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This paper introduces a practical comprehensive approach to optimize the cost of installed Optical Transport Network (OTN) interfaces, as well as the required number of wavelengths in the substrate Wavelength Division Multiplexing (WDM) optical network. The approach assumes grooming variable-bit-rate traffic demands on multi-rate OTN interfaces. We propose an Integer Linear Programming (ILP) formulation to address the combined problem of OTN interface deployment, virtual-network formation, traffic grooming on the established distinct-capacity virtual paths, and virtual network embedding on the WDM physical substrate. The presented model focuses on mitigating the capital expenditure required to deploy OTN interfaces, usually the most costly element in the network, as well as minimizing the required number of wavelengths in the Routing and Wavelength Assignment (RWA) problem, contributing to the overall reduction in network costs and ensuring open capacity for future expansions. As the RWA problem is NP-hard and involves significant computational costs, we also propose a multi-step heuristic approach to tackle larger network instances more efficiently. In this approach, the optimization steps for the OTN design and the RWA solutions are conducted independently. For the OTN-layer planning, the optimum ILP formulation (OTN-ILP) is maintained, so that the optimum solution for the cost of installed interfaces on the OTN layer is guaranteed. The RWA problem is proposed through either an ILP formulation (RWA-ILP) or a heuristic approach. The RWA-ILP model can find the same or slightly superior number of wavelengths compared to the optimum solution of the Integrated ILP formulation, but it can provide results in reasonable times only for small networks. On the other hand, the heuristic RWA is able to run any network size, but it requires more wavelengths compared to the RWA-ILP model.
•An approach to optimize the cost of installed Optical Transport Network (OTN).•A formulation to address the OTN interface deployment and virtualization.•The model focuses on mitigating the capital expenditure required to deploy OTN.•The paper proposes a heuristic approach to tackle larger network instances.