PRAISE FOR THE ESSENTIAL GUIDE TO

TELECOMMUNICATIONS, SIXTH EDITION

“Dodd’s The Essential Guide to Telecommunications provides the history and context that make a
fundamental underpinning of modern business more accessible to technologists and businesspeople
alike. This new edition of her primer is an essential reference in the continuously evolving communica-
tions landscape.”
—Tom Hopcroft, President and CEO,
Mass Technology Leadership Council

“Annabel Dodd’s book is a clear guide and big-picture view of technologies and industries. It is an
up-to-date guide for anyone who wants to be familiar with important innovations and key technologies.
This is truly an industry bible for mobile, Internet, and networking services.”
—Hiawatha Bray, Technology Reporter,
The Boston Globe

“Ms. Dodd’s aptly titled The Essential Guide to Telecommunications has been my bible for all things
telecom since my days as an AT&T transmission network engineer nearly twenty years ago. Exhaus-
tively and meticulously researched, concisely written for lay folks and techs/engineers alike, this book
aids me in my current role as an IT Support Technician II when discussing new technology with our
telecommunications department. Thank you to Ms. Dodd for keeping us all current!”
—Todd Garbarini, IT Support Technician II
Commvault Systems, Inc.

“The Essential Guide to Telecommunications is probably one of the most useful and well-written books
on our telecom bookshelf. Annabel Z. Dodd does a great job of capturing a snapshot of the current
telecom industry. Even those with little or no technical training should be able to understand the text.
This is the perfect book for salespeople who want to learn more about the products and services they are
selling, or for those who just want to keep up to date on the latest in telecom technology.”
—William Van Hefner, President,
Vantek Communications, Inc.

“Ms. Dodd continues to provide an excellent and thorough text on the telecommunications industry. As
in her previous editions, she presents a good balance of technical and business-related information that
is readily understandable by anyone with an interest in this key component of today’s business environ-
ment. In her new edition, she has captured many of the recent changes in this dynamic field, which will
affect every company in the years ahead. I strongly recommend her book to anyone who wants a better
understanding of telecommunications.”
—Joe McGrath, VP, Sage Pharmaceuticals, Inc.
“Annabel Dodd has a unique knack for explaining complex technologies in understandable ways. This
latest revision of her book covers the rapid changes in the fields of broadband, cellular, and streaming
technologies; newly developing 5G networks; and the constant changes happening in both wired and
wireless networks. She also explains the consolidation going on in the industry, the impacts of social
media, and software control and virtualization of provider networks. This book is a must-read for any-
one wanting to understand the rapidly evolving world of telecommunications in the 21st century!”
—David Mash, Retired Senior Vice President for
Innovation, Strategy, and Technology
at Berklee College of Music
The
Essential
Guide to
Telecommunications
Sixth Edition

Annabel Z. Dodd

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 To Bob, Judy, Nancy, Laura, Steve, Bobby, Elizabeth,
Julia, Gabriel, Ari, Michael, Moses, Delancey, and Harry
This page intentionally left blank
Contents

Preface xvii
Acknowledgments xxi
About the Author xxiii

Part I
Fundamentals, Data Centers, and IP PBXs 1

1 Computing and Enabling Technologies 3

Fiber-Optic and Copper Cabling 5
Fiber-Optic Cabling: Underpinning High-Speed Networks 5
Information Content Providers: Heavy Users of Fiber 6
Splitting Capacity of Individual Fiber Strands into Wavelengths 7
Fiber-Optic Cabling in Commercial Organizations 14
Chips—Building Blocks of the Digital Age 21
Machine Learning 22
Packetized Data 23
Per Packet Flexible Routing 24
Throughput 25

vii
viii Contents

Deep Packet Inspection: Monitoring, Prioritizing,

and Censoring Traffic 26
DPI in Organizations: Protecting Confidential Information 27
Governments Monitor: Terrorism, Web Access,
and Unfavorable Comments 27
Carriers, Networks: Categorization and Billing 28
Traffic Shaping: Prioritizing Traffic 28
Compression 30
Streaming: Listening and Viewing without Downloading 31
Compression: The Engine behind TV over the Internet 32
Innovative Compression Algorithms—Fewer Bits,
Higher-Quality Images 32
Using Codecs to Compress and Digitize Speech 34
Increasing Network Capacity via Multiplexing 37
Time-Division Multiplexing 38
Statistical Multiplexing: Efficient Utilization via Prioritization of Network
Services 38
Using Protocols to Establish a Common Set of Rules 40
Protocols and Layers 41
Virtualization: Space, Cost, and Maintenance Efficiencies 42
Scalability and Energy Savings 43
Virtualization—Enabling Cloud Computing 43
Managing Virtualization 44
Managing Memory, Virtual Machines, and Disk Storage
in Virtualized Data Centers 44
Containers: A Newer Form of Server Virtualization 45
The Cloud: Applications and Development at Providers’ Data
Centers 47
Private vs. Public Cloud Service 49
Cloud Computing Fees 49
Rationale for Cloud Computing 49
Three Categories of Cloud Services—Layers in the Cloud 51
Amazon: The Gorilla of Cloud Computing 53
Fewer IT Employees; Different Skills—DevOps 56
Compatibility with the Cloud 56
The EU–U.S. Privacy Shield 60
Summary 62
Appendix 63
A Comparison between Analog and Digital Signaling 63
Contents ix

2 Data Centers and LANs, Storage, and IP Private Branch Exchanges 67

Introduction 68
What Is a LAN? 69
Switches, Media, and Protocols in LANs 70
Layer 3 Switches—Transmitting Data between Switches and Data Centers 71
Layer 2 Switches—Links to Nodes 71
Virtual Local Area Networks for Specialized Treatment 75
Protocols for Communications in LANs 77
Network Operating Systems 79
Data Centers—Centralized Locations for Housing Applications 80
The Impact of Cloud Computing on Data Centers 81
Environmental Controls in Data Centers 82
Storage Systems—Managing Petabytes of Data 84
The Impact of Virtualized Hardware Failure 89
Managing Users’ Computers via Virtual Desktops 90
Access to the Internet and Other Broadband Networks via Routers 91
Software to Monitor LAN-Connected Devices 93
Monitoring LANs—What’s Up? What’s Down? 94
IP PBXs—Voice, Video, and Unified Communications 99
IP Telephone Systems—Voice and Applications on LANs 100
IP Telephony—Converting Voice Signals to Digital Data 101
Voice QoS and Security 101
Assessing Network Quality by Using Voice Quality Measurements 102
Prioritizing Voice and Video on a Virtual Local Area Network 103
IP PBX Architecture 103
Media Gateways, Protocol Translation, and Signaling 104
Session Initiation Protocol—Compatible Trunks 105
Unified Communications, Contact Centers, and Video
Conferencing 107
Integrating Conferencing, Instant Messaging, and E-Mail through UC 107
Desktop Video Conferencing 107
Video Conferencing 109
Immersive HD Video Conferencing 110
Communications Platform as a Service (CPaaS) vs. Hosted IP PBXs 110
Contact Centers—Efficiencies for Incoming and Outgoing
Communications 111
Voice Response Units—Routing and Accessing Information via
Touch-Tone or Speech 114
Appendix 118
x Contents

Part II
Industry Overview and Regulations 123

3 Competition, Industry Structures, and Regulations 125

Introduction 126
The 1984 Breakup of AT&T 128
The Telecommunications Act of 1996 128
Costs and Competition for Cable TV Services in the United States 130
The Transformation of AT&T, CenturyLink, and Verizon into
Conglomerates 132
AT&T, Verizon, CenturyLink and Comcast—Recent Acquisitions 133
Cable TV Providers—Comcast, Charter, COX Communications, and Altice 135
Regulatory Issues 138
Utility Pole Attachments—Critical for 5G 138
Universal Service and Rate of Return 139
Decreasing ICC Payments for Connecting Traffic—Gradually Being
Reduced 140
Alternate Connect America Model 141
Lifeline Subsidies for Low-Income Residents 143
Media Consolidation Issues 144
Spam Calls—Robocalls 145
Legislation to Protect the Privacy of Minors 147
Lobbying Efforts to Influence Regulations 148
The State of the Industry—Consolidation via Mergers 149
Competition to Telephone, Mobile, and Cable TV Companies 149
Mobile Operators 149
Consolidation of Mobile Providers 150
Selling Wholesale Network Services 152
Other Competitors to Broadband Providers—Overbuilders 153
Agents 154
Resellers—Mobile Virtual Network Operators 154
Non-Traditional Competitors: Alphabet, Apple, Amazon, Facebook,
Twitter, Snapchat, and Microsoft 156
Google—A Search Conglomerate that Morphed into a Multi-Function Software
Company 156
Amazon—From Online Book Sales and Cloud Services to On-Ground Grocery
Stores 159
Facebook—An Influential Social Network 161
Snapchat—A Visual Social Network App 163
Contents xi

Microsoft—Office Productivity, Operating System Software,

Cloud Hosting, and Xbox 164
Twitter 165
Apple 166
Appendix 168

Part III
Managing Broadband Networks and Broadband
Network Services 169

4 Managing Broadband Networks 171

Introduction 172
The Public Network 173
Core Networks—Between Cities and Continents 175
Software Defined Networks to Manage Traffic Surges 176
Network Function Virtualization—Architecture 177
Submarine Network Systems 185
Bandwidth Capabilities in Carrier Networks 187
Carrier Gigabit Ethernet 188
Optical Transport Networks—Carrying Multiple
Types of Traffic 191
Optical Transport Networks and SDN and NFV 192
Transporting Movies and TV in the Core 195
Using Headends to Receive and Transmit Programming 195
Hub Sites 196
Middle-Mile Networks 197
Last-Mile Access Networks 199
Adding Capacity to Access Networks 200
Legacy Circuit-Switching Service 200
Transitioning Customers to Voice over Internet Protocol and Fiber 201
Digital Subscriber Line Access Multiplexers 201
Passive Optical Networks 204
Sharing Fiber Capacity—PON Architecture 204
PON Standards—Gigabit Ethernet 205
xii Contents

Access Networks in Cable Operators’ Networks 209

Using Cable Modems to Access the Internet 210
The Cable Modem “Handshake” 210
Using Set-Top Boxes to Interface to Cable TV 210
Using Cable Modem Termination Systems for IP Traffic 211
Supporting More Video via Set-Top Boxes 212
Cable Modem Standards Transition to Higher Speeds 212
Transitioning from Asymmetric to Symmetric Channels 213
Full Duplex DOCSIS 3.1—Symmetric Speeds 213
Telecommunications Services in National Emergencies 217
Planning to Insure Reliability and Sustainability 218
Internet Security and Sustainability 219
Signaling 220
An Overview of Signaling 220
Interconnecting Carriers and Providing Secure Space for
Equipment in Co-Location Facilities 222
Appendix 224

5 Broadband Network Services 227

Introduction 228
Disagreement within the FCC over the Definition of Broadband 229
VoIP Calling Services over Broadband 231
Residential vs. Enterprise Services 231
Lower-Priced, Flexible Consumer VoIP Services Adopted by Enterprises 232
VoIP for Very Small Organizations 233
The Impact of VoIP and Wi-Fi on Traditional Carriers 234
The Demarcation Point at Which Telephone Companies Wire Trunks 234
Multi-Protocol Label Switching for Interoffice Connections 235
MPLS Virtual Private Network—A Managed Service 235
Routes and Security on MPLS 236
MPLS Implementation 236
MPLS for Multinational Locations 237
Prioritizing Traffic via Classes of Service 238
IP Virtual Private Networks over the Internet 238
Using IP VPNs between Offices—Less Costly than MPLS 239
Adding Security on Traffic Sent over IP VPNs 240
Security Protocols on Access to IP VPNs 240
Deploying Firewalls to Protect against Malicious Attacks 243
Contents xiii

Managed Services 245

Managed Services Rather than Dumb Pipe Providers 245
Managed Services—For a Variety of Functions 246
Digital Subscriber Line—Distance Limitations;
Operates on Copper Cabling 247
How DSL Technology Works 247
DSL Limitations 247
Carrier Gigabit Ethernet 249
Carrier Gigabit Ethernet Flexibility and Scalable Speeds 250
Dedicated Wavelengths 251
T1 and T3: Services Largely Replaced by Higher-Capacity Broadband 251
Network Topology on Dedicated, Private Lines 252
Dedicated Private Lines—For Greater Security 253
Network Topologies—The View from Above 255
Direct Dedicated Interconnections to the Cloud 257
Session Initiation Protocol—Out-of-Band Signaling 258
Wide Area Software Defined Networks for Enterprises 259
Network Backups—Protection from Outages 263
Appendix 266

Part IV
The Internet and Cellular Networks 269

6 The Internet 271

Introduction 272
What Is the Internet? 273
Features of the Internet 274
Protocols Used on the Internet 274
The Impact of Capacity—The Availability of Broadband Networks 275
Using Search Engines to Unleash Vast Stores of Information 277
Search Engines—Mathematical Algorithms and Page Ranking 278
Internet2—A Non-Commercial Outgrowth of the Internet 280
Streaming—A Disruptive Technology 280
Growth in Streaming 281
Easier Set-Up and Increased Internet Uptake 282
xiv Contents

Accessing Streaming—Connected TVs, Game Consoles, and

Mobile Devices 282
Set-Top Boxes for OTT Streams 283
Keeping and Attracting Subscribers—The Criticality of Content 284
A Snapshot of Companies that Offer Streaming 286
Ad Revenue on Streaming Services 286
Streaming Worldwide 287
Ease of Use and Technological Enablers 287
Pay-TV—Skinny Bundles Plus Streaming on Set-Top Boxes 289
Technical Challenges 289
The Structure of the Internet 290
Edge Routers 291
Aggregation Routers in Core Networks 292
Ensuring Reliability in the Core and Edge 292
Enhancing Internet Performance by Using Content
Delivery Networks 293
Exchanging Data at Peering Points 293
Address Structures 294
Tracking and Managing Top-Level Domains 295
Transitioning to IPv6 296
Security: Connected, Ubiquitous Networks—Vulnerable to
Malicious Hackers 297
Methods Hackers Use to Attack and Infiltrate Networks 298
The Five Rs of Information Security 298
Cyber Terrorism between Countries 305
Privacy 306
Web Site Tracking, Connected Devices, and Free Search Engines 306
The Impact of E-Commerce 308
Combining Online Services with On-Site Stores 308
Fostering Civic Participation and Engagement—Online
Forums 309
Town E-Mail Lists to Keep Communities Informed 309
Network Neutrality 311
The Issues Surrounding Network Neutrality 311
The Digital Divide: Bandwidth, Skills, and Computers 315
Internet Pricing and Competition 316
Intranets and Extranets 317
Intranets 317
Extranets—Saving Money on Customer Service 319
Contents xv

7 Mobile and Wi-Fi Networks 321

Introduction 322
Spectrum for Wireless Networks—A Critical Asset 323
Cellular Structures—The Foundation of Mobile Networks 323
The Division of Airwaves into Frequencies 324
The Characteristics of Short and Long Wavelengths 324
Spectrum Blocks 325
Using Auctions to Allocate Spectrum 326
Profits from Unused Spectrum on the Secondary Market 328
Synchronizing Spectrum Internationally 330
Mitigating Interference 331
Unlicensed Spectrum for “Super” Wi-Fi 331
Roaming—Using Mobile Devices in Other Networks 332
More Efficient 4th Generation Digital Networks 333
3G Technologies—Incompatible Standards 335
Early LTE Implementations 335
LTE—The First True 4th Generation Cellular Protocol 336
4G LTE—Designed to Transmit Data and Voice in IP Packets 337
LTE Capacity 338
LTE Cell Sites’ Additional Functionality 338
Backhaul—Connecting Cell Sites and Core Networks 340
Elements of LTE Infrastructure 341
The Three Elemental Functions of the LTE IP Core 343
Databases in the LTE Evolved Packet Core 345
Voice over LTE—Packetized Voice 345
Accessing Applications and VoLTE—The IP Multimedia Subsystem 347
Connections to Customers and Mobile Networks via the Cell Site, Towers, and
Mobile Switches 349
Heterogeneous Networks—Architecture for Densely Trafficked Areas 350
Frequency- and Time-Division Air Interfaces in LTE 355
4G Multiple-Input Multiple-Output Antennas 356
The LTE Orthogonal Frequency-Division Multiplexing Air Interface 357
5G Mobile Networks—Small Cells; Additional Capacity 359
Massive MIMO Antennas for 5G Networks 359
5G New Radio Service and 5G Applications 359
C-RAN Centralized or Cloud-Based Radio Access Networks in 5G
Networks 360
Interoperability and Fall Back on 5G Mobile Networks 360
Device Compatibility—A Multi-Year Gap 360
Killing Lost or Stolen Portable Computers Using GPS 361
xvi Contents

The Internet of Things (IoT) 362

Information and Privacy on IoT Services 363
Unmanned Aircraft; Drones—Military and Commercial Applications 364
Battery Life 365
Applications and Services 366
Mobile Payments 366
Machine-to-Machine Communications between Devices with
Embedded Radios 367
Using Prepaid Mobile Services 368
Wi-Fi Standards, Architecture, and Their Use in Cellular
Networks 368
The 802.11 Wi-Fi Standard 368
A Deeper Dive into Wi-Fi Standards 369
Wi-Fi Architecture in Enterprises 373
Mesh Networks—Every Device to Every Device: Controller-Less
Architecture 374
Devices on Wi-Fi Networks—Access Points and Controllers 376
Securing Wi-Fi Networks—WPA3 377
Using Wi-Fi to Offload Traffic from Congested Mobile Networks 378
Satellites—Geosynchronous and Low Earth Orbiting 380
Satellite Networks 380
Low Earth Orbiting Satellites—Fewer Delays; More Satellites; 200 to 1,200
Miles High 381
High-Frequency Satellite Service within Airplanes for Internet Access 381
Appendix 382

Glossary 389
Index 415
Preface

W hen The Essential Guide to Telecommunications was first published in 1997,

broadband and cellular networks were many times less complex. Voice calls were car-
ried separately from data traffic, and e-mail required arcane commands and was used
mostly at universities. The federal government had recently deregulated telecommu-
nications and opened it to competitors. Deregulation opened voice and data networks
to new competitors. These competitors competed with established providers for sub-
scribers by offering lower prices. This competition drove innovation and resulted in the
build-out of high-speed fiber-optic networks. Large incumbents responded with their
own network improvements and lowered prices. A similar pattern occurred in cellular
networks after 1999.
In the years since 1997, most small and medium-sized and even some large com-
petitors were either acquired by large incumbents or went out of business. These
incumbents also acquired other large providers that were formerly part of the Bell
system. The result of these mergers is that today’s telecommunications, cellular, and
cable TV markets have far fewer competitors: mainly AT&T, CenturyLink, Comcast,
and Verizon. Partly as a result of minimum competition, prices for broadband services
are higher compared with most of the world.
Social networking, cloud, and Office software conglomerates Amazon, Facebook,
and Microsoft have built large, cloud-located networks of data centers. Their services
have disrupted commerce in each of their fields. Microsoft operates one of the four
largest cloud services in the United States. It offers a platform on which developers
customize Microsoft applications for enterprise customers. Additionally, their Teams
service is used by enterprises to make low-cost international voice calls and video
conference calls and collaborate on joint projects.
Google, which was started by Stanford graduate students, operates the largest
search service in the United States. The founders used software to search the web and
keep repositories of web site addresses. It quickly became an enormous company,
whose popularity grew through word of mouth. They are now a huge conglomerate
that earns billions of dollars each year through the advertising on their site.
Amazon was started by Jeff Bezos. Its cloud-based retail service is another exam-
ple of a business that has had an enormous impact. Brick and mortar retailers have lost
millions of dollars, chains have gone out of business, and many have closed a number
of their stores. Amazon is still innovating with its home automation offering Alexa, its
fast turnaround delivery service, its purchase of Whole Foods, and its entrance in drug
deliveries for hospitals.

xvii
xviii Preface

And AT&T and Verizon are building large fiber networks and cellular infrastruc-
ture to carry new generations of mobile networks. T-Mobile and Sprint are building out
their cellular networks as well.
However, the number of choices consumers and enterprise customers have for
their Internet access and broadband services as well as their mobile services has
decreased and will shrink more if T-Mobile is granted permission to acquire Sprint’s
cellular network. If the Sprint acquisition is approved, the number of mobile operators
for nationwide coverage will shrink from four to three. This is a significant change, one
that may lead to higher prices for the students and young people that flock to T-Mobile
for its low prices.
New 5th generation mobile networks promise to support higher data rates than
ever before. However, these upgrades are costly, and require thousands of additional
cell sites and antennas, particularly in downtown urban areas with large amounts of
foot traffic. Mobile providers are additionally upgrading current 4th generation cellular
networks. Both of these efforts will support higher speeds, some up to a gigabit per
second. As capacity on mobile networks increases, they will support streaming video
and, in some cases, broadband links to residential subscribers’ homes.
Because of the greater capacity in mobile networks, many young people and stu-
dents depend wholly on mobile networks for messaging, streaming, and social network
access. Teens and twenty-somethings for the most part use Snapchat and Instagram
(part of Facebook) social networks rather than Facebook and Twitter. Snapchat is
newer, launched in 2011, and appeals to young people for its more visual service where
users upload videos and photos, rather than biographies and other written material as
on Facebook and other social networks.
Streaming services were first envisioned by Reed Hastings, the CEO and founder
of Netflix. Netflix initially mailed DVDs to subscribers in iconic red envelops and
stated at the time that Netflix would stream TV shows and movies when Wi-Fi became
robust enough to support video traffic. Netflix is a disruptive service that changed
user behavior and disrupted traditional sales of DVDs and movie theaters. Streaming
caused Blockbuster, the largest seller of DVDs, which had outlets on every corner, to
go out of business and movie theaters had to close many of their theaters due to fewer
people going to movies. Netflix is now an international business with service in nearly
200 countries.
A core strategy of Netflix, Hulu, Amazon, and their competitors is to attract sub-
scribers by offering popular TV shows and movies. Netflix was initially able to license
the TV series and movies it offered from content providers such as Disney, Time War-
ner, and Universal Studios. As these companies started offering their own streaming
services or were bought by larger companies, for example, AT&T and Comcast, less
content became available for competing streaming providers. As a result, Netflix,
Amazon, and others have poured billions of dollars into creating original content to
attract subscribers. Content is a critical factor in people’s decision to either drop cable
TV or subscribe to smaller cable TV packages.
Preface xix

Software is the driving force in managing today’s broadband and LAN (local area
networks) networks. Broadband networks controlled by software are referred to as wide
area software defined networks (W-SDNs). SDNs are also implemented in enterprise
networks. Both implementations are controlled from central terminals programmed
with commands that direct traffic to avoid routes with outages and congestion. Soft-
ware is used to manage complex high-capacity broadband networks. Functions previ-
ously installed on proprietary hardware can be abstracted in non-proprietary hardware.
These network functions include routers, servers dedicated to security, and gateways
that translate between networks that use different protocols. Another way that networks
are enabled to carry more traffic is the network equipment connected to fiber-optic
cabling that enables gigabit and even terabit data rates. A terabit is equal to a thousand
gigabits.
Networks that connect people have made the world smaller and opened up com-
munications worldwide. However, the common protocols used on the Internet where
everyone is connected to everyone else means that networks are inherently open to
hackers who use these common protocols as a way to hack into organizations’ networks.
Organizations large and small have experienced security breaches. Some breaches
have resulted in the loss of millions of peoples’ private information including their
social security numbers. In addition, security breaches have cost enterprises millions
of dollars in bad publicity and stolen intellectual property. To avoid major hacking
attacks, enterprises hire outside consultants, and strengthen their security staff. They
also educate users to the danger of opening attachments from people they don’t know.
These phishing emails contain malware able to contaminate entire networks. However,
there is no 100 percent guarantee that any of these steps will protect an organization
from a determined hacker. But organizations with strong security recover faster, and
detect attacks more quickly.

Register your copy of The Essential Guide to Telecommunications, Sixth Edition,

on the InformIT site for convenient access to updates and corrections as they
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Acknowledgments

T hank you to all of the many people that took the time to share important informa-
tion about technology and government regulations. Staffs at the FCC and the Massa-
chusetts Department of Telecommunications and Cable provided clear explanations of
national and state regulations. Marketing Consultant David Gitner was a terrific source
of information on storage systems. Geoff Bennett, Director, Solutions and Technology
at Infinera, provided clear information about fiber-optic multiplexers, and Mike Quan,
cofounder of Boston 360, illuminated information about virtual reality. James Chap-
man, Senior Product Manager at Ipswich, spoke with me about network management
systems. Bob Xavier, Director, Systems and Networks at Berklee College of Music,
gave me a tour of Berklee’s IT department and discussed the issues involved in manag-
ing merging IT systems when colleges merge.
As always, Carly Premo Mello, IT Director, and Jamie V. Schiavone, Network
Manager for Framingham, Massachusetts, discussed the challenges of managing secu-
rity and storage networks. Joe Mulvey, IT director for Newton, Massachusetts, and
his staff spent time discussing their broadband, Wi-Fi, and IT structures and gave me
a tour of their data center. Mark Roberts, the Chief Marketing Officer at the former
Shortel (now Mitel), discussed specialty applications using VoIP technology. All of
these people provided insights into real-world issues.
Thank you also to Fernando Mousinho, Cisco Systems Director of Product Man-
agement for Endpoints, for his lucid explanation of Cisco Systems’ office products
and video conferencing services. Many thanks to Dave Parks, former Director of
Segment Marketing at Ciena Corporation, for his generosity in providing information
on Ciena’s broadband hardware and software. Dave has been an enormous source of
information for earlier editions of my book as well as for this sixth edition as has Joe
McGrath, VP of Information Technologies, Sage Therapeutics. Thanks to Kevin Klett,
VP of Product Management & Marketing at 128 Technology for his lucid explanations
of their stateful routing software.

xxi
xxii Acknowledgments

Thanks to Rick Swiderski, VP and General Manager at NEP Group, for his
informative discussions of the challenges facing rural telephone companies. His first-
hand knowledge was tremendously helpful. Thanks also to Kurt Raaflaub, head of strate-
gic solutions marketing at ADTRAN. Kurt and his staff provided important information
on the use of copper cabling connections to fiber cabling to bring high-speed broadband
to rural areas. Glenn Axelrod of Axelrod Broadcast Solutions illuminated the details
behind multiplexing technologies used in cable TV networks. Sal Tuzzeo at Nielsen dis-
cussed consumer trends in viewing television. Thanks as well to Joanta Stanke, Research
Director at Point Topic Ltd,, for her information and graphic on Internet access patterns
worldwide. Special appreciation to Mohammad Zulqarnain, Distinguished Architect of
Global Solutions at Verizon Communications. Mohammad illuminated the important
features and advantages of software defined networks. He further provided examples of
how enterprises and branch offices are deploying the technology.
A special thank you to Tom Case, Chief Information Officer for the town of Lex-
ington Massachusetts, who met with me and discussed the day-to-day issues involved
in designing and maintaining municipal networks. A thank you also to Donna Drudik
and Jim Thompson, California 911 Telecommunications Engineers, for discussing the
importance and time criticality for handling calls to 911 emergency centers. Jim also
provided information on technologies used for deploying emergency telecommunica-
tions services for handling text messages, mobile, and landline calls at emergency
call centers. Thanks to Ben, vice president of security for a major financial company.
Ben illuminated the challenges and technologies deployed to protect enterprises from
hackers. And appreciation to Keith Wise for valuable assistance with the Study Guide.
And finally, thank you to the many people I spoke with that preferred to not have
their names used. I appreciate the information each of you shared. Most importantly,
thank you to my husband Bob Dodd who read everything I wrote multiple times
and provided common sense advice on how to improve sections to clarify important
concepts.
About the Author
Annabel Z. Dodd is on the faculty at Northeastern University’s
School of Professional Studies, where she teaches courses on
data networks in the Master’s Degree Program in Informatics.
In addition to her university teaching, Annabel presents seminars
to organizations worldwide. Her webinar on LTE Essentials for
USTelecom attracted over 900 people.
Annabel has been an adjunct professor in the Master of
Science in Technology Management program at the State
University of New York at Stony Brook, where she taught in
a joint program with The Institute of Industrial Policy Stud-
ies, Seoul, South Korea. In addition, the Fundación Innovación
Photo courtesy of Annabel Z. Dodd Bankinter selected her to participate in their Future Trends
Forum in Madrid in 2004, 2005, and 2007. Formerly in mar-
keting at New England Telephone (now Verizon Communications) and Telecommunications
Manager at Dennison Manufacturing Company (now Avery Dennison), Dodd was honored by
the Massachusetts Network Communications Council as Professor of the Year. The Essential
Guide to Telecommunications has been translated into nine languages since its first edition,
which was published in 1997.

xxiii
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Part I
Fundamentals,
Data Centers, and IP PBXs
Chapter 1 Computing and Enabling Technologies
Chapter 2 Data Centers and LANs, Storage, and IP Private Branch Exchanges

1
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1 Computing and
Enabling Technologies

In this chapter:
 Fiber-Optic and Copper Cabling 5
 Chips—Building Blocks of the Digital Age 21
 Packetized Data 23
 Deep Packet Inspection: Monitoring, Prioritizing, and Censoring Traffic 26
 Compression 30
 Increasing Network Capacity via Multiplexing 37
 Using Protocols to Establish a Common Set of Rules 40
 Protocols and Layers 41
 Virtualization: Space, Cost, and Maintenance Efficiencies 42
 Managing Virtualization 44
 The Cloud: Applications and Development at Providers’ Data Centers 47
 Summary 62
 Appendix 63

3
4 1  Computing and Enabling Technologies

C apabilities discussed in this chapter are the basis of important technologies used by
residential and business customers on a daily basis. They enable:

• the Internet to store vast amounts of data

• millions of people to simultaneously access the Internet
• cellular networks to handle ever-increasing amounts of traffic
• storage devices to hold massive amounts of data

High-powered computer chips are the building blocks of innovation in the twenty-
first century. Their increased memory, speed, and 8-core processing capabilities along
with smaller size have made possible innovative technologies affecting industry, per-
sonal productivity, and connectivity. Decreases in chip sizes enable people to carry
computers in the form of smartphones in their pockets. Computing power, previously
only available in personal computers and large centralized computer servers, is now
used in smartphones and tablet computers.
For the most part, these electronics and networks have been available for most of
the twenty-first century. However, innovations in the speed, capacity, and amount of
memory on computer chips have resulted in higher capacity fiber-optic networks and
denser storage systems.
High-capacity virtualized servers that store multiple operating systems and
applications in a single device in less space, as well as high-capacity broadband
networks, are the basis of highly reliable cloud computing. Moreover, fiber networks
link cloud data centers together so that if one data center fails, another one automati-
cally takes over.
In an effort to more flexibly store applications, cloud companies and large enter-
prises use containers. Like virtual servers, containers don’t require that each applica-
tion be held in its own dedicated physical server. Containers break applications into
multiple parts so that each part can be modified without changing an entire application.
With virtualized servers, entire applications need to be rewritten for every change. The
software running containers is usually open source, free software. The hardware is
often lower-cost commodity servers.
The growth in capacity and reduced price of broadband networks have made
access to images, music, television series, and movies available to millions of people
via broadband networks powered by innovations in computer chips, multiplexing, and
compression. The images and videos are stored and accessed from high-capacity com-
puters. The computers, often located in the cloud, hold movies and TV shows offered
by services such as Netflix and Hulu.
Computing and enabling technologies have spurred the increased use of cloud com-
puting and streaming movies. Cloud computing has now evolved to a point where many
companies and individuals use it, but there are nevertheless challenges for large organiza-
tions that use cloud computing. IT staff need skills suited to monitoring and transmitting
Fiber-Optic and Copper Cabling 5

applications to the cloud and making sure that applications previously accessed from
onsite data centers are compatible with each cloud provider’s infrastructure.
Another enhancement enabled by increased speed and memory in chips is machine
learning. Machine learning is the ability of chips with powerful memories to “recog-
nize” patterns of images and changes in order to “learn” how to perform particular
tasks. For example, machines can learn to recognize clues in medical images to diag-
nose medical conditions that previously required skilled physicians to analyze.
For the most part, the technologies and protocols discussed here are not new.
Rather, they are more powerful and many of them have been refined to support addi-
tional applications. This is the case with the growing use and availability of cloud
computing and fiber-optic networks by all segments of developed nations.

FIBER-OPTIC AND COPPER CABLING ......................

The three technologies discussed in this section—fiber-optic cabling, multi-core pro-
cessors, and memory—are the building blocks of modern networks. They enable net-
works to carry more information faster. Decreasing memory costs have led to affordable
personal computers and the ability to store vast amounts of information, accessible via
fiber-optic–based networks at lower costs.

