The growth in data traffic volume from access network are increasing exponentially which in turn exert a pressure on IP core network and force the operator either to optimize or upgrade their core networks. However, without a detailed technical and economic feasibility study, technological advancement alone cannot demonstrate the acceptability and economic viability of an investment.rnThis thesis work investigates the techno economic analysis of SDN network. In particular, this work presents techno economic analysis of Hybrid SDN with four partitions and Non-SDN deployment scenarios. This network upgrading is done in Ethiotelecom IP core network which is provider edge routers. The network dimensioning done for SDN scenarios, for hybrid SDN deployment by applying node selection criteriaâ€™s number of switches to be replaced are decided and controller placement is implemented in Pareto-based Optimal Controller Placements (POCO) tool.rnThe studies use a modeling methodology for network value analysis that includes capital expenditure (CapEx), operational expenditure (OpeEx), and total costs of ownership (TCO), while the overall financial or economic assessment of technology deployment is based on techno-economic evaluations such as net present value (NPV), internal rate of return (IRR), and pay-back period (PP) economic indicators. Techno-economic assessment (TEA) model, which is Techno-economic results from ACTS (TERA)is implemented in MATLAB and MS-excel.rnAccording to the findings, the pay-back periods for 10% SDN, 20% SDN, 30% SDN, 40% SDN, and Non-SDN scenarios are 2.4,2.2,1.9,1.7, and 3.8 years, respectively. In terms of net present value (NPV) and internal rate of return (IRR), all scenarios have a positive NPV for the study periods and a higher IRR than the stipulated discounted rate. Thus, the economic indicators imply that all scenarios are technically and economically feasible for deployment but the scenarios should be deployed based on the requirements.