Teletraffic Engineering - Teletraffic Economics and Forecasting

Teletraffic Economics and Forecasting

As mentioned in the introduction, the purpose of teletraffic theory is to reduce cost in telecommunications networks. An important tool in achieving this goal is forecasting. Forecasting allows network operators to calculate the potential cost of a new network / service for a given GoS during the planning and design stage, thereby ensuring that costs are kept to a minimum.

An important method used in forecasting is simulation, which is described as the most common quantitative modelling technique in use today. An important reason for this is that computing power has become far more accessible, making simulation the preferred analytical method for problems that are not easily solved mathematically.

As in any business environment, network operators must charge tariffs for their services. These charges must be balanced with the supplied QoS. When operators supply services internationally, this is described as trade in services and is governed by the General Agreement on Trade in Services (GATS).