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In the paper the problem of designing two-level hierarchical structure of wide area network is considered. The goal is to select gateways location, channel capacities and flow routes in order to minimize total cost of leasing capacities of channels of 2nd level network, subject to delay constraint. An approximate algorithm is proposed. Some results following from computational experiment are reported.

An Approximate Algorithm for the Minimal Cost Gateways Location, Capacity and Flow Assignment in Two-Level Hierarchical Wide Area Networks