, we believe that this methodology can offer insights for network management.