LAW OF THE ECONOMIES OF SCALE APPLIED TO TELECOMMUNICATIONS SYSTEM DESIGN.

The law of the economies of scale has special significance for system design in the field of telecommunications. Following an examination of the constraints on the use of this law, mathematical formulation can be derived for the case of a single variable quantity. It is then possible for the law to be applied to families of telecommunications systems thus demonstrating the universality of its application. When a number of examples of this law, found in recent literature, are analyzed it is possible to separate from their conclusions those portions that are a true result of the law. Finally, using this law and the derived formulas, the design criteria obtained will assist in evaluating the economic feasibility of new systems.