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We introduce a methodology to predict when and where link additions/upgrades have to take place in an IP backbone network. Using SNMP statistics, collected continuously since 1999, we compute aggregate demand between any two adjacent PoPs and look at its evolution at time scales larger than one hour. We show that IP backbone traffic exhibits visible long term trends, strong periodicities, and variability at multiple time scales. Our methodology relies on the wavelet multiresolution analysis and linear time series models. Using wavelet multiresolution analysis, we smooth the collected measurements until we identify the overall long-term trend. The fluctuations around the obtained trend are further analyzed at multiple time scales. We show that the largest amount of variability in the original signal is due to its fluctuations at the 12 hour time scale. We model inter-PoP aggregate demand as a multiple linear …