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The analytical modeling for linear and non-linear impairments (LNI) for single mode fiber (SMF) and simulative analysis of extended power budget class-1 i.e. E1-class of next generation passive optic network-2 (NG-PON2) is presented in the paper. The proposed power-budget class time and wavelength division multiplexing (TWDM) based NG-PON2 network configuration is delivering symmetric 2.5 point-to-multi point (PtM) representing time and TWDM XGS-PON along with 10 Gbps point-to-point (PtP) wavelength division multiplexing (WDM) symmetric and coexistent channels (Ch) in worst-case scenario. Channel modelling of LNI is carried out under the incremental and aggregate strain of estimated chromatic dispersion CD, self-phase modulation (SPM), cross-phase modulation (XPM) of single mode fiber (SMF) channel deployed in optical distributing network (ODN) between 20 and 50 km link lengths. Downlink (D/L) and uplink (U/L) ODN is optimized to PT ODN = 7.1 dBm and 4.09 dBm, respectively and corresponding channel imparities including Kerr parameter γ , corresponding SPM, XPM, CD, four-wave mixing (FWM) analysis and corresponding component power and efficiency, interchange crosstalk ( Cc ) attracting power penalties ( Pc ) are estimated and incorporated in the simulation for the real response of lossy SMF channel. Further, splitter power budget (SP) and slitter configuration for respective PtM and PtP D/L Ch are estimated under the aggregate impact of CD, SPM, XPM and FWM. Analytical modeling of LNI and simulative analysis has confirmed the configuration delivered rise in receiver sensitivity (Rxs) of − 39.75/− 33.45 dBm and − 29/− 35.34 dBm for D/L and U/L Ch respectively. The estimated power of FWM element is between 1.34 × 10 −52 to 2.15 × 10 −53 and 3.87 × 10 −52 to 2.41 × 10 −51 contributing crosstalk between Ch ( Cc ) of − 31.97/− 30.12 dB for down/up spectrum under the impact of SPM and XPM respectively accommodating splitter configuration of 768 at 40 km.