International Journal of Advanced Engineering Research and Technology (IJAERT) 19

Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190

Numerical-based analysis for cost-effectiveness verification of Long-reach

Optical access networks

Ibrahim M M Mohamed*
*(Department of Electrical Engineering, Faculty of Engineering, Omar Al-Mukhtar University, Libya
Email: engibrahim_2007@yahoo.com)

ABSTRACT services, such as voice over Internet Protocol (VoIP) and

The increase and accelerate demand for higher
bandwidth per user, leads to an inevitable evolution from
the currently deployed passive optical networks (PONs)
to next-generation optical access networks (NG-OANs).
The NG-OANs are not only expected to fulfilling the
bandwidth requirement, but also required to overcome
the limitations of existing Time-division multiplexing
TDM-based PONs, such as low capacity, limited reach,
and restricted mobility. In addition to satisfying the
aforementioned requirements, NG-OANs should also
provide a decrease in the cost-sharing of the bandwidth
production cost to maintain a consistent gap between
their steadily increased revenues and the incremental
increase in bandwidth production cost as both functions
of time, i.e. avoid the so-called margin erosion. Different
architectures for creating a NG-OAN have been
proposed in the literature; among them are the so-called
Long-reach Optical access networks (LR-OANs). LR-
OANs offer an attractive solution as they are expected to
be able to satisfy the latter requirement. In this paper, the
cost-effectiveness of the LR-OANs was verified using
numerical analysis. The analysis confirms the cost-
effectiveness of the LR-OANs as they have the lowest
cost-sharing and thus the cheapest cost/user as compared
with the currently deployed PONs.
Keywords - passive optical networks (PONs), gigabit-
class PONs, next-generation optical access networks
(NG-OANs), bandwidth production cost.
I. INTRODUCTION
The TDM-based PONs are currently being deployed in
many countries because they have significantly higher
capacity than traditional copper-based access networks.
These networks allow for the delivery of broadband
video on demand (VoD). There are three main TDM-
based PONs, the Broad band PON (B-PON [G.983]), the
Ethernet PON (E-PON [IEEE802.3ah]), and the gigabit
PON (G-PON [ITU-T G.984]). While B-PON and G-
PON were standardized by the International
Telecommunications Unions Telecommunication
Standardization Sector (ITU-T) [1]-[6], E-PON was
standardized by the Institute of Electrical and Electronics
Engineers (IEEE) [7]. Because TDM-based PONs
provide an adequate bandwidth segment to each user
compared with the copper-based access networks, they
were envisioned as the ultimate solution to the problem
of increased bandwidth demand. However, their capacity
has been exhausted because of the newly developed
high-bandwidth-consuming services, such as high-
definition television (HDTV) and 3D television (3D-
TV). In addition to satisfying the aforementioned
requirements, NG-OANs should also provide a decrease
in the cost-sharing of the bandwidth production cost to
maintain a consistent gap between their steadily
increased revenues and the incremental increase in
bandwidth production cost as both functions of time, i.e.
avoid the so-called margin erosion. Different
architectures have been proposed in the literature to
create an NG-OAN scheme that is able to satisfy
particular sets of these limitations. Among them are the
so-called Long-reach Optical access networks (LR-
OANs). LROA was initially proposed to overcome some
of the limitations of the existing PONs, such as their
limited range. A worth-mentioning point is the
significant potentiality of improving the cost-sharing
where LR-OANs is adopted as the NG-OAN technology.
This is due to the potential increase in splitting ration,
which would lead to support a larger number of users
over a common fiber. The contribution of this paper is
the verification of the cost-effectiveness of the LR-

