Market Coverage and Service Quality in Digital Subscriber Lines Infrastructure Planning

Abstract

Digital subscriber lines (xDSL) belong to a family of technologies that provide the ability to transmit digital data over local telephone (copper) infrastructure. As the second most popular broadband platform in the United States, it is estimated that over twenty-five million xDSL lines are in service, capturing nearly 30 percent of the U.S. broadband market. While the service range of xDSL is somewhat limited, often extending to a maximum of 18,000 feet from a central office (CO), available bandwidth also decays as distance increases from the CO. As a result, there are often marked disparities in the quality of xDSL service within market areas. This article proposes a bi-objective location model for maximizing both service coverage and quality of coverage in siting digital subscriber line access multiplexers (DSLAMs). An application of the developed model highlights important implications for telecommunication policy.