Fiber-Optic Cabling: Underpinning High-Speed

Networks
Without fiber-optic cabling, modern high-speed data networks would not be possible.
Fiber-optic cabling is the glue connecting all high-speed networks to the cloud, and to
other continents. Fiber networks are located between cities; undersea in oceans; within
cities; and on university, business, and hospital campuses. Sophisticated equipment
and computer chips are enabling fiber networks to keep up with the growing demand
for capacity on broadband networks.
Demand for bandwidth is a result of cloud computing, subscribers streaming mov-
ies and television shows, online gamers, real-time coverage of live sporting events,
and international news. People expect instant access to breaking news, social networks
such as Facebook, QQ, and Weibo, and entertainment. (Chinese company Tencent
owns QQ and a different Chinese company, Sina owns Weibo.) Fiber-optic networks
support broadband connections to the Internet, which enable streaming TV services
such as Netflix and Amazon; streaming music providers including Apple Music, Pan-
dora, and Spotify; and social networks. The world has gotten smaller and businesses
and people expect to be able to remain connected wherever and whenever they want.
Because of dropping prices of installation and lower maintenance costs, network
providers including AT&T, Verizon, and CenturyLink are increasingly connecting
fiber-optic networks to apartment buildings and even individual homes. Traffic on
6 1  Computing and Enabling Technologies

fiber-optic cabling is not limited to these networks. It is also growing in cellular net-
works that use fiber-optic cabling to carry data- and video-heavy smartphone traffic
between antennas and mobile providers’ data centers in mobile networks. Fiber net-
works also carry traffic from cellular networks to the Internet.
Cloud computing is the main reason for the growing demand for capacity on fiber
networks. Most students, residential customers, corporations and governments use
cloud computing to access some or all of their applications. Fiber-optic networks con-
nect much of the world to applications located in the cloud. Demand for capacity on
networks is expected to continue growing as more organizations, developing coun-
tries, individuals, and governments use cloud-based applications and stream movies
and television shows.
In an interview, Geoff Bennett, Director of Solutions and Technology at the fiber-
optic networking company Infinera, stated:

Nothing else has the transmission capacity of optical fiber, and that’s
why fiber powers the Internet. There is no technology on the horizon that
could replace it.

Information Content Providers: Heavy Users

of Fiber
Google, Amazon, Microsoft, and Facebook are information content providers. Informa-
tion content providers generate enormous amounts of traffic over fiber-optic networks
in locations worldwide. Information content providers build and operate massive data
centers connected to high-bandwidth fiber-optic networks that carry streams of data to
and from millions of subscribers. The data centers are connected to other information
content providers’ data centers as well as to the Internet. Facebook operates its data
centers in much of the world. Two of its data centers are located in Luleå, a city on the
northern coast of Sweden. The data centers in Luleå are linked to each other by fiber-
optic networks as well as to a network of Facebook data centers throughout Europe.
Infinera built these fiber-optic networks for Facebook. Other fiber-optic providers in
addition to Infinera are Ciena, Huawei, and Nokia.
Nearness to customers to minimize delays and assure the availability of power are
two of the criteria information providers consider when selecting locations for their
data centers. To get closer to subscribers and large business clients, Internet content
providers locate data centers in large cities as well as locations near plentiful electricity
sources such as in Luleå, Sweden. Sweden offers the advantage of requiring less power
for cooling because of its cold climate. Google has bought many buildings in New York
City and other major cities so that it can be closer to its many customers in these cities.
This minimizes delays in responses to users that access Google.
Fiber links to duplicate data centers enable cloud-based data centers to function
even if one of their centers is disabled due to an equipment or software malfunction or
Fiber-Optic and Copper Cabling 7

a natural disaster such as a hurricane. Fiber links importantly enable cloud-based data
centers to continuously back up their entire sites in real time to ensure that customer
data is not lost during a disaster or malfunctions. The duplicate data center may be
hundreds of miles away or nearby within the same city.
Each data center that is linked to another data center and to subscribers has redun-
dant fiber cabling connected to their facilities so that if one group of fiber cables is
damaged or cut, the other is still intact. For example, one bundle of fibers may be
located on the eastern side of their building and another on the western side. Duplicate
power sources are also installed at these data centers.

Splitting Capacity of Individual Fiber Strands

into Wavelengths
Dense wavelength division multiplexers (DWDMs) add capacity to individual strands
of fibers connected to fiber strands by dividing each fiber into numerous channels
called wavelengths. See Figure 1-1 below. Dense wave division multiplexers divide
the fiber into wavelengths using frequency division multiplexing, where each stream of
light uses a different frequency within the fiber strand. In some networks, each wave-
length is capable of transmitting a 100Gb stream of light pulses.
The distance between the highest parts of each wavelength equate to the wave-
length sizes. Wavelengths are so small that they are measured in nanometers. A nano-
meter equals one billionth of a meter. A nanometer-sized object is not visible to the
human eye. A fiber-optic cable is smaller than a strand of hair or thinner than a sheet
of paper.

Cloud Xpress 2

1RU

12 x 100GbE 1.2Tb/s

Super-channel port to fiber

500Gb/s
Cloud Xpress
LINE
ACT STATUS
CONTROL
MODULE
IN OUT
SERIAL
CX-100E-500-S5C2
OCG 5, 6, 13, or 14

S/N MA9015210005
L

DCN

A
USB 2RU
PEM FAN
L L
ACT DWDM

5 x 100GbE NANANANANA
PWR
FLT
LOS
A
NCT-2
A
NCT-1

16 x 10GbE

Figure 1-1 Representation of dense wavelength division multiplexers used

for connections between data centers. (Based on image courtesy of Infinera)
8 1  Computing and Enabling Technologies

The Cloud Xpress is a first generation 500Gbps Dense Wavelength Division

Multiplexer that supports an aggregate speed of 500Gbps. The newer second gen-
eration Cloud Xpress 2 is smaller and faster. Its capacity is 1.2 terabits per second
and requires only one RU (rack unit), about 1.75 inches (44.45 millimeters) high in a
19-inch wide computer rack. The older Cloud Xpress takes up 2RU, essentially two
vertical shelf units.

Lasers—Lighting Fiber
Lasers (Light amplification by stimulated emission of radiation) are the source of light
on long-distance fiber networks and on fiber networks within cities. A laser turns light
pulses on and off over fiber cables. Most outside fiber-optic cabling is connected to
lasers for generating their light pulses. Due to improvements in manufacturing and
chips, lasers are so small that they are now available as computer chips integrated into
line cards connected to fiber-optic cables.

Super Channels—For Even More Capacity

Super channels are an advanced form of dense wavelength division multiplexing.
Super channels essentially mix multiple gigabit per second wavelengths together to
achieve higher gigabit or terabit speeds on a single circuit card. In some systems, one
wavelength can transmit at 100Giga bits per second. For example, a fiber used for
sending can combine five 100Gbps wavelengths to transmit at 500Gbps. The fiber
sending in the other direction can transmit at 500Gbps, equaling a total of a terabit
of capacity. Thus, super channels enable fiber to reach terabits (1,000 gigabits) of
capacity.
Coherent fiber optics is one of the technologies that enable high bandwidth
transmissions above 40Gbps. Coherent fiber transmissions achieve high bandwidth
by the use of error correction bits in transmitted light pulses, and in lasers located in
receivers. At the receiving end, receivers are equipped with lasers tuned to the exact
same frequency and shape as the transmitted wavelength. Each wavelength has an
associated laser in the receiver in fiber-optic networks that optical network providers
build.
Receivers use sophisticated algorithms to correct for impairments in the signals
sent from lasers associated with each wavelength. Coherent transmission is an impor-
tant enabler of high bandwidth transmission in long-haul networks because increas-
ing the speed of transmissions causes additional impairments. Long-haul networks
are those connecting cities, and countries. Undersea fiber-optic cables that connect
continents to each other are also examples of long-haul networks.
Fiber-Optic and Copper Cabling 9

Half Duplex: Sending and Receiving on Separate

Cables
Fiber-optic cables are half duplex. Each fiber cable is capable of sending in one direc-
tion only. Consequently, a separate fiber strand is needed for sending and a different
fiber for transmitting back in the other direction. In other words, each strand of fiber
can send signals in one direction only.
In contrast, copper cabling is full duplex. Within buildings a single copper cable
is connected to each computer and printer. This single cable is used both to send and
receive signals. Moreover, cable modems and routers within people’s homes require
just one copper cable to both send and receive e-mail messages and files to and from
the Internet. See Table 1-1 for examples of half vs. full duplex.

Table 1-1 Half Duplex vs. Full Duplex

Type of Cabling for
Half and Full Duplex Each Where Deployed
Half duplex Separate cables for Locations with fiber or
sending and receiving copper cabling
Examples of half duplex Fiber networks Fiber optic cabling in large
data centers
Fiber optic cabling between
floors in many apartment
buildings and businesses
Fiber optic networks between
and within cities
Full duplex Send and receive on Locations with copper
same cabling
Examples of full duplex Copper cabling-based Cables to homes, desktop
networks computers, and printers

Amplifiers vs. Regenerators

Although signals on fiber-optic cabling travel longer distances than those on copper
cabling, the signals do fade; they weaken over long distances. In addition to fading,
imperfections in the form of noise impedes the signals over distances. See Table 1-2
for a comparison between amplifiers and regenerators. Thus, equipment must be added
to fiber-optic networks both to boost the signals when they fade and eliminate the
noise. Amplifiers and regenerators do these tasks.
10 1  Computing and Enabling Technologies

Table 1-2 Amplifiers vs. Regenerators

Distance when
Needed Function Cost Comparison
Amplifier 80 to 120 kilometers Boosts optical Lower cost
(49 to 74.4 miles) amplitude of all
wavelengths when
they fade
Regenerator 3,000 to 4,000 kilometers Removes noise More costly than
(1,860 to 2,480 miles) and other impair- amplification
ments. Regenerates
each wavelength
separately

Amplifiers are needed in fiber-optic networks every 80 to 120 kilometers (49 to

74.4 miles). They boost the signals’ amplitude on all the wavelengths of an entire fiber
in one operation. Amplitude refers to the height of a signal at the highest point of the
wavelength. Amplitude is similar to a unit of loudness or strength.
Regenerators are needed less frequently than amplifiers, about every 3,000 to
4,000 kilometers (1,860 to 2,480 miles). Regeneration is more costly than amplifica-
tion because each wavelength must be regenerated individually rather than regenerat-
ing the entire fiber and all the wavelengths in one operation.

Fiber-Optic Cabling—No Electromagnetic

Interference, Smaller and Lighter than Copper
In contrast to copper cabling, fiber-optic networks have more capacity and they can
carry the signals longer distances without amplification. In addition, fiber-optic net-
works are less costly to maintain once they are installed. This is because bits are car-
ried on non-electrical light pulses. These pulses are analogous to the light emitted by
quickly turning a flashlight on and off. Because the pulses are non-electrical, there is
no resistance from electromagnetic interference (EMI).
Resistance associated with EMI in networks made up of copper cabling causes
fading over relatively short distances of about 2 miles. This is analogous to water
pressure from a hose weakening over short distances. Consequently, amplifiers are
needed every mile and a half to 2 miles to boost electrical signals carried on copper-
based networks. The absence of resistance from electrical interference is fiber’s main
advantage over copper cabling. Moreover, once installed, amplifiers must periodically
be replaced and maintained.
Because data on fiber-optic cabling is carried as non-electric pulses of light, ampli-
fication is only needed after 80 to 120 kilometers (49 to 74.4 miles). This means that
Fiber-Optic and Copper Cabling 11

in many short fiber runs to homes or apartment buildings, no amplification is needed.

In long-haul networks, those between cities, states, and countries, fewer amplifiers
are required to boost optical signals after they have faded than are required in copper
networks.
The non-electric light pulses on fiber-optical cabling can travel about 400 kilometers,
or 248 miles, before having to be regenerated. This is another savings in labor because
fewer technicians are needed to install regenerators. This lowers the cost for net-
work providers who lay miles of fiber between cities, within cities, and under the
ocean. In short fiber runs, regeneration is not needed if the cable runs are less than
4,000 kilometers.

Lighter and Smaller than Copper Cabling

In addition to the absence of electrical interference, fiber-optic cabling is lighter and
smaller than copper cabling. Because of its size, it takes up less space than copper
cabling in conduits (hollow pipes in which cables are run) that are located under streets.
This is important in large cities where conduits are often stuffed and at capacity with
older copper cabling. A university in downtown Boston wanted to connect two build-
ings by running fiber-optic cabling under a public street between its buildings. This
was a problem because there was no space left in the existing underground conduit
that was already filled with copper cabling. The university needed to get permission
from the city’s authorities to dig up the street to add a new conduit, and they had to pay
for digging up the street in addition to the cost to lay a new conduit for the fiber-optic
cabling between their two buildings.
If the conduit had fiber cabling, it’s likely that space would have been available
because of fiber’s smaller diameter.

More Capacity than Copper Cabling

A significant advantage of fiber-optic cabling is its enormous capacity compared to
copper cabling and mobile services. Light signals on optical cabling pulse on and off
at such high data rates that they are able to handle vastly greater amounts of informa-
tion than any other media and the capacity can be multiplexed into wavelengths. See
Table 1-3 for a comparison of copper and fiber optic cabling.
In older networks, once high-quality fiber is installed in trenches, newer lasers and
dense wavelength division multiplexing can be added to increase its capacity to handle
the growing amounts of traffic, including high-definition video transmitted along its
routes.
12 1  Computing and Enabling Technologies

Dark Fiber
Because of the high cost of laying fiber underground and digging trenches, organiza-
tions that build new fiber optic networks often lay more fiber than they need when
they build the original network. They don’t add fiber multiplexers or lasers needed to
“light” the fiber on the extra fiber pairs. This fiber that does not have multiplexers or
lasers connected to it is referred to as dark fiber. It has not been “lit” with equipment
such as lasers needed to operate the fiber. See Figure 1-2 for an example of dark fiber.

University campus Hosting Center

classrooms classrooms
Dark fiber

xers
administration multiple
length division
ns e wave
with de
Lit fiber

Figure 1-2 A fiber-optic cable with DWDMs and dark fiber.

For example, a university in the Northeastern United States installed two fiber runs
to a hosting center where many of their computer servers were located. They added
dense wavelength division multiplexing (DWDM) to one fiber run, and left the second
one as an alternate route to their hosting center, to be used in the event of a cable cut
in the main fiber pairs.

Table 1-3 Summary of Fiber-Optical Cabling Compared to Copper Cabling

Characteristic Fiber-Optical Cabling Copper Cabling
Diameter Thin as a strand of hair Larger diameter—Needs
more space in conduits
Capacity Higher—Non-electrical Lower—Electromagnetic
pulses so no electromagnetic interference causes
interference resistance to signals
Weight Light Heavier
Distance before 80 to 120 kilometers 2.4 to 3.2 kilometers
amplification needed (49 to 74.4 miles) (1½ to 2 miles)
Installation costs Higher labor cost Lower—Less skill required
Maintenance costs Lower—Less equipment Higher—More equipment
needed to boost signals to maintain
Security from High—Need to physically Low—Can attach a monitor
eavesdropping break cable; easy to detect without cutting cable
Half duplex or Half duplex—A separate fiber Full duplex—Can send and
full duplex for sending and receiving receive on same cable
Fiber-Optic and Copper Cabling 13

Infinera: A Vertically Integrated Fiber-Optic

Manufacturer
Infinera, headquartered in Sunnyvale, California was founded in 2000 and was
initially funded by venture capital companies. In 2007, the company raised an
additional $300 million in an initial public offering. During the years between
2000 and 2005 when Infinera developed their fiber-optic technology, there was a
glut of fiber-optic capacity. However, by the time they first began shipping their
products in 2005, the glut was ending.
Infinera’s goal in designing their products was to enable network providers to
bring up denser fiber-optic capacity in a single operation. They have a fully ver-
tical operation where they manufacture and sell all the components needed for
an optical network. Infinera designs and manufactures all of their own compo-
nents including chips, dense wavelength division multiplexing, receivers, circuit
boards, and fiber-optic cabling.
Their networks were designed from the beginning so that a large number of
wavelengths could be brought up and put into service in a single operation by
network providers.
When Infinera started shipping their products in 2005, all of their fiber-optic
equipment was made for long-haul networks connecting cities, countries, and
continents. In 2015 they purchased Transmode, a company that specialized in
metro wavelength division multiplexing within cities. Transmode additionally
provided fiber networks to mobile carriers for connections between their towers
and data centers and between mobile networks and the Internet.
Infinera is able to achieve the density they offer because of the photonic chips
they manufacture. Photonic chips send data within the chip via light pulses
because electrical impulses in non-photonic chips have electrical magnetic
interference that slows down signals. Another innovation is that their chips are
built using indium phosphide instead of silicon, which Infinera feels provides the
exacting transmissions required in their high-speed optical components. All the
processing in their chips is done using multicore, parallel mode processors.

Single-Mode vs. Multi-Mode Fiber

There are two main types of fiber: single-mode and multi-mode. Single-mode fiber is
smaller, is more expensive, and supports higher speeds than multi-mode fiber. Measur-
ing approximately the same diameter as a strand of human hair, it is used mainly in
carrier networks and in undersea cabling.
The fact that single-mode fiber carries light pulses faster than multi-mode fiber can
be explained by a geometric rule: A straight line is the shortest distance between two
points. Light travels faster in a straight line than if it zigzags along a path, which is pre-
cisely what happens to light waves if they reflect, or “bounce,” off the inner wall of the
14 1  Computing and Enabling Technologies

fiber strand as they travel. These zigzag paths also cause the signals to attenuate, lose
power, and fade over shorter distances. The narrow core results in a narrower angle of
acceptance. The small angle of acceptance of single-mode fiber keeps the light signal
from bouncing across the diameter of the fiber’s core. Thus, the straighter light signal
travels faster and has less attenuation than if it had a bouncier ride through the core.
When the light pulses travel in narrower paths, fewer amplifiers are needed to
boost the signal. Single-mode fiber can be run for 49 to 74 miles without amplification
(boosting). In contrast, signals on copper cabling need to be amplified after approxi-
mately 1.5 miles. For this reason, telephone companies originally used fiber for outside
plant cabling with cable runs longer than 1.2 miles. However, the demand for higher
capacity and the lower maintenance costs have resulted in carriers running increasing
amounts of fiber cabling directly to homes and buildings.
The main factor in the increased expense of single-mode fiber is the higher cost to
manufacture more exact connectors for patch panels and other devices. The core is so
small that connections and splices require much more precision than does multi-mode
fiber. If the connections on single-mode fiber do not match cores exactly, the light will
not be transmitted from one fiber to another. It will leak or disperse out the end of the
fiber core at the splice.
Multi-mode fiber has a wider core than single-mode fiber. The wider core means
that signals can only travel a short distance before they require amplification. In addi-
tion, fewer channels can be carried per fiber pair when it is multiplexed because the
signals disperse, spreading more across the fiber core. Multi-mode fiber is used mainly
for LAN backbones between campus buildings and between floors of buildings.
Another factor in the expense of installing fiber cabling systems is the cost of con-
nector standardization. Three of the main connector types are the Straight Tip (ST), the
MT-RJ, and the Little Connector (LC). Each type of connector requires specialized tools
for installation, and both factory- and field-testing. Technicians perform field-testing
prior to installation to ensure that the connectors meet factory specifications. It’s critical
that connectors match up exactly to the fiber so that signals don’t leak. If the connectors
don’t exactly match up to the fiber, signal loss impairs the fiber’s performance.

Fiber-Optic Cabling in Commercial Organizations

Because fiber is non-electric, it can be run in areas without regard to interference from
electrical equipment. However, due to its higher installation cost, fiber within build-
ings is used most often in high-traffic areas. These include:

• Within data centers

• Between buildings on organizations’ campuses
• Between switches in backbone networks. A backbone connects switches
to each other and to data centers. Backbone networks are not connected to
individual computers—only to servers and switches.
Fiber-Optic and Copper Cabling 15

Fiber-optic cabling fiber itself requires more care in handling and installation than
copper. For example, it is less flexible than copper and cannot be bent around tight
corners. However, given its greater capacity and cost savings in ongoing maintenance,
developers install fiber between floors in large office buildings and between buildings
in office complexes. See Figure 1-3 for an example of fiber-optic cabling in enter-
prises. The fiber-optic cabling within commercial organizations is for the most part
multi-mode rather than single-mode because of multi-mode’s less stringent installation
requirements. Moreover, multi-mode capacity is adequate for commercial buildings’
bandwidth requirements.

Figure 1-3 Examples of fiber-optic cabling used in telephone company

networks. (Photo by Annabel Z. Dodd)

There are two reasons why fiber is typically more expensive than copper to install:

• The electronics (multiplexers and lasers) to convert electrical signals to opti-

cal signals, and vice versa, are costly.
• Specialized technicians, paid at higher levels, are required to work with and
test fiber cabling.

The multiplexers and interfaces between fiber-optic cabling and copper cabling
in the customer’s facility require local power. This adds a point of vulnerability in the
event of a power outage.
Fiber-optic cable is made of ultra-pure strands of glass. The narrower the core
that carries the signals, the faster and farther a light signal can travel without errors or
the need for repeaters. The cladding surrounding the core keeps the light contained to
16 1  Computing and Enabling Technologies

prevent the light signal from dispersing, that is, spreading over time, with wavelengths
reaching their destination at different times. Finally, there is a coating that protects the
fiber from environmental hazards such as rain, dust, scratches, and snow.
An important benefit of fiber-optic cabling is that eavesdropping is more difficult
because the strands have to be physically broken and listening devices spliced into the break.
A splice is a connection between cables. Splices in fiber-optic cables are easily detected.

Copper Cabling in Enterprises

Improvements in copper cable have made it possible for unshielded, twisted-pair
cabling to transmit data rates at speeds of 100Gbps in Local Area Networks (LANs).
Previously, these speeds were only attainable over fiber-optic cabling. This is impor-
tant because the interfaces in most computer devices are compatible with unshielded,
twisted-pair (UTP) cabling, not fiber-optic cabling. Connecting this gear to fiber
requires the cost and labor to install devices that change light signals to electrical
signals, and vice versa. Figure 1-4 depicts copper cabling in enterprises: four pairs of
wires enclosed in a sheath. Each pair consists of two strands of wire twisted together—
a total of eight strands of cable, arranged by color: purple with white, orange with
white, green with white, and brown with white.

Figure 1-4 Unshielded twisted-pair cabling used within enterprise

buildings. (Photo by Annabel Z. Dodd)
Fiber-Optic and Copper Cabling 17

UTP copper and fiber-optic cables are the most common media used in enter-
prise LANs. Because of improvements in the speeds, capacity, and distances wireless
signals can be transmitted, wireless media is replacing copper cabling in some office
buildings. Wireless services based on the 802.11 (Wi-Fi) protocols are discussed in
Chapter 7, “Mobile and Wi-Fi Networks.”
Characteristics of media have a direct bearing on the distance, speed, and accuracy
at which traffic can be carried. For example, thin copper wire carries data shorter dis-
tances at lower speeds than thicker, higher-quality copper.
In corporate networks, UTP is the most prevalent medium used to link comput-
ers, printers, and servers to wiring closets on the same floor. This is referred to as the
horizontal plant.
Fiber is capable of carrying vastly more traffic than copper. However, it is more
expensive to install and connect to devices in LANs than UTP, and thus it is generally
used in high-traffic connections between the following:

• Wiring closets
• Floors (the risers)
• Buildings on campuses

The key characteristic that makes fiber suitable for these high-traffic areas is that
it’s a non-electric medium. Fiber exhibits superior performance because, unlike cop-
per, it does not transmit electric signals that act like an antenna and pick up noise and
interference from nearby electrical devices.

Connecting Fiber to Copper

In enterprise networks, when fiber is connected to copper cabling at locations such as
entrances to buildings, at wiring closets, or in data centers, equipment converts light
pulses to electrical signals, and vice versa. This requires converters called transmit-
ters and receivers. Transmitters also are called light-source transducers. If multiplex-
ing equipment is used on the fiber, each channel of light requires its own receiver
and transmitter. Transmitters in fiber-optic systems are either Light-Emitting Diodes
(LEDs) or lasers. There are several reasons for this:

• LEDs cost less than lasers. They are commonly used with multi-mode fiber.
• Lasers provide more power. Thus, less regeneration (amplification) is needed
over long distances.
• At the receiving end, the light detector transducers (receivers) that change
light pulses into electrical signals are either positive intrinsic negatives
(PINs) or avalanche photodiodes (APDs).
• LEDs and PINs are used in applications with lower bandwidth and shorter
distance requirements.
18 1  Computing and Enabling Technologies

Electrical Property—Disadvantage of Copper

Cabling
Signals transmitted via copper react to electrical interference or “noise” on the line.
Power lines, lights, and electric machinery can all inject noise into the line in the form
of electric energy. This is why interference from signals such as copiers, magnetic
sources, manufacturing devices, and even radio stations can introduce noise and static
into telephone calls and data transmissions. One way to protect copper cabling from
noise and crosstalk introduced by nearby wires is to twist each insulated copper wire
of a two-wire pair. Noise induced into one wire of the twisted pair cancels an equal
amount of noise induced in the other wire of the pair. Crosstalk occurs when electrons
that carry the conversations or data along a copper pair cross over, or “leak,” on to other
nearby wire pairs.
Another electrical property of copper wire is resistance. Resistance causes signals
to weaken as they are transmitted. This is referred to as attenuation. Attenuation is the
reason signals on copper cable in the outside network need to be boosted on cable runs
of more than approximately 1.5 miles. Thus, the dual inherent impairments of interfer-
ence and resistance are the key factors that limit copper’s performance. See Table 1-3
for the differences between copper and fiber cabling

Copper Cabling Standards: Higher Capacity,

Exacting Installation, and Connections
Cabling standards have been created to support ever-higher speeds, carry multimedia
traffic, and ensure that organizations can purchase cabling and connectors from diverse
manufacturers without risk of incompatibility. Each cabling standard includes defined
tests that should be performed when cables are installed to ensure that it and all of the
connectors perform to their specifications.
Every new standard needs to be compatible with all lower standards. This allows
applications that operated over lower-category cabling systems to operate on higher
categories, as well. The biggest problems organizations face with cabling systems are
that they are not always properly installed and tested to meet standards. This results in
either lower-than-expected data rates or inconsistent reliability.
Each of the standards specifies not only the cable itself, but all of the connections
including jacks (outlets), plugs, and cross-connects in wiring closets. Cross-connects
provide outlets on each floor where cabling from individual devices is connected. The
floor cabling, also referred to as the horizontal plant, is connected to the riser cabling,
which is the cabling connections between floors. See Figure 1-5 for an example of cop-
per cabling in enterprises. The riser cabling is connected in the building’s main wiring
closet and to other buildings within a campus.
Fiber-Optic and Copper Cabling 19

Backboards in floor wiring closet where unshielded twisted

pair cables are connected to LAN devices and fiber

Floor 2

Fiber riser cabling

between floors

Horizontal unshielded twisted pair

Switches in wiring closets
cabling on floors 1 & 2
Backboard

Floor 1

Figure 1-5 Riser and horizontal cabling connections in a wiring closet.

Standards also specify the network interface card (NIC) in printers and computers
from which a cable connects the device to the jack (outlet). The Telecommunications
Industry Association (TIA) rates twisted-pair cabling and connection components used
inside buildings.

Unshielded Twisted-Pair Copper Cabling Standards

Category 3 UTP cabling—often referred to as simply “CAT 3”—is rated as suitable
for voice transmission, but it is only suited for older type phone systems. It is rarely
used in new installations. Categories 5, 5e, 6, and 6a, are the commonly deployed
cabling system standards for UTP. Organizations often use Category 6a to support
10Gbps speeds in their data centers, and Category 6 for the rest of their facility. New
cabling infrastructure is installed using categories 7 or 7a. Moreover, this same cabling
plant is generally used for both voice and data. Category 7 and 7a cabling are based
on a standard ratified by the International Organization for Standardization (ISO). The
following is a synopsis of the major UTP categories. Category 8 was approved by the
Telecommunications Industry Association (TIA) in May 2017.

• Category 5 Supports speeds of up to 100Mbps for 100 meters (328 feet)

over UTP. It was the first ratified standard for megabit Ethernet transmis-
sions. It consists of four pairs of eight unshielded copper wires. Category 5
has been superseded by Category 5e.
20 1  Computing and Enabling Technologies

• Category 5e Supports 1Gbps speeds at distances of 100 meters (328 feet).

Higher speeds are attainable because the cabling and connectors are manu-
factured to higher standards. There are more twists per inch in the cabling
than that specified for Category 5.
• Category 6 Supports 1Gbps speeds at 100 meters (328 feet). At shorter
distances, it handles 10Gbps speeds. A higher twist rate, heavier cabling,
and a metallic screen around the entire cable protect it from ambient noise.
Insulation material (usually plastic strips) is placed between each of the four
pairs to reduce crosstalk between the wires.
• Category 6a (augmented) Supports 10Gbps Ethernet transmissions of up
to 55 meters (180 feet). This is possible because the stricter standards result
in less cross talk between adjacent cables. Lower speeds are supported for up
to 100 meters (330 feet).
• Category 7 Supports 10Gbps speeds up to 100 meters (330 feet). High
performance at longer distances is possible because there is foil shielding
around each pair of wires and an overall metal foil shield around the entire
cable. It must be installed with different components and connectors from
those for Categories 5 through 6a to accommodate this shielding. It can also
be installed with the same type of connectors specified in earlier standards;
however, it will not transmit 10Gbps traffic as far as the 100 meters
(330 feet) achieved with the appropriate connectors.
• Category 7a Supports 40Gbps speeds up to 50 meters and 100Gbps up
to 15 meters. It is similar to Category 7. It requires shielded twisted-pair
cabling with shielding around the entire cable. It is widely available and is
often used in new cabling installations. The standards for connections
are more exacting than those in Category 7. The shielding in Category
7a guard against electromagnetic interference (EMI). Shielding must be
extended to all connections within the cabling system to attain gigabit
speeds. This requires a special insert into every RJ45 jack in the building.
RJ45 jacks are outlets used to plug cables into. The designation RJ stands
for registered jack.
• Category 8 Supports 25Gbps and 40Gbps speeds up to 30 meters. The
shielding and connectors are not compatible with Categories 7 and 7A. The
TIA approved Category 8 cabling in 2017. Category 8 cabling is capable of
supporting high-bandwidth transmissions between servers in data centers
because of its stringent shielding and connector requirements. This is less
costly than using fiber-optic cabling. The standard specifies both F/FTP (foil-
shielded twisted-pair cabling) where the entire bundle of four pairs of cable
is surrounded with one shield. The other option is foil-shielded twisted pairs
(S/FTP) where each of the four pairs is shielded individually.
Chips—Building Blocks of the Digital Age 21

CHIPS—BUILDING BLOCKS OF THE DIGITAL AGE....

Chips, short for microchips, are integrated processors and memory found in comput-
ers, cellular devices, electronic toys, wristwatches, thermostats, airplanes, cars, trucks,
and automated devices people and machines interact with daily. Multi-core chips have
up to eight cores, each of which is able to process information simultaneously, in real
time. Chips are the basis of the digital age.
Faster multi-core processors are an integral part of the high-speed electronics
used on fiber-optic, Wi-Fi, and cellular networks. They enable these networks to pro-
cess multiple streams of signals simultaneously. They are also at the core of network
switches, continually transmitting increasing amounts of data at ever-higher speeds.
Additionally, these processors facilitate the capability of personal computers, set-top
boxes, and smartphones to handle graphics and video transmitted via the Internet.
Chips now incorporate up to 64-bit processing (the ability to process data in chunks
of 64 bits), which means that they process data faster. Chips are now able to process
petabytes and exabytes of information. One petabyte equals 1,000,000,000,000,000
bytes or 1,000,000,000 gigabytes. An exabyte equals 1,000,000,000,000,000,000
bytes. Moreover, they are small and inexpensive, and use only small amounts of power.
The size of chips is shrinking at the same time that more processors can be packed into
personal computers and other electronic devices.
Low power consumption results in longer battery life in mobile devices. ARM
chips are designed by semiconductor firm ARM Holdings, Plc., and are available to
electronics manufacturers who pay a licensing fee plus royalties up front for each chip
designed. ARM is part of SoftBank Group Corp., which is headquartered in Japan.
Other chip makers include Broadcom, Nvidia, Intel, Qualcomm, NXP, and Micron.
Figure 1-6 is an example of a Nvidia X-1 chip. Facebook and Alphabet subsidiary Google are
developing chips as well. Facebook will use its chips in servers located in their data centers.

Figure 1-6 The Nvidia Integra Xi chip is about the size of a thumbnail. It
was the first chip Nvidia used for self-driving car technology development.
(Image courtesy of Nvidia)
22 1  Computing and Enabling Technologies

Machine Learning
Memory and processing power in chips enable machine learning and in the future will
enable artificial intelligence. Although the terms are often used interchangeably, there
is a difference between machine learning and artificial intelligence. Machine learning
uses microchips to compare stored images to new images to detect anomalies and pat-
terns of data. It can be thought of as computerized pattern detection in existing data
and identification of similar patterns in future data. Microchips compare billions of
images and phrases and words to find anomalies and to perform tasks formerly done
by people.
For example, graphic processing units (GPUs) chips are able to process and
store complex mathematical algorithms that represent images. Google is training its
machine learning system to recognize a picture with a car in it. The machine learning
system is shown a large number of pictures with a car in it. Telling the system if there
is a car in the picture or not enables the computer to later recognize the visual qualities
associated with cars. Machine learning is also used in facial recognition software used
by police departments.
Artificial intelligence solves problems by using reasoning, logical deduction,
searching, and trial and error. Artificial intelligence has the ability to imitate a human
brain’s functions. Although media articles claim that certain applications and cloud
computing services use artificial intelligence, they are actually powered by machine
learning. Artificial intelligence applications that mimic human intelligence are not cur-
rently available.
The following are examples of machine learning:

• Mass General Hospital in Boston’s radiology department is planning to

use Nvidia’s graphical processing units on chips to analyze a library of
10 billion x-rays, CT scans, and MRI images that will be compared with
new images to identify images indicating the presence of cancer and
Alzheimer’s.
• Medical applications analyze large amounts information in medical journals
and textbooks to assist physicians in making a diagnosis.
• In the future, self-driving cars and trucks may replace all or some taxi and
truck drivers because chips with image recognition will detect vehicles and
pedestrians on roads as well as traffic signals and signs.
• At Amazon warehouses, automation enables robots to take products off
shelves and give them to employees to package for shipping. The robots
retrieve four times as many products hourly as employees.
• Speech recognition systems from Nuance recognize words based on previ-
ously learned patterns of frequencies. Nuance software for individuals
and businesses is programmed to recognize spoken words. Nuance also
Packetized Data 23

develops specialized applications such as one used by Radiologists to write

reports.
• Home digital assistants such as Amazon’s Echo and Alphabet’s Google
Home respond to users’ spoken commands based on data previously
collected.
• Banks use machine learning to track and investigate anomalies in claims and
transactions to find fraudulent activities.
• The military deploys robots to find and defuse unidentified explosives so that
personnel are not injured.

