Optimization of network topologies for service providers in the telecommunications market

Following the deregulation of communications services, a growing number of commercial providers are offering global voice and data communications services via rented infrastructures. These service providers are faced with the challenge to determine cost-effective network-topologies, considering both the variety of contractual arrangements with national and international network providers, and the communication profiles of their customers. This paper introduces a planning model for solving the optimization problem outlined above. The model is evaluated on the basis of mixed-integer optimization. Practical deployment of this approach is discussed with respect to the run-time characteristics of the MIP solvers. Subsequently, a genetic algorithm is applied to the model and the results are compared to those of the mixed-integer optimization.