Application of Parametric Cost Estimation Model to Telecommunication Networks

The parametric cost estimation approach has proved to be an efficient method for analyzing complex systems such as spacecraft, missiles, ships, buildings, etc where cost varies according to a number of parameters. The cost to provision a telecom network also depends on a number of parameters; but little research effort has been applied to estimate cost using this approach. In estimating the cost of a telecom network, most published research has considered two parameters; distance and bandwidth of a link and ignored the effects of other parameters. We have modelled the cost based on distance, bandwidth, geographical terrain and technology simultaneously using a parametric cost estimation methodology applied to real data obtained from the Indian Telecom Company, BSNL. Using the model, we show how a cost optimized network can be designed given the real world constraints. The applicability of our model to determine revenue sharing mechanism for an international call is also demonstrated.