Analysis of service operations cost for TDM and packet tandem networks

David Tsay · Bell Labs Technical Journal · 2002

Lucent Technologies has developed operations cost models to compare the trunk operations cost of the present method of operations (PMO) time division multiplexed (TDM) tandem networks and the future method of operations (FMO) packet-based networks. These models take into account three factors: network and service architectures, operations processes, and operations support system (OSS) efficiency. The models consist of parameters whose values can be adjusted to reflect customer-specific network architecture, operations environment, and cost benchmarks. By applying the models to some realistic customer PMO and FMO tandem network applications, we found that substantial operations cost savings can be realized in voice trunk provisioning and maintenance. The FMO per-trunk provisioning cost savings range from about 35 to 62% of the PMO cost, depending on the extent to which the voice gateway (VG) function is distributed in the packet tandem network. The corresponding FMO trunk maintenance cost savings range from about 20 to 40% of the PMO cost. In this paper, we demonstrate that combining asynchronous transfer mode (ATM) switched virtual channel (SVC) technology with a distributed VG network architecture is the biggest contributor to FMO cost savings.

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