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 International Journal of Advanced Engineering Research and Technology (IJAERT) 20
OANs using numerical analysis. The paper is organized
as follows: section 2 provides a review of different LR-
OAN proposals, a discussion on cost consideration in
access networks is provided in section 3, details of the
numerical-based cost analysis is provided in section 4,
further discussion of cost-effectiveness opportunities in
LR-OANs is provided in section 5, section 6 concludes
the paper.
II. OVERVIEW OF LR-OANs
LR-OANs were first proposed based on TDM schemes
in which a single wavelength is shared by numerous
ONUs. The networks were subsequently proposed based
on hybrid TDM/CWDM and TDM/DWDM schemes.
The photonic local access network project (PLANET)
was initiated in the mid-1990s to develop a cost-
effective and full-service access network, called a super
passive optical network (SuperPON). The SuperPON
was developed based on a possible upgrade to the G.983
architecture (broadband PON [BPON architecture]). The
architecture was able to support 2,048 ONUs at a line
rate of 2.5 Gbps downstream/ 311 Mbps upstream over
100 km reach through a partially passive distribution
section. However, a complex gating protocol was
employed to overcome the noise funneling effect caused
by the incompletely passive distribution section [8]. The
long-reach PON (LR-PON) architecture was developed
for British Telecom [9] to satisfy the anticipated growth
of bandwidth demand and to consolidate the number of
central office sites throughout the country. Although the
architecture could support 1,024 ONUs, which is half of
the number supported by the SuperPON, the LR-PON
has a completely passive distribution section and thus
does not suffer from the noise funneling effect. The
hybrid TDM/CWDM LR-PON was proposed in [10].
Figure 1 The proposed LR-OAN architecture
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Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190
Because the main challenge in this architecture was the
necessity to perform a wideband optical amplification in
both directions due to the relatively large CWDM grid
used, an SOA-Raman hybrid amplifier was used. The
architecture was able to support up to 128 ONUs over a
60 km range by combining four TDM-PONs using a
CWDM grid. The hybrid TDM/DWDM-LR-OAN
architecture was proposed in [11] based on the
employment of a centralised optical carrier distribution
and wavelength-independent remote modulation
schemes. The architecture was able to support up to
4,352 ONUs over a 100 km range by combining 17
TDM-PONs using a DWDM grid. The long-reach
optical access architecture proposed in [12] was
developed based on using a wavelength conversion
technique, i.e., rather than using a wavelength-specific
laser in the ONU, a wavelength converter is inserted into
the distribution fibre to convert the unstable wavelength
that is produced by the ONU to a stable DWDM
wavelength before transmission over the backhaul fibre.
This technique led to further reductions in cost because
cooling equipment was not required in the ONU. The
long-reach wavelength-converted PON was able to
support 1,280 users over 120 km with a minimum data
rate of 38.8 Mbps for each. Minwan Jung et al proposed
a hybrid DWDM/TDM- long-reach PON in [13]. The
architecture was developed based on using a bismuth-
based bidirectional EDFA. The architecture was able to
allow for bidirectional transmission at a line rate of a 10
Gbps over 75 km reach with 8 split users. The author
proposed a hybrid TDM/DWDM LR-OAN scheme in
[14] which was illustrated in Figure 1.
 International Journal of Advanced Engineering Research and Technology (IJAERT) 21
Table 1 LR-OANs architectures
The architecture was developed based on exploiting the
properties of the Erbium-doped fiber amplifier EDFA
and arrayed waveguide grating AWG. Whereas the
AWG was used to achieve frequency re-use and increase
the efficiency, the EDFA was incorporated to extend the
reach and increase the splitting ratio.
Furthermore, the EDFA adds a new dimension by
allowing for a simpler and more evolved network in
which service can be provided through 100 km backhaul
fibers to 15 regions. Each region can provide service to
up to five zones, with different bit rates for each, through
feeder fibers used with either a multi- or single-fiber
approach. Each zone can accommodate up to 768 ONUs.
Table 1 provides a summary of the aforementioned LR-
OAN architectures.
III. COST CONSIDERATION IN ACCESS
NETWORKS
In addition to satisfy the increased demand for broader
bandwidth, telecom operators are getting the benefit for
compensation their decline in revenues faced by the
traditional fixed telephony. Of course, operators could
significantly increase the capacity of their network by
providing broadband access. However, there will be a
consequent increase in the cost for doing so. It is worth
mentioning that while consumers are ready to pay more
for higher speed internet access, the amount they are
able to pay does not satisfy does not satisfy the
operators' aspirations. I.e. it does not increase in
proportional with the increase in the bandwidth cost,
which leads to the so-called margin erosion [15].
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Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190
To avoid this critical situation and thus satisfying their
economic aspirations, operators become required to
follow one of the two essential strategies. The first
strategy states that operators must develop new services
that attract consumers' attention and thus stimulate them
to spend more for telecoms. The second strategy states
that operators must find a way to reduce the cost of the
bandwidth in their networks. While the first strategy
seems very challenging, the second strategy can be
achieved by reducing the cost of the underlying
technologies used to build the access networks. It has
been reported that the cost of the underlying electronic
and optical technologies decreases as their product
volume increases following a nearly 80 % learning curve
[16], which leads to a similar decrease in the bandwidth
cost. The so-called learning curve is defined as the
percentage reduction in the price of a product as the
accumulated volume of that product doubles. I.e. the
price of the product at volume 2V will be nearly 80 % of
its price at volume V. However, it has also been reported
that a bandwidth cost reduction with a learning curve of
much less than 80 % is required for future service
scenarios in which the bandwidth increase by 50 %.
Based on the above discussion, a further strategy aiming
for bandwidth cost reduction should be followed by the
telecom operators as the underlying components (fibers,
lasers, etc.) do not reveal price reduction at the required
rate. For example, the number of nodes in the network
and the number of boxes in each node should be
reduced. I.e. in a nutshell, there should be a way to
simplify the whole network.
 International Journal of Advanced Engineering Research and Technology (IJAERT) 22
Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190

Table 2 Major optical equipments required in the access part of the proposed
LR-OANs and their corresponding cost