Machine learning enabled by powerful chips already has a major impact on work and
job efficiency. Machine learning will continue to affect jobs that involve repetitive
tasks and those needing stored information to make decisions.

PACKETIZED DATA .................................................

All Internet traffic, and the vast majority of high-speed data network traffic, is sent in
packets. And increasingly, traffic that carries residential traffic in neighborhoods is also
arranged in packets. Putting data into packets is analogous to packaging it in envelopes.
Packet switching was developed by Rand Corporation in 1962 for the United States Air
Force and utilized in 1969 in the Advanced Research Projects Agency (ARPANET)
of the Department of Defense. ARPANET was the precursor to today’s Internet. The
Department of Defense wanted a more reliable network with route diversity capabil-
ity. Developers envisioned greater reliability with packet switching in the ARPANET,
where all locations could reach one another.
Packet networks are more resilient and can better handle peak traffic periods than
older networks, because diverse packets from the same message are routed via differ-
ent paths, depending on both availability and congestion. In a national emergency such
as the September 11, 2001 attacks in the United States on the Pentagon in Washington,
DC, and the World Trade Center in New York City, the Internet, which is a packet
network, still functioned when many portions of the older public voice and cellular
networks were either out of service or so overwhelmed with traffic that people could
not make calls.
If one route on a packet network is unavailable, traffic is rerouted onto other routes.
In addition, unlike older voice networks, the Internet does not depend on a few large
switches to route traffic. Rather, if one router fails, another router can route traffic in
its place.
24 1  Computing and Enabling Technologies

Per Packet Flexible Routing

Packet networks can handle peak congestion periods better than older types of net-
works because traffic is balanced between routes. This ensures that one path is not
overloaded while a different route carries only a small amount of traffic. Sending data
from multiple computers on different routes uses resources efficiently because packets
from multiple devices continue to be transmitted without waiting until a single “heavy
user” has finished its entire transmission. Thus, if one route is congested, packets are
transmitted on other routes that have more availability.
Routers in packet networks are connected to each separate route in the network.
They have the ability to check congestion on each leg of the journey connected to them
and send each packet to the least congested route. As shown in Figure 1-7, packets
from the same message are transmitted over the different routes.
Packet Network
Packets routed individually on least congested routes
3. Packets routed on
2. AT&T different routes

Packet 1
Pack

Packet 1
et 3

1. John sends email to Sophie Packet 2 4. Verizon

Pa
1. John ck
et 3
2. John’s email routed to AT&T 3 ket
Pac
3. Packets in email each sent on least Packet 2
congested route
Packet 2
4. Verizon puts all packets back in order they
were sent 5. Sophie
5. Verizon sends email to Sophie’s computer

Figure 1-7 Three of the packets of an e-mail from John to Sophie take
different paths through the network.

Packet Contents: User Data vs. Overhead

Each packet is made up of user data; data bits, digital voice or video, and specialized
header information, such as addressing, billing, sender information, and error correction
bits. See Figure 1-8 for an example of a data packet. Error correction might indicate
if the packet is damaged, if the receiver is ready to start receiving, or if the packet has
been received. The end of the packet contains information to let the network know
when the end of the packet has been reached. Header, end-of-packet data, and other
signaling data are considered overhead. User data (also referred to as the payload) is
the actual content of the e-mail message or voice conversation.
Packetized Data 25

A Simplified Example of Fields In a Packet With User Data and

Overhead

Header: End of packet information: e.g.

User bits: email message,
sender/receiver error checking and end of
address, protocol, text, audio, video
message bits

Overhead

Figure 1-8 User data vs. overhead addressing and end-of-packet bits in
packets.

Throughput
Throughput is the amount of user information transmitted, not the actual speed of the
line. The disadvantage of frequent error messages and other protocol-related bits is that
overhead bits often consume large amounts of bandwidth. Throughput only measures
actual user data transmitted over a fixed period of time. It does not include header bits.
Protocols with many bits for error control messages and other types of overhead have
lower throughput. Technologies such as Deep Packet Inspection and Traffic Shaping
are used to mitigate the effect of delays associated with these protocols. (See the sec-
tion “Traffic Shaping,” later in this chapter, for more information.)

So, What Are Carriers and ISPs?

At one time, the term “carrier” referred to local telephone companies, such as Verizon
Communications, that carried voice and data traffic for consumers and commercial
organizations. Now, all companies that provide outside cabling or mobile infrastructure
and operate networks are generally referred to as carriers. These include cable televi-
sion operators, cellular telephone companies, long distance providers and traditional
local telephone companies. Cable TV operators, mobile carriers, and traditional local
telephone companies transmit voice, data, and television signals as well as providing
connections to the Internet. To complicate matters further, carriers are also referred to
as operators and providers.
ISPs at one time provided the connections to the Internet and information services
over a carrier’s cabling, and sometimes provided the switching infrastructure needed to
access the Internet. ISPs also provide e-mail hosting and other services over a carrier’s
infrastructure. In everyday usage, the terms carriers and ISPs are used for all types of
providers. This is due to the fact that telephone companies such as AT&T as well as
traditional ISPs provide access to the Internet, e-mail services, and e-mail addresses
to customers.
26 1  Computing and Enabling Technologies

DEEP PACKET INSPECTION: MONITORING,

PRIORITIZING, AND CENSORING TRAFFIC ..............
In order to manage the networks they operate, companies and carriers need informa-
tion about traffic patterns. They monitor security, congestion, and whether there is too
much capacity. Enterprises, healthcare organizations, and universities monitor outgo-
ing traffic to safeguard privacy and intellectual property such as patents, social security
numbers, formulas for new drugs, and details on new technologies. An important tool
in managing both enterprise and telephone and cellular company’s networks is deep
packet inspection.
Deep Packet Inspection (DPI) accomplishes this by analyzing the contents of pack-
ets transmitted on network operators’ landline and mobile networks. DPI can examine
the content in the headers of packets as well as user content. It inspects and looks for
patterns in header information, such as error correction, quality of service, and end-of-
message bits, and sometimes the e-mail messages themselves.
Large, modern packet networks typically carry a mix of rich media traffic, includ-
ing television, movies, game, voice, and music streams, as well as data. Faster proces-
sers and more affordable memory have led to DPI switches and software that enable
carriers, large universities, and enterprises to manage congestion in real time as well as
offer new services on these diverse mobile and landline networks.
Depending on how it’s configured, DPI equipment can monitor the header only or
the header plus the user data (payload) of e-mail and instant messages. Capturing the
payload of a message is referred to as data capture. Data capture can be used to store
messages for later scrutiny or to scan messages in real time. Either function requires
high-speed processors and massive storage archives.
Deep packet inspection is one tool that organizations, telephone companies, and
governments use to manage traffic in the following scenarios:

• On a specific carrier’s Internet networks

• Between residential customers and their carriers
• On mobile networks
• Between enterprise locations
• On enterprise links to the Internet
• Within the internal networks of an enterprise

In addition to the above functions, deep packet inspection is used to censor

messages critical of governments.
Deep Packet Inspection: Monitoring, Prioritizing, and Censoring Traffic 27

DPI in Organizations: Protecting

Confidential Information
Organizations use Deep Packet Inspection to block access to specific non-business-
associated web locations such as Facebook (the social network site) to cut down
on unnecessary traffic on their networks and increase employee productivity.
Importantly, they also use Deep Packet Inspection to protect their networks against
hackers.
Private organizations use DPI to ensure that intellectual property is not leaked. For
example, it may monitor outgoing traffic for keywords. Healthcare and educational
institutions that collect private information such as social security numbers or student
information monitor outgoing traffic to ensure privacy of patients and students, to be in
compliance with privacy regulations.
Universities, for example, have applications with DPI capabilities enabling them
to block outgoing e-mail containing students’ social security numbers and student
identification numbers from all computers except those few computers in, for example,
human resources or registrars’ computers that need to collect the information.
Moreover, because DPI software can detect packet content as well as header
bits, it is one way to recognize malware hidden within for example graphics in PDF
documents.

Governments Monitor: Terrorism,

Web Access, and Unfavorable Comments
Governments often request that their country’s wireless and wireline telephone com-
panies monitor and/or censor e-mail messages that they might consider harmful. DPI
can be used, for example, to track terrorists or people critical of the government.
They may also request that telephone companies block access to particular web sites.
Governments additionally request that telephone and cellular companies monitor
networks for terrorism suspects and other criminal acts such as disseminating child
pornography.
Governments do this to block access to web sites they consider detrimental to their
goals. For example, the Chinese government blocks access to certain web sites in the
United States including Google. In August 2016, Turkey blocked access to Facebook,
PayPal, YouTube, and Twitter, in response to a failed military coup.
However, some citizens figure out ways to circumvent efforts to block them from
reaching particular web sites. One method they use is to create a VPN (virtual private
network) to directly access a web site.
28 1  Computing and Enabling Technologies

Carriers, Networks: Categorization and Billing

DPI is an application that can potentially be used by carriers to discriminate against
competitors’ traffic. For example, using DPI, a carrier can slow down or block traffic
generated by competitors’ services. See Chapter 6, “The Internet,” for information on
network neutrality. Network neutrality refers to carriers treating their own and com-
petitors’ traffic in an equal manner.
DPI further enables telephone companies to categorize traffic in real time to priori-
tize particular applications or traffic from their own subscribers. T-Mobile and Sprint
both announced plans to allow cellular subscribers unlimited video streaming.
DPI systems have the ability to exchange information with a carrier’s billing sys-
tem to support specialized offerings for data plans covering e-mail, songs, games,
video, and web browsing. A carrier might offer plans in which customers are allowed to
use 3Gb of data for a fixed price, with metered pricing kicking in on anything over 3Gb.
Metered pricing is a billing practice in which customers are charged by usage,
rather than a flat rate, for unlimited or predetermined amounts of minutes or data bits.
In some broadband networks, carriers throttle certain customers’ transmission if they
use more bandwidth than the carrier has allotted or if there is congestion. This has hap-
pened in broadband and cellular networks even with customers who are on unlimited
usage plans.
For example, carriers have slowed down subscribers’ traffic if they are considered
“bandwidth hogs.” In particular, these subscribers might watch 10 hours of video a day
and be among the top users of bandwidth capacity in a carrier’s network. Carriers want
to ensure that a few users don’t cause undue congestion for other subscribers.

Alerts to Customers with High Usage

A customer’s cellular carrier sent the subscriber text alerts notifying her that
her voice usage exceeded her plan’s number of minutes. This happened during
a medical crisis when her husband was hospitalized and many family members
and friends called asking for updates on the patient’s condition.
The customer was charged $60 extra for the additional calls. DPI lets carriers
track subscribers’ usage. Computers in their data centers are programmed to
automatically send text messages notifying customers when they’re near and
over their plans’ data and voice usage.

Traffic Shaping: Prioritizing Traffic

Deep Packet Inspection can provide information on network conditions because of its
capability to see more fields in packets than only the “send to” address. Discerning
Deep Packet Inspection: Monitoring, Prioritizing, and Censoring Traffic 29

only a packet’s address is analogous to looking at the address of an envelope. DPI pro-
vides the capability to determine which application the packet is using by examining
patterns within packets. It can distinguish Voice over Internet Protocol (VoIP) traffic
from data, gaming, and video traffic. Carriers use traffic shaping to prioritize particular
types of traffic.
Giving certain types of traffic priority over other types is referred to as traffic shap-
ing. Traffic shaping can be used to prioritize and deny access to the network by types
of traffic, e.g. music vs. data or video, and traffic from particular organizations. Traf-
fic from healthcare providers or companies that pay extra fees might be given higher
priorities than other traffic.
DPI software develops a database of patterns, also referred to as signatures. Each
signature or pattern is associated with a particular application such as peer-to-peer
music sharing or protocols such as VoIP. It can also be associated with traffic from
certain hackers or even terrorists attempting to launch malicious attacks with a goal of
disrupting Internet or government sites. The DPI software matches its own database of
patterns found in packets to those associated with particular applications, and network
attacks.
DPI software can be installed in stand-alone switches connected to an ISP or car-
rier’s network or as part of routers or firewalls. Routers are used to connect traffic to
the Internet as well as to select routes to other networks. Firewalls are hardware or
software that is designed to protect networks from hackers by looking for and blocking
unusual header information and known viruses and to detect outgoing messages with
confidential and private information.

DPI vs. Stateful Inspection

Stateful inspection refers to the ability to look at packets in real time as they are
transmitted. Both DPI and Stateful Inspection examine packet headers in real
time. However, only DPI has the ability to look at both the actual data bits users
send and receive. Because it only examines the headers, Stateful Inspection is
faster than DPI.
Both Stateful Inspection and DPI are used to screen out malicious packets as
they enter networks. However, DPI is slower because it looks at both the header
and content in packets. Because it looks at both the data content and the header
data, DPI is better at catching known malicious code.
Stateful inspection is better suited to screening for packet storms caused by
denial of service attacks, when hackers try to overwhelm a network by sending
it millions of packets per second. Because of their different capabilities, many
companies use both DPI and Stateful Inspection.
30 1  Computing and Enabling Technologies

COMPRESSION .......................................................
Compression is a technology that reduces the size of video, data, image, and voice files
so that they require less space in networks and on hard drives in computers. Compres-
sion has the same effect as a trash compactor that reduces the amount of space trash
consumes. Compression shrinks the size of files without materially changing images
or text. The benefit of compression is that it dramatically decreases the amount of net-
work capacity (bandwidth) needed to transmit high definition TV, music, and movies.
Compression additionally facilitates the ability of companies to store video files,
and large databases can use less disc space on computer storage systems. The ability
to store more information using less computer capacity has led to companies, govern-
ments, social networks, and marketing organizations storing petabytes of data.
Additionally, compression has drastically changed the entertainment business,
sports viewing, online games, and has led to the formation of new business models
including streaming media companies, specialty set-top boxes such as Apple TV and
Roku, and video productions of online video ads.
Compression increases throughput, the amount of user data or video transmitted,
without changing the actual bandwidth (capacity) of the line. In other words, it takes
fewer bits to transmit a movie, but the bandwidth of the network is the same. A given
amount of bandwidth is able to transmit more user information, TV, audio, and video,
with fewer bits.
At the receiving end compressed files are de-compressed, re-created, in the exact
images as before they were transmitted or at a slightly lower quality. Text is re-created
exactly as it was before it was compressed so that numeric information or product
information is not altered. However, when it’s received, compression might re-create
video and voice in varying degrees of lower video resolution or voice quality with
acceptable, often barely noticeable, alterations. Certain critical files such as MRI and
x-ray images are decompressed without losing any quality.
There are a number of standardized compression algorithms (mathematical for-
mulas used to perform operations such as compression) that enable compressed text
and video to be transmitted in a format that can be easily decompressed at the receiving
end. The following is a list of commonly used compression protocols:

• UHD is used for Ultra High Definition TV

• 8K UHD is a video compression standard that compresses files to 4320p
progressive lines of non-interlaced vertical display. Progressive video dis-
plays odd and even lines in video at the same time. Interlaced displays show
all the even lines and then all the odd lines.
• HDR (High Dynamic Range) has a higher range of luminosity, which results
in greater color contrast and improved color accuracy. Netflix is now stream-
ing some shows in HDR to subscribers with broadband bandwidth between
16 and 20Mbps.
Compression 31

• Various MPEG standards are used to compress and decompress audio and
video. MPEG stands for Moving Picture Experts Group.
• MPEG-4 is a standard used mainly for streaming and downloading com-
pressed video and television.
• AAC Advanced Audio Coding is Apple’s proprietary compression used in
iTunes and Apple Music. It is part of the MPEG-4 standard.
• Most Windows-based personal computers store and transmit files using
WinZip compression. It is available for MAC computers as well. It can com-
press a group of files into one “package.”

See Table 1-4 in the “Appendix” section at the end of this chapter for a more com-
plete listing of compression standards.

Streaming: Listening and Viewing without

Downloading
For the most part, when people watch television and movies from the Internet, the con-
tent is streamed to them. They do not own or keep copies of what they’re viewing. The
ability to stream high-quality music, TV shows and movies has drastically changed the
music and entertainment industries. This ability is a result of advancements in com-
pression. While some people own CDs and DVDs, ownership and rentals of DVDs and
ownership of CDs have shrunk considerably due to the ease of streaming and down-
loading music, movies, and television shows over the Internet.
Streaming is different from downloading. Downloading requires an entire file to
be downloaded before it can be viewed or played. With streaming, the user can listen
to music in real time, but cannot store it for later use. Spotify, Pandora (now owned by
Spotify), Google Play Music, and Apple Music each offer streaming music services.
With streaming music, subscribers are able to listen to more targeted choices, often
without ads, than that offered on AM and FM radio. Most music sources charge a
monthly subscription fee for the ability to listen to music without hearing ads.
In addition, most free music services are streamed at a lower quality than paid
streaming music services. For example, Pandora free services stream music at
64 Kbps, and Spotify’s streams at 160 Kbps. Pandora’s paid subscription streams at
192 Kbps and Spotify’s streams at up to 320 Kbps. Apple Music has no free subscrip-
tions, only paid ones where listeners stream music from Apple’s library of 300,000
songs at 256 Kbps using AAC (Advanced Audio Coding) compression.
Because many young people have too many songs to store on their smartphones,
they store their music in the cloud. In addition to gaining storage capacity, they can
stream their songs wherever they are as long as they have access to the Internet. More-
over, if they lose or change devices, they can access their music from other devices.
32 1  Computing and Enabling Technologies

Streaming and downloading music has caused the music industry and artists’ royal-
ties to shrink considerably. Customers now buy their music primarily from online sources
such as iTunes and listen to songs on their smartphones. This has caused sales of CDs
to shrink because people want to buy just a favorite song from particular artists. They
often choose not to buy a CD because they may like only one or two of the songs. Illegal
free music downloads are still occurring from sites such as LiveWire.com. According to
Hannah Karp’s March 30, 2017, article “In a First, Streaming Generated the Bulk of
Annual Music Sales” in the Wall Street Journal, in 2016 streaming music made up 51 per-
cent of the total music revenue in the United States. This was the first time that streaming
sales accounted for the majority of music revenue compared to CDs and music downloads.
The combination of free downloads and the drastic decreases in CD sales have
resulted in lower royalties to musicians. Popular singers now depend on concert sales
for the majority of their income because for the most part, young people simply buy
individual songs online. Or they stream music and don’t own copies of all the songs to
which they listen.

Compression: The Engine behind TV over

the Internet
Compression used on video and multimedia streamed over the Internet has transformed
how people get their entertainment. Television and movies at sites such as Hulu (a
joint venture of Disney; and Walt Disney Company’s ABC Television Group, with
60 percent; Comcast with 30 percent, and AT&T with 10 percent of Hulu.) and Netflix
enable individuals to stream high quality movies, TV, sports events, and news from the
Internet. Viewers now expect to view even high quality real-time sporting events over
their broadband connections. To take advantage of these expectations, broadcasters and
cable TV companies such as AT&T include broadband streaming in their product mix
and strategy planning.
In another nod to this capability, new television sets have the capability to connect
directly to the Web so that people can stream and watch broadband programming more
easily on their high-definition, digital televisions. These changes have been made pos-
sible by advancements in compression, home Wi-Fi technology, and improved broad-
band connections.

Innovative Compression Algorithms—Fewer

Bits, Higher-Quality Images
FLIF, GFWX, and PERSEUS are examples of compression software that compress
images at higher speeds, achieve higher quality images, and require less bandwidth when
compressed images are transmitted over broadband networks than older compression
standards. All of the above compression methods were introduced in either 2015 or 2016.
FLIF compression, which stands for Free Lossless Image Format, shrinks the size
of files dramatically. FLIF as the name states is Lossless. Lossless refers to the fact
Compression 33

that files are stored at the same quality as the original image. Another feature of FLIF
is that it is progressive. As images are downloaded, a preview appears so that people
see a preview of the image before it is fully downloaded. Because it is lossless, FLIF is
suitable for all types of images including MRIs, photographs, and art. FLIF is available
without cost or royalties under GNU General Public License.
GFWX, Good, Fast Wavelet Codec, was developed by Graham Fyffe at the Uni-
versity of Southern California to store large amounts of video. It encodes and decodes
videos faster than earlier compression standards. It can store videos in lossy and loss-
less formats. With lossy formats, bits deemed non-essential are eliminated when the
video is stored. Images on DVDs are stored in lossy formats.
V-NOVA’s PERSEUS compression software is based on the premise that there is
a lot of spare digital processing capacity in the multiprocessing chips that process the
complex mathematical algorithms that are the basis of this compression. PERSEUS
compression is encoded in parallel rather than in sequential, serial lines of code. The
complex mathematical algorithms coded in hierarchical, parallel streams take advan-
tage of the multiprocessing capabilities in digital devices such as set-top boxes, video
games, mobile devices, computers, and storage systems where processors can simulta-
neously process complex mathematical algorithms encoded in parallel streams.
According to V-NOVA’s co-founder Guido Meardi, the fact that compression
enormously shrinks the number of bits needed to transmit data will enable mobile net-
works to carry vast amounts of video and rich media applications. This is particularly
important in countries with older cellular networks not built to transmit bandwidth-
heavy video and medical images. Compression that vastly shrinks the number of bits
required for medical imaging could bring telemedicine to people in countries with
predominantly older cellular networks. V-NOVA’s compression is being deployed in
Nepal where doctors collaborate over their older cellular network with radiologists in
New York City on interpretation of MRIs and x-rays.

Compression Applications

• Streaming TV in India—FastFilmz, an Indian streaming TV provider similar

to Netflix, uses PERSEUS compression to stream standard definition (SD) TV
compressed down to 128 kilobits per second to customers with 2nd generation
cellular service. Currently, about 70 percent of consumers in India have 2G
cellular service. The 9 percent of customers in India with 3G cellular are able
to receive high definition (HD) that requires only 2.5 to 3.5Mbps rather than
9Mbps. Prior to FastFilmz’s use of V-NOVA’s PERSEUS two thirds of people
in India could not receive any streaming video because of 2G’s low capacity.
• Concentration camp survivors’ testimony—At the University of Southern Cali-
fornia, GFWX compression is used to manage storage of videos compiled by the
New Dimensions in Testimony project. The videos are clips of remembrances
by survivors of World War II concentration camps. The U.S. Army Research
Laboratory and the USC Shoah Foundation sponsored the project.
34 1  Computing and Enabling Technologies

Plug-Ins for Software Upgrades and Decompression

The use of plug-ins enables compression applications to transmit upgrades to devices
using their software. Plug-ins are small programs used to ease sending upgrades to
devices. Plug-ins can additionally decode compressed images and files sent over net-
works, thus avoiding the need to install hardware at customers’ sites to decompress
received files such as images, videos and text.

A plug-in is a small computer file that enables a computer application to

work with and receive changes from its parent program. Programmers
w
encode plug-ins at the sending and receiving ends of applications such
e
as browsers and compression software. An example of how a plug-in is
deployed is Netflix transmitting plug-in upgrades when they upgrade their
software. In a similar way as Netflix, PERSEUS transmits any changes to
its software via plug-ins sent to customer devices. V-NOVA and Netflix can
tweak their software without requiring customers to make any changes
because the changes to the plug-ins are transparent to end-user devices,
e.g., set-top boxes, smartphones, computers, and head-mounted displays
used for virtual reality.

Using Codecs to Compress and Digitize Speech

Speech, audio, and television signals are analog in their original form. Analog signals
are transmitted in waves; digital signals are transmitted as on and off bits. Before they
are transmitted over digital landlines or wireless networks, codecs compress (encode)
analog signals and convert them to digital bits. Codecs sample speech at different ampli-
tudes along the sound wave and convert it to a one or a zero. At the receiving end,
decoders convert the ones and zeros back to analog sound or video waves.
Codecs are located in cellular handsets, telephones, high-definition TV transmit-
ters, set-top boxes, televisions, IP telephones, and radios. Codecs also compress voice
in speech recognition and voicemail systems. With compression, codecs do not have
to sample every height on the sound wave to achieve high-quality sound. They might
skip silence or predict the next sound, based on the previous sound. Thus, fewer bits per
second are transmitted to represent the speech.

Virtual Reality—Immersive Experiences

Virtual reality (VR) is the use of specialized software and hardware to produce video
that creates an immersive experience for people that play video games, and watch vid-
eos, sporting events, and movies. The goal of virtual reality is to create the illusion that
Compression 35

people watching movies and sporting events are actually at the event rather than watch-
ing from a remote location. They are virtually experiencing it. For example, the experi-
ence of watching someone climb a mountain via VR can give the viewer a sense of the
peril and freezing temperature experienced by the climber. As a result of this immersive
experience, virtual reality movies that depict assaults on people or scenes of destruction
caused by war or natural disasters may create empathy for people viewing these videos.
Virtual reality (VR) is a technique for capturing immersive images and videos. For
example, people can see the cruise ship or resort in VR to help select a vacation venue.
Images captured in virtual reality formats have far greater detail than available on tradi-
tional photos and videos. The viewing angle is also larger, and not limited to just a TV
screen.
Rather, the video image appears to be all around viewers. High-quality cameras and
viewing devices are needed to view, transmit, and decode 100- or 120-degree images.
Special software can also be used to “stitch” a few cameras together to create wide vir-
tual reality images. In the future, social networks might allow people to upload posts in
virtual reality formats.
According to Mike Quan, Co-Founder of Boston-based Boston 360:

Social media has connected us. Virtual reality provides people the
opportunity to experience another person’s life, almost to see it through
someone else’s eyes. It’s the ultimate telepresence.

Head Mounted Displays for Viewing Virtual Reality

Content
Viewing virtual reality content requires special headsets called head mounted displays
(referred to as HMD or goggles) with high-powered lenses and controls that enable
users to focus in on parts of the video and to tilt the video. Additionally, a virtual real-
ity app (small application) must be downloaded to their smart phone to enable virtual
reality formats. The app in combination with a head mounted display enables people to
watch high definition videos in a virtual reality format.
Depending on the headset, users can control how they see the video with a physi-
cal remote or their hands. For example, moving their hands or their phone in a certain
direction enables them to look at the video sideways. The virtual reality software on
their smartphone or PC combined with the headset provides an immersive experience so
that users feel as though they are actually within the movie. VR headsets are commonly
connected to PCs so that users can play video games on their computers in a virtual
reality format.
Compression software, multifunction graphical processing chips, increases in
memory capacity, and financial backing from companies that see potential profits from
virtual reality all enable virtual reality development. For example, graphical processing
chips process large chunks of video, and powerful compression software means fewer
36 1  Computing and Enabling Technologies

bits need to be transmitted to create virtual reality images. Samsung, Facebook’s Oculus
Rift, Sony, Dell, Leap Motion, and Google manufacture virtual reality headsets. See
Figure 1-9 for an Oculus Headset.

Figure 1-9 A VR headset. (Photo by cheskyw/123RF)

Open Source software developer Unity provides a 3-D software tool for creating
virtual reality applications that a majority of the about 2 million virtual-reality develop-
ers use to develop virtual reality applications. In addition, Google, Facebook, Apple, and
Amazon are developing virtual reality capabilities for their smartphones and web sites.
The most commonly used virtual reality applications are video games. Additional
applications under development or in use include:

• Live televised sports events that people with headsets and compatible smart-
phones can view. VR provides 360-degree views of sporting events from all
angles: front, sides, and back.
• Training professional athletes with simulation of tactics.
• Real estate applications where prospective buyers see homes for sale without
actually having to travel to each home.
• A remodeling virtual reality application being tested by Loews that enables
customers to envision how remodeling projects will look.
• Social network posts that enable people to connect with each other in a more
personal way using posts in virtual reality formats to share experiences and
feelings.
• Medical training that involves virtual reality videos for operating nurses and
anatomy courses where students use VR to learn anatomy and gain “first-
hand” knowledge of steps in medical procedures.
• Drones with high-quality cameras that capture images on the ground in vir-
tual reality format.
Increasing Network Capacity via Multiplexing 37

Technical and Content Availability Challenges

One of the current issues with virtual reality is that it can create nausea in viewers. This
is because people turn their heads faster to look at images than current frame rates can
process these view changes. Because of this delay, people don’t see what they expect to
see. As the technology matures, this issue should be resolved.
Another challenge is the need for additional content in virtual reality formats. Devel-
opers are waiting for additional VR users and buyers are often reluctant to purchase head
mounted displays and download apps until more virtual reality content is available.
Additionally, current cellular networks don’t have the capacity to support virtual
reality. VR requires either direct connection to broadband or Wi-Fi connected to broad-
band Internet links. Thus, it is limited to indoor use. Next generation 5G networks
may have the capacity to support virtual reality. See Chapter 7, “Mobile and Wi-Fi
Networks,” for information on 5G technologies.

Augmented Reality
Augmented reality, on the other hand, adds pictures of animated characters or other
images to what users see when they look around them. Augmented reality requires spe-
cialized apps on smart phones, but not always specialized headsets or headsets resem-
bling eyeglasses. The mobile game Pokémon Go, which was released in 2016, is an
example of the use of augmented reality (AR). Pokémon Go, a joint effort of Niantic
Labs, Nintendo, and Pokémon Company as reported in the July 12, 2016, Wall Street
Journal article, “What is really behind the Pokémon Go Craze,” by July of 2016, was
the most profitable game on Google and Apple’s app stores up until that time.
Augmented reality needs smartphones’ cameras, GPS, and position sensors. Posi-
tion sensors rely on accelerometers within smartphones. All new smartphones are
equipped with accelerometers able to detect how users tilt their smartphones. For exam-
ple, are they tilting them sideways or straight up? Accelerometers enable smartphone
viewers to modify the angle at which they view images.
Augmented reality is used in manufacturing and product assembly. In one example,
workers wear special glasses such as Google Glasses that flash images of instructions
and diagrams sent from computers to the glasses with directions for the next steps in
processes. In this way, workers don’t have to interrupt their work to read instructions.

INCREASING NETWORK CAPACITY VIA

MULTIPLEXING ........................................................
Multiplexing combines traffic from multiple devices or sources into one stream so that
they can share a circuit or path through a network. Each source does not require a sepa-
rate, dedicated link.
38 1  Computing and Enabling Technologies

Like compression, companies and carriers use multiplexing to send more informa-
tion on wireless airwaves, fiber networks, and internal Local Area Networks (LANs).
However, unlike compression, multiplexing does not alter the actual data sent. Rather,
the multiplexer at the transmitting end combines messages from multiple devices and
sends them on the same wire, wireless, or fiber medium to their destination, whereupon
a matching device distributes them locally.
One important goal is to make more efficient use of the most expensive portion of a
carrier’s network so that the carrier can handle the vast amounts of traffic generated by
devices such as smartphones and computers. Multiplexing is also used by enterprises
that link offices together or access the Internet by using only one circuit (a path between
sites) rather than paying to lease multiple circuits from their provider. The two most
commonly used types of multiplexing are time division and statistical.

Time-Division Multiplexing
Time-Division Multiplexing (TDM) is a digital multiplexing scheme that saves capacity
for each device or voice conversation. Once a connection is established, capacity is saved
even when the device is idle. For example, if a call is put on hold, no other device can
use this spare capacity. Small slices of silence in thousands of calls in progress result in
high amounts of unused network capacity. This is the reason TDM is being replaced in
high-traffic portions of networks by VoIP technologies, in which voice packets are inter-
spersed with data and video traffic more efficiently, without wasting capacity. Thus,
network capacity is not wasted during pauses in voice or data traffic.

Statistical Multiplexing: Efficient Utilization

via Prioritization of Network Services
Statistical multiplexers do not guarantee capacity for each device connected to them.
Rather, they transmit voice, data, and images on a first-come, first-served basis, as long
as there is capacity. Ethernet, the protocol used in local area networks, Wi-Fi networks,
and broadband networks is an example of statistical multiplexing. Unlike time division
multiplexing, statistical multiplexing is asynchronous. A particular amount of capacity
is not dedicated to individual devices. Rather, capacity is allocated asynchronously, on
demand, when requested in an uneven manner.
Statistical multiplexers can be used in a Wide Area Network (WAN) to connect
customers to the Internet. It is also the most common method of accessing LANs within
buildings. The Ethernet protocol uses statistical multiplexing for access to LANs. On
Ethernet LANs, if more than one device attempts to access the LAN simultaneously,
there is a collision and the devices try again later. Ethernet gear and software is used for
LAN access and is located in each network-connected device, such as a printer, com-
puter, or security monitor.
Increasing Network Capacity via Multiplexing 39

Statistical multiplexers support more devices and traffic than TDMs because they
don’t need to save capacity when a device is not active. Carriers sell WAN Internet
access via carrier Gigabit Ethernet offerings, supporting a range of speeds from 10Mbps
to 100Gbps. If there is a surge in traffic, such as during peak times, the carrier can tem-
porarily slow down traffic. However, because Gigabit Ethernet’s statistical multiplexing
has the capability to prioritize traffic, customers who contract for more costly, high-
priority service can obtain higher capacity than customers with lower-priority service
during traffic spikes.
Other types of multiplexing in addition to statistical multiplexing include dense
wavelength division, a form of frequency division multiplexing which divides traffic
among frequencies in fiber-optic networks to increase the fibers’ capacity. Dense wave-
length division multiplexing is discussed in the section below on fiber optical cabling.

