Optimizing Network Designs for the World’s Largest Broadband Project

Abstract

The national broadband network (NBN) is the largest public infrastructure project undertaken in Australia, and NBN Co is the government-owned company responsible for building the network. By using operations research, NBN Co expects to avoid more than $AUD1.7 billion in unnecessary construction and design costs on this $AUD36 billion project. At the beginning of this 10-year project, NBN Co divided the country into more than 3,000 fiber-serving-area modules (FSAMs), each covering approximately 2,500 premises, and will design and construct one FSAM each day. NBN Co contracted with Biarri Networks, an Australian commercial mathematics company, to optimize the design task. To accomplish this, Biarri created a fiber-optic network design (FOND) software product based on a network-flow mixed-integer programming engine. This engine minimizes the cost of materials and labor for each FSAM, subject to a variety of constraints, and provides a solution in less than five minutes. To date, more than 650 FSAM designs have been completed using FOND. This has saved NBN Co an estimated $AUD325 million in avoided construction cost, and the planning time per FSAM has decreased from 145 to 16 days.

Analysing the complexity of the model-based decision making processes within the industrial management context

“…For example, the environmental project (Eijgenraam et al, 2014) reported the highest savings of 7.8 billion euros. Some projects are implemented in multiple companies (Humair et al, 2013) or multiple years (Hu et al, 2015), meanwhile others are single shots projects (Ferris et al 2015, Bunomo et al 2013.…”