<i>AlgC</i>: A combined algorithm.

We present improved algorithms for the Steiner tree problem with the minimum number of Steiner points and bounded edge length. Given n terminal points in a 2D Euclidean plane and an edge length bound, the problem asks to construct a spanning tree of n terminal points with minimal Steiner points such that every edge length of the spanning tree is within the given bound. This problem is known to be NP-hard and has practical applications such as relay node placements in wireless networks, wavelength-division multiplexing(WDM) optimal network design, and VLSI design. The best-known deterministic approximation algorithm has O(n3) running time with an approximation ratio of 3. This paper proposes an efficient approximation algorithm using the Voronoi diagram that guarantees an approximation ratio of 3 in O(n log n) time. We also present the first exact algorithm to find an optimal Steiner tree for given three terminal points in constant time. Using this exact algorithm, we improve the 3-approximation algorithm with better performance regarding the number of required Steiner points in O(n log n) time.