Bytes vs. Bits: Measuring Capacity and Speed

Federal and state requirements mandating retention of e-mail, financial, and
other documents as well as corporations retaining all of their files rather than
filtering out just what is needed have resulted in computer data storage in
the petabytes range. A petabyte equals 1,000,000,000,000,000 characters or
1,000 gigabytes.
People often use the terms “bits,” and “bytes” interchangeably. Their meanings,
however, differ significantly. Bits per second (bps) refers to the actual number of
bits sent in a given time from point A to point B, or the number of bits transmit-
ted each second. It is also represented as millions of bits per second (Mbps),
gigabits per second (Gbps), and terabits per second (Tbps). Simply put, it is the
number of bits that can be transmitted in 1 second.
Bps (with a capital “B”) stands for bytes per second by convention. Speeds are
represented by the bps acronym. Here are some examples:
• Gigabit Ethernet, used in carrier and enterprise networks, can carry
data at speeds of one gigabit per second (1Gbps) to 100 gigabits per
second (100Gbps).
• Terabit speed routers deployed on the Internet are capable of transmit-
ting at a rate of 1,000 gigabits or 1 terabit; 10 terabits per
second = 10,000,000,000,000 bps.

Bits organized into groups of 8 bits are bytes. Each byte can be a letter character,
punctuation, or a space. Computer hard-drive capacity is measured in bytes, but
speeds on digital lines are measured in bits transmitted per second. Bytes stored
on computer drives and large servers are stored in digital form.
To summarize, a byte is a character made up of 8 bits. A bit is an on or off
electrical or light pulse.
40 1  Computing and Enabling Technologies

USING PROTOCOLS TO ESTABLISH A COMMON

SET OF RULES ........................................................
Protocols enable disparate devices to communicate by establishing a common set of
rules for sending and receiving. For example, TCP/IP is the suite of standard protocols
used on the Internet with which different types of computers, running a variety of
operating systems, can access and browse the Internet. The fact that TCP/IP is simple
to implement is a prime factor in the Internet’s widespread availability.
The fact that protocols used on the Internet are available for free in their basic
form and work with a variety of browsers, operating systems, and computer platforms
makes them attractive interfaces for enterprises, hosting, and cloud-computing sites
that support remote access to services such as Microsoft Office documents. A web-
based interface compatible with many types of computers and operating systems
enables enterprises to support software at a central site.
Installing software at a central site minimizes support requirements. When an IT
department supports applications such as the Office suite that are installed on each
user’s computer, it must download software and updates to every computer and ensure
that each has a compatible hardware platform and operating system. By locating the
software at a central site rather than on each user’s computer, updates and support are
simpler. In addition, fewer IT employees are required to maintain servers with applica-
tions on them in remote offices.
However, many of these frequently used protocols are structured in such a way
that they add a great deal of overhead traffic to the Internet and enterprise networks.
This is because these protocols require numerous short signaling messages between
the user and the Internet for functions such as identifying graphics, checking for errors,
and ensuring correct delivery and receipt of all the packets.
The following protocols are used on the Internet and on corporate networks that
have a web interface to information accessible to local and remote users.

• Ethernet This is the most common protocol used in corporate LANs. It

defines how data is placed on the LAN and how data is retrieved from the
network. Wi-Fi wireless networks are based on a different form of Ethernet.
• Hypertext Markup Language (HTML) This is the markup language
used on the Internet and on enterprise networks. Employees who write web
pages for their organization often use it. HTML commands include instruc-
tions to make text bold or italic, or to link to other sites. Instructions, known
as tags (not visible on Internet documents), are bracketed by opening and
closing angle brackets (< and >), otherwise simply known as the less-than
and greater-than symbols. Tags indicate how browsers should display the
document and images within each web page. For example, <bold> is a com-
mand for bolding text. Tags are delivered along with the web page when
Protocols and Layers 41

users browse the Internet and access information through web interfaces at
enterprises. They are good examples of overhead bits.
• Hypertext Transfer Protocol Secure (HTTPS) This is a protocol used
to transfer data over the Internet and other networks in a secure fashion by
encrypting data. It provides protection from hackers. It can authenticate
(verify) that the network connected to is not spoofed, meaning it is the
network that it purports to be and that another network has not intercepted a
communication intended for a different site.
• Extensible Markup Language (XML) This is another markup language
based on elements surrounded by tags that identify fields requiring user
input. The tag <name> is an example of a tagged label; it is not visible to
users. Other variable labels might include quantity, address, age, and so on.
Firms can analyze responses provided by visitors to a site who fill out online
surveys. Tagged responses can be sorted by fields such as geography or age.
XML enables computers to automatically process responses collected online
or in specialized applications such as purchasing and ordering functions in
businesses. The protocol-related tags and labels identifying fields in XML
create the many extra overhead bits transmitted along with documents con-
taining XML commands.
• Simple Object Access Protocol (SOAP) This enables communications
between programs on different operating systems such as Windows and
Linux by specifying how to encode, for example, an HTTP (Hypertext
Transfer Protocol) header and an XML file. It eliminates the requirement to
modify infrastructures to process HTTP and other communication transport
protocols on networks.

PROTOCOLS AND LAYERS ......................................

When describing their products’ capabilities, organizations often refer to the OSI lay-
ers. In the 1970s, the International Organization for Standardization developed the
Open Systems Interconnection (OSI) architecture, which defines how equipment from
multiple vendors should interoperate. Architecture refers to the ways that devices in
networks are connected to one another.
Although not widely implemented because of its complexity, OSI has had a pro-
found influence on telecommunications. The basic concept underpinning OSI is that of
layering. Groups of functions are divided into seven layers, which can be changed and
developed without having to change any other layer. (See Table 1-5 in the “Appendix”
section at the end of this chapter for a complete list of layers.) LANs, public networks,
and the Internet’s TCP/IP suite of protocols are based on a layered architecture.
42 1  Computing and Enabling Technologies

An understanding of the functionality at each layer of the OSI provides an under-

standing of the capability of particular protocols and equipment. Examples of the lay-
ers include the following.

• Layer 2: Switches This layer corresponds to capabilities in the Data Link

Layer, functioning as the links to the network. However, Layer 2 devices
cannot choose between multiple routes in a network. Layer 2 switches are
placed in wiring closets in LANs and route messages to devices within their
LAN segment. See Figure 1-6 for an illustration of how this works.
• Layer 3: Switches and Routers Layer 3 corresponds to the Network
Layer. These devices can select an optimal route for each packet. Routers
select paths for packets on the Internet and route messages between networks.
• Layer 5: Encryption Protocols These are Session Layer protocols that
reorder data in packets by using complex mathematical algorithms to keep
data private.
• Layer 7: Deep Packet Inspection (DPI) DPI services include Application
Layer capability. DPI can look into packets to determine the application of
the data within them.

Knowing the capabilities in each layer helps in understanding the protocol and
equipment capabilities being described.

VIRTUALIZATION: SPACE, COST, AND

MAINTENANCE EFFICIENCIES.................................
The term “virtual” refers to entities such as networks or servers that provide the func-
tions of the physical devices that they are emulating. A virtual machine is software
with the functionality of a computer. Server refers to single servers performing the
functions of multiple servers. To illustrate, multiple virtual machines can exist within
a single server, with each virtual machine performing the functions of a single server.

S
Servers are computers used for specialized tasks such as managing docu-
ment traffic to printers and storing applications.
m

Without server virtualization, each server in a data center would support only a
single operating system. Virtualization enables each server to run multiple operating
systems, with each operating system running multiple applications. Each operating
Virtualization: Space, Cost, and Maintenance Efficiencies 43

system running multiple applications is a virtual machine. This reduction in the num-
ber of servers required to support vast numbers of applications made virtualization a
key building block for cloud computing.
Technical advances have enabled virtualization to make it possible for large enter-
prises and cloud computing providers to consolidate servers. Supporting more than
one operating system on a single physical server requires large amounts of processing
power. However, with the development of powerful multi-core processors, parallel-
computing streams can perform multiple computer instructions simultaneously.
Virtualization host operating software from companies such as VMware, Inc.
(VMware was developed by EMC, which is now owned by Dell) and Microsoft allocate
and manage computer resources such as memory, hard-disk capacity, and computer
processing between the operating systems and applications on a server. Virtualization
management software simplifies data center operations by providing the ability to allo-
cate more resources in a data center from a single interface.
Server sprawl can be a problem when many applications are replicated on diverse
servers. It is often a challenge to manage the large number of virtual machines located
within a data center.

Scalability and Energy Savings

Carriers, ISPs, enterprises, and developers adopt virtualization as a way to save on
energy, computer memory, staffing, and hardware costs. Installing applications on
multiple virtual computers on each physical server decreases the number of physical
servers required. It also ensures that there is less wasted capacity than on physical serv-
ers used for a single application, often using only 10 percent of the physical server’s
capacity. This makes data centers more scalable. Applications can be installed more
easily, without adding extra hardware. Rather, a new virtual machine can be added
to a physical computer that has spare capacity until the physical server is at between
70 percent and 80 percent of capacity.
In addition, having fewer computers to run applications results in less space used
and lower facility cooling costs. Although individual servers running virtual operating
software are more powerful and require more cooling than less-powerful servers, the
reduction in the total number of physical devices results in overall energy efficiency.

Virtualization—Enabling Cloud Computing

Virtualization is a major enabler of cloud computing. Server virtualization refers to
a single physical server with multiple operating systems and applications. Prior to
server virtualization, each unique operating system required its own physical server.
Virtualized servers enable multiple operating systems as well as multiple applications
to reside on the same server.
44 1  Computing and Enabling Technologies

Large cloud providers commonly have multiple data centers that contain replicated
copies of all data. If a data center becomes disabled, another can easily take over its
functions. Virtualization makes it less costly and complex for providers to support mul-
tiple data centers in different physical locations. This results in a reduction of physical
services, less electrical power, and less cooling, thus lowering providers’ energy costs.
Moreover, virtualization enables data centers to support multiple developers by
providing a virtual computing platform for each developer while he is logged on to a
virtual machine. Multi-core processors enable multiple developers to simultaneously
log on to the same physical server. When a developer logs off from his area of the
server, computing power is freed up for other uses.
Because of security and privacy concerns, large companies often do not want their
applications and files on the same physical servers as those of other organizations. In
these instances, they can elect to reserve a group of servers for their own use. Amazon
refers to this feature as a Virtual Private Cloud. Other providers offer similar features.
Not surprisingly, there is an extra monthly fee associated with this service.

MANAGING VIRTUALIZATION.................................
Organizations can realize many benefits by implementing virtualization capability in
servers and storage networks. They also take on challenges managing them in complex
environments.

Managing Memory, Virtual Machines, and

Disk Storage in Virtualized Data Centers
Server virtualization has many benefits, including saving money on electricity, heating,
and cooling. However, there are challenges in large data centers. One such challenge is
managing memory in the host physical servers. Newer operating systems installed on
host servers have more code and require more memory to operate. IT staff members
allocate memory to applications on virtual machines by using VMware’s Hypervisor
software. Staff members need to monitor applications’ memory usage so that servers
can be upgraded or applications moved to other hosts if memory in the current host
is not adequate. If this isn’t done, applications will run slowly and response times on
individual user computers will be degraded.
New servers are equipped with eight CPUs—quite literally, eight CPU chips on
a single host server. However, as the amount of processing needed to run programs
grows, even this is not always adequate for the virtual machines installed on them.
Programs that have sound and video are “fatter,” with more code, which requires addi-
tional CPU overhead. It’s difficult to estimate under these conditions the amount of
CPU power that’s required for applications running on virtual machines.
Managing Virtualization 45

In addition, disk storage is being used up at a faster rate. Users now routinely store
MP3 files in their e-mail inboxes. In data centers where user files and e-mail messages
are archived, this can deplete spare storage in Storage Area Networks (SANs) at a
faster rate than planned. Thus, storage, memory, and processing requirements should
be monitored. In large, complex data centers, it can sometimes be easier to monitor and
manage single physical servers rather than virtual machines and storage.
In small organizations, managing memory, storage, and CPU usage is not as com-
plex. With only three or four physical servers, it’s not as difficult to track and manage
resource allocation.

Server Sprawl
Server sprawl is the unchecked proliferation of virtual machines on physical host serv-
ers. (Virtual machines are also referred to as images.) Managing server sprawl in large
data centers is a major challenge. Because it’s easy to install multiple images of appli-
cations on virtualized servers, the number of applications can escalate rapidly. Data
centers that previously had 1,000 servers with 1,000 applications can potentially now
have 8 images per physical server and 8,000 applications to manage.
Another cause of server sprawl occurs when an application is upgraded. To test
the application before it’s upgraded, management creates an image of the application,
upgrades the image, and then tests the upgrade on a small group of users before mak-
ing the upgrade available to all users. However, often the original and the upgraded
application are left on the physical server, which further contributes to sprawl. To com-
plicate matters further, if either the original or the upgraded version is moved to a
different physical server, it can be difficult to determine that there is a duplicate. Con-
tainers, which are discussed below, are also vulnerable to sprawl.

Containers: A Newer Form of Server Virtualization

Containers are servers with a single operating system shared by multiple small pro-
grams. Like server virtualization, containers enable a single physical server to hold
multiple applications and components of applications.
Unlike virtualized servers in which each virtual machine (each application)
requires a separate operating system, applications in containers share a single operat-
ing system. See Figure 1-10 for a comparison between containers and virtualized serv-
ers. This enables containers to hold many more applications than virtualized servers.
This is because in virtualized servers, each application has an operating system and
also a virtual copy of the hardware that runs the virtual machine. Thus, each operating
system uses memory and server capacity.
In contrast, container technology’s use of a single operating system is an efficient
use of memory and disk space. Because of this, containers hold many more applica-
tions than virtual servers. Netflix alone has over 500 micro services in its containers
located in Amazon’s and Google’s data centers in the United States and Europe.
46 1  Computing and Enabling Technologies

Virtualized server: Each

application has its own operating
system.
Container: Each application (micro
service) shares & is compatible with
a single operating system.
APP APP APP

Guest Guest Guest App 1 App 2 App 3 App 4

OS OS OS

Docker engine
Hypervisor

Host operating system

Host operating system

Host hardware

Host hardware

Figure 1-10 A comparison of virtualized servers and containers.

Containers are used to hold small, related programs that are referred to as micro
services. For example, Netflix and LinkedIn might use containers to differentiate and
manage each of the many services they offer customers without having to change pro-
gramming for other services. This is efficient when organizations need to modify just
part of their offerings. With containers, programmers don’t need to alter their entire
application, just a particular piece of it: a micro service. For this reason, applications
in containers are less complex to modify. Thus, if there’s a change in one service, pro-
grammers need only modify that particular micro service.

Factors in Choosing between Containers and

Virtualization
Enterprises might choose virtualized servers when they have applications that require
a variety of operating systems in a single physical server. This is because containers
support only a single operating system per server.
Organizations that switch to containers from virtualized servers need to rewrite
their applications so that they’re compatible with the open source operating systems
used with containers and with the container platform, e.g. Docker. Examples of these
open source operating systems are: Red Hat, Linux, Ubuntu, and Rocket. Windows
operating systems can also be used in containers. There is no cost for using open
source software, but a company may need to hire a programmer with the skill to rewrite
the programs for compatibility with their container’s operating system.
The Cloud: Applications and Development at Providers’ Data Centers 47

Container applications are installed on bare metal servers, which have only a sin-
gle operating system. Many containers are installed on cloud platforms such as those
provided by Amazon and Rackspace. Private equity firm Apollo Global Management
LLC owns Rackspace.
Each container is located on a private server dedicated to a single organization.
Multiple customers do not share containers in the cloud. This is an advantage for cus-
tomers who want to be assured that the total capacity of the server is reserved for their
applications. They are isolated from traffic, also referred to as noise, from other cus-
tomers’ traffic, which may use much of the physical server’s resources.
Applications on containers located in the cloud or in large data centers are accessed
via application program interfaces (APIs), small programs that translate between pro-
grams in the containers and those in the data center from which staff access the pro-
grams in the container. APIs are used by both developers and end-users. Accessing an
application is referred to as pulling an image (an application) down.

Security Challenges with Containers

Because there is only one operating system in containers, if that one operating system
is hacked, the entire container with its large number of micro services is likely to be
damaged. Thus IT staff need to be extra vigilant about who is allowed to access each
container. Additionally, installing certain applications as read-only will also protect
against hackers damaging micro services on containers.

Docker: A Container Software Platform

Docker software was developed as open source, free software. It is a software platform
that enables developers to write applications compatible with containers. Docker is
a set of software tools for coding, testing, and running applications on Linux- and
Windows-based containers. The Docker company offers paid consulting and container
set-up services as well as the open source Docker software.

THE CLOUD: APPLICATIONS AND DEVELOPMENT

AT PROVIDERS’ DATA CENTERS ..............................
Cloud computing refers to the paradigm by which computing functions, document
storage, software applications, and parts of or all of a data center are located and main-
tained at an external provider’s site. Businesses use cloud computing to more quickly
develop applications and to eliminate the need to maintain and update applications.
Companies additionally can use the cloud to dramatically shrink the size of their data
centers. Start-ups and small businesses often eliminate them altogether and rely solely
on cloud services.
48 1  Computing and Enabling Technologies

Cloud computing is based on a distributed architecture structure where provid-

ers’ data centers are duplicated in multiple geographic locations. See Figure 1-11 for
distributed cloud data centers. Cloud providers generally build duplicate data centers
that are connected to each other by high capacity fiber optic cabling. For example, they
may have data centers on the west coast, on the east coast, and a few in the central or
western states. The goal of connecting the data centers with fiber-optic cabling is that
if one data center fails, a duplicate data center can take over operations.
Cloud Provider’s Data Centers

Seattle data center Chicago data center New York City data center

Servers
Servers

Switch Switch Switch

Fiber-Optical Cabling
Three distributed cloud data centers connected together with fiber-optic
cabling.
Switches at each data center transmit back up data to the others so data is
not lost in the event of a failure

Figure 1-11 Cloud computing distributed data centers connected by

fiber-optic cabling.

Organizations now have choices about where applications are located. They can
place applications at:

• A hosting center where companies often place their own computers and
manage them remotely. The hosting company is responsible for:
− Security
− Broadband links to the hosting site
− Sustainability in the event of power outages and natural disasters.
• Purchasing rights to software with installation at their own data centers
• On the cloud where a provider manages the hardware and the application
software

When cloud computing was first introduced, it was wildly popular with small start-
ups that wanted to avoid investing in computer hardware because of growth uncertain-
ties. However, larger businesses were more cautious about moving applications to the
The Cloud: Applications and Development at Providers’ Data Centers 49

cloud because of concerns about privacy, security, and loss of control over applica-
tions. Cloud computing is now widely recognized by organizations of all sizes as a
legitimate way of managing and developing applications. However, there are still con-
cerns over security. There are additionally challenges involved in moving applications
to the cloud and controlling runaway usage costs associated with the cloud.

Private vs. Public Cloud Service

Depending on their privacy and security requirements, organizations choose private or
public cloud services. With private cloud service, the organization’s server is not shared
with any other organization. This ensures customers that there is no interference from
other customers’ applications, which might have large amounts of traffic into the server.
With public cloud service organizations, applications are on servers used by other
customers. They share the capacity of the physical server with other customers. This is
more commonly used than private cloud service, which is more costly.

Cloud Computing Fees

The pricing structure for most cloud-computing providers is typically based on the
number of transactions and the number of users for a given application. Customers
that contract with providers for e-mail or other data applications pay by the hour or
by the gigabyte for CPU (computer processing unit) gigabytes consumed. In addition,
cloud providers often charge an implementation fee, and might charge developers who
use their platform to develop applications for bandwidth consumed on the provider’s
Internet connections.

Rationale for Cloud Computing

There are many reasons why organizations adopt a cloud-computing strategy. When
cloud computing was first available, most of these reasons revolved around the desire
to carry out IT functions more cost-effectively with fewer capital outlays. A small
start-up company, for example, might not have the resources to hire staff and purchase
computing hardware. No onsite software to maintain, fewer servers, and less techni-
cal staff required for maintaining and upgrading applications were all motivations for
moving applications to the cloud. In fact, smaller companies of fewer than 200 or 300
employees may have only a single server to support because most of their applications
are located in the cloud.
Using a service such as Amazon Web Services or Google Apps (offered by Ama-
zon and Google, respectively) for computing and archiving data saves start-up costs
with fewer financial risks. If the business grows, it won’t outgrow the hardware that
it purchased earlier. Conversely, if the business fails or slows down dramatically, it
doesn’t have an investment in hardware and software with little resale value or one that
50 1  Computing and Enabling Technologies

might be too sophisticated for its changing needs. It is also useful in supporting IT in
acquired companies and gearing up for spikes in usage.
The cloud is additionally a way for concerns, particularly start-ups, to develop and
test applications before making them available to staff or customers. The following is
an example of how a new company used cloud computing to test the viability of their
planned applications. The start-up rented 50 client computers and one server with four
application programs and one database machine from Amazon for 0.50¢ an hour to
test their application without having to invest in hardware. Without the ability to test
applications on Amazon, their start-up costs would have been prohibitive because they
would have had to lease 50 computers plus 1 for a database.
Large enterprises were initially interested in cloud computing because there was a
perception that it would be less costly than hiring additional staff as well as purchasing
and supporting hardware and software for new applications. With cloud computing
there is no capital investment. Companies pay usage per person, in a similar manner
to renting a car.
Cost savings are not always the main advantage or impetus for using cloud com-
puting. While capital and staff expense are lower with cloud computing, monthly
usage costs can balance out these savings so that businesses don’t spend less money on
overall IT services. Usage fees from employees’ extra computing and data access can
eliminate expected savings as employees use more computing resources than initially
envisioned.
Both large and small organizations look to cloud computing to maximize their
attention and assets on core missions. They may consider some IT applications to be
utilities better managed by IT experts at cloud companies. For example, they may use
Microsoft Azure’s cloud-based Office applications for word processing, collaboration,
presentations and spreadsheets to avoid managing and upgrading these applications.
With Office in the cloud, upgrade responsibilities are taken care of at Microsoft’s data
centers.
An important advantage of cloud computing is the speed at which new applica-
tions can be implemented in the cloud. This can equate to competitive advantages.
For example, customer service or sales applications can increase sales revenue. Faster
access to company analytical data about sales and customers are other examples of
how the speed of developing applications can help businesses grow or retain current
customers. In fact, while saving money may be the initial motivation, it is often not
the key advantage of using cloud computing. Agility in business operations, the abil-
ity to launch strategic applications, and the ability to scale and shrink as required are
stronger motivations for using the cloud. The following is a quote from an IT Director
in the Boston area:

We ordered Oracle one day and the next day it was launched in the
cloud. Without the cloud it would have taken three months and additional
staff time. When we purchase new software, we always look for applica-
tions that are cloud ready.
The Cloud: Applications and Development at Providers’ Data Centers 51

Three Categories of Cloud Services—Layers

in the Cloud
There are three generally agreed upon but sometimes overlapping classifications of
cloud computing offerings. It’s not unusual for providers to offer more than one of
these types of services.
The classifications are as follows:

• Software as a Service (SaaS) Application developers manage and develop

specific applications for enterprises. Enterprise and residential customers pay
monthly fees to use these applications, which are generally accessed via a
web browser interface.
• Platform as a Service (PaaS) Providers make their hardware and basic
application suite available to developers and enterprises that create special-
ized add-on applications for specific functions.
• Infrastructure as a Service (IaaS) Developers create applications on
basic computing and storage infrastructure owned and supported by cloud
providers. This is the hardware used by developers.

SaaS
Software as a Service is the most frequently used cloud service. Organizations that
want to avoid the staff time needed to develop, test, and roll out new applications often
use Software as a Service. With SaaS, new applications can be implemented more
quickly than if the customer implemented them on their own servers. They can turn to
developers to write them or simply use existing cloud-based applications.
Customers are attracted to Software as a Service because the cloud provider
manages applications, the operating systems on which applications are installed,
the virtualization in the server, servers, storage, and broadband connections
between users and the applications. The customer’s responsibility is porting appli-
cations to the cloud, and monitoring the billing and usage. Many SaaS provid-
ers offer applications, such as Salesforce.com and NetSuite, used by business and
commercial organizations.
Salesforce.com offers its customer relationship management (CRM) services
for managing relationships concerning customers and sales prospects. Its software
can be used to automate writing sales proposals. It also profiles and targets custom-
ers based on these profiles. NetSuite, owned by Oracle, offers businesses an end-
to-end software suite that includes CRM, inventory, and e-commerce applications
that integrate web sales with back-office functions such as billing and accounts
receivable.
52 1  Computing and Enabling Technologies

Young people and adults as well use SaaS applications in their personal lives. For
example, students in particular back up their music on sites such as iTunes. The follow-
ing is a quote from a Chinese exchange student in the Boston area:

I use the cloud to back up my music. I like being able to listen to my

music from all of my devices. And, I don’t have to worry about running
out of space on my smartphone.

Services for residential customers, such as the Office-like Google Docs suite, the
document-sharing service DropBox, the backup service Carbonite, and social media
sites LinkedIn and Facebook are examples of Software as a Service.

PaaS: Cloud-Based Data Centers with Specialized

Software
Platform as a Service providers manage the operating system, servers, virtualization,
storage, and networking within their data centers. They provide data centers with spe-
cialized software to enterprises and application developers. For example, one PaaS pro-
vider, Microsoft, currently maintains massive data centers in the United States, Europe,
and Asia. The Microsoft Azure platform is available to developers to customize applica-
tions that they in turn offer to their customers. Both Salesforce.com and NetSuite sell
directly to developers as well as to business customers. The services Salesforce.com
and NetSuite sell to developers are considered PaaS offerings because developers use
the platforms to customize and support software for their own customers.
An enterprise customer can also create applications directly on Azure, or use stan-
dard office software such as word processing and spreadsheet applications as well as
productivity applications such as web conferencing and calendaring, and then later
port them to Azure. By using applications housed on Azure, organizations eliminate
the complexity of supporting in-house applications. Azure also offers storage facilities
to developers and enterprise customers. A bank can store a year’s worth of records on
Azure to which each of its customers and their own staff have access.
Akamai Technologies maintains platforms focused on e-commerce that are
deployed on 1450 public networks worldwide, where it hosts web sites for major enter-
prise customers. Web applications located on these servers generate massive amounts
of multimedia Internet traffic, such as games, map generation, search, and dealer/store
locators. Akamai intercepts this web traffic for its customers and sends it to its destina-
tion on the fastest available route.
Akamai’s security services are available at each of the public networks in which
its equipment is installed. These services include security that protects sites from dis-
tributed Denial of Service (DoS) attacks. Distributed DoS attacks simultaneously send
thousands of bogus messages or messages containing viruses to networks in coordi-
nated attacks from computers in multiple locations around the world. If one of its sites
does become disabled, Akamai has the ability to run its applications at other locations.
The Cloud: Applications and Development at Providers’ Data Centers 53

IaaS: Infrastructure as a Service

With Infrastructure as a Service, customers manage their applications, their data, the
operating system, and middleware for applications located at a cloud provider. The
cloud provider manages the servers, virtualization, data storage, and networking within
their own data centers so that an adequate number of users can reach the applications
within the data center.

M
Middleware is a piece of software used between application programs and
other software such as database managers. It is used to mediate the dif-
o
fe
ferences between operating systems and applications so that they operate
together. It essentially mediates the differences between pieces of soft-
ware. In cloud computing, middleware mediates the differences between
onsite software being moved to the cloud and the computing environment
at the cloud provider’s data center.

Amazon: The Gorilla of Cloud Computing

Amazon is the largest cloud provider in the United States. In addition to its computing
infrastructure for developing applications, it offers storage. Interestingly, Netflix, its
competitor for streaming media services, is a major customer. Netflix stores its movies
on Amazon servers. Thus, when Netflix customers in the United States stream mov-
ies and TV shows, they access the shows from computers located in Amazon’s data
centers. Amazon has expanded into applications such as databases and analytics to
analyze usage statistics of applications on its site. Its HSM security encryption services
is designed to protect the security of files located on Amazon’s infrastructure.
Other major cloud providers include Microsoft Azure, IBM, Salesforce.com,
Rackspace, Google, and Oracle. Rackspace offers hosting in addition to its cloud ser-
vice. With hosting, customers supply their own servers (computers) and additionally
manage the software on their servers. The following is quote from a staff member at a
small organization that uses Amazon EC2:

My company is a start-up. We rent 50 client computers, one server

machine with a LAMP (Linux, Apache, MySql, PHP) package and one
database machine for just 0.50¢ per hour. There are many features in
Amazon to customize the environment according to our requirements.

Spinning Applications to the Cloud

When organizations talk about moving applications to the cloud, they use the term
spin. They spin applications up to the cloud over broadband links between their site
54 1  Computing and Enabling Technologies

and the Internet. When transmitting applications over broadband links to the cloud,
companies often protect these transmissions from eavesdroppers and interception by
creating Virtual Private Networks (VPNs). The VPN creates a secure link between the
cloud and the customer by encrypting the data and providing a way to securely decrypt
(re-create) the data at the receiving end.
Encryption is the process of using a mathematical formula to reorder bits so that
they are unrecognizable to equipment that doesn’t have the “key” to decrypt the data
into readable data. The VPN also ensures that the data exchanged is formatted so that
it is not blocked by firewalls at either end. A firewall is a software application that all
incoming transmissions must pass through. Firewalls are programmed to accept only
certain transmissions and to block known viruses. The software used to spin applica-
tions to the cloud makes the addressing formats compatible between the cloud’s infra-
structure and the customer’s data center, and vice versa.
Another complication of spinning applications to the cloud is that many users
access applications from mobile devices. Companies have to figure out how to get
applications to them when they’re not sitting at their desk. Two issues are that the
mobile user may be accessing an application from a location with poor mobile cover-
age and from a device with a small screen that makes it difficult to actually view the
data easily.
Moving applications from data centers to the cloud can involve rewriting them or
changing internal processes. For example, operating systems and addressing schemes
used by a particular cloud provider might be different from those utilized by its cus-
tomer. Addressing schemes can include formats such as IP addresses assigned to data-
bases and applications, and Media Access Control (MAC) addresses for individual
computers. In addition, compatibility between the two infrastructures is important,
because applications that reside on a provider’s infrastructure interface might not be
compatible with its customers’ databases.

Regulations and the Cloud

Various state and national regulations mandate that organizations in fields such as
banking, healthcare, pharmaceutical, and government retain files for specified lengths
of time. In addition to archiving information with cloud providers, organizations often
use these providers as a lower-cost emergency backup in the event that their data is
destroyed in a natural disaster, fire, or computer hacking incident. Enterprises can store
up to 1 petabyte (PB) of data in servers that are often as large as a refrigerator. These
servers consume large amounts of energy and take up a great deal of space.
Computers used for storage are now also able to take advantage of efficiencies
attained by virtualization. Data stored in different database formats (for example,
Microsoft SQL vs. Oracle) can be stored on the same physical computer by using
virtualization able to separate files by operating system. Thus, the databases of various
customers can be stored on the same storage server, resulting in server consolidation,
both for storage and for running applications.
The Cloud: Applications and Development at Providers’ Data Centers 55

Security in the Cloud

Security is a major concern when organizations move applications to the cloud. While
cloud services are often more secure than those provided at small and medium-sized
companies that don’t have the resources to hire top security staff, they are not with-
out risks. Cloud applications in which large numbers of customers access the appli-
cation are the most vulnerable to hacking attacks.
There is often a conflict between making sites easy to access and having suf-
ficient authentication requirements to protect against intrusions. According to Alert
Logic, a cloud security and compliance firm headquartered in Houston, Texas, sites
with high amounts of financial, health, and other personal information are at par-
ticular risk. Information gleaned from hacking these sites can be sold for millions of
dollars. Moreover, because of their high-profile, large cloud providers are particular
targets.
The cloud’s most vulnerable link is often the staff and customers that access
cloud-based applications. Important ingredients in protecting against hacker attacks
are customers that shield the secrecy of their log-on credentials. Consumers that use
cloud services may share their log-on credentials with friends or log in from public
Wi-Fi where their passwords and user IDs may be stolen. Many public Wi-Fi ser-
vices in cafes and other public areas don’t provide encryption, making these trans-
missions vulnerable to being hacked, and people’s log-on credentials can be stolen
while they are transmitted over the air.
To avoid being hacked, companies require employees to log in with strong pass-
words and multi-factor authentication. An example of multi-factor authentication
might be a password and a token that generates a unique code that users type into
their computer when they log into the cloud. These organizations may also mandate
encryption on transmissions sent from mobile devices.
As a further step, organizations may lease security appliances (computer hard-
ware with specialized software) or security software from companies such as Ama-
zon and Alert Logic. In addition to its HMS security application, Amazon and other
cloud security companies such as Threat Stack offer a software application with
assessment tools to evaluate applications’ vulnerability to hackers, anomalies in
workflow, and compliance with industry standards.
Finally, it’s up to customers to monitor and update applications and browsers
in the cloud to avoid possible security breaches. Customers can request reports in
the form of security logs from their cloud provider so that they or their consul-
tants can audit their applications for security breaches. Logs that indicate spikes in
usage may be indicative of a denial of service attack where overwhelming amounts
of traffic are sent to a site, making it difficult or impossible for legitimate users to
access these applications. Furthermore, hackers may introduce viruses that destroy
data files in cloud-based applications or steal a company’s private information via
hacking attacks.
56 1  Computing and Enabling Technologies

Shadow IT—Departments Independently Signing up for

the Cloud
In large companies it’s not unusual for staff in various departments to sign up for cloud
services that fit the particular needs of their department without prior approval from
the IT (Information Technology) staff. If the department stores intellectual property or
confidential information in the cloud, they may not have the expertise to manage the
security needed for access to the cloud. They may not use strong passwords or authen-
tication. This is an ongoing challenge for large businesses where individual depart-
ments may feel that IT does not respond quickly enough to meet their needs.

