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Project Descriptions Return to Service Overlay Networks Projects

An economic modeling of the Service overlay networks capacity allocation problem
 

Researchers: Ngok Lam, Ph.D. Student & Prof. Lorne Mason

Description:

Implementing and realizing SON is seemingly trivial under the current technology. The greatest challenge for the deployment of a SON to success is whether it is economically attractive to the industry. One of the major issues is to maximize the expected profit while providing all the required guarantees by the regulating agencies. This introduce two inter-related constrained optimization problems into the SON design, namely the optimal routing problem and the optimal design problem. To realize the SON network economically is a major issue that needs to be handled in order for the SON to be deployed profitably and successfully. This includes solving the SON gateway deployment problem and the bandwidth provision problem. The bandwidth provision problem is in particular the critical part as it incurs a dominant recurring cost. By using an explicit economic price-demand relationship, we study a relaxed (yet more challenging) instance of the design problem. The solution of our economic model does not only provide solution to the optimal routing problem and the optimal design problem, it also provides the optimal service charges for the SON services. In this study we provide two pieces of original contributions. First we solve the capacity allocation problem in an economic framework by taking account of the price-demand relationship, second we showed that a much simplified optimization approach can be employed to obtain high-quality solutions.

Publications:

N. Lam, Z. Dziong and L.G. Mason, An economic modeling of the Service overlay networks capacity allocation problem, in preparation