Migration of legacy Passive Optical Network (PON) to Next Generation PON (NG- PON) system is a must for broadband provider to survive in telecommunication competitive industry. Instead of the responsibility to cater the exhaustion of Malaysian's user to higher bandwidth, the financial impact to any Telco's account statement must be considered. Thus, the strategy to have lower capital expenditure (CAPEX) deployment cost is to be put as the highest priority consideration during the initial migration plan. The objective of this project is to compare migration strategy from GPON to NG-PON1 with GPON to NG-PON2 in term of CAPEX deployment cost for Telco in Malaysia. Another objective is to predict the cost effective migration scenario depending on the internet take up rate and bandwidth utilization. Objective of this project was achieved through collecting and analyzing data of CAPEX deployment cost for each of PON architecture. CAPEX deployment cost was generated using Davim and Pinto CAPEX cost model. In-depth data has also been collected by simulating the deployment of each PON architecture at small area with 320 homepass and urban areas 3447 number of homepass. In order to economically migrate the service, comparison between each topology has been discussed and assessed in term of cost of the components used. Migration of GPON to NG-PON1 has lower CAPEX deployment cost than migration from GPON to NG-PON2. The result of this project can be a basis strategy for any Telco to migrate from current Gigabit Passive Optical Network (GPON) system to Next Generation PON system.
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