Abstract
A method for selecting the most cost-efficient locations for backbone nodes in a distributed data network is disclosed. The method iteratively evaluates candidate backbone node locations, adding in each iteration the candidate whose addition to the network would create the greatest savings in total network cost. After all candidates which produce savings are added to the network, the method iteratively evaluates the backbone node locations and removes those whose removal would create cost savings. Data terminals are reassigned among the backbone nodes in the least cost manner.