Fewer IT Employees; Different

Skills—DevOps
When cloud applications are moved to a cloud provider’s data center, companies need
fewer staff to manage them. An organization that formerly required five people to man-
age its Enterprise Resource Planning (ERP) application may need only a single person
to manage it once the application is in the cloud.
However, the skills necessary to support cloud-based applications are different
from those used to manage traditional onsite data center-based applications. The skill
most often in demand when large and medium sized companies move applications to
the cloud is DevOps, short for development operations.
The term DevOps refers to developing, provisioning (installing), and managing
software. In companies that have applications in the cloud it means application devel-
opment, spinning applications up to the cloud, and monitoring cloud-based applica-
tions. DevOps staff are involved in the planning relating to which applications to port
to the cloud, tracking security or reasons for delays when accessing cloud-based appli-
cations, monitoring access to the cloud, and integration of cloud applications with
business processes. Importantly, DevOps staff collaborate with other IT personnel and
with management to determine organizations’ needs and then develop applications
compatible with the cloud.

Compatibility with the Cloud

All applications are coded to a particular operating system, and operating systems are
dependent on the resident hardware characteristics. These applications may not be
coded to operate on all cloud platforms. Without changes, some applications might
not be compatible with hardware located in a provider’s data centers. The addressing
formats also need to be compatible between the cloud’s infrastructure and the cus-
tomer’s data center, and vice versa. Addressing schemes can include formats such as
IP addresses assigned to databases and applications, and Media Access Control (MAC)
The Cloud: Applications and Development at Providers’ Data Centers 57

addresses for individual computers. Without changes, some applications might not be
compatible with hardware located in a provider’s data centers. Software, transparent
to customers and cloud providers is required to create compatibility between operating
systems, hardware, and applications.
A common practice is for customers to program their applications using a stack
of open source LAMP programs (Linux, Apache, MySql, PHP), packages located, for
example, on Amazon. Stacks are programs that work together. Linux is an operating
system, Apache is an HTTP program for transferring data, PHP is a programming lan-
guage. Perl and Python are also used instead of PHP. LAMP programs may be grouped
together in container servers.
Moving applications from data centers to the cloud can involve rewriting them or
changing internal processes. In addition, compatibility between the two infrastructures
is important, because applications that reside on a provider’s infrastructure interface
might not be compatible with its customers’ databases.
APIs, (Application Programming Interfaces) transparent to customers and cloud
providers, create compatibility between operating systems, hardware, and applica-
tions. This enables different software programs to communicate with each other. Most
companies use APIs to spin applications to the cloud.
Some applications are not architected for the cloud. Standard web browser inter-
faces are used with APIs to access cloud-based applications. Before applications are
spun up to the cloud, organizations test access to them with multiple web browsers
to make sure they will be compatible with all staff even when staff are traveling or
accessing them from home computers where a variety of browsers might be installed.
If organizations want something more sophisticated than a web user interface, they
might bring them in-house rather than putting them in the cloud.

Monitoring Runaway Costs, Service Logs, and

Congestion on Transmissions to the Cloud
Managing cloud-based operations is an ongoing task. It involves the following:

• Monitoring costs
− Are costs increasing in line with business growth?
− If not, what is causing the increase?
− Are particular staff or departments using an unnecessary amount of
computer resources?
• Tracking congestion on broadband links connected to the cloud
− Is higher capacity needed?
− Is there too much capacity?
58 1  Computing and Enabling Technologies

• Monitoring cloud providers’ reports on outages or other glitches

• Checking out user complaints
− Are broadband links congested or are complaints coming from people
accessing the cloud remotely using their cable modems or public Wi-Fi
services that don’t have adequate broadband bandwidth?
• Making sure that cloud applications are compatible with users dialing in
from mobile devices
• Making sure that providers are adhering to contractual obligations for
uptime, availability, and security

Integrating Applications Located at Different

Providers
There are now web applications that enable companies to integrate or synchronize
applications with each other when they are located at multiple cloud providers’ sites.
This enables companies to compare data located at different cloud providers’ sites.
This is helpful when applications from the same company need to be on different spe-
cialized providers’ cloud-based data centers. Oracle, Microsoft, and Salesforce.com
are examples of providers who offer cloud services for applications such as Micro-
soft’s Azure, and Oracle’s database services for specialized data centers.
Integration is often needed to develop meaningful information. For example, the
sales department may need sales figures compared to financial data. If the financial
data is at, say, Amazon, and data for sales is at Salesforce.com, it may be difficult
to determine the gross margins on products. If, for example, a NetSuite—mid-sized
ERP—application is at Amazon, the sales department can see how many widgets were
sold at Salesforce.com, but not gross or net profit on each or inventory data on their
NetSuite application.
There could be one database in the cloud for Oracle, one for NetSuite, and one for
manufacturing, in separate clouds. Each cloud is a silo that needs to “talk” to the other
applications. If Salesforce.com and NetSuite are at different clouds, each will have
a different database. The solution is for applications in separate clouds to be linked
together. This is not currently possible.
In the pharmaceutical industry, document workflow management that tracks drug
development is needed for regulatory approval of new drugs. Product safety must be
documented; safety results, pricing, and the name of the drug are all required reports.
Pharmaceutical companies must report on problems such as the adverse effects of
drugs and what caused them as well as product packaging issues such as tampering
with over-the-counter drugs in retail outlets. While people in the same company may
The Cloud: Applications and Development at Providers’ Data Centers 59

be able to add to reports fairly easily, having staff from other organizations access this
information on the cloud complicates security because of log-on and authentication
requirements.
Because of security concerns, collaboration on product development between
multiple companies is a challenge when using the cloud. Because businesses are
worried about security, they build all kinds of barriers around accessing this data. So
organizations that need to collaborate with other companies may keep some applica-
tions in-house so they can control access more easily when collaborating with other
organizations.

Keeping Up with Automatic Updates

Without cloud computing, IT departments have the challenge of updating applica-
tions on their own as updates become available. Some of these updates are security
patches for newly discovered viruses. A virus is a piece of computer code that is
developed by hackers to damage and/or steal computer files. As new viruses are
discovered manufacturers and developers provide application updates to customers.
These updates are not always applied automatically. It’s at the discretion of IT staff as
to when to install updates and whether to test updates before making them available
to corporate staff.
When applications are in the cloud, cloud software automatically applies updates.
This can be disruptive as the user interface may be changed or customers may not be
informed in advance about an upgrade that affects how users interact with an applica-
tion. For example, users may have been trained to access information in a database a
certain way or to use particular commands in a spreadsheet application. Additionally,
and more critically, a staff person’s computer operating system and hardware needs to
be compatible with updates. This can be a problem with older computers and operating
systems.

Provider “Lock-in”—Moving Applications between

Providers
Often, organizations that consider using the cloud for particular applications are con-
cerned about portability. Customers may wish to change providers because of factors
such as costs and service. Others may want to move from a more limited hosting envi-
ronment to a fuller service cloud provider.
Another layer of complexity is that all applications are coded to a particular oper-
ating system, and operating systems are dependent on the resident hardware charac-
teristics. Without changes, some applications might not be compatible with hardware
located in a provider’s data centers. A healthcare company moved its applications from
Rackspace’s hosting environment to Amazon. The transition required 6 months of
60 1  Computing and Enabling Technologies

recoding software and Application Programming Interfaces to make them compatible

with Amazon’s data centers. It additionally involved training staff on how to access
applications on Amazon.
Various consultants and developers offer software or consulting services to assist
customers in moving applications between providers.

Privacy Internationally—Data Transfers

When organizations move applications to the cloud, they are required to follow privacy
and security regulations mandated by governments for specific industries, particularly
healthcare and finance. All countries have rules about guarding private information
located in the cloud and personal information transferred to data centers in other
countries.
In the United States, healthcare organizations are required to follow HIPAA
(Health Insurance Portability and Accountability Act) rules on protecting the privacy
of people’s medical records. Retailers are bound by PCI DSS (Payment Card Industry
Data Security Standard) regulations. Government agencies need to follow the 2002
Federal Information Security Management Act (FISMA), legislation that defines
security practices to protect government information, as well defenses against natural
or man-made threats. Financial firms have specific privacy and security regulations
as well.
Adhering to the myriad of rules internationally in different countries often means
that companies with a presence in, say, the U.S. and the European Union need to
establish separate data centers that adhere to Europe’s privacy and security rules. The
same holds true in Asia and Pacific Rim countries. Moving that information to other
countries is also subject to privacy rules.

The EU–U.S. Privacy Shield

Prior to 2015, the European Union and the United States Department of Commerce
had agreed upon ways to protect European Union citizens’ information stored in
United States companies’ cloud centers in both the United States and Europe. In 2015,
in response to a privacy suit filed against Facebook, the 28-country European Union’s
highest court, the European Court of Justice, invalidated the earlier EU–U.S. Safe Har-
bor agreement that set out terms for companies in the United States to transfer cloud-
based data containing personal information about European Union members to data
centers in the United States. The 2015 ruling requires United States companies moving
files out of Europe that contain information about Europeans to follow EU privacy
guidelines.
The Cloud: Applications and Development at Providers’ Data Centers 61

The European Union and the United States Department of Commerce came to a
new EU–U.S. agreement in 2016 on updating privacy regulations to protect European
data. The agreement, called the Privacy Shield, took effect on August 1, 2016. Its
requirements are more stringent than those in the Safe Harbor agreement. However,
many experts expect even these regulations to be challenged in court.
In addition, some U.S. companies are slow to update their privacy clauses to
comply with the new regulations. Some of this slowness is because of the uncer-
tainty about the Privacy Shield. There are concerns that the EU Court of Justice
will overturn it as not being strict enough. Other organizations see adherence to the
Privacy Shield stipulations as a competitive edge in competing for business in the
European Union.
At any rate, a new set of privacy regulations, the General Data Protection Regula-
tion, took effect in May 2018. It includes a “right to be forgotten” provision that states
that people’s personal data should be deleted when citizens request the right to be
forgotten.

Establishing Cloud-Based Data Centers Abroad

Companies, particularly small and medium sized ones, often solve the challenge of
establishing cloud-based data centers in other counties by signing agreements with
providers familiar with various international rules for hosting their data centers in other
countries. Data storage company Box’s partnership with IBM and Amazon to host
other cloud companies’ data centers outside of the United States are examples of this
type of agreement. For now, companies are hosting data centers in Europe even though
rules on privacy and security are not 100 percent clear.

Cloud Summary: Rationale and Challenges

The use of cloud computing application development, application management, and IT
services in general has become a widely accepted practice in commercial and for-profit
companies. There are however, a number of challenges in managing cloud comput-
ing and adapting applications for the cloud. Security and privacy are major concerns.
Small and medium-sized companies recognize that cloud companies for the most part
have more skilled staff to manage security and privacy. Large companies with the
resources to manage security better than smaller companies, are careful not to place
highly confidential or strategic files in the cloud. There is never a 100 percent guaran-
tee that a cloud company won’t be hacked or have an outage. However, it is generally
accepted that the advantages for most applications need to be weighed against security
and privacy concerns.
62 1  Computing and Enabling Technologies

Cloud computing advantages include faster time to market that enables companies
to implement new, strategic applications in less time with fewer staff. However, staffs
and consultants with different skills from those required to manage in-house applica-
tions are required to move applications to the cloud. This can be an issue where there
is a shortage of employees with these skills. Moreover, total cost of running IT ser-
vices may not be lowered by using the cloud because of usage fees that often increase
over time.
Major implication of using cloud computing is the fact that local area networks
within buildings and broadband networks carry an exponentially increasing amount of
traffic. Moreover, these networks are more critical than ever as many computing func-
tions are not possible without broadband and in-house network links. Thus, it behooves
companies to have network backup plans and redundancy in the event of failures in
their networks.

SUMMARY ..............................................................
The rapid pace of innovation and technological advancements is powered by computer
chips that are faster and smaller and have increased memory and processing power.
Chips are the engines in personal and business computers and all electronic devices
including wristwatches, headsets, printers, fitness gear, televisions, set-top boxes, ther-
mostats, and newer vending machines. Much of this gear is connected to broadband
networks.
Broadband networks transmit data, voice, and video over high-capacity fiber-optic
cabling. Dense wavelength division multiplexers, with powerful chips, connected to
fiber in broadband networks enable broadband networks to carry many more streams
of traffic simultaneously. The small chips within multiplexers take up less space, but
enable transmissions from multiple devices to be carried simultaneously on single
strands of fiber cables.
Compression and multiplexing gear are key elements in advanced gigabit per sec-
ond packet networks connected to homes, commercial organizations, and businesses.
Compression is an important technology that uses advanced mathematical algorithms
to shrink the number of bits needed to transmit high-definition video, music, text mes-
sages, and voice. The most widely used cloud applications enabled by compression
and multiplexing are the social networks whose subscribers upload and stream music,
video clips, and photos to and from Facebook, Snapchat, Spotify, LinkedIn, and oth-
ers. Amazon’s cloud computing, streaming media, and retail sales is another factor in
increased traffic on broadband networks.
Compression, multiplexing, high capacity networks and computer chips addition-
ally enable cloud computing. Cloud computing has a large impact not only on how IT
Appendix 63

departments manage their applications. It also is a factor in how consumers manage

their own storage requirements for photos and music. Young people in particular con-
sume such high amounts of music and photos that their personal devices often don’t
have the capacity to store them all. Thus, they too use cloud computing for the ease
of accessing their music and documents from anywhere there is broadband and from
any device.
Compression is the key enabler of virtual and augmented reality. Chips used to
compress images in virtual reality have graphical processing capability that can pro-
cess large chunks of graphical data. Currently, online gaming is the most frequently
used application for virtual reality. It enables high-density images that provide immer-
sive experiences for gamers. In the future, virtual reality will also be used for applica-
tions such as training, education, and commerce.

APPENDIX ..............................................................

A Comparison between Analog and Digital

Signaling
Speed or frequency on analog service is stated in hertz (Hz). A wavelength that oscil-
lates, or swings back and forth between cycles, 10 times per second has a speed of
10Hz or cycles per second. A cycle starts at a neutral place in the wavelength, ascends
to its highest point, descends to its lowest point, and then goes back to neutral. Lower
frequencies are made up of longer wavelengths than higher frequencies.
Analog telephone signals are analogous to water flowing through a pipe. Rushing
water loses force as it travels through a pipe. The farther it travels in the pipe, the more
force it loses, and the weaker it becomes.
The advantages of digital signals are that they enable the following:

• Greater capacity The ability to mix voice, video, photographs, and e-mail
on the same transmission enables networks to transmit more data.
• Higher speeds It is faster to re-create binary digital ones and zeros than
more complex analog wavelengths.
• Clearer video and audio In contrast to analog service, noise is clearly
different from on and off bits, and therefore can be eliminated rather than
boosted along with the signal.
• Fewer errors Digital bits are less complex to re-create than analog signals.
• More reliability Less equipment is required to boost signals that travel
longer distances without weakening. Thus, there is less equipment to
maintain.
64 1  Computing and Enabling Technologies

Table 1-4 Compression Standards and Descriptions

Compression
Standard Description
H.264 An International Telecommunications Union (ITU) standard used
widely for video conferencing systems on LANs (local area net-
works) and WANs (wide area networks).
G.726 A family of standards for voice encoding adopted by the ITU. It is
used mainly on carrier networks to reduce the capacity needed for
VoIP (Voice over IP).
IBOC In-band, on-channel broadcasting that uses airwaves within the AM
and FM spectrum to broadcast digital programming. IBOC is based
on the Perceptual Audio Coder (PAC). There are many sounds that
the ear cannot discern because they are masked by louder sounds.
PAC discerns and discards these sounds that the ear cannot hear and
that are not necessary to retain the observed quality of the transmis-
sion. This results in transmission with 15 times fewer bits. PAC was
first developed at Bell Labs in the 1930s.
JPEG A Joint Photographic Experts Group compression standard used
mainly for photographs. The International Standards Organization
(ISO) and the ITU developed JPEG.
MPEG-2 A Moving Picture Experts Group video compression standard
approved in 1993 for coding and decoding video and television
images. MPEG-2 uses past images to predict future images and color.
It then transmits only the changed image. For example, the first in a
series of frames is sent in a compressed form. The ensuing frames
send only the changes. A frame is a group of bits representing a por-
tion of a picture, text, or audio section.
MPEG-3 MPEG-3 is Layer 3 of MPEG-1. MPEG-3, also referred to as MP3,
is a standard for streaming audio and music. MPEG-3 is the compres-
sion algorithm used to download audio files from the Internet. Some
Internet e-commerce sites use MPEG so that potential customers
who have applications that use compression software can download
samples of music to decide if they want to purchase a particular song.
MPEG-4 MPEG-4 is a standard for compression, which defined coding on
audio and video.
Appendix 65

Table 1-5 OSI Layers

OSI Layer Name
and Number Layer Function
Layer 1: Physical Layer 1 is the most basic layer.
Layer Layer 1 defines the type of media (for instance, copper, wireless, or
fiber optic) and how devices access media.
Repeaters used to extend signals over fiber, wireless, and copper networks
are Layer 1 devices. Repeaters in cellular networks extend and boost sig-
nals inside buildings and in subways so that users can still take advantage
of their cellular devices in these otherwise network-inaccessible locations.
Layer 2: Data Ethernet, also known as 802.3, is a Layer 2 protocol. It provides rules
Link Layer for error correction and access to LANs.
Layer 2 devices have addressing information analogous to Social Secu-
rity numbers; they are random but specific to individual locations.
Frame Relay is a Layer 2 protocol previously used to access carrier
networks from enterprises.
Layer 3: Network Layer 3 is known as the routing layer. It is responsible for routing traf-
Layer fic between networks that use IP network addresses. Layer 3 has error-
control functions.
Layer 3 is analogous to a local post office routing an out-of-town letter
by ZIP code while not looking at the street address. Once an e-mail
message is received at the distant network, a Layer 3 device looks at the
specific address and delivers the message.
Layer 4: Transport Layer 4 protocols enable networks to differentiate between types of
Layer content. They are also known as content switches.
Layer 4 devices route by content. Video or voice transmissions over
data networks might receive a higher priority or quality of service than
e-mail, which can tolerate delay.
Filters in routers that check for computer viruses by looking at addi-
tional bits in packets perform a Layer 4 function.
Transmission Control Protocol (TCP) is a Layer 4 protocol.
Layer 5: Session Layer 5 manages the actual dialog of sessions. Encryption that scram-
Layer bles signals to ensure privacy occurs in Layer 5.
H.323 is a Layer 5 protocol that sends signals in packet networks to set
up and tear down, for example, video and audio conferences.
Layer 6: Layer 6 controls the format or how the information looks on the user’s
Presentation screen.
Layer Hypertext Markup Language (HTML), which is used to format web
pages and some e-mail messages, is a Layer 6 standard.
Layer 7: Layer 7 includes the application itself plus specialized services such as
Application Layer file transfers or print services. HTTP is a Layer 7 protocol.
This page intentionally left blank
2 Data Centers and LANs, Storage,
and IP Private Branch Exchanges

In this chapter:
 Introduction 68
 What Is a LAN? 69
 Switches, Media, and Protocols in LANs 70
 IP PBXs—Voice, Video, and Unified Communications 99
 IP Telephony—Converting Voice Signals to Digital Data 101
 Unified Communications, Contact Centers, and Video Conferencing 107
 Appendix 118

67
68 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

INTRODUCTION .....................................................
IT management is in a race to keep up with growing demand for capacity on local area
networks (LANs) and storage systems. The growth in the amount of traffic on LANs
that results in congestion is due to the growing number of employees

• Accessing data that is in the cloud

• Uploading data to the cloud
• Downloading data from the Internet
• Holding videoconferences with remote and local colleagues
• Using collaboration software to share and edit documents related to joint
projects

The above factors add to the increasing volume of data traversing the LANs.
In addition to more voice, data, and video transmitted on LANs, there are require-
ments for additional capacity on storage systems. Some of the needs for additional
storage can be attributed to the fact that regulations in certain industries require busi-
nesses to save data for 3 or more years. Examples of industries with retention require-
ments include

• Medical device and pharmaceutical companies

• Hospitals
• Retailing
• Financial firms
• Government agencies

Even organizations without as many requirements to retain data are finding it nec-
essary to add more storage space for data related to customer information, product
specifications, research projects, and employee data. In addition, the cost for storage is
decreasing, which allows organizations to store more data.
Data centers are centralized locations for housing software applications. Because
of the growing dependence on the cloud to store and manage applications, enterprise
data centers are shrinking in physical size. Placing applications in the cloud takes the
burden of monitoring, patching, and upgrading applications away from staff in corpo-
rate data centers. It additionally reduces the load on organizations to have mechanisms
to protect applications from power outages, brief power interruptions, and natural
disasters such as hurricanes and tornadoes.
What Is a LAN? 69

Cloud services allow small companies to operate without a data center, and most
of the medium-sized companies only require two or three servers. For small and large
organizations alike, cloud services provide many of the management tasks previously
performed by in-house technical staff. However, even with cloud services, IT staff is
needed to monitor security and secure access to applications in the cloud.
Employees often bring expectations for capacity, accessibility, and user-friendly
interfaces from their experience as residential customers. Residential customers can
easily access Facebook, Snapchat, and Google from mobile devices and laptops.
Employees expect the same level of service for work-related computing tasks. They
anticipate the applications they access to be always available, easy to use, and acces-
sible from mobile devices and remote locations. This is an ongoing challenge for IT
personnel and management.
Organizations are meeting these staff expectations through unified communica-
tions, collaboration software, and easy-to-access desktop video conferencing. Unified
communications is the ability to access company directories and voice mail messages
from within a single e-mail inbox. Collaboration software, which mimics Google Docs
and Box services, enables employees to share documents, edit documents written by
other staff, and keep up-to-date on group projects. Telephone system manufacturers
such as Mitel and Cisco often include these applications and capabilities in their sys-
tems’ platforms.
To meet staff expectations for access to applications, organizations are taking steps
to prevent delays and ensure continuous uptime. They are investing in higher capacity
switches to transmit growth in LAN traffic, and LAN monitoring software to quickly
spot and resolve equipment and software glitches.

WHAT IS A LAN? ....................................................

A LAN is a local network owned by an enterprise, a commercial organization, or a
residential user. The purpose of a LAN is to allow employees and residential users to
share resources. For example, without a local area network, each person would need
his or her own printer, router, switch, and applications. The LAN enables employees
to share high-speed printers, routers, modems, Wi-Fi equipment, and broadband ser-
vices to reach the Internet, and to receive incoming and make outgoing calls. Without
a LAN, each user would additionally require her own connection to the Internet. In
short, costs would be sky-high and staff would be burdened with arranging all their
own access to services.
Table 2-1 is a partial list of devices connected to LANs. Growing numbers of “con-
nected” devices is adding tremendous traffic to LANs. It is additionally increasing the
criticality of LANs. Each device on a LAN is referred to as a node. The size of a LAN
is often described as the number of nodes on that LAN.
70 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Table 2-1 Devices (Nodes) on LANs

Routers Security cameras
Printers Wi-Fi equipment
Switches Telephones
Personal computers Cable modems
Thermostats Video conferencing equipment
Electronic white boards for meetings Security alarms
Lights Equipment to manage lighting
Fire alarms Factory automation systems
Shared applications Projectors
Wireless devices connected to Wi-Fi Bar code scanners in retail locations
Cash registers LAN monitoring software
Storage networks Databases
Televisions Set-top boxes including Apple TV
and Roku

SWITCHES, MEDIA, AND PROTOCOLS IN LANS .......

Switches have been described as “goes into, goes out of.” Requests for access to appli-
cations including e-mail go “into” switches and the responses to these requests are
transmitted “out of” switches.
LANs are made up of Layer 3 (also referred to as core or backbone) switches and
Layer 2 switches.

• Layer 3 core or backbone switches

− Transmit messages between buildings on a campus.
− Are connected to other Layer 2 and to Layer 3 switches.
− Are not connected to nodes.
− Carry the highest amount of LAN traffic.
• Layer 2 switches
− Are connected to nodes (devices) on floors.
− Carry less traffic than Layer 3 switches.

Copper, Wi-Fi, and fiber media tie nodes and switches together into a network.
Switches, Media, and Protocols in LANs 71

Layer 3 Switches—Transmitting Data

between Switches and Data Centers
Layer 3 switches are large-capacity switches that transmit data between Layer 2
switches and centralized applications in data centers. Layer 3 switches are also referred
to as core or backbone switches. They tie together buildings located in, for exam-
ple, hospitals, universities, and enterprise campuses. Core switches are not connected
directly to end-users’ devices. A backbone switch has connections to multiple switches
and to routers, but not to LAN nodes listed in Table 2-1. On large LANs, if a link to a
core switch is down, the backbone switch can often route traffic around the disabled
switch to a functioning switch.

IP Addresses in Layer 3 Switches

Layer 3 switches are called Layer 3 because they route messages to devices via their
IP address. Layer 3 devices are considered Network Link nodes equipment. Layer 3
Network Link switches send messages only to other switches and routers, not to nodes
such as printers and individuals’ devices. All networks including broadband, cellular
and the Internet, have Layer 3 switches for transmitting data and voice within back-
bone networks. See Chapter 1, “Computing and Enabling Technologies,” for backbone
networks.

Layer 2 Switches—Links to Nodes

In LANs, Layer 2 switches are located in wiring closets on individual floors. The
switches typically have between 8 and 24 ports with a dedicated port for each device
connected to them. Each port is connected to users’ computers, Wi-Fi access points,
printers, and other LAN nodes. Because each device is cabled to its own dedicated
port, messages they transmit are not broadcast to all users. For example, a manager is
able to send the same e-mail or video to staff on various floors. These messages are
sent only to the designated recipients, not to each person working on these floors. This
avoids flooding each device with traffic for other nodes.

In data communications parlance, a port is an interface into which a cable

is plugged for linking a computer to another device (a laptop to a display),
or to link devices to switches and networks.
o
72 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

MAC Addresses in Layer 2 Switches

Layer 2 switches send packets to devices based on their Media Access Control (MAC)
address. Each device connected to a LAN has a MAC address. Layer 2 devices are
considered Data Link equipment. They typically support up to 40Gbps speeds. If a
port fails, the device connected to it loses its connection to the LAN. See Figure 2-1
for switches in wiring closets. This represents a single point of failure to the devices
connected to them. If the switch crashes, all of the 16 to 24 devices connected to it
are out of service. But the nodes connected to Layer 2 switches in other wiring closets
don’t lose service.
Many Layer 2 switches are an industry-standard 19 inches wide for rack mounting
and are typically housed in freestanding equipment racks with horizontally positioned
blades. Circuit boards are often referred to as blades when they are dense, such as
when they have many ports. Switches can be wall-mounted in wiring closets that don’t
contain other equipment.

Switches in wiring closets connected to nodes*

Switch in floor 2 wiring closet

Backbone switch connecting

devices on multiple floors with
redundant fiber optical cabling to
data centers and to other nodes*.

Switch in floor 1 wiring closet

Backbone switches connect to other switches; not to Redundant fiber optical cabling
end-users’ devices.

Data center
Switches in wiring closets connect to other switches
and to end-users’ devices.

Redundant fiber connected to two different ports in

case of a port failure.

*Nodes are PCs and other equipment on LANs

Figure 2-1 A switch located in a wiring closet.

Switches, Media, and Protocols in LANs 73

The Criticality of Layer 3 vs. Layer 2 Switches

LAN backbones where core switches are located carry the highest volume of an orga-
nization’s traffic. Backbone switches are more critical in supporting staff communica-
tions than switches in wiring closets. If a backbone switch fails, every Layer 2 switch
plus the nodes connected to each wiring closest switch are out of service. In contrast, if
a Layer 2 switch crashes, the only nodes that lose service are the 8 to 16 or 24 devices
connected to it. Moreover, the cost to purchase redundant Layer 2 switches is high
because there are so many of them. In a five-story building, there could be a total of
40 Layer 2 switches in wiring closets and only six in the backbone. See Figure 2-2 for
switches in LAN backbones.
There are instances, however, when high-level employees such as CEOs are con-
nected to a dedicated Layer 2 switch. In these cases, components within the wiring
closet may be duplicated to avoid outages. In addition, IT staff closely monitor these
senior employees’ equipment connections so that if they do break down, they can be
repaired or quickly replaced.

Layer 3 switches in the backbone connected by duplicate fiber optical cabling

to duplicate switch ports. If a port fails the backup becomes active.

Switch in the wiring closet Switch in the

wiring closet

Data center

Figure 2-2 Switches in LAN backbones.

74 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Layer 3 Switch Redundancy in the Backbone

Because core Layer 3 switch failures impact many nodes in networks, there are often
redundant Layer 3 switches. Medium- and large-sized organizations often have redun-
dant switches in their backbone network so that if one switch is out of service traffic
can be rerouted to a different Layer 3 switch.
In addition to or instead of having redundant switches in backbones, compo-
nents within each core switch can be duplicated, particularly those components such
as power supplies that fail more frequently than other components. And importantly,
there may be redundant switches within data centers. When either of these two things
is done, there are rarely LAN outages.
Organizations consider a variety of levels of redundancy for core switches, includ-
ing the following:

• Purchase of a separate, duplicate switch that can take over if one fails.
• Installation of redundant power supplies in the switch. (A power supply
converts AC power to the low-voltage DC power required by computers.)
Switches are inoperable if the power supply fails.
• Installation of redundant blades in the switch. Each blade (also referred
to as a card or circuit board) supports a megabit or gigabit capacity
Ethernet port.

40/100Gbps Ethernet Switch Standards

The Institute of Electrical and Electronics Engineers (IEEE) approves Gigabit Ethernet
standards such as a 40/100Gbps and higher capacities. Most organizations currently
use the 40Gbps switches. However, for organizations whose networks support web
sites with extremely high traffic, this is actually too slow. To support ultra-high lev-
els of web site traffic, they deploy 100Gbps Ethernet switches. Facebook’s needs for
bandwidth are so large that they have developed source switches that support 400Gbps.
They’ve made the design available to other organizations. They’ve additionally stated
their intention to develop a switch with thirty-two 400Gbps ports.
When IT staff discuss the capacity of their LAN networks, they refer to them by
the capacity of their switches. So organizations with 40 Gbps switches state their LAN
as a 40Gbps or 40 Gig network. Here is one IT staff member’s comment:

“We used to have a 10 Gigabit network. But, because of the increase in

our LAN traffic, we upgraded to 100 Gigabits.”
Switches, Media, and Protocols in LANs 75

User Errors—A Major Challenge

In a company located in China, an employee mentioned to the IT Director that
the LAN was running unusually slow. The IT Director checked the network
monitor, but could not see an equipment failure. He did find an unusual amount
of traffic at one switch. Initially, he was concerned that the cause was a computer
virus. He started unplugging devices from the network in case the virus had
spread. When he unplugged a cable from one switch, the LAN traffic speeded up.
When he traced where the cable from that switch was plugged, he found that the
other end of the cable was plugged into the same switch rather than a different
one. This solved the problem because a loop storm had been created where data
traveled in a circle between the two ports on the switch. Later, an employee
e-mailed him and told him he saw a cable lying on the floor and so plugged it
into another port of the same switch.

Virtual Local Area Networks for

Specialized Treatment
A Virtual Local Area Network (VLAN) comprises devices such as personal computers,
physical servers, IP phones, and wireless telephones whose addresses are programmed
as a group in Layer 2 switches to give them higher priority or special privileges, or to
segregate them from the rest of the corporate network for higher security. Although
they are programmed as a separate LAN and treated like a separate LAN in terms of
privileges, they are not necessarily connected to the same switches. Some computers
are put into VLANs so that they can access secure files such as healthcare records.
VLANs are used to provide special features to nodes. For example, video confer-
encing or LAN-connected telephones may receive priority over e-mail traffic because
delays in video may result in distorted images whereas e-mails are not time sensitive
and delays in sending or receiving messages are not noticeable.
IP telephones and video conferencing units that send voice in packets over net-
works and wireless LAN devices are often programmed into their own VLANs. These
devices allow only certain types of equipment, such as other telephones or video con-
ferencing equipment, to communicate with them.