IV. NUMERICAL-BASED COST

ANALYSIS

The long-reach optical access, proposed by the author in

The comparison was based on estimating the cost of the
[14] was chosen to perform this analysis. As mentioned
major optical components required for supporting a
above, the proposed LR-OAN offers a cost-effective
specific number of users. This helps to estimate the cost-
solution in which the cost-sharing of the optical access
sharing in each architecture and thus evaluating the cost
system is improved by increasing the splitting ration.
per user. In the proposed LR-OAN, the number of user
This feature of high splitting ration helps in supporting
supported in each zone is 768 users.
large number of users, which ensures more efficient
sharing of fiber, components, and rack space, and thus Table 2 provides list of the optical equipments, required
minimizing the cost per user. To verify the cost to support this number of user. It also provides the
effectiveness of our proposed LR-OAN, we made a corresponding cost per optical equipment.
numerical-based cost comparison between the currently
deployed TDM-based PONs (B-PON1[6 user/pon
segment], E-PON [32 user/pon segment], and G-PON
[64 user/pon segment]) and our proposed LR-OAN.

Table 3 Major optical equipments required in the currently deployed TDM-

PONs and their corresponding cost

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 International Journal of Advanced Engineering Research and Technology (IJAERT) 23
Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190

Cost vs Number of user

16 user/pon segment
300000
250000 32 user/pon segment
Cost (USD)

200000
150000 64 user/pon segment
100000
50000 LR-OAN (multi-fiber
0 approach is
0 2000 4000 6000 considered)
LR-OAN (single-fiber
Number of user approach is
considered)
Figure 2 Cost-sharing comparison between the proposed architecture and the
previously deployed TDM-PON architectures.

Both the multi-fiber and single-fiber approaches are

considered in the cost analysis. Table 3 provides list of
the optical equipments, required to support an identical
number of user (i.e. 768 users) where 16 user/TDM-
PON segment, 32 user/TDM-PON segment, or 64
user/TDM-PON segment is considered. It also provides
the corresponding cost per optical equipment. The cost
of optical components was achieved via the Internet by
accessing the Fiberstore website (www.fiberstore.com).
Figure 2 shows the graphical representation of the cost-
sharing analysis where the proposed LR-OAN
architecture and the aforementioned TDM-PONs are
considered.
It is obviously seen from the graphical representation
that among all architectures considered in the cost
analysis, the proposed LR-OAN has the lowest cost-
sharing expense and thus the cheapest cost/user. The
graphical representation also reveals further
improvement in the cost-sharing expense in the case in
which the single-fiber approach is considered, which
leads to further reduce in the cost/user. Figure 3 is
intended to show this improvement clearly.

Cost vs Number of user

60000
50000 LR-OAN (multi-fiber
Cost (USD)

40000 approach is
considered)
30000
LR-OAN (single-fiber
20000 approach is
10000 considered)
0
0 2000 4000 6000
Number of user

Figure 3 Cost-sharing comparison between the multi-fiber approach and the

single-fiber approach

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 International Journal of Advanced Engineering Research and Technology (IJAERT) 24
Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190

V. FURTHER COST-EFFECTIVENESS VI. CONCLUSIONS

OPPRTUNITIES OF LR-OANs
In addition to improves the cost sharing, adopting the
LR-OAN approach could lead to consolidate the number
of central offices into one trunk exchange by combining
the access and metro segments of the telecommunication
network into a backhaul segment. I.e. the end users can
be connected directly to the core network rather than
being switched through central offices. The reduction in
the central offices helps in achieving significant and
desirable goal of minimizing the operational expenditure
of an operator. Moreover, combining both the access and
metro segments into one backhaul segment also means
that the metro equipments (Synchronous optical network
[SONET]/ Synchronous digital hierarchy [SDH]) will be
eliminated. This would in turn lead to a further reduction
in the bandwidth cost. Figure 4 (a) illustrates both the
metro and access segments, while Figure 4 (b) shows a
simplified LR-OAN architecture.
Another worth-mentioning point is that the reduction in
the network equipment would also lead to a consequent
reduction in the power consumption.
In this paper, the cost-effectiveness of the LR-OANs
was verified using numerical-based analysis. The
analysis shows that the LR-OANs have the lowest cost-
sharing and thus the cheapest cost/user as compared with
the currently deployed PONs (B-PON, E-PON, and G-
PON). Summary of some potential cost-effectiveness
opportunities of the LR-OANs were also provided to
pave the road for further cost analysis.
REFERENCES
[1] ITU-T, Recommendation G.983.1, Broadband
Optical Access Systems Based on Passive Optical
Networks (PONs), 1998.
[2] ITU-T, Recommendation G.983.2, ONT
Management and Control Interface Specifications for
ATM PON, 2000.
[3] ITU-T, 2001, Recommendation G.983.3, A
Broadband Optical Access System with Increased
Service Capability by Wavelength Allocation, 2001.

Figure 4. (a) Metro and Access segments in a telecommunication network, (b) Simplified
LR-OAN architecture

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 International Journal of Advanced Engineering Research and Technology (IJAERT) 25
Volume 5 Issue 2, February 2017, ISSN No.: 2348 8190

[4] ITU-T, Recommendation G.984.1, Gigagbit-
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