A Generalized Cost Model for Techno-Economic Analysis in Optical Networks

Techno-economic analysis (TEA) plays a vital role in assessing the feasibility and scalability of emerging technologies, especially in the context of innovation and development. Central to any effective TEA is a reliable and detailed model of capital and operational costs. This paper reports the development of such a model for optical networks in the framework of the SEASON project, aimed at supporting a broad spectrum of techno-economic evaluations. The model is constructed using publicly available data and expert insights from project participants. Its generalizable design allows it to be used both within the SEASON project and as a reference for other studies. By harmonizing assumptions and cost parameters, the model fosters consistency across different analyses. It includes cost and power consumption data for a wide range of commercially available optical network components (including transceivers for point-to-multipoint communications), introduces a statistical framework for estimating values for emerging technologies, and provides a cost model for multiband-doped fiber amplifiers. To demonstrate its practical relevance, the paper applies the model to two case studies: an evaluation of how the cost of various multiband node architectures scales with network traffic in meshed topologies and a comparison of different transport solutions to carry fronthaul flows in the radio access network.