Skip to main content
Log in

Multistage stochastic programming in strategic telecommunication network planning

  • Original Paper
  • Published:
Computational Management Science Aims and scope Submit manuscript

Abstract

Mobile communication is taken for granted in these days. Having started primarily as a service for speech communication, data service and mobile Internet access are now driving the evolution of network infrastructure. Operators are facing the challenge to match the demand by continuously expanding and upgrading the network infrastructure. However, the evolution of the customer's demand is uncertain. We introduce a novel (long-term) network planning approach based on multistage stochastic programming, where demand evolution is considered as a stochastic process and the network is extended so as to maximize the expected profit. The approach proves capable of designing large-scale realistic UMTS networks with a time horizon of several years. Our mathematical optimization model, the solution approach, and computational results are presented.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Birge JR, Louveaux F (1997) Introduction to stochastic programming. Springer series in operations research and financial engineering. Springer, Berlin

    Google Scholar 

  • Bundesnetzagentur: Jahresbericht 2009

  • Dentcheva D, Ruszczyński A, Shapiro A (2009) Lectures on stochastic programming. Modeling and theory. SIAM

  • Geerdes HF (2008) UMTS radio network planning: mastering cell coupling for capacity optimization. PhD thesis, Technische Universität Berlin

  • Glasserman P (2003) Monte Carlo methods in financial engineering, stochastic modeling and applied probability, vol. 53. Springer, Berlin

    Google Scholar 

  • Harmantzis FC, Ramirez W, Tanguturi VP (2007) Valuing wireless data services solutions for corporate clients using real options. Int J Mobile Commun 6(3): 259–280

    Google Scholar 

  • Heitsch H (2007) Stabilität und Approximation stochastischer Optimierungsprobleme. PhD thesis, Humboldt-Universität zu Berlin

  • Heitsch H, Römisch W (2009) Scenario tree modeling for multistage stochastic programs. Math. Program. 118: 371–406

    Article  Google Scholar 

  • IBM ILOG CPLEX Optimizer. http://www.cplex.com

  • Koch T (2004) Rapid mathematical programming. PhD thesis, Technische Universität Berlin

  • Laiho, J, Wacker, A, Novosad, T (eds) (2006) Radio network planning and optimisation for UMTS. Wiley, New York

    Google Scholar 

  • Nawrocki, M, Aghvami, H, Dohler, M (eds) (2006) Understanding UMTS radio network modelling, planning and automated optimisation: theory and practice. Wiley, New York

    Google Scholar 

  • Schweiger J (2010) Application of multistage stochastic programming in strategic telecommunication network planning. Diploma thesis, Technische Universität Berlin

  • Shreve SE (2004) Stochastic Calculus for finance II: continuous-time models. Springer finance. Springer, Berlin

    Google Scholar 

  • Trigeorgis L (1996) Real options–managerial flexibility and strategy in resource allocation. The MIT Press, Cambridge

    Google Scholar 

  • Wang T (2005) Real options “in” projects and systems design—identification of options and solution for path dependency. PhD thesis, Massachusetts Institute of Technology, Massachusetts

  • Wang T, de Neufville R (2004) Building real options into physical systems with stochastic mixed-integer programming. Prepared for the 8th real options annual international conference, Montreal, Canada

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jonas Schweiger.

Additional information

This work is based on a diploma thesis in mathematics by Jonas Schweiger at Technische Universität Berlin, Germany.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Eisenblätter, A., Schweiger, J. Multistage stochastic programming in strategic telecommunication network planning. Comput Manag Sci 9, 303–321 (2012). https://doi.org/10.1007/s10287-012-0143-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10287-012-0143-5

Keywords

Navigation