Modeling Complex Telecom Investments: A System of Systems Approach

This paper presents a complex telecom investment problem analysis using system of systems concepts. This is necessary due to problem's multidimensional nature with several interdependences, and the presence of uncertainty and competition. A genetic algorithm is implemented in MATLAB in order to optimize the objective function (operator's profitability) of the formulated nonlinear programming problem. This approach is capable of providing optimal policies (regarding, e.g., services pricing, inception of investment, or revenues reinvestment) in a competitive market helping future investors in decision making by using various emulated strategic plans as reference.

[1]  David Beasley,et al.  An overview of genetic algorithms: Part 1 , 1993 .

[2]  Evangelos Grigoroudis,et al.  Modeling Healthcare System-of-Systems: A Mathematical Programming Approach , 2013, IEEE Systems Journal.

[3]  Anastasios A. Economides,et al.  A Decision Analysis Framework for Prioritizing a Portfolio of ICT Infrastructure Projects , 2008, IEEE Transactions on Engineering Management.

[4]  R. E. Farr.  Telecommunications Traffic, Tariffs and Costs: An Introduction for Managers , 1988 .

[5]  Thomas Monath,et al.  Economics of fixed broadband access network strategies , 2003, IEEE Commun. Mag..

[6]  Oz Shy.  A Short Survey of Network Economics , 2010 .

[7]  Ronald R. Luman,et al.  Upgrading Complex Systems of Systems: A CAIV Methodology for Warfare Area Requirements Allocation , 2000 .

[8]  K Stordahl,et al.  Broadband access forecasts for the European market , 2002 .

[9]  María Rosalía Vicente,et al.  Assessing the broadband gap: From the penetration divide to the quality divide , 2010 .

[10]  Thomas Monath,et al.  Technoeconomic evaluation of the major telecommunication investment options for European players , 2006, IEEE Network.

[11]  K Stordahl,et al.  Models for forecasting cost evolution of components and technologies , 2004 .

[12]  Tao Yao,et al.  Demand Learning and Dynamic Pricing under Competition in a State-Space Framework , 2012, IEEE Transactions on Engineering Management.

[13]  Muharrem Mane,et al.  Variable Resource Allocation Using Multidisciplinary Optimization: Initial Investigations for System of Systems , 2004 .

[14]  Kenneth Alan De Jong,et al.  An analysis of the behavior of a class of genetic adaptive systems. , 1975 .

[15]  Solomon Negash,et al.  Telecommunication Investment in Economically Developing Countries , 2006 .

[16]  Salvatore R. Mangano.  A Genetic Algorithm White Paper , 2007 .

[17]  C. Fleisher,et al.  Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition , 2002 .

[18]  P. Sridhar,et al.  Towards optimization of a real-world Robotic-Sensor System of Systems , 2006, 2006 World Automation Congress.

[19]  Xielin Liu,et al.  Diffusion of Mobile Telephony in China: Drivers and Forecasts , 2012, IEEE Transactions on Engineering Management.

[20]  Miguel Vidal,et al.  Investment in telecommunications infrastructure, growth, and employment - recent research , 2011 .

[21]  Paul Schreyer,et al.  ICT Investment in OECD Countries and Its Economic Impacts , 2004 .

[22]  Pantelis Koutroumpis,et al.  The economic impact of broadband on growth: A simultaneous approach , 2009 .

[23]  Daniel DeLaurentis,et al.  A taxonomy-based perspective for systems of systems design methods , 2005, 2005 IEEE International Conference on Systems, Man and Cybernetics.

[24]  Ignacio Melgar,et al.  Optimization of System-of-Systems architectures for maritime border control using genetic algorithms , 2010, IECON 2010 - 36th Annual Conference on IEEE Industrial Electronics Society.

[25]  Sumit K. Majumdar,et al.  Broadband adoption, jobs and wages in the US telecommunications industry , 2008 .

[26]  Dimitris Varoutas,et al.  A System of Systems Framework for the Reliability Assessment of Telecommunications Networks , 2013, IEEE Systems Journal.

[27]  Sofie Verbrugge,et al.  A clear and balanced view on FTTH deployment costs , 2008 .

[28]  Javier Huerta Bravo,et al.  DIGITAL AGENDA FOR EUROPE , 2011 .

[29]  Daniel DeLaurentis.  Appropriate modeling and analysis for systems of systems: Case study synopses using a taxonomy , 2008, 2008 IEEE International Conference on System of Systems Engineering.

[30]  Shad Dowlatshahi,et al.  A Multiobjective Distribution-Pricing Model for Multiperiod Price-Sensitive Demands , 2013, IEEE Transactions on Engineering Management.

[31]  Thomas Sphicopoulos,et al.  The financial perspective of the mobile networks in Europe , 2001, IEEE Wirel. Commun..

[32]  Timo Smura,et al.  Alternatives for mobile operators in the competitive 3G and beyond business , 2009, Telecommun. Syst..

[33]  Dimitris Varoutas,et al.  Cost Analysis of WDM and TDM Fiber-to-the-Home (FTTH) Networks: A System-of-Systems Approach , 2012, IEEE Transactions on Systems, Man, and Cybernetics, Part C (Applications and Reviews).

[34]  K. Dejong,et al.  An analysis of the behavior of a class of genetic adaptive systems , 1975 .

[35]  Soumitra Dutta and Augusto López-Claros and Irene Mia.  Global Information Technology Report 2008-2009: Mobility in a Networked World , 2009 .