Abstract We presented a concept of converged coexistence (CC) access network and generate, and test model is demonstrated for optimization of channel launch power PTODN in the distribution network which subsequently confirm power budget class of NG-PON2 in this paper. Multiplexing of wavelength and time (TWDM) technology is incorporated for multichannel NG-PON2 configurations for 5G, internet-of-things (IoT) applications, and fiber-to-the-x (FTTX) services. CC NG-PON2 symmetric configuration supporting 2.5 and 10 Gbps channels are analyzed and compared in the sight of channel nonlinear impairments includes Kerr-effect (γ) spanning from self phase modulation (SPM) and cross-phase modulation (CPM), chromatic dispersion (CD), and four wave mixing (FWM) in worst-case scenario. Intensity modulation (IM) technique incorporated before multiplexing the D/S channels by coexisting element (CEx) and coupled to wavelength routed (WR) optical distribution network (ODN). U/S channels are routed using wavelength select (WS) ODN. ODN is implemented using G.652 non zero dispersion shift (NZ-DSF) single-mode (SM) fiber. Multi-channel spectrum envelope propagating in either direction is optimized to PTODN = 3/5/7/9 dBm and 4 dBm, respectively. The theoretical modeling and simulative results confirms the proposed network configuration supports incremental receiver sensitivity (Rxs) as −42.19/−42/−39.75/−37.97 dBm and −35.45/−35.38/−33.45/0.38/−42 dBm for λ1 2.5 Gbps and λ8 10 Gbps TWDM and PtP WDM channels, respectively, for all-class networks supporting splitter configuration ratio of 640 at 50 km mitigating effect of channel nonlinearities like CD, SPM, cross-phase modulation (XPM), and FWM for λ8 10 Gbps channel.