The proposed optimization method is simulated in an urban area of 1,200×1,200 square meters with 36 potential locations for ISCWs and 4 potential locations for splitters by using CPLEX. Thus, the splitters and ISCWs are dynamically placed in the scenario with only the locations of OLTs being fixed. The coverage radius of SC function in ISCW is set as 100 meters, which is used for subscriber coverage. The coverage radius of Wi Fi function in ISCW is set as 200 meters, which is used for network protection. In order to test the feasibility of the proposed optimization method, we simulate two network scenarios. The potential locations for ISCWs in the first scenario are uniformly distributed, where the potential locations for ISCWs for the second scenario are randomly distributed.