@ARTICLE\{IMM2004-03457,
    author       = "H. M. Sigurdsson and S. Thorsteinsson and T. K. Stidsen",
    title        = "Cost optimization methods in the design of next generation networks",
    year         = "2004",
    keywords     = "Packet networks, Telephone exchanges, Cost benefit analysis, Cost effectiveness, Optimization, Mathematical Models, Computer simulation",
    pages        = "118-122",
    journal      = "{IEEE} Communication Magazine",
    volume       = "42",
    editor       = "",
    number       = "9",
    publisher    = "",
    url          = "http://www2.compute.dtu.dk/pubdb/pubs/3457-full.html",
    abstract     = "A key development of telecommunication systems during the past two decades has been the evolution from the circuit-switched network toward the packet-switched network paradigm. Many operators are now migrating their PSTNs from circuit switched into multipurpose packet switched networks. This new approach is often called the next-generation network (NGN). {NGN} enables network operators to run ali services (i.e., voice, data and video) on one network. In this article the migration of Iceland Telecom's circuit-switched {PSTN} toward {NGN} will be described. A cost model of the telecommunications system has been developed to enable cost and benefits analysis of transforming the network to {NGN}. Methods of optimization and their application to determine the optimal number and position of nodes in the future network will be described. The optimization produces a network structure with the lowest possible total cost of ownership, and the model can also indicate how deviations from the optimum affect cost. The feasibility of {NGN} can be assessed by comparing the cost of {NGN} migration to that of maintaining the current circuit-switched network."
}