Media-Connecting Nodes to LANs

In information technology and telecommunications, media refers to cabling and
wireless services that connect devices to each other, to buildings and ultimately to
individuals.
76 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

E
Examples of media are: copper, fiber-optic cabling, and wireless on cellular
and Wi-Fi networks. Copper is used most often between individual wired
a
ccomputers and the wiring closet on each floor. Fiber is often used to trans-
mit data between floors and within the data center to transport the heavy
concentrations of traffic. Because of its light weight and large capacity, fiber
is deployed where there is the heaviest amount of traffic. See Chapter 1 for
a discussion of fiber and copper cabling. Copper cabling is used most often
to connect nodes to LANs. (The term devices are used synonymously with
nodes.) Wireless of course is used for Wi-Fi. See the section on Wi-Fi in
Chapter 7, “Mobile and Wi-Fi Networks.”

Increased Bandwidth Needs on LANs

A number of factors are causing the amount of traffic on local area network to increase
exponentially. These include increasing amounts of data-intensive centralized comput-
ing and requirements for additional storage. Another factor is the growing dependence
on accessing content in the cloud. The staff’s cloud traffic transits LANs to reach data-
bases located in the cloud and in companies’ data centers. And to a greater extent than
ever before, video traffic streamed and downloaded from the cloud, the Internet, and
from on-site videoconferences is adding to LAN congestion and the need for larger
pipes.
Other factors adding to LAN congestion are:

• Large graphics file attachments such as PowerPoint files.

• Daily backups to databases of entire corporate files.
• Web downloads of long, continuous streams of images, audio, and video
files.
• Access by remote and local employees to applications and personal files on
centralized servers and storage devices.
• Web access, during which users typically have four or more windows open
concurrently. Each open web page is a session, an open communication with
packets traveling between the user and the Internet.

Here’s a quote from an IT Director at a university:

“We never have enough capacity on our local network or storage space
in our storage area network.”
Switches, Media, and Protocols in LANs 77

Protocols for Communications in LANs

All devices connected to LANs use network protocols to access the LAN. They commu-
nicate with other devices and applications, which might be located on the same floor, on
another floor, in another building, or even on an organization’s LAN located on another
continent. By providing a uniform way to communicate, LANs simplify the process of
linking devices, applications, and networks together. Ethernet is the most common of
these protocols. Other specialized protocols are used to access Storage Area Networks.

The Ethernet Open Standard for Network Access

Ethernet is an 802.3 open-standard protocol, approved by the Institute of Electrical and
Electronics Engineers (IEEE), a non-profit standards body. Devices such as personal
computers and printers use it to access the LAN and to retrieve packets from wired
and wireless LANs. Each device on an Ethernet LAN has an address, referred to as
its Media Access Control (MAC) address. Layer 2 switches in wiring closets use the
MAC address to send messages to other LAN-attached devices.
Ethernet is the first LAN access scheme that was widely adopted. Because it is
based on an open standard, it is broadly available from different manufacturers. In the
1980s, departments within companies began to use Ethernet to link their computers
together over coaxial cables to share software applications, such as accounting and
financial tracking packages as well as printers. In the 1990s, lighter-weight, lower-cost
unshielded, twisted-pair (UTP) cabling became available on new UTP cable standards
on LANs. This greatly simplified installing and moving computers on LANs because
of the lighter weight and flexibility of UTP cabling. See Table 2-2 for additional LAN
protocols, devices and terms.
Ethernet is an asynchronous protocol. Asynchronous protocols do not specify a
specific start and stop time for each packet of data. All devices connected to the net-
work attempt to send whenever they are ready.
Ethernet’s simplicity makes it straightforward to connect equipment to networks.
All that’s required are computers with Ethernet interfaces (ports) for an Ethernet cable,
a Network Interface Card (NIC), and Ethernet software to link devices to switches in
wiring closets. Because of the uncertainty of traffic volume at any given point in time,
Ethernet networks are often configured to run at no more than half of their capacity.

F
Frames serve the same function as packets. They surround user data
with addressing, error checking, and other protocol-related bits. The term
w
““frame” is used in lower-level protocols, such as Ethernet, which is used
for communicating within LANs connected to the same switch in the wiring
closet. Packets refer to data configured for transmission between LANs and
on the Internet by using TCP/IP.
78 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Using TCP/IP as a Linking Protocol

Ethernet is a way for individual frames to access LANs and for computers to retrieve
frames from local networks, whereas TCP/IP is used to tie LANs together and to route
packets between networks as well as to and from the Internet. As the need arose to tie
LANs together for e-mail and file sharing, compatibility between LANs from different
manufacturers became a problem. The TCP/IP suite of protocols became a popular
choice for overcoming these incompatibilities and for managing the flow of informa-
tion between LANs.
Routers were developed to send data between individual LANs, and between
LANs and the Internet and other networks. Routers send packets to individual net-
works based on their IP address. IP addresses are assigned to individual networks and
servers that run software applications.

Software Defined Networks in LANs

As more varied applications, data from storage networks, cloud data, and Internet traf-
fic is transmitted across LANs, large organizations need to have more control over how
various applications are transmitted. For example, video files and real-time transac-
tions require a higher priority than for example, e-mail.
In addition, IT managers are under pressure to keep the staff lean and productive.
At the same time, they need the ability to quickly adapt to changes and to add and
delete features and applications. This is often difficult with current local area network
infrastructure where prioritizing traffic results in complicated management of that
traffic.
It may be difficult to add new services because of the need for backward
compatibility with older applications and equipment. This is particularly true in large
conglomerates often made up of a variety of subsidiaries and departments, many of
which have different applications and requirements.

Features of Software-Defined Networks

As the name implies, software-defined networks are controlled by software rather
than hardware. The software is located in a central controller in off-the-shelf, general-
purpose computers. The controller has policies in software that define how packets
are forwarded. The control plane distributes policies that the controller transmits to it.
The data plane is made up of tunnels that carry data to endpoints. Endpoints are also
referred to as nodes, devices connected to the LAN.
The key advantage of distributing policies to endpoints is that endpoints do not
need to continuously communicate with a central controller because the policies are
forwarded as they change with instructions on how to treat data that is transmitted
by the endpoints. These policies have instructions on how to treat traffic during peak
Switches, Media, and Protocols in LANs 79

times. The endpoints do not need to send data back to a central point for instructions
because they are automatically sent to the endpoints whenever there are changes in
policies. Thus, LANs can respond dynamically in real time, to changing traffic pat-
terns, congestion, and outages. For example, if one route is congested or out of service,
data is automatically transmitted on other routes.

Dependence on a Central Controller—The Need for

Redundancy
Controller redundancy is important in SDNs because no new policies can be transmit-
ted to endpoints if the links to the central controller or the central controller itself is out
of service. Once service is reestablished, controllers automatically transmit policies
that were programmed during the outage to endpoints.

Flexibility
Changes can be implemented rapidly because many changes in software-defined net-
works do not require additional hardware. Changes are made by programming new
policies in central controllers. Changes should of course be tested in isolated parts of
the network or data centers before they are implemented. See Chapter 4, “Managing
Broadband Networks,” for software-defined network technologies on broadband links.

Network Operating Systems

LAN Network Operating System (NOS) software is located on specialized comput-
ers called file servers in the LAN. File servers provide shared access to programs
on LANs. A NOS—also referred to simply as the operating system (OS)—defines
consistent ways for software to use LAN hardware and for software on computers to
interoperate with the LAN. LAN operating system client software is located on each
device connected to the LAN.
The way PCs request access to services such as printers, e-mail, and sales applica-
tions located on servers is defined by operating systems. A network operating system
also defines how devices access shared applications and the network. A NOS further
controls how icons are displayed on computers’ “desktops.” Examples of network
operating systems include Novell, Windows Server 2010, Windows Server 2016, Sun
Solaris 10, and Linux.
Client software (software on nodes) is installed on individual devices. Examples
of client software on PCs include Windows XP, Windows 8, and Windows 10. Apple
computers use various operating systems such as OS10.5 and OS10.14.2. Often when
client software on Windows and MAC computers are upgraded, older Office and other
applications need to be upgraded. Features in the upgraded operating system may not
be compatible with older word processing and spreadsheet software.
80 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Data Centers—Centralized Locations for

Housing Applications
A data center is a physical location where an organization or cloud provider’s data
applications are centralized. This includes LAN operating systems, e-mail servers,
security software on dedicated servers or appliances, voice telephony, storage area net-
works, databases, and accounting applications. See Figure 2-3 for a depiction of a data
center. An appliance is a server dedicated to a specific software function such as email
and security. Applications including e-mail are housed in servers, powerful computers
accessed by authorized staff. Switches in data centers transmit traffic to individual
applications in the data center.
A Data Center
Switches direct traffic to servers Servers
with applications and databases

Switches

Raised floor for electrical wiring, water pipes that carry water for air
conditioning, and protection from water damage.

Figure 2-3 A data center.

Data centers come in a variety of sizes. They can be located in an organization’s

branch as well their headquarters. They are also at cloud providers’ sites. For example,
a small to medium-sized company may have a data center with only a few servers if the
bulk of their applications are located in the cloud. Large organizations with multiple
sites may have data centers and applications in branch offices as well as at headquar-
ters. Or branch office staff may remotely access information in a centralized data center
at headquarters or at a cloud provider’s data center.
Hyper cloud providers—the very largest providers; Amazon, Facebook, Google
(part of Alphabet), and Microsoft have large data centers spread all over the world. As
cloud computing proliferates, an increasing number of applications previously at enter-
prise data centers are now at hosting and cloud providers’ data centers. According to a
Wall Street Journal, April 10, 2017, online article, “A New Arms Race for Tech” com-
bined capital expenditures at Amazon, Microsoft, and Alphabet’s Google increased
22 percent in 2016 compared to 2015.
Switches, Media, and Protocols in LANs 81

Protecting Data Centers

Cloud providers and social networks have multiple, duplicated large data centers dis-
persed around the world. Many of them are exact duplicates of each other in the event
that one of their data centers is destroyed by a natural disaster or other disaster. As
discussed in Chapter 1, duplicate data centers are for the most part connected by fiber-
optic cabling. Capacity in fiber cabling and the electronics connected to it have the
capacity to back up data continuously in real time or at the end of the day.
Telephone companies and cellular providers all have data centers. These data cen-
ters manage services and applications such as voice mail and messaging that they offer
customers. In addition, these companies deploy roomfuls of technicians to remotely
monitor and manage their networks. This is done from data on technicians’ screens
in these data centers. Cellular and telephone companies’ data centers monitor and
manage:

• Connections to other networks

• Connections to subscribers
• Conditions in their own networks
• Tracking customers’ voice and data usage
• Billing software with information on each subscriber’s voice and data usage
and voice and data plan
• Security
• Switches used for voice calling
• E-mail servers

The Impact of Cloud Computing

on Data Centers
Although the criticality of and reliance on applications and databases is increasing,
many data centers are shrinking in physical size. When cloud computing was first
introduced, mainly small and medium-sized organizations trusted it enough to use it
for the majority of their applications. As time went on, more organizations began trust-
ing the cloud and transferring more of their applications and development to cloud
platforms. This resulted in smaller data centers and fewer tech staff required to operate
data centers because a number of applications are located in the cloud and often man-
aged by the cloud provider. A data center in an organization with most of its applica-
tions in the cloud might consist of only a few servers.
82 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Hosting vs. Cloud Services

Hosting companies such as Markley Group and Rackspace provide secure loca-
tions where enterprise organizations store applications. Customers can place
their own servers at the hosting site. Cambridge-based Harvard University keeps
a server with applications for medical research at the Markley Group’s facility
in downtown Boston. Researchers access their server remotely for computing
related to their research. Markley supplies the physical security, security from
hackers, cooling, and “hardened” building construction to protect their facility
from natural disasters such as hurricanes and earthquakes.
Cloud companies sell multi-tenant platforms (servers) where customers can spin
applications up to or down from the cloud. Providers offer more granular, finer
tuned services. For example, customers can control the days and hours their appli-
cations are available, the amount of cloud security they require, and whether to pay
extra for their own, private server. They have the ability to more granularly mea-
sure and control computing power and usage on their applications. Cloud providers
also offer Service Level Agreements (SLAs) that spell out guarantees of up-time
and other performance criteria. Typically, hosting companies charge flat monthly
fees and cloud providers’ charges are metered, based on monthly computer usage.

Often an organization will consolidate applications that are not in the cloud into
central data centers that were previously located in numerous remote offices and
department. Centralization and streamlined data center operations are enabled in large
part by storage, server, and switch virtualization. Increased broadband network capac-
ity is another key enabler of centralized data centers.

Environmental Controls in Data Centers

Virtualization and cloud computing have decreased the number of physical servers
needed in data centers. However, each physical server requires more cooling due to
more powerful, octal processors that generate more heat than dual or single processors.
This increases electricity costs needed for cooling these powerful servers.
Designing cooling, power, and Uninterrupted Power Supply (UPS) systems that
distribute power are so complex that organizations often hire consultants to design
cost-effective environmental controls. An uninterrupted power supply provides power
for the short time before gas-generated backup power kicks in. Increasing or decreas-
ing the number of people in the data center will further impact cooling needs.
In addition, there are different cooling requirements for equipment located at the
bottom of racks vs. equipment located at the top. The type and amount of lighting also
impacts cooling requirements. Energy consultants offer consulting services aimed at
designing cost-effective energy and power systems for data centers.
Switches, Media, and Protocols in LANs 83

Taking Steps to Ensure Adequate, Lower-Cost Power

To save money on electricity, some large enterprises have applied for and received
permission from the United States Federal Energy Regulatory Commission (FERC)
to become wholesale providers of electricity. By doing so, they can purchase bulk
supplies of power at low rates. In addition to saving money on power purchases, this
ensures that they have an adequate supply of electricity for their own power needs.
Examples of companies that have been approved by FERC to purchase bulk supplies
of electricity include Google, Exxon Mobile, Kimberly-Clark Corporation, Alcoa,
Tropicana, and The Dow Chemical Company. None of these companies have stated an
interest in reselling electricity on a retail basis.
While it’s not expected that smaller organizations will follow this route, this does
point out the efforts that large, multisite firms will take to ensure an adequate supply
of electricity at the lowest possible rates. To further ensure a steady supply of power,
companies also purchase power from multiple power generating companies over dif-
ferent power feeds. In addition, electric rates and adequate sources of power often fac-
tor into decisions of where to locate data centers. For example, Facebook has two data
centers located in Sweden, partly to cut down on cooling costs.

Resiliency in Data Centers: Continuous Operation

A key task in designing data centers is determining which devices or elements repre-
sent single points of failure that have the potential to put the entire data center out of
service. Power cuts and interruptions, fire, and natural disasters such as hurricanes all
have the potential to shut down computer operations. Human error is also a common
cause of failures.
Data centers are often located in out-of-the way spaces within buildings, particu-
larly if there is a shortage of office space. Thus, it’s not uncommon for data centers
to be located in basements. In low-lying areas this is a problem because of the danger
of flooding the data center and destroying the equipment. Although most data centers
have raised floors, floods in these areas are nevertheless a problem.
Enterprises and carriers with mission-critical data centers must decide where to
spend money on redundancy and protection from catastrophic failures. See Figure 2-4
for an example of failover during a data center failure. Because loss of an uninterrupted
power supply can bring down a data center, many organizations consider redundant
UPS and backup electric generator service. This can mean two UPS’s and backup gen-
erators connected to the same electrical feed or the more costly option of two electrical
feeds, each with its own UPS.
Organizations with two electrical feeds generally arrange that each enter the build-
ing in separate conduits and separate building entrances. If one electrical cable is cut,
the data center will fail over to the other one. This is expected of hosting and cloud
providers and other critical infrastructure suppliers.
84 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Automatic Failover (Backup) to a Remote

Site Using Replication Software in Virtualized Servers

WAN

Headquarters site Remote, backup site

Ethernet LAN Ethernet LAN

Physical host
Physical host server with
servers virtual machines

Servers at
headquarters with
replication software
and virtual machines

Switch Switch Switch

SAN SAN
WAN = Wide Area Network
LAN = Local Area Network
SAN = Storage Area Network

Figure 2-4 Automatic failover to a remote site.

An even more costly option is to lease or build a second, backup data center. The
backup may be at a providers’ site or may be owned and operated by the enterprise.

Storage Systems—Managing Petabytes of Data

Organizations use storage systems to access information for daily transactions and to
archive backup copies of computer files and databases on hard drives controlled by
servers with specialized software. They are used by online as well as brick-and-mortar
stores that need access to credit card and customer service data to authorize purchases
and resolve customer complaints.
Biopharmaceutical companies use storage systems in their refinement of and
development of new drugs. They can change the amount of particular chemicals they
add to drug formulations and track how each alteration changes how drugs’ effec-
tiveness is impacted by each input. These changes are tracked over time. The ability
to track massive amounts of data during drug development is speeding the time to
develop and improve drugs’ effectiveness.
Switches, Media, and Protocols in LANs 85

According to a chemist at a bio-tech firm:

“The decline in costs of mass storage has greatly impacted our research
and development. We can purchase huge amounts of storage to help us
analyze how changing inputs to drugs during development results in
chemical changes.”

Telephone and cable TV companies store massive amounts of customer billing

and usage data. Their customer service representatives access much of this informa-
tion when customers call with questions about bills or to make changes to their service.
Other critical functions of data in storage systems are to detect patterns of financial
fraud, authorize credit card transactions, and increase the speed of stock trading by
supplying near real time access to changes in stocks and bonds trades.
Without access to customer and organizational data, organizations cannot man-
age daily operations efficiently. Small and medium-sized organizations store databases
and back up files in the cloud or on standard on-site computers. Larger organizations,
however, require storage systems to manage the large number of requests to access
and input information to complex storage systems. The level of complexity of storage
systems is such that in large data centers, a specialized staff manages the storage.
Examples of organizations that use and manage their own large storage systems
to collect and manage data are cloud providers, and large commercial entities. In par-
ticular, government agencies, municipalities, healthcare organizations, financial firms,
and large universities as well as streaming media companies store enormous amounts
of information. Faster processors, powerful IP fiber-optical networks, and lower-cost,
large capacity disk storage and faster memory enable storage systems to provide near
real time access to immense amounts of information. Typically, these storage systems
are located at off-site data centers or in the cloud.
Large enterprises and data centers operated by cloud providers deploy storage
systems with servers (computers) that run special-purpose programs that monitor and
manage access to storage, memory chips, and disks that store information required to
operate their businesses. The information is in the form of text, databases, video, and
audio records.
In contrast to local and broadband networks that measure capacity in bits, storage
systems measure capacity of the massive amounts of data stored in bytes. Each byte is
made up of 8-bit characters. Large storage systems typically hold petabytes of infor-
mation. A petabyte equals 1,000,000,000,000,000 bytes or 1,000,000,000 gigabytes.

Measuring Performance—Input–Output Operations

per Second
Input–Output Operations per Second (IOPS) is measured by how long it takes to access
data from user devices. It’s the time elapsed between requesting the data, transmitting
86 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

the data, and receiving the data—in other words, the movement of data between the
data storage network and the requesting or sending computer. Current storage systems
are capable of close to 1 million inputs–outputs per second. Each request for data uses
a protocol that issues a request and receives either an acknowledgment or a negative
acknowledgment if the request is refused. The transmission of the requested data is
also referred to as the time in flight.

Storage Components
All storage systems are made up of servers with specialized programs to manage and
monitor the memory in disk drives and flash memory. The programs on servers also
handle access to storage. Newer storage systems are composed of standard off-the-shelf
computers. Storage systems additionally require fiber-optic cabling links between the
storage area network and LANs and broadband networks. Traffic on the links may be
routed via specialized protocols.

Memory—Flash vs. Spinning

Memory in storage systems is complex and can be architected, or put together, a num-
ber of different ways. The data stored is held either in spinning disks or flash memory.
Some storage systems use a combination of both spinning disks and flash memory.
Spinning disk memory is held in drives made up of metal platters with magnetic coat-
ing on which data files are stored. See Figure 2-5 below to see a spinning disk for data
storage. A read-write arm attachment accesses data on the hard drive while it is spinning.
A read-write arm to access and add data

Spinning disc
containing data

Figure 2-5 A spinning disk for data storage. (Photo by olegdudko/123RF)

Switches, Media, and Protocols in LANs 87

Another option in addition to spinning discs is to use flash memory. Flash memory
consists of interconnected flash memory chips in which data is stored. Flash memory
has the advantages of being faster to access and requiring less electricity. However,
after a finite amount of times that data is “written” onto flash memory, it will physically
wear out. Some storage systems contain both types of memory and others consist of all
flash memory. Kaminario, EMC’s DSSD, and Quorum are examples of companies that
offer storage systems made entirely of flash memory. Infinidat offers a hybrid system
with flash memory for the most frequently accessed data and spinning discs for the rest
of the data. NetApp sells both hybrid and all-flash storage.
There is disagreement in the industry over which approach, flash memory vs. spin-
ning disks, is best. Often flash memory is used for data that is accessed more frequently
and spinning disks for archived and less frequently requested data.

Storage Redundancy—Preventing Data Losses

The criticality of data requires that storage systems write data to multiple disks. If
one disk fails, the data is not lost because it is stored in a redundant disk. In addition
to redundant discs within the same storage system, data center operators and cloud
computing providers may duplicate the entire storage system in another location. Con-
nections between the main storage and the duplicate system enable real-time updates
in the backup system. In this way, if a natural disaster such as a flood or hurricane
destroys an entire data center, all data is up to date and preserved.
Frequently, only the changes in files are backed up every night. As LANs and
WANs became more powerful, SANs began using disk mirroring to back up files in
real time. Disk mirroring is the process of simultaneously writing data to backup and
primary servers so that all recent changes are saved and up-to-date, in the event of a
failure during working hours.

A town in Massachusetts has a duplicated as well as main storage area

network. A hacker attacked their main storage system by encrypting all of
n
it
its data. (With encryption, mathematical algorithms rearrange data into a
different format. A key is required to decrypt the data back to its original
format.) The hacker refused to decrypt the data unless the town paid a ran-
som. However, the town refused to pay the ransom because they were able
to replace the encrypted data with data from the backup storage system.
Nearby towns without a backup storage network did pay a ransom to have
their data decrypted.
88 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Storage Area Networks—Centralized File Access

Storage area networks (SANs) enable the entire organization to share files so that
people do not need their own, personal database. Having an adequate number of chan-
nels into the servers connected to storage systems is a critical step in avoiding delays
because of congestion in data look-up requests. See Figure 2-6 for an example of a
storage area network.
A Storage Area Network

Head Gateway for translation

between protocols

Flash storage

Spinning disc
storage

Server 2 Servers manage

traffic into the SAN
Server 1

Figure 2-6 A storage area network.

The Fibre Channel group of SAN open protocols was designed for the heavy traf-
fic generated in data-intensive networks. It is a point-to-point protocol, wherein data
is transferred directly from one point (a computer) to another point (disk storage).
Because of its capability to transfer large amounts of data at high speeds, large compa-
nies use Fibre Channel. It is the costliest SAN option.
The Fibre Channel over Ethernet (FCoE) protocol was approved by ANSI in 2009.
It was developed so that Fibre Channel SANs could communicate with Gbps Ethernet
networks without translating between Ethernet and Fibre Channel protocols. The goal
is to simplify structures and communications in data centers.
Other, less costly, SANs include:

• iSCSI (Internet small computer system interface), which is a newer, less

costly all-IP protocol suited for small and medium sized companies
• NAS (Network attached storage) systems, which are connected to devices
via a specialized server containing file sharing software. NAS is compatible
with Ethernet protocols
Switches, Media, and Protocols in LANs 89

Hyper-Converged Infrastructure
Hyper-converged infrastructure (HCI) in data centers simplifies data center infrastruc-
ture and provides the ability to manage storage, computing, development and testing,
remote offices, and other services from a single point by combining storage, applica-
tions, and networking on commodity, off-the shelf appliances. HCI is available from
most equipment manufacturers. If not using off the shelf servers, HCI requires that all
the data center hardware be from the same manufacturer.
HCI is software-controlled infrastructure. Centralized software is used to manage
the entire HCI infrastructure and prioritize streams of data. The software application
(the controller) monitors and controls the data center and creates logs of traffic, and
outages. The error reporting software is centralized.
The goal of hyper converged infrastructure is to provide enterprises a way to scale
up or down without a major forklift. HCI came into prominence as a way to save money
by emulating cloud infrastructure in private and commercial companies. Compression
and deduplication are used in storage equipment so that data can be stored using less
disk space. Compression uses complex algorithms to shrink the size of data. See Chap-
ter 1 for more about compression. Deduplication removes redundant data from stored
and transmitted files. Additionally, it streamlines protocols that require acknowledg-
ments and negative acknowledgments after each stream of data transmitted.

The Impact of Virtualized Hardware Failure

Because multiple software applications run on each physical server, virtualization
increases each physical server’s criticality. If one server fails, multiple applications
and business processes are disrupted. Moreover, server virtualization results in the cen-
tralization of more applications, such as collaboration, video and audio conferencing,
and accounts payable and accounts receivable software being centralized within data
centers rather than located in remote departments. Thus, in multi-site organizations,
failures affect multiple sites and departments.
Redundancy is a key consideration in organizations where computing is critical
for operations. Hot standby is one option for redundancy. Hot standby refers to the
capability of one piece of equipment to automatically take over the function of a failed
unit, without human intervention. One way to achieve this is to provide alternate paths
if one switch fails. Another option is to use replication software, which is used in virtu-
alized servers to back up all files to a hot standby location that can handle all comput-
ing if the main site crashes.
90 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Managing Users’ Computers via Virtual

Desktops
Desktop virtualization, also called Virtual Desktop Integration (VDI), refers to the phe-
nomenon of users’ applications and desktop images being held in central servers in
data centers or in the cloud. Staff access their desktop images and applications from
screens on their desktop or from mobile devices.
This relieves IT staff from troubleshooting software, applying patches to soft-
ware, and upgrading software on employees’ computers, which occupies a consider-
able amount of time. Moreover, ensuring that desktop and laptop computers don’t
contaminate networks with viruses is a complex and time-consuming task. End users
who install unknown programs or inadvertently open e-mail attachments that contain
viruses can unwittingly bring computer networks to their knees.
In addition, users today are mobile. They access their applications and documents
from all types of mobile devices—laptops, desktop computers, tablets, and smart-
phones. In addition to providing portability and security, desktop virtualization ensures
that users are able to access applications that require, for instance, Windows or others
that operate on Mac operating systems.
All of these factors plus improvements in desktop virtualization and lower costs
for VDI are pushing an interest in desktop virtualization by large enterprises. With
desktop virtualization, users have a screen, and keyboard. A connector box linked to
their computer is tied to a centralized server that runs desktop virtualization software
as in Figure 2-7. Users’ desktops are hosted in the central server as software.

databases

Data center servers with images of desktops.

Data center can be at enterprise or at cloud.

Connector boxes link computers to desktop

images in data centers.

Figure 2-7 An example of virtual desktop integration (VDI).

Switches, Media, and Protocols in LANs 91

When a user turns on his screen, he sees an image of his desktop, complete with
icons. Virtual Desktop Integration is referred to as thin-client technology because very
little intelligence is needed at the end user’s device. The user’s equipment is referred
to as the client. Organizations such as Dell, Citrix Systems, Inc., LISTEQ, Microsoft,
Nimboxx, Oracle, and VMware supply desktop virtualization software.
In the past, when Virtual Desktop Integration was tested, most organizations that
installed it experienced unacceptable delays in accessing centralized files and appli-
cations because of inadequate LAN capacity. Improvements in LAN capacity have
eliminated these delays. Another factor inhibiting implementation is the fear that if
a remote user wants to work on centralized files, and she is somewhere without an
available broadband connection, productivity gains in centralizing applications and
any modifications to the files will be lost.

Multiple Operating Systems on Desktop

Computers—Testing and Flexibility
Software developers and IT staff use desktop virtualization on computers with multiple
operating systems to test new applications as they are developed or before they are
provided to an organization’s staff. They do this by trying out the new software with a
variety of operating systems such as Linux, Windows, and Mac operating systems to
determine if the application is compatible with each of these operating systems. They
additionally can test newer and older versions of these operating systems with various
applications before making them available to internal staff or customers.
Desktop virtualization can be installed on individual computers. A person with
a Mac computer may wish to run a program that works only on Windows operating
systems. To run a Windows program that is not available for Mac computers, they
install the Windows operating system on a computer capable of supporting dual oper-
ating systems, and activate it to run the Windows-compatible application. A personal
computer or laptop with adequate memory and processing power is required to avoid
slowing down the computer with the use of dual operating systems.
In addition to testing operating systems, IT staff also test upgraded versions of
web browsers for compatibility with Mac, Windows, and other computer operating
systems.

Access to the Internet and Other Broadband

Networks via Routers
Routers connect enterprise networks to the Internet, a carrier’s network, and other cor-
porate sites, based on the IP address stored in the router’s memory. If a LAN-connected
device such as a printer or PC is moved from one LAN to another, the router table
must be updated or messages will not reach that device. The fact that routers transmit
packets by IP address rather than individual device MAC addresses is one reason they
92 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

are considered Layer 3 devices. Routers are critical. If they fail, all access to the Inter-
net and other sites is lost. Because of this criticality, organizations typically purchase
backup routers. They can balance the traffic between the two routers or keep a backup
router on hand, which can be installed quickly in the event of a primary-device failure.
The devices that connect internal networks to a carrier’s public networks are con-
sidered edge devices. Routers are defined as edge devices because they connect sites
to the Internet via dedicated links, such as Carrier Gigabit Ethernet service. For more
on Carrier Gigabit Ethernet, see Chapter 5, “Broadband Network Services.” In cellular
networks, cell phones and smartphones are edge devices that connect users to either
the Internet or other mobile devices.

Network Functions Virtualization

Enterprises are starting to implement previously hardware-based network devices as
software on their network. For example, routing and switching functions may be rep-
resented as software in commodity, x86 servers.

Additional Router Functionality

Beyond simply acting as a connection point to the Internet, routers can provide other
functionality, including the following:

• Firewall Routers can screen incoming and outgoing traffic.

• Deep Packet Inspection (DPI) DPI can manage internal traffic. See
Chapter 1 for more information about DPI.
• Encryption protocols Routers employ IPsec and other protocols for
sending packets over the Internet securely. Encryption is the use of complex
algorithms to mathematically reorder bits in frames and packets.
• Carrier Gigabit Ethernet See Chapter 5 for more information about
Carrier Gigabit Ethernet.
• Video Digital Signal Processor (DSP) This is used for conferencing
services.
• Wi-Fi A wireless service for branch and small offices that allows users to
connect wirelessly to the router for Internet access.
• Session Initiation Protocol (SIP) SIP support permits trunking for Uni-
fied Communications (UC) functions such as presence and instant messaging
with other sites and VoIP calls.
• Quality of Service (QoS) This prioritizes voice and video in the WAN.
Voice and video are assigned tags that classify them with a higher priority
than perhaps e-mail bits.
Switches, Media, and Protocols in LANs 93

These services are located on specialized circuit boards, or blades, within the
router. Multiple services can be located on the same blade, which can have more than
one processor.

B
Blade servers hold blades that are arranged vertically and housed in racks
in data centers. In contrast to horizontal circuit boards, vertical arrange-
ments such as this conserve space and can share power supplies, fans,
m
and cabling, thus consuming less energy. In addition, applications can be
added or removed without taking the server out of service.

Software to Monitor LAN-Connected Devices

Small data centers with only one or two physical computers holding virtual computers
are generally easier to manage than data centers with perhaps 20 applications installed
on 20 physical servers. However, there is a learning curve for managing numerous
physical servers, each running multiple operating systems and applications. It involves
keeping track of which physical server each image resides on as well as the applica-
tion’s address. For large data centers, it is often easier to manage physical servers,
where each one can be physically observed, than to manage an array of applications
on virtual computers.
However, in economic downturns, organizations are often reluctant to invest in
software used to track LAN traffic and uptime. New applications critical to operating
an organization’s core operations have a priority in resource allocation.

Impact on IT When Organizations Merge

On January 19, 2016, the Boston Conservatory of Music and the Berklee College of
Music announced an agreement to merge. At the merger, Berklee’s name became sim-
ply Berklee and the Conservatory was renamed the Boston Conservatory at Berklee.
Berklee is a global university with a campus in Valencia and programs internationally
including in Canada, China, India, and Latin America. Although the Boston locations
are a few blocks from each other in downtown Boston, the close proximity of the
Boston Conservatory to Berklee did not preclude disparities in hardware and software.
Bob Xavier, former IT Directory of the Boston Conservatory, was appointed the
IT Director for the merged entity. Xavier’s goal was to simplify and streamline the
infrastructure as key elements in ensuring uptime. The secondary goal was to make
technology investments that promote the institution’s business values.
Per Xavier, an immediate need was to put in place consistent processes to manage
change and implementation, and to develop compatible software applications. Accord-
ing to Xavier,
94 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

“We are being strangled by the weight of supporting so many incompat-

ible systems and applications.”

For example, Berklee and the Boston Conservatory had incompatible student
systems. Berklee had a student system called Colleague, and the Conservatory had
PowerCampus Student. Student systems are software packages used to manage the
majority of tasks around students. These include admissions, financial aid records,
human resources, tuition bills, and course registrations.
According to IT director Bob Xavier, the number one priority for Berklee is the
ability to be nimble so that the University can keep up with technological changes and
requirements. Four years before the merger, the Boston Conservatory made a strategic
decision to push all applications and processes to the cloud or to hosting centers. They
wanted to “get out of the data center business.” The rationale is that it’s easier to be
nimble and flexible without the burden of upgrading hardware in data centers when
technology inevitably changes. Xavier is in the process of continuing the push to the
cloud for the combined entity.
Incompatibility between browsers, computers, and applications is another area
where the school is working toward standardization and compatibility. Not all of
cloud and hosted applications are compatible with every browser used at the school.
The university would like to see more standardization in browsers so that cloud and
hosted applications work more smoothly and can be tested with just a single browser.
In addition to these differences, some staff and faculty have PCs and others have Mac
computers.
Currently the IT department feels that none of the systems scale, adequately to
support both universities. They are not designed to be functioning globally, across time
zones. The university is now working to align all of these incompatibilities and limits.
Xavier predicts that this will be a 3-year process.

