Indirect returns and use of NPV in economic viability modeling of critical communications networks

摘要

Broadband-technology-based critical communications networks are predicted and known to generate significant direct returns. Less attention is given to their potential to generate long term indirect returns in the form of various socioeconomic benefits. This article focuses on identifying such indirect returns, and suggests that they are included in financial and economic viability analyses for better accuracy in the cost-benefit analyses of broadband critical communications networks. Developing a net present value model that accounts for both direct and indirect benefits, the article suggests that broadband critical communications networks can be highly beneficial and desirable to implement, particularly from the public and social points of view.