A link loss budget analysis is how operators measure the operating characteristics of their networks. They are used to confirm that network equipment can support the target fiber optic link before the network is actually built.
In a link loss budget analysis, operators are testing attenuation and bandwidth across routing, components, fiber cables, length, and active components. In any network, signal strength weakens as it moves further and further away from the transmitting source. Signal is also lost at connector and splice points, which is why it’s necessary to ensure that signals make it from end to end without degrading too much.
The following steps are used to calculate total link loss margin: