This paper examines a network design problem that arises in the telecommunications industry. In this problem, communication between a gateway vertex and a number of demand vertices is achieved through a network of fiber optic cables. Since each cable has an associated capacity (bandwidth), enough capacity must be installed on the links of the network to satisfy the demand, using possibly different types of cables. Starting with a network with no capacity or some capacity already installed, a tabu search heuristic is designed to find a solution that minimizes the cost of installing any additional capacity on the network. This tabu search applies a k-shortest path algorithm to find alternative paths from the gateway to the demand vertices. Numerical results are presented on different types of networks with up to 200 vertices and 100 demand vertices. Key Words: network design, telecommunications, tabu search, k-shortest paths