Monitoring LANs—What’s Up?

What’s Down?
To properly operate large networks, a good suite of management tools is required.
Moreover, because problems can occur in switches, servers, and storage, the best
management suites are those that are capable of diagnosing and viewing all of these
devices. Visibility across these three sectors is complicated by the fact that in many
data centers, different manufacturers supply the switches, servers, and storage. One
solution is to use third-party suites of management software that are capable of moni-
toring equipment supplied by more than one manufacturer.
The purpose of monitoring software is to notify IT staff about the status of LAN
infrastructure. For example, are there outages? Where are the outages? Is congestion
delaying traffic? Monitoring software is important on local area networks because LANs
and data centers are critical to the functioning of today’s organizations. Companies
Switches, Media, and Protocols in LANs 95

deploy monitoring software to alert them to outages and provide reports and charts on
the percentage of outages and congestion on, for example, switch ports and routers.
LAN monitoring software includes visual information on servers with web inter-
faces. Charts indicate the status of various devices so that IT staff can clear the problems
by having information on web-like browser interfaces indicating where the outages are
that affect each LAN segment. IT staff receive email, text, and audible alerts to notify
them that there are outages. LAN monitoring software can be installed on servers at
customer sites or in the cloud.
Cloud based and on-site monitoring packages are sold and maintained by the
software developer, resellers, and managed service providers. Developers of moni-
toring software include: Cisco, Hewlett Packard, ipswitch, NetBrain, PagerDuty,
PRTC-Paessler, and NagiosCore.

Setting Up the System—Time Consuming, Complex

The most challenging, time-consuming part of implementing a network monitoring
system is inventorying all the equipment on site. This takes about a day to accomplish.
The following is a list of some of the equipment that needs to be monitored:

• Personal computers
• Printers
• Security monitors
• Switches
• Routers
• Storage devices
• Security monitors
• Servers
• Wi-Fi gear

While LAN monitoring software can be used for Wi-Fi gear, specialized Wi-Fi
monitoring software from Wi-Fi manufacturers can monitor these networks in more
detail. If Wi-Fi gear is included in non-specialized monitoring software, then compo-
nents of Wi-Fi networks need to be inventoried. In addition to inventorying each piece
of LAN hardware, monitoring software needs to be aware of which devices are con-
nected to each other. For example:

• To which switch and/or alternate router is each router wired?

• To which printer is each computer connected?
96 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Other information in databases includes:

• What are all the switches to which each port is connected?

• To which backbone switch is each wiring closet connected?
• What is the IP address of each device on the network?

O
Organizations assign a private IP (Internet Protocol) address to each piece
of gear connected to their network. IP addressing is a protocol that speci-
o
fies the format of addresses on the Internet. Organizations use this num-
bering scheme for addressing specific devices on their LANs. The format
is a series of numbers: xxx.xxx.xxx.xx that indicate the part of the LAN and
the address of each device. When messages are addressed to external
locations, software within the LAN translates the private IP address to a
public IP address assigned to them by their carrier. Private IP addresses
are required because the amount of public IP addresses is limited and
because it would be almost impossible for the entire world to coordinate
the details of assignment of public IP addresses to individual components
of local area networks.

Keeping Up with Changes—An Ongoing Challenge

The biggest challenge of operating monitoring software is keeping up with changes.
As departments grow or shrink or change locations, monitoring software needs to be
aware of the changes and update their software. Much of this is done automatically
using discovery. Discovery is a feature of monitoring software that “discovers” new
and changed devices by tracking their IP addresses. However, it is not 100 percent
accurate.

Reports and Alerts—Pings: “Are You There?”

Monitoring software determines if equipment is up by sending continuous pings to all
of the equipment in the network. Ping software consists of small software programs
that expect a response to each of their messages. It’s analogous to sending a message
that says “are you there?” If the equipment sends a response to the ping, the monitor-
ing software assumes that the gear is operational and that the network is operational.
Because ping responses are only 80 percent accurate, IP staff must investigate further
if a response is not received from a ping.
Switches, Media, and Protocols in LANs 97

A
Almost all computers have ping software. Telephone companies’ and com-
puter companies’ technicians commonly ping the equipment at customers’
p
locations as a first step in determining if there is a problem in their remote
lo
equipment or, in the case of telephone companies, their outside network.
For example, when a customers place a service call to their telephone com-
pany or computer vender, the technician may say, “The problem must be in
your equipment because there is no problem in our network or equipment,”
or if there is no response to the ping the technician may say, “We see a
problem and will dispatch a technician.”

Alerts—24 Hours a Day, 7 Days a Week

IT staff monitor enterprise networks around the clock. Monitoring systems are able
to check cloud-based applications as well as LAN gear. They are able to access their
cloud applications’ HTTP (Hypertext Transfer Protocol) addresses from within brows-
ers to determine if they are able to log into applications. Monitoring software can be
programmed to alert staff of outages via e-mail, text messaging, and audible alerts. If
key cloud-based applications or parts of the network such as e-mail or the entire net-
work are down, they notify staff after hours as well as during work hours.
Organizations define which devices should trigger alerts. Alerts are often pro-
grammed differently after hours than during the day. For example, only issues that
adversely affect the entire network may trigger an alert after hours. After hours, if on
call IT staff can’t clear the problem remotely, they may be expected to come into work
to try to resolve the problem during off hours so that the network is available the next
morning.
Monitoring software is close to 100 percent accurate, but there are occasionally
false positives and false negative alerts. In a similar way to, for example, strep throat or
cancer screenings where false positives mistakenly indicate the presence of cancer or
strep, with false positives, the system thinks there’s an outage. A false negative is when
an outage occurred, but the monitoring system didn’t see it. With false negatives, the
software falsely thinks the gear is up, and IT staff is not notified of an outage.
Per Jim Chapman, Product Manager at Lexington, Massachusetts-based monitor-
ing software developer, Ipswitch:

“Companies would rather not get any false readings from their monitor-
ing systems. But, if they do get a false reading, which happens from time
to time, they would rather get false positives than false negatives. With
a false negative, an outage is ignored and thus not resolved.”
98 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Charts and Graphs

As indicated in Figure 2-8, charts and graphs provide visual “pictures” of the health
of the local network. They further indicate congestion on ports within switches and
routers. Moreover, monthly summaries are available indicating, for example, total per-
centage of time the network was up. This is especially important to IT and corporate
management because outages negatively impact productivity, and may slow the time
to market of new and upgraded products.

SNMP: Simple Network Management Protocol transports pings.

SSID: Service Set Identifier: Acts as a password identifying Wi-Fi devices
Gigabit Ether: Gigabit speed switches connected to the LAN
Eth: Ethernet devices on the LAN
BRO: A specialized broadband connection
Telnet: Ports that support remote access

Figure 2-8 A graphic indicating the status of LAN gear. (Screenshot of

Ipswitch © 2018 Ipswitch Corporation)

LAN Monitoring Software in the Cloud

Monitoring software located in the cloud is able to access customers’ networks by
using agent software called a collector connected to firewalls. The collector polls gear
such as servers, switches, and router ports on the local network and sends the results
back to the cloud-based software. For providers of monitoring software, cloud-based
systems have the benefits of faster set-up for each customer. This is because once the
IP PBXs—Voice, Video, and Unified Communications 99

basic software is configured, only new customer information needs to be entered into
the software. All customers have close to the same features, thereby simplifying the
set-up and the software.
In addition, LAN monitoring suppliers receive a continuous stream of income
from customers’ subscriptions. In contrast, with on-site sales, there is a one-time pay-
ment for the software and an approximate 12 percent of the purchase price annual
maintenance fee.
Cloud provider customers’ advantages are that they avoid a one-time purchase
price and the day-to-day maintenance of the software. Rather cloud providers’ custom-
ers pay monthly fees based on the size of their systems. Customers whose systems are
in the cloud are provided with a console with a browser interface so they are able to
receive indications of what’s up and what’s not and print charts and graphical summa-
ries of the status of their gear.
Monitoring software located in the cloud needs the capability to monitor diverse
customers located in different locations and distinguish, for example, Customer A from
Customer B. This capability is provided by multi-tenant software. Multi-tenant soft-
ware is able to organize the software by individual companies.

IP PBXS—VOICE, VIDEO, AND UNIFIED

COMMUNICATIONS ................................................
Software for IP phone systems is located on servers that use industry-standard operat-
ing systems and often open-source protocols. They don’t require a great deal of space
and voice is considered another application in the data center.
The use of voice telephony in business and commercial organizations is declining
as staff rely increasingly on messaging and e-mail services to communicate. As a mat-
ter of fact, some high-tech companies such as Alphabet do not supply most employees
with telephones. Rather, these employees use e-mail and text messages to communi-
cate with each other and the outside world. If they do need to speak with someone,
they use their own cell phone. Most high-tech companies do provide some voice capa-
bilities in conference rooms equipped with audio and videoconferencing gear so that
employees can collaborate with each other and with partners.
However, companies that don’t provide telephones at every desk do give each
customer support center agent a telephone or computer with voice calling capabili-
ties. They use them to speak with customers and/or partners whose questions and
issues can’t be resolved via text, chat, or e-mail. Sophisticated customer support cen-
ters may provide the flexibility for agents to exchange text-based chat, and text mes-
sages in addition to speaking directly with callers whose issues can’t be resolved
via online chats or text messages. Contact centers are also used to make outgoing
telemarketing calls.
100 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

IP Telephone Systems—Voice and

Applications on LANs
When organizations purchase new phone systems, they buy IP-based systems for a
number of reasons. Today, employees routinely conduct their day-to-day communica-
tions by using e-mail, collaboration tools, and instant messaging. Thus, there is not the
level of concern regarding the use of one network (the LAN) for both voice and data in
the event of a LAN crash. For the most part, voice is used for discussions about com-
plex topics as well as for audio and video conferences. It is also used for time-sensitive
purposes such as reporting fires and other emergencies. These outgoing calls can be
made on mobile phones as well as office phones.
IP-based voice and data traffic is carried over the LAN. IP PBX systems are easier
to maintain and can be more easily integrated with all types of conferencing and con-
tact centers. Moreover, the quality of voice carried on LANs is generally quite good.
This is also due to improvements in LAN capacities. In addition, LAN reliability is
such that downtime is no longer a concern of any substance.
While the initial cost of many IP telephone systems is no less expensive than
older-style phone systems, ongoing support costs are lower. In addition, sharing cen-
tralized applications such as audio and video conferencing and contact center services
with remote offices is less complex than it was in older systems.

IP Telephony Manufacturers
Makers of voice telephone systems such as Avaya, Inc. and Mitel Networks Cor-
poration once dominated the market for telephone systems. However, the advent of
IP telephony, wherein voice and data are carried on the same network, presented an
opportunity to companies such as Cisco Systems and Microsoft that previously sold
only data equipment and software.
Microsoft’s VoIP product Microsoft Teams replaces Skype for Business. Teams
is a cloud based suite of applications such as voice, email, and collaboration between
staff. Teams also includes integration with Office 365, a package of software for spread
sheets, word processing and presentations. Microsoft has stated its intention to con-
tinue its Skype service for consumers and small businesses.
Manufacturers and software developers of IP-based telephone systems include the
following:

• Avaya Communications (part of Nokia)

• Cisco Systems, Inc.
• Microsoft
• Mitel Networks
IP Telephony—Converting Voice Signals to Digital Data 101

• Nexmo (part of Vonage)

• Polycom
• RingCentral
• Mitel
• Tropo
• Twillio
• Vertical

IP TELEPHONY—CONVERTING VOICE SIGNALS TO

DIGITAL DATA ........................................................
Converged phone systems convert analog voice signals to digital bits, compress that
data, and then bundle the compressed, digitized bits into packets, essentially transmit-
ting voice as data packets. Data, voice, and video packets often share the same LAN
infrastructure (cabling and switches) as that used for normal data traffic. However,
voice and video require special treatment. They need to be sent in real time. Impair-
ments such as delay and packet loss caused by network congestion are often not notice-
able with data traffic. However, these problems noticeably degrade voice and video
quality.
Thus, network capacity is critical for sustaining voice quality. Greater LAN capac-
ity and faster Digital Signal Processors (DSPs) as well as protocols for Quality of
Service (QoS) enable local data networks to carry high-quality voice and video. Even
though voice quality is generally good in IP systems, the aforementioned problems can
occur. Therefore, packets with voice and video are given priority over packets contain-
ing bits that are less time-sensitive, such as e-mail.

Voice QoS and Security

Keeping networks secure is a difficult, ongoing challenge. Security needs to be installed
in IP telephony system servers, and in all of the Layer 2 and Layer 3 switches, the rout-
ers, and the firewalls. In particular, many IP systems use common protocols. These
protocols are wide open in the sense that many hackers know how they work and put a
great deal of effort into finding their vulnerabilities.
102 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Organizations use the following to ensure voice quality:

• QoS solutions These solutions mark and prioritize voice and are important
to ensure minimal delays for acceptable voice quality. See the upcoming sec-
tions “Assessing Network Quality by Using Voice Quality Measurements”
and “Prioritizing Voice and Video on a VLAN” for information about voice
quality measurements and Virtual LANs (VLANs).
• Compression Compressing and digitizing voice signals impacts quality.
For example, the compression algorithm, Adaptive Multi-Rate Wideband
(AMR-WB), based on the G.722.2 standard, is able to compress 16,000
samples of voice per second to rates as low as 12.65 kilobits per second.
At this rate, each voice session uses only 12.65KB of bandwidth, but
provides better audio than earlier compression standards, including G.711,
which required more capacity. G.722.2 provides high-definition (HD) voice
and is used for some mobile voice traffic.

In addition to the preceding, proxy servers authenticate callers to verify that they
are who they say they are before being sent to their destination. Proxy servers, located
in gateways and firewalls, serve as intermediaries between callers and applications or
endpoints, telephones, and other devices connected to the LAN.

Assessing Network Quality by Using Voice

Quality Measurements
IT staff members can manage VoIP by using software management tools to assess
voice and video quality to analyze the following:

• Packet loss This refers to the packets that are dropped when there is net-
work congestion. Packet loss results in uneven voice quality. Voice conversa-
tions “break up” when packet loss is too high.
• Latency This term refers to delays (in milliseconds) that are incurred when
voice packets traverse the network. Latency results in long pauses within
conversations, and clipped words.
• Jitter This refers to uneven latency and packet loss, which results in noisy
calls that contain pops and clicks or crackling sounds.
• Echo This is the annoying effect of hearing your voice repeated, an issue
with which so many of us are familiar. It is often caused when voice data is
translated from a circuit-switched format to the IP format. This is usually
corrected during installation by special echo-canceling software.
IP Telephony—Converting Voice Signals to Digital Data 103

Prioritizing Voice and Video on a Virtual

Local Area Network
Organizations can program voice telephony as a separate Virtual Local Area Network
(VLAN). These “virtual” networks act as separate LANs. IP PBX components use
common protocols and control the types of devices that are able to communicate with
IP telephones and hold audio and video conferences. See Table 2-3 in the Appendix for
additional protocols and VoIP terms.
VLANs perform the following special treatment for IP endpoints:

• 802.1P protocols tag voice and multimedia packets to prioritize them for
improved availability with less delay. The tag distinguishes voice and video
packets. In addition to multimedia, tagging protocols such as 802.1P are
used for conferencing services, as well.
• VLANs shield endpoints from hackers by allowing only certain types of pack-
ets through firewalls to reach them. This is accomplished by means of policies
for firewall logical ports that are dedicated to voice and video traffic. Logical
firewall ports are defined in software rather than actual physical ports.

IP PBX Architecture
Private Branch Exchange (IP PBX) architecture varies somewhat among different
manufacturers, but the servers for call processing and gateway functionality are com-
mon to all. The gateway converts Voice over Internet Protocol (VoIP) signals to those
compatible with the Public Switched Telephone Network (PSTN). These are located in
a separate gateway or in a router. In addition, Layer 2 switches transmit calls to other
devices connected to the switch and backbone switches.

Connecting IP Telephones to Layer 2

Switches and RJ45 Jacks
Computers and phones often share the same jack and cabling with the Layer 2 switch.
In this configuration, the user’s personal computer is plugged into a data outlet on the
back of the telephone, and the telephone is plugged into the nearest RJ45 data jack. (IP
telephones are often referred to as endpoints or nodes, terms for items such as PCs and
printers connected to LANs.)

R
RJ45 is the designation for a type of jack into which data devices are
plugged to connect to networks.
p
104 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

For greater redundancy and to create a dedicated path to the Layer 2 switch, the
PC and telephone can each use a separate RJ45 jack, cabling, and port on the Layer 2
switch. This requires additional hardware in the switch and an extra cable run from
the telephone to the switch. In either case, voice, video, and data share the fiber-optic
cabling and ports on Layer 3 switches that transmit traffic between floors and build-
ings. This is the enterprise backbone.

Communications Servers and Voice as an

Application on the LAN
Communications servers perform call processing, sending instructions on how to set
up calls. They send instructions for features such as three-party conferencing, speed
dial, and transfer. Communications servers host the software for the system, trunking,
and station features. These servers specify the trunks over which international, local,
and interstate calls should be routed. A trunk is a fiber optical or copper cabling link to
broadband or the public switched telephone network (PSTN). The servers have lists of
user profiles with extension numbers and permissions. Permissions include specifying
who is allowed to use particular features such as video conferencing and placing calls
to international locations.
Most IP servers run on UNIX, Linux, or Microsoft’s Windows operating systems.
These operating systems control basic operations, including how information gets on
and off the network, how it’s organized in memory, and the administrative interface
for staff members to monitor and maintain the system. System administration and pro-
gramming is performed via a computer logged in to the communications server.
In addition to basic voice features and call processing, some communications
servers also hold software for specialized applications, such as audio and video confer-
encing, speech recognition, contact centers, voicemail, and Unified Communications
(UC) systems. In other instances, these applications might be on separate application
servers. Whether they reside on separate servers or in the communications server, any
device connected to the corporate LAN—even those at remote locations—can be given
permission in the communications server to access these applications.

Media Gateways, Protocol Translation, and

Signaling
Media gateways contain Digital Signal Processors (DSPs) that compress voice data to
make it smaller and more efficient to transmit. DSPs also convert analog voice signals
to digital, and vice versa. They then bundle the digital voice signals into packets com-
patible with LANs. In addition, media gateways include circuit packs with ports for
connections to traditional circuit-switched analog and digital trunks.
Media gateways are responsible for managing some security, monitoring call qual-
ity, detecting and transmitting off-hook conditions, and handling touch-tone, dial tone,
IP Telephony—Converting Voice Signals to Digital Data 105

busy signal, and ring-no-answer conditions. Media gateways transmit signals for VoIP
such as ringing, call setup, and touch-tone in separate channels from voice calls.

In IP telephone systems, the gateways are connected to the public tele-

phone network and the DSPs perform the IP-to-circuit-switched conversions
p
to make IP telephone system calls compatible with the PSTN. This conver-
sion is not required for calls that bypass the public network and are trans-
mitted over data networks such as the Internet.

Central Power Distribution and Backup via Power

over Ethernet
Every IP telephone needs its own source of electrical power, unless it’s connected to
a PC’s USB port. To avoid the expense and labor of providing local electricity to each
phone at installation, organizations can power them via the Layer 2 switch to which the
they are connected. This ensures that all phones are connected to a UPS (Uninterrupted
Power Supply) to survive power surges and interruptions. Common power sources and
backup also avoid the problem of ensuring that each phone is near an electrical outlet,
is plugged in, and has an electrical cord.
To bring power to groups of endpoints, organizations use 802.3af, the IEEE stan-
dard known as Power over Ethernet (PoE) that defines how power can be carried
from the Layer 2 switch to the IP telephone by using the same cabling that transmits
voice and data. Battery backups and generators are deployed in wiring closets where
switches support mission-critical telephones or attendant consoles. PoE is also used to
power corporate wireless Wi-Fi antennas and base stations. (See Chapter 7 for more
information about corporate wireless networks.)

Session Initiation Protocol—Compatible

Trunks
Session Initiation Protocol (SIP) signaling is a key protocol for connecting IP networks
together. It is also used to connect enterprise locations with data networks for voice
calling. Signaling systems used in office phone systems need to be compatible with
signals used in a carrier’s network if voice calls are to be sent over data links. This is so
that the equipment can interpret addressing signals, ringing signals, and busy signals
sent by office IP PBXs, and vice versa.
Without this compatibility, organizations with IP telephone systems need to sup-
port two different sets of trunks, one set for voice and another set for data. Or they can
use a gateway to translate their IP non-SIP calls to SIP. (Trunks are used to carry voice
and data on public networks.) Without SIP there are extra costs and long-distance fees
106 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

for gateways, and voice quality is impaired. The signal’s quality is impaired when
converting VoIP to formats compatible with SIP data networks when they are sent,
and converting them back to VoIP when they are received. Impairment results because
compression does not re-create voice in exactly the same format when it’s decom-
pressed, and vice versa. Thus, its quality is degraded every time voice data is converted.

Direct Inward Dialing

Direct Inward Dialing (DID) is a feature that routes incoming calls directly to a tele-
phone system extension without operator intervention. DID traffic can be carried on
existing digital trunks used for incoming and outgoing voice calls and on SIP-type
trunks carrying voice and data traffic.
As Figure 2-9 illustrates, DID service is made up of “software” telephone num-
bers. Each number is not assigned a specific trunk; rather, a few hundred DID numbers
are able to trunk share paths. When DID calls reach a specific slot in the telephone
company’s switch, the carrier’s switching equipment looks at the digits dialed and
identifies the call as belonging to a particular organization. The telephone company
equipment passes the last three or four digits of the dialed number to the organiza-
tion’s telephone system. The onsite telephone system reads the digits and sends the call
directly to the correct telephone.

Telephone company sends

digits 1327 to Company X

Server with IP PBX

Switch
software

Xxx-555- 1327 dialed

Extension 1327 receives call

Figure 2-9 DID soft numbers pointed to an organization’s broadband

circuits. (Photo by Chun-Tso Lin/123RF)
Unified Communications, Contact Centers, and Video Conferencing 107

UNIFIED COMMUNICATIONS, CONTACT CENTERS,

AND VIDEO CONFERENCING .................................
Value-added services add functionality to telephone systems. Unified Communications
(UC) combines voicemail, e-mail, instant messaging, audio and desktop video confer-
encing in a single mailbox. Contact centers manage large numbers of incoming and
outgoing telephone calls, texts, and e-mail messages. Voice response units (VRUs)
enable callers to enter and access computer information. UC applications are available
on IP-wired phones as well as mobile devices.

Integrating Conferencing, Instant Messaging, and

E-Mail through UC
Unified Communications systems provide the capability to retrieve e-mail and voice-
mail messages from a single device such as a PC or a touch-tone telephone. Addition-
ally, they contain presence indicators that show the availability of people in their group.
UC systems enable people who travel to have the convenience of checking only
one source for messages and sharing information with others via audio and video con-
ferencing. Retrieving messages from PCs, tablets, and smartphones also affords users
the ability to prioritize messages and listen to the most important ones first. It elimi-
nates the need to hear all voicemail messages before getting to the critical ones.
On many Unified Communications systems, when users access messages from a
touch-tone phone, text-to-speech software converts e-mail to speech for callers and
reads their e-mail messages to them. Employees access messages through e-mail soft-
ware on their PCs or remotely on their mobile devices. IP PBX providers that supply
UC systems provide customers single-source support for their phone and messaging
systems. Examples of Unified Communications systems are: 8×8, RingCentral, Mitel,
and Vocalocity.

Desktop Video Conferencing

Many UC packages and IP PBXs include desktop video and audio conferencing capa-
bilities. See Figure 2-10 for an example of video conferencing on a personal computer.
These require software clients on each personal computer and a server with the soft-
ware. The conferencing software can be either in the communications server used for
the main telephone system, or in a separate server along with other communications
applications. Often, as is the case with Microsoft, Mitel and Cisco, the application
itself may be hosted in the cloud. Participants in audio conferences with access to
collaboration software can also illustrate ideas by using PowerPoint or other types of
documents. They can edit as well as view the documents jointly.
108 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

VIDEO COLLABORATION

• Web-based interface to
video conference
application
• High-definition video
• Multiple simultaneous
Gwen Jack Andrew
participants
• Screen sharing to
Christine Jennifer
collaborate on documents
• Encryption &
authentication
• Equipment located in the
cloud

Figure 2-10 Desktop video conferencing set-up. (Photos by

Andrea De Martin/123RF [top, left]; Mangostar/123RF [top, center];
Dean Drobot/123RF [top, right]; Fizkes/Shutterstock [top, far right;
Agenturfotografin/123RF [bottom, left]; Racorn/123RF [bottom, right])

Using video conferencing capabilities such as this, co-workers with video cameras
on their devices can work together on a more personal level. Another advantage is
that staff members can take advantage of the same communications capability away
from the office as they do in their office. If WebRTC (Real Time Communications)
software is embedded in browsers, users with disparate PCs can participate in the same
videoconferences.

W
WebRTC is a set of IEEE and World Wide Web Consortium (W3C) protocols
for software-based codecs in applications and browsers. WebRTC enables
fo
real-time voice, video and chat among disparate devices and operating
re
systems.

In addition to the use of licensed video conferencing software, small companies

now routinely use Skype for audio and video conferencing because of its low cost
(or often no cost) and ubiquity. Universal availability is an important feature when
attempting to use video conferencing with people outside of your own organization.

Collaboration Software—Productivity Boosts

Collaboration software enables staff in different locations to collaborate on joint projects
and documents. Users can look at the same documents on their PC or tablet screens while
on an audio conference call or simply speaking together on the telephone. Staff can addi-
tionally add comments to documents or edit them. There are also calendaring functions
Unified Communications, Contact Centers, and Video Conferencing 109

so that people can coordinate dates for meetings. Collaboration applications are gener-
ally Internet-based. To improve security, some collaboration services encrypt texts so
that data remains private. They may also have strict password and log-on requirements.
One example of collaboration software is Cisco’s WebEx collaboration. WebEx
can be accessed from desktops, smartphones, and laptops or from specialized video
conferencing equipment for meetings. Its screen sharing enables staff to view the same
documents while on a videoconference or audio conference or one-to-one telephone
call. WebEx provides strong security features such as password management, encryp-
tion (the use of algorithms to scramble bits for added privacy and security), and role-
based access to limit or widen access to WebEx for designated groups of employees.
Many software collaboration tools include the option of purchasing a whiteboard so
that a group of remote staff can access documents and add written comments on the
white board.
HD video conferencing systems often are integrated with collaboration software.
They make it easier to integrate collaboration capabilities that include enabling people
in meetings at different locations to view and edit the same documents.
Collaboration sessions can be held in real time or people can log in at different
times to add comments, send text messages, coordinate calendars, or edit documents.
Other companies in addition to Cisco that provide collaboration software are Ama-
zon, Asana, Atlassian, Citrix, IBM, Google Drive, Masergy, Microsoft Teams, Oracle,
Slack, Trello, and Unify. There are many others, most of them free.

Video Conferencing
Because of the ready availability and consumers’ positive experiences with desktop
video conferencing services offered by Google, Amazon, and Skype, staff expect con-
ferencing to be readily available at work. When employees travel with laptops, smart-
phones, or tablet computers, they often take advantage of formerly residential video
offerings to stay in contact with colleagues and customers. These alternative ways
to conduct business with distant customers and offices have enhanced collaboration
between staff at diverse locations worldwide.
Microsoft Teams’ conferencing service and Cisco’s web-based WebEx audio and
video conferencing can be integrated with Microsoft Office 365 applications on users’
desktops.

Video Conferencing Powered by the Cloud

Organizations including Amazon and Google offer video conferencing based in the
cloud. Customers who use these services avoid purchasing and maintaining video
conferencing equipment. Some of these services offer add-on features such as Unified
Communications, and screen sharing where participants can all view the same
110 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

document. Some of these services are Cisco’s WebEx, Citrix’s GoTo Meeting, West
Corporation’s Intercall, and PGI (Owned by Siris Capital Group).

Immersive HD Video Conferencing

The terms “immersive” and HD video refer to group video conferencing systems that
transmit high-definition video signals. Rooms designed specifically for immersive
video conferencing contain a conference table and have specially configured lighting
to enhance the video experience for users. Seating at the conference table might be
arranged so that all of the chairs face the video screens.
In addition, rather than just containing one video monitor, these rooms have a
wall of either three large, flat-panel monitors or, less often, an entire wall-size monitor.
Viewing life-size images of remote co-workers, customers, or business partners in high
resolution imparts the feeling of actually being in the same room with them. Prices for
room size video conferencing gear have dropped and new user interfaces have resulted
in easier-to-use systems. In most cases, there is no longer a need for specially trained
IT staff to run the video conferences.
If the video system is based on a common signaling protocol such as SIP and
H.323, they can hold conferences with organizations outside of their own company,
and with colleagues who might be using another manufacturer’s system. Manufactur-
ers of immersive systems include Polycom, Inc., Tandberg (part of Cisco Systems),
and Vidyo, Inc.

Communications Platform as a Service (CPaaS)

vs. Hosted IP PBXs
As its name suggests, hosted IP PBX services relieve an organization of the burden of
maintaining hardware and software for a phone system and adjunct services includ-
ing contact centers. CPaaS systems, in addition to providing IP voice features, add
customized solutions to complex communications issues between companies and their
customers.

Hosted IP PBXs—Providers Managing Software and

Gateways
Hosted systems have the same features as on-site IP PBXs, but the server software
and gateway equipment are hosted at a provider’s site. This is an increasingly popular
method of maintaining telephone systems. Rather than use capital to pay for a tele-
phone system, organizations pay ongoing subscription fees based on the number of
employees and the addition of value-added applications. With hosting, vendors easily
Unified Communications, Contact Centers, and Video Conferencing 111

add new features to their server without customers needing to call their supplier to
reprogram their server software.
Customers do have an administrative screen where they can add and delete staff
names and specify classes of service—restrictions on where staff can call or services
they have permission to access. Customers that use a hosted IP PBX service are con-
nected to their system via high-speed broadband connections. These network connec-
tions also transmit busy signals and ring tones between the provider and the customer’s
handset.
Hosted VoIP systems are attractive to smaller and medium-sized companies that
might not have in-house expertise to manage IP telephony and applications such as
collaboration, contact centers, or unified communications. These companies might
also be uncertain about their future growth. In addition, hosted systems provide disas-
ter recovery and portability. If the customer loses electricity or their LAN crashes, they
can access their telephony functions remotely.
Large companies with specialized needs, such as hospitals and financial organiza-
tions, may not choose to use a hosted solution, as it might not fit their special require-
ments for high-level security and privacy or other specialized features. Hosted systems
are designed to provide the same features to all customers. Most do encrypt broadband
data on the links between the host and the customer.
VoIP hosting providers include the manufacturers of IP PBXs listed above, as well
as telephone companies and cable providers such as AT&T, Verizon, and Comcast
Business.

Communications Platform as a Service—Solutions

for Communications Problems
CPaaS companies develop software solutions related to voice telephony to often-
complex communications issues. For example, Twilio, a communications software
developer located in San Francisco, developed communications software that ride-
hailing provider Uber uses for messaging and calls between its drivers and people
that need rides. It additionally developed the messaging software used by Facebook’s
WhatsApp.
Most CPaaS solutions are located in the cloud. Genband, Mitel, SAP, and Vonage
with its acquisition of Nexmo are other CPaaS providers.

Contact Centers—Efficiencies for Incoming

and Outgoing Communications
Contact centers are groups of agents that handle incoming customer service calls, text
messages, chat, web queries, and outgoing sales, credit, and collections calls. Contact
centers consist of software that is used to manage incoming and outgoing communica-
tions with agents, particularly when there are more calls, text messages, chat sessions,
112 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

and e-mail than there are people to always respond to them immediately. Importantly,
contact centers provide statistics on utilization of agents, telecommunications lines,
and numbers of e-mail, text, and chat sessions.
The main theory behind grouping agents into “pools” is that large groups of agents
can handle more calls than the same number of agents organized into small groups,
without overflow of calls between groups. This is analogous to the practice by the
United States Post Office of using one long line for postal clerks rather than an indi-
vidual line for each clerk. With one line for all postal workers, a clerk will be available
more quickly from the pool and the same number of clerks will help more people
within a given amount of time than by forming separate lines for each clerk.
Contact centers route incoming traffic to the agent that has been idle the longest
within the appropriate agent group, based on the telephone number dialed or by the
customer’s account or telephone number. If all agents are busy, the contact center
shunts the call to a queue, routes the call to an alternate group of agents, or gives the
caller the option to leave a voicemail message. Sophisticated call centers additionally
route calls to groups of multilingual staff or staff with knowledge about particular
products or technologies.
Callers to contact centers can recognize when they reach one if they hear a
message such as the following:

Please hold, and the next available agent will take your call.

