NDLI: Cost Analysis of China IP Network Based on Improved Cost Proxy Model

Content Provider	IEEE Xplore Digital Library
Author	Zixing Qin Zhanhong Xin Yunjin Fu Jun Wu
Copyright Year	2008
Description	Author affiliation: Sch. of Econ. & Manage., Beijing Univ. of Posts & Telecommun., Beijing (Zixing Qin; Zhanhong Xin; Yunjin Fu; Jun Wu) An improved cost proxy model is established in the following, where the extreme imbalance between urban and rural area as well as complicated geographic environment of China was taken into consideration. On the one hand, new parameters were introduced into scene variant vector so as to prescribe urban and rural differences and also topographical differences. On the other hand, in order to analyze network cost rather than business cost, original agent factors such as labor and capital price multiplexers are weakened, while scene vector which embodies region area, average density, average commitment bandwidth per user etc., were highlighted. Based on the improved cost proxy model, we built the China IP network cost optimization model employing engineering approach, and cost functions were then obtained through econometric analysis on a large number of simulation data. The results verify scope economies of telecommunications network cost, and prove the fact from the empirical point of view that IP voice service, whose bandwidth demand is much less than broadband access service, has to cross-subsidize the latter one. The conclusions provide both operators and regulation agencies with theoretical basis for development of IP voice services charges and implement of price control.
Starting Page	669
Ending Page	674
File Size	426862
Page Count	6
File Format	PDF
ISBN	9780769534978
DOI	10.1109/IITA.2008.429
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2008-12-20
Publisher Place	China
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Analytical models Synchronous digital hierarchy Layout Bandwidth Cities and towns Cost function Wavelength division multiplexing cross subsidies IP networks Econometrics subadditive cost Information analysis
Content Type	Text
Resource Type	Article

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4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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