Computer Modeling of the Local Telephone Network

Abstract

In this paper, we describe the structure and operation of an innovative computer-based model of the local exchange telephone network known as the HCPM. This model can be used in a variety of regulatory arenas, since it provides a regulatory agency with an independent source of information about the forward-looking costs of providing local telephone service. The model can also be used more broadly by governmental agencies in planning for infrastructure development, expanding telephone service to currently unserved areas, or, as in the case of the U.S., designing an efficient universal service program. The HCPM represents an advance over previous models in its ability to build plant to precise customer locations if data are available, while retaining the flexibility of being able to produce good results even with more highly aggregate location data such as those available from the U.S. Census.