Two-Level Decomposition Method for Resource Allocation in Telecommunication Networks

In this paper, the authors consider a two-level problem of resource allocation in a telecommunication network divided into zones. At the upper level the network manager distributes homogeneous resource shares among zones in order to maximize the total network profit, which takes into account the inner zonal payments from users and the implementation costs. This means that each zonal income calculation at a given resource share requires solution of the inner resource allocation problem. As a result, they obtain a two-level convex optimization problem involving non smooth functions whose values are calculated algorithmically.