The availability requirements for today's networks are very high. Higher availability often comes with a higher cost. We describe several steps required for estimating the costs of realistic network scenarios. Capital expenditures (CapEx) and operational expenditures (OpEx) are classified. An activity-based approach is used to quantify the cost of the event-driven operational processes such as repair and service provisioning. We discuss activity duration and availability parameters as required input data, which are necessary for calculating the processes' costs for realistic network scenarios. The relevant availability measures for an IP-over-Optical network are described using a triplet representation with optimistic, nominal, and conservative values. The model is applied to a reference German network scenario.

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GMPLS is promoted as a major technology for the automation of network operations. It is often claimed to allow the reduction of operational expenses. However, detailed analysis and quantitative evaluation of the changes induced by such technologies is very rare. In this article we quantify the cost reduction potential of GMPLS. We present a detailed analysis and modeling of traditional operator processes. We also develop a model for the expected changed processes when using GMPLS and identify the differences quantitatively. A survey with major telecom operators has been done, and the process models have been verified and parameterized. This allowed quantitative evaluations of the OPEX changes with GMPLS. The results show that, depending on the network operator's processes, different impacts can be expected. As an overall result we could verify that a reduction on the order of 50 percent of OPEX can be expected for most operational models

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