Virtual and Dispersed Contact Centers

Agents using the same contact center software can be located in other cities or coun-
tries. The software distributes calls based on criteria such as time of day or level of
traffic. In addition, agents can work from home via their broadband connection and
remotely log in to the contact center system, which then routes calls and messages to
them. These are called virtual call centers. Many firms establish virtual call centers to
save on real estate, furniture, and utility expenses.
Contact center systems are offered by almost all VoIP manufacturers as well as
providers such as software developer Aspect, which offers it independently of the tele-
phone system.

Contact Center Staffing—Do-it-Yourself Transactions

Contact centers are under increasing pressure to increase staff productivity, justify
the number of agents hired, and improve the quality of customer service to attract
and retain customers. Various companies in the United States and Europe outsource
their centers to India, the Philippines, and other countries with lower labor rates, many
people with multilingual abilities, and the availability of high-bandwidth networks.
Unified Communications, Contact Centers, and Video Conferencing 113

Alternatively, organizations may move contact centers to parts of their own country
with lower salaries and office rents.
To respond to more customers without adding more staff in the existing center,
companies are deploying technologies such as automatic and written responses to
e-mail, speech recognition, web-based sales, online forums, and chats. The practice
of customers completing transactions without speaking with an agent is referred to as
self-service. Some companies operate their sales function almost entirely on the Web.
And, of course, Amazon built its entire business models around the Web.
Many of these web-based businesses are well regarded for their customer service,
even though they don’t actually involve any human contact. Moreover, many consum-
ers prefer self-service on the Web over listening to long, automated menus and waiting
in phone queues.

Contact Center Statistics

Reports on the real-time status of calls and electronic messages are the lifeblood of a
contact center and are closely monitored by management. Management then uses these
statistics to plan network design and analyze staffing requirements. Statistics are also
used as an aid in improving web site design by alerting organizations to the most fre-
quently asked questions. These issues can then be more fully clarified on the web site
or via automated e-mail messages designed to explain common procedures for fixing
or analyzing software issues.
Statistics are organized into reports that provide real-time and historical data on
incoming and outgoing calls and agents’ usage on individual trunks so that managers
will know if they have the correct number of broadband trunks. Reports also indi-
cate the number of calls and web hits associated with each toll-free number and web
advertisement so that response rates generated by ad campaigns can be analyzed. They
additionally alert supervisors to unusually high or low call volumes so that staffing can
be adjusted accordingly.

E-mail Response Management Software

E-mail response management software is another tool for increasing self-service. It
can be used independently or as part of call center software. E-mail response manage-
ment software installed on an organization’s server routes e-mail messages to agents
by topic, subject, and content. If appropriate, the software can automatically respond
to the e-mail. Natural language software for written language is capable of interpreting
and extracting concepts in e-mail messages. It can link phrases in a meaningful way.
E-mail response management systems also create reports based on the number of mes-
sages received, by message subject, date, and content. This provides management with
information on which web sections need to be improved.
114 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

E-mail response management software pulls out messages to managed mail-

boxes such as those addressed to generic functions such as [email protected],
[email protected], and [email protected]. They route them to groups of
agents or respond to them with an automatic reply, based on subject, message, and
content.

Automatic Links to Customer Relationship

Management
Customer relationship management (CRM) is a customer-centric strategy that aims to
make information such as customers’ transaction histories accessible across the entire
organization. CRM can comprise many elements including sales automation with
automated proposals and brochures available to representatives. CRM also includes
marketing tools that track the impact of direct mail, e-mail, and Internet-based cam-
paigns. In addition, customer service with links to billing, payment status, purchase
histories, open issues, and universal queues are considered part of CRM. The largest
providers of CRM software are Oracle, SAP, and Siebel Systems.
Telephone systems such as Ring Central automatically link agents handling
incoming calls to the CRM information about callers so that agents have ordering and
other information to more quickly answer and resolve customers’ issues. The caller ID
with the called party’s telephone number automatically links call center agents to the
appropriate CRM data.

Voice Response Units—Routing and

Accessing Information via Touch-Tone or
Speech
Voice Response Units (VRUs) provide information to callers based on touch-tone
signals or spoken commands. Customers can call their bank or credit card company
to ascertain their balance or learn if a payment has been received. They enter their
account number and PIN when prompted by an electronic voice. The VRU repeats the
requested information, in spoken word.
Companies justify the expense of speech recognition and VRUs because they need
fewer people to speak with live agents.
The following are examples of Voice Response Unit applications:

• Newspapers subscribers can use it to stop and start delivery before and after
vacations, or report missed delivery of newspapers.
• Airlines can link to flight information.
• Prescription drug benefit programs enable people to order drug refills.
Unified Communications, Contact Centers, and Video Conferencing 115

• Companies use VRUs as adjuncts to or in some cases substitutes for com-

pany operators. The voice response unit is programmed to answer and route:
− All calls
− Calls to particular telephone extensions or departments
− After-hours calls
• Here is a classic example:
Thank you for calling ABC Company. If you know your party’s
extension, you may dial it now. For sales, press 1. For customer
service, press 2.
Poorly scripted, confusing, and overly long scripts tend to be a source of frustration
for callers. Another source is the inability in some organizations to speak with a live
operator. In some instances, pressing 0 does nothing except trigger the initial confusing
menu to be replayed.

Using Speech Recognition to Expand Self-Service

Many call centers add speech recognition to their integrated voice response platforms
to make them more user-friendly and faster for callers to navigate. Toll-free direc-
tory services ask callers to speak the name of the company for which they require a
toll-free number without operator assistance. Local telephone companies use speech
recognition so that customers can easily obtain billing information without speaking
with a billing representative. Making speech recognition and IVR user friendly is an
important factor in ensuring callers’ acceptance of the service.

How Speech Recognition Works

Speech recognition works by first detecting and then capturing parts of spoken words
(utterances). After removing background noise, it converts the captured utterances to
a digital representation. Capturing the speech and digitally representing it is done by
DSPs on high-speed specialized computer chips. The speech recognition software then
breaks the sounds into small chunks and compares various properties of the chunks of
sound to large amounts of previously captured data contained in a database.
Speech recognition systems can be either speaker dependent or speaker inde-
pendent. Speaker independent systems such as those used by Amtrak, Apple, and the
United States toll free directory are speaker independent. They recognize words spo-
ken by large numbers of people. Originally, speaker independent systems recognized
a limited number of words such as yes, no, and numeric digits. However, improved
recognition and faster computer chips now enable speaker independent systems to rec-
ognize large vocabularies of words.
116 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Speaker dependent systems include Nuance’s speech recognition software for

consumers. Nuance also offers speech recognition software for specialized professions
that use specific vocabularies. This includes radiologists who use speech recognition to
dictate reports on results of medical imaging exams such as x-rays and MRIs. Speaker
dependent software needs to be “trained” to recognize a particular person’s commands.
This is accomplished by having the purchaser of the speech recognition software read a
few passages of text until the software recognizes the person’s speech pattern.
Natural language speech recognition systems are those with the ability to rec-
ognize speech where users don’t use specific, predefined commands such as “copy
the phrase hello Mary”, or “cut yours truly” as found in desk-top speech recognition
applications. For example, natural language systems recognize “Turn on the Alarm” as
well as “Set the alarm.” Digital Assistant products such as Amazon’s Alexa are capable
of recognizing natural language commands. These systems are speaker independent
systems.
High-speed computer processors perform the digitization and comparisons in mil-
liseconds. They also take into account gender differences and regional accents. Speech
recognition software contains different databases of expected responses based on the
application. A corporate directory has a different speech database than one for airline
scheduling or lost-luggage applications.
Until recently, Nuance had somewhat of a monopoly on speech recognition soft-
ware. But, currently machine learning and computer chips with larger memories and
faster transistors have led research universities and large companies including Micro-
soft and IBM to develop speech recognition, particularly for wearable devices such as
Hoboken, NJ-based Essence Group’s emergency alert devices that enable an incapaci-
tated elderly person to call for help by voice commands without using his or her hands.
Speech recognition is integrated in:

• Home digital assistants

− Amazon’s Echo and Dot
− Alphabet’s Google Home
− Microsoft’s Cortana,
− Apple’s Siri
− Baidu’s Raven
− Samsung’s ViV
• Set-top boxes
− Apple TV
− Roku
− Comcast X1
Unified Communications, Contact Centers, and Video Conferencing 117

Speech Recognition in Home Automation Devices

A digital assistant is essentially a computerized home assistant that supplies informa-
tion in response to spoken questions and requests for information asked by users. Digi-
tal assistants are made possible by natural language speech recognition, high-speed
computer networks, and machine learning. (See Chapter 1 for “Machine Learning.”)
The large amounts of captured speech and information gathered on search engines
and computers are key to the development of digital assistants. For example, Google
has troves of data with commonly requested search requests. In addition, as digital
assistants’ databases of known utterances grow, the systems’ speech recognition will
continue to improve accuracy.
Digital assistants perform data look-ups using owners’ Wi-Fi networks and broad-
band links. The look-ups are microsecond-speed data connections to the Digital Assis-
tant’s manufacturer’s data centers, and their partners’ computers. These computers
send responses back to questions such as “Alexa, what is the weather today?” The
following is a sampling of requests that digital assistants can respond to:

• What is the time?

• What is the time in China?
• Add eggs to my shopping list.
• What is the solution to this math problem?
• How many miles is Australia from New York?
• Play relaxing music.
• Play music by Mozart.
• Connect me to Spotify.
• Set the alarm for 6:30 am

Digital Assistant Software Integrated in Other

Devices
Digital assistant software is integrated into smartphones, watches, and computers. An
app on smartphones is required for these integrations. For example, Amazon’s Alexa
digital assistant software is integrated in cars, including Ford Motor Company and
Tesla automobiles. There are also agreements to include Amazon’s Alexa software in
refrigerators, ovens (“Alexa, turn on the oven to 350 degrees, heat water for coffee”),
thermostats, and lights. All of these integrations are ways that humans can interact with
machines using speech as an input technology.
118 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Privacy with Digital Assistants

Privacy is residential customers’ most common worry about home automation devices.
According to the 2016 research by consulting firm Parks Associates, a U.S. Research
and Analysis firm for Internet of Things (IoT), smart home, and connected entertain-
ment technologies, half of consumers stated that privacy is their most pressing concern
about home automated devices. Examples of IoT wireless products are drones, moni-
tors, and lights, controlled by software.
The term privacy denotes the ability of people to control which people can see infor-
mation about them. There have been fears that Amazon’s digital assistants (Echo and Dot)
store customers’ speech. Amazon has stated that it only saves commands directed to its
digital assistants, not other random speech spoken in the same room. It further has stated
that each user is associated with a particular randomly selected code and that Amazon
does not know which user is associated with any code associated with customers’ speech.

Possible Long-Term Impact of Digital Assistants

In addition to privacy, concerns about digital assistants revolve around depersonaliza-
tion resulting from less need for communications between people. As people increas-
ingly turn to computers to get information will they have less of a requirement to speak
to each other?
In addition to privacy and depersonalization, there are worries about a possible
decrease in children’s ability to do math. This is because “asking Alexa” provides chil-
dren solutions to even complex math problems. It’s still early days in the availability of
digital assistants to know for certain what its impact will be in the future. In the early
days of calculators, many thought children would not learn basic math skills. Each
new innovation brings concerns. The answers to these concerns are initially unknown.

APPENDIX ..............................................................

Table 2-2 LAN Protocols, Devices, and Terms

Protocol, Service,
or Device Description
Backbone The wiring running from floor to floor in single buildings and from
building to building within a campus. A backbone connects switches
in different wiring closets to one another. Backbones support high
concentrations of traffic in carrier and enterprise networks.
Appendix 119

Protocol, Service,
or Device Description
Blade server Blade servers are computers packaged on individual boards—
blades—that plug into slots in a chassis. A chassis is the metal frame
on which components fit, similar to a custom cabinet with slots for
specific items. In high density, chassis blades are arranged verti-
cally. In low density, three- or four-blade servers, they are arranged
horizontally. Chassis are placed on racks in data centers. Vertical
arrangements conserve space and can share power supplies, fans, and
cabling. In addition, blades can be easily added.
File server A specialized computer with a large hard drive. File servers provide
users with access to documents and applications in central locations
in LANs.
Load balancing The capability of equipment to balance traffic between networks and
devices so that one network or device is not overloaded while others
carry little or no traffic.
Local Area Network A group of devices such as computers, printers, and scanners that
(LAN) can communicate with one another within a limited geographic area,
such as a floor, department, or small cluster of buildings.
Layer 2 switch A switch located in a wiring closet that allows multiple simultane-
(also called a ous transmissions within a single LAN. Layer 2 switches provide a
switching hub) dedicated connection during an entire transmission.
Layer 3 switch A switch that routes traffic across the LAN backbone based on IP
(also known as a (network) addresses. They are more complex to manage than Layer
routing switch) 2 switches, but they can use alternate paths if one path is out of
service. They are located in data centers and link wiring closets and
buildings within a campus.
Layer 4 switch (also A switch located at hosting sites and corporate and government sites
known as a content that host their own web pages. Layer 4 switches connect web traffic
switch) to the desired web pages by looking at the URL, the web address
from which each packet was transferred to the site.
Router Routers carry traffic between LANs, from enterprises to the Inter-
net, and across the Internet. They are more complex than switches
because they have routing tables with addresses and perform other
functions. Routers select the best available path over which to send
data.
120 2  Data Centers and LANs, Storage, and IP Private Branch Exchanges

Table 2-2 (Continued)

Protocol, Service,
or Device Description
Server A centrally located computer with common departmental or orga-
nizational files such as personnel records, e-mails, sales data, price
lists, student information, and medical records. Servers are connected
to Layer 2 or Layer 3 switches. Access to servers can be restricted to
authorized users only.
Virtual Local Area A virtual local area network is made up of devices, usually personal
Network (VLAN) computers or VoIP devices, whose addresses are programmed as a
group in Layer 2 switches. This segregates them from the rest of
the corporate network so that all devices in the same VLAN can be
given a higher priority or level of security. They are programmed as
a separate LAN but are physically connected to the same switch as
other devices.
Wide Area Network A group of data devices, usually LANs, that communicate with one
(WAN) another between multiple cities.

Table 2-3 Protocols and VoIP Terms

Protocols and Terms
for VoIP Service Description
802.1pq 802.1pq is used to tag certain Virtual LAN traffic to indicate that
it is part of a special group. It might tag voice packets to segre-
gate them for special treatment and monitoring. It also contains
bits that identify the packet’s priority level.
CoS Class of Service provides priority to particular types of traffic.
Voice or video can be designated with a higher priority than
voicemail.
DoS Denial-of-Service attacks occur when hackers attempt to dis-
rupt communications by bombarding endpoints or proxies with
packets.
G.711 G.711 is used to compress voice signals at 64,000 bits per second
plus a 6- to 21-kilobit header for VoIP services. It produces good
voice quality but uses more network capacity than other com-
pression techniques. This technique requires 60 milliseconds to
process and “look ahead” (check the route).
G.723.1 G.723.1 is a compression protocol that uses small packets with
6.3Kbps compression. Small packets are more efficient than large
ones, in terms of bandwidth use. With the header, total band-
width is about 16Kbps.
Appendix 121

Protocols and Terms

for VoIP Service Description
G.729 G.729 is a voice compression standard used in VoIP. It com-
presses voice signals from 64,000 bits per seconds to 8,000
bits per second. The header brings the total bandwidth to about
18,000 bits per second.
H.323 H.323 is a family of signaling standards for multimedia transmis-
sions over packet networks adopted by the International Tele-
communications Union (ITU). Microsoft Corporation and Intel
Corporation adopted the standard in 1996 for sending voice over
packet networks. H.323 includes standards for compressing calls
and for signaling. It has higher overhead than the newer signaling
protocol, SIP.
Presence theft This refers to the impersonation of a legitimate IP telephone or
other device by a hacker.
Proxy server A proxy server screens communications between endpoints to
verify that the called and calling parties are who they say they are
and that no virus will be sent. A proxy server might sit between a
VoIP server and external devices that request an audio conference
or videoconference session. This is referred to as intermediating
sessions. Proxy servers are also used between IP telephones and
the Internet.
QoS Quality of Service guarantees a particular level of service. To
meet these guarantees, service providers or IT staff members
allocate bandwidth for certain types of traffic.
RTP Real-time Transport Protocol is an Internet Engineering Task
Force (IETF) standardized protocol for transmitting multimedia
in IP networks. RTP is used for the “bearer” channels—the actual
voice, video, and image content. SIP is commonly used for the
signaling to set up and tear down sessions.
SCCP Skinny Client Control Protocol is a Cisco proprietary signaling
protocol for sending signals between devices in Cisco telephone
systems. It is also referred to as “Cisco Skinny.”
SIP Session Initiation Protocol establishes sessions over IP networks,
such as those for telephone calls, audio conferencing, click-to-
dial from the Web, and instant messaging exchanges between
devices. It is also used to link IP telephones from different manu-
facturers to SIP-compatible IP telephone systems. It is used in
landline and mobile networks.
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Part II
Industry Overview and
Regulations
Chapter 3 Competition, Industry Structures, and Regulations

123
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3 Competition, Industry Structures,
and Regulations

In this chapter:
 Introduction 126
 The 1984 Breakup of AT&T 128
 Regulatory Issues 138
 The State of the Industry—Consolidation via Mergers 149
 Non-Traditional Competitors: Alphabet, Apple, Amazon,
Facebook, Twitter, Snapchat, and Microsoft 156
 Appendix 168

125
126 3  Competition, Industry Structures, and Regulations

INTRODUCTION .....................................................
T he United States is fortunate to have high-capacity broadband networks throughout
most of the urban and suburban areas. These networks are capable of transmitting the
growing volumes of traffic generated by enterprises and residential customers. For the
most part, the wireline broadband and cellular networks are operated by large con-
glomerates with the resources to invest large amounts of capital in their networks.
Today’s broadband, cellular, and cable TV providers have nationwide networks
and very few competitors. This has contributed to the fact that broadband rates are
higher than those in almost all countries worldwide. There are two reasons for the
dearth of competition. It’s enormously costly to build network infrastructure and main-
tain these networks. In addition, large providers have purchased their competitors.
Because of the high infrastructure costs and marketing and advertising expenses, the
barriers to entry for new network providers are cost prohibitive. There are however,
resellers that lease network capacity at a discount and resell these services on the net-
works they lease.
Cable TV prices have risen in part as a result of the high costs borne by providers
for licensing movies, TV shows, and real-time sporting events. Providers have to bear
additional expenses if they are creating original movies and television series. Amazon,
Facebook, and Microsoft as well as AT&T and Verizon have built huge networks of
data centers to support the services they offer. They have each additionally purchased
many start-ups and small companies that have developed specialized software for
cloud services, advertising networks, mobile applications, and other offerings. These
subsidiaries have enabled these companies to offer a larger range of services. Cable TV
providers have also invested heavily in these services and have upgraded the broad-
band lines that connect to their subscribers.
The number of choices that subscribers have for broadband services will decrease
further under the AT&T and Time Warner merger. With the FCC’s approval of
the AT&T purchase of Time Warner, AT&T gained the large cache of content that
Time Warner owns including HBO, Turner classic movies, and CNN.
The same is true due to the purchase of 21st Century Fox by Disney. The Walt
Disney Co.’s purchase of 21st Century Fox has resulted in Disney’s acquisition of a
vast collection of movies. They were required to divest themselves of Fox’s regional
sports network. As a result of these mergers, less content is available to AT&T and
Disney’s competitors. In response, streaming companies are now forced to create more
of their own costly content. This may ultimately limit consumer choices for streaming
providers and make it difficult, if not impossible, for new companies to enter the field.
T-Mobile has offered to purchase Sprint. If the Sprint and T-Mobile merger is
approved, the number of mobile networks with nationwide reach will be reduced from
four to three. This will further reduce consumers’ choices and may result in higher
prices. T-Mobile in particular has offered service at prices lower than AT&T and Veri-
zon. They also were the first to offer unlimited cellular service packages. It’s possible
Introduction 127

that a combined T-Mobile and Sprint merger will mean higher prices. In addition, a
decrease in competition often results in less impetus to upgrade networks and offer
innovative services.
The proliferation of streaming has impacted how people get movies and TV shows
and caused cable TV operators to lose thousands of customers. It has additionally
resulted in changes in telecommunications, cellular, and cable TV companies’
strategies, which have all begun offering their own streaming services. In addition, a
large number of movie chains have closed theaters because rather than going out to
a movie theater, many people stay at home and watch streaming shows. Netflix is an
example of a company that has used streaming to disrupt an entire industry and change
the way people get entertainment.
Unfortunately, there have been negative impacts from the vast improvements in
technology and the openness of the Internet. Robocalls made by scammers use high-
speed automatic dialers programmed to call thousands of telephone numbers in a short
period of time. In addition to being annoying, criminals that initiate robocalls bilk
trusting people out of millions of dollars by promising them delivery of purchases and
services that don’t materialize.
Social networks have had many positive effects on teenagers and adults who enjoy
the ease of staying in touch and keeping up with distant relatives. However, bad actors
in these networks have taken advantage of the huge numbers of people on these social
networks to sway public opinion and publish false statements. Some have also cre-
ated millions of fake subscribers to these networks. Facebook is attempting to create
safeguards so that spam posts don’t happen in the future, but the damage has already
been done.
Millions of people have had their privacy stolen on Facebook by the sale of their
information without their consent. While there are laws protecting children’s privacy
in the United States, there are no laws that protect adults and teenagers. It’s not clear
that such laws will be enacted in the near future.
Although broadband networks have more capacity than ever before in urban areas,
in many rural areas, this is not the case. Many subscribers in rural areas have access to
networks that support only low-data rates. However, in some rural towns and agricul-
tural areas, this is starting to change. Government subsidies have enabled providers in
some rural locales to upgrade to higher capacity fiber optical networks.
However, federally funded Lifeline subsidies for low-income people that can’t
afford broadband are shrinking. Many people that live in poverty can’t afford the high
prices for broadband links that their children need to access their homework, which
is frequently posted online. In addition, adults can’t search or apply for jobs online
without broadband.
The consolidation in broadband, mobile providers, and social networks has led
to companies that have the resources to spend millions of dollars each year to lobby
Washington for favorable rules. Loose or favorable regulations impact many com-
panies. There may be no incentive to enforce privacy and strengthen the security of
data centers and cloud offerings. Regulations impact pricing, tax policies, and billing
128 3  Competition, Industry Structures, and Regulations

practices. Regulatory decisions on mergers and acquisitions impact the absence or

presence of competition and prices for consumers, government agencies, and enter-
prises, all of whom purchase telecommunications services.

THE 1984 BREAKUP OF AT&T ................................

Prior to the 1984 U.S. Justice Department Divestiture ruling, what are now AT&T, Ver-
izon, and part of CenturyLink were part of the Bell system. The Bell system consisted
of 22 local Bell telephone companies that were each owned by AT&T Corporation.
As part of the 1984 divestiture ruling, AT&T kept the long-distance portion of
its organization, which it viewed as more lucrative than local calling. The goal of
divestiture was to encourage competition for long-distance services. The 22 local tele-
phone companies were re-organized into seven Regional Bell Operating Companies
(RBOCs).

The Telecommunications Act of 1996

The goal of the Telecommunications Act of 1996 was to spur innovation and competi-
tion for local services. The Act allowed incumbent local telephone companies, who
previously were allowed to sell services only within their region, to offer out-of-region
long-distance services that the 1984 divestiture had barred them from offering.
The Act also decreed that for the first time, cable TV operators, electric utilities,
broadcasters, interexchange carriers, and non-traditional competitive local exchange
providers would be permitted to sell local calling, toll calling, and related services.
This provision allowed the former AT&T, which was then an interexchange carrier, to
resume selling local services.
To encourage competition for local services, the Act prescribed rules enabling
competitors to connect to the central offices of incumbent phone companies at
mandated discounted rates. However, most of these connectivity rules were gradu-
ally rescinded when large incumbents such as the former Regional Bell Operating
Companies (RBOCs) challenged the rules in court and won. For a list of these rulings,
see Table 3-11 in the “Appendix” section at the end of this chapter.

Telecommunications Act of 1996 Mandated Fees

When the Telecommunications Act of 1996 was enacted, the United States Congress
felt that it was not economically feasible for rivals of the RBOCs (Regional Bell Oper-
ating Companies) to build all their own local facilities directly to customers’ prem-
ises. It therefore mandated that incumbents such as the then SBC (now AT&T, Inc.)
make their local networks available at replacement cost plus a reasonable profit to
The 1984 Breakup of AT&T 129

competitors such as the former MCI (now part of Verizon). The local network assets
included the following:

• The local copper loop from the incumbent’s equipment to the customer
• High-speed lines between the Competitive Local Exchange Carrier (CLEC)
switch and the incumbent’s central office
• RBOC local central office switch ports for connections to local loops
• Operator services
• Signaling services to link central offices to systems, including billing

Many competitors including MCI (now part of Verizon) and Sprint leased entire
platforms of incumbents’ facilities at a discounted rate to offer service without build-
ing their own infrastructure. Some competitors built their whole business around the
resale of incumbent telephone companies’ platforms. Other competitors built their own
facilities in areas where they had concentrations of business customers and used an
incumbent’s entire platforms in other areas.

Court Rulings on Access to an Incumbent’s

Equipment and Fiber
In a March 2004 ruling, the United States Court of Appeals for the District of Colum-
bia struck down individual states’ authority to set discounts for competitors to connect
to an incumbent’s facilities, such as central office switch ports, local loops, and high-
speed voice and data links.
The circuit court’s ruling ended most of the deep discounts available to competi-
tors in metropolitan areas under the initial pricing. The FCC spelled out a limited
number of conditions under which eliminating these pricing rules impairs competition.
In another blow to competitors, the courts ruled that incumbent telephone compa-
nies are not obligated to share fiber facilities built within 500 feet of customers. As a
result, where fiber replaces copper or is within 500 feet of customers, local loops are
not available to competitors.
As a result of these court decisions, costs for carriers that don’t have their own
local central office switches, fiber networks, and local lines increased dramatically. The
rules essentially made it uneconomical for most competitors to stay in business. They
were all either purchased by competitors or went out of business.

The Impact of the Telecommunications Act of 1996

A major impact of the Telecommunications Act is the legitimization of cable TV oper-
ators offering telecommunications services and telephone companies selling cable TV
130 3  Competition, Industry Structures, and Regulations

services. Although initially AT&T and Verizon suspended their residential cable TV
build-outs, they now compete actively with cable TV providers and offer cable TV ser-
vices themselves in parts of the United States. With their purchase of DirecTV, AT&T
now also sells satellite television service.
A second achievement is the mandate that local number portability be imple-
mented. Consumers now take for granted that they can keep their telephone number
when they change mobile carriers, drop their home phone service for mobile service,
and keep their business number when they move or change providers. However, this
was not the case prior to 1996.
Another benefit of the Act is that increased competition and investment in broad-
band facilities led to dramatic decreases in prices for high-speed Internet access and
long-distance services for small and medium-sized businesses. As most competitors
were absorbed into larger telephone companies or went out of business, long-distance
and broadband rates remained low.
Large enterprises for the most part rely mainly on AT&T, CenturyLink, and Veri-
zon because of their global networks. Many large enterprises use connections to a
backup telephone company in the event of a major network outage at their primary
carrier. Large organizations are also more likely to use AT&T and Verizon for mobile
services because they are the only providers with close to nationwide mobile networks.
Regional providers including Windstream and Frontier sell telecommunications and
broadband services but in fewer regions than AT&T, CenturyLink, and Verizon.

Costs and Competition for Cable TV Services

in the United States
Unfortunately for many consumers, the choice for Internet access is often limited to
the local cable TV provider. Per FCC statistics nearly half of U.S. households had only
a single choice of high data rate wired broadband provider by June of 2016. However,
AT&T, Verizon, and CenturyLink’s recent build-outs of broadband facilities do pro-
vide options for a second or, less frequently, a third broadband provider in increasing
numbers of areas.
The addition of competition has resulted in higher broadband data speeds for
consumers in many areas. However, it has not resulted in lower cable TV prices for
residential customers. Moreover, broadband prices remain high compared to those in
Asia and Europe. Broadband costs are only $10 per month in Russia and less than $40
monthly in China.
According to the March 14, 2018, Consumer Reports article by James K. Willcox,
“Your Cable Bill Probably Went Up by More Than You Think,” cable TV rates have
increased by an average of 3 percent to 4 percent annually for the last four years. One
factor in higher cable TV bills is the high fees that content providers charge cable
TV companies for the rights to content. However, surcharges such as those for sports
access add another $6 to $8 monthly. The high cost of cable TV is a factor in subscrib-
ers opting for “skinny” packages with fewer channels and is one reason that people are
dropping their cable TV for streaming on Netflix, Amazon, and others.
The 1984 Breakup of AT&T 131

Table 3-1 is a sampling of the number of lost cable TV subscribers at the end of
the first quarter of 2018 broadband and provides a comparison of the number to the
same period in 2017. Statistics are from cable TV providers’ first quarter 2018 rev-
enue reports.
To make up for the lost cable TV revenues, all cable TV providers are upgrading
their terrestrial networks to carry additional streaming, cloud, and Internet browsing
residential and enterprise traffic.

Table 3-1 Quarterly Residential Subscriber Losses at Cable TV Providers

Cable TV First Quarter of First Quarter of Number of
Company 2017 2018 Subscribers Lost
AT&T* 24,089,000 23,902,000 187,000
Comcast 21,520,000 21,210,000 93,000
Verizon 4,681,000 4,597,000 84,000
*Includes satellite and U-Verse subscribers

The Rural Divide—Vast Areas without Broadband

Streaming that is carried on broadband “pipes” requires more capacity than any other
service. In much of the United States, providers have upgraded their networks and use
this capacity for their and competitors’ streaming content. According to FCC statis-
tics, there were at least 96.6 million residential broadband subscribers as of December
2016. (The FCC defines broadband as 25Mbps download data rates). Download data
rates of 25Mbps were available to 62.2 percent of the total 96.6 million residential
broadband subscribers. However, broadband availability is not distributed evenly in
the United States.
There are 24 million people in the United States without wired, terrestrial broad-
band of 25Mpbs. These people are mainly in rural and Native American tribal areas.
The scarcity of broadband puts rural employees and students at enormous disadvan-
tages in terms of access to remote work and students’ homework assignments. More-
over, it is next to impossible to attract businesses to these areas because of the lack
of adequate broadband infrastructure for such considerations as remote workers and
access to cloud computing.
Mobile LTE service is also not as prevalent in rural as urban areas. Only 70 per-
cent of rural areas have mobile LTE and only 64 percent of tribal areas have mobile
LTE. Mobile LTE speeds are considered 10Mbps from the network to the subscriber
and 3 Mbps from a subscriber to the network. This contrasts with urban areas where
92 percent of the population has access to both terrestrial broadband and mobile LTE
networks. The urban–rural contrast in mobile and terrestrial broadband availability is
also present in other countries such as those in Latin America, mountainous areas in
Western China, and villages in India.
Affordability is an additional hindrance for having broadband availability. Families
in which parents are unemployed or have jobs that pay minimum hourly rates are also
132 3  Competition, Industry Structures, and Regulations

often locked out of high-speed broadband links. They may not be able to afford to pur-
chase computers and pay the high rates for Internet access charged in the United States.
There are subsidies available for families of school-aged children that live in low-
cost Housing and Urban Development (HUD) housing or earn below a certain level
of income. Some providers offer subsidized broadband at $10 monthly with data rates
between 10 and 15 Mbps: Comcast, Verizon, Google, and AT&T each offer discounted
services in their coverage areas.

The Transformation of AT&T, CenturyLink,

and Verizon into Conglomerates
As a result of the following mergers, by 2011 the seven RBOCs plus CenturyLink had
been reorganized into the three largest telecommunications providers in the United
States: Verizon Communications, AT&T, Inc., and CenturyLink.
Here are the pre-2011 mergers resulting in consolidations:

• AT&T: In 2005 SBC, one of the seven local telephone companies, pur-
chased AT&T for its international and interstate long-distance network.
When it purchased AT&T, SBC changed its name to AT&T because of its
higher national recognition. SBC purchased the following providers under its
own name until 2005 when it made these purchases under the AT&T name:
− 1997: SBC purchased Pacific Telesis Group, the Regional Bell Operat-
ing Company (RBOC) in California and Nevada
− 1997: SBC purchased Southern New England Telephone, the incum-
bent telephone company in Connecticut
− 2005: AT&T purchased RBOC Pacific Telesis in California
− 2007: AT&T purchased RBOC Ameritech whose territory included
Michigan, Indiana, Illinois, Ohio, and Wisconsin
• Verizon: In 1997 regional bell operating company Bell Atlantic purchased
NYNEX, the former phone company in New England. NYNEX was cre-
ated from the merger of New York Telephone Company and New England
Telephone Company.
− 2000: Verizon purchased GTE, the largest non-Bell telephone company
in the U.S and changed its name from NYNEX to Verizon
− 2006: Verizon bought MCI, the second largest long-distance company
• CenturyLink: CenturyLink purchased EMBARQ in 2009 from Sprint,
which at that time offered landline telephone service in the Kansas area and
in the Midwest.
The 1984 Breakup of AT&T 133

− 2011: CenturyLink purchased RBOC Quest Communications. Quest

owned telephone service networks in 14 western states, which gave
CenturyLink a presence in metropolitan as well as its existing rural
locations.
− 2017: CenturyLink purchased the rest of Level 3 Communications for
its large interstate network. Prior to 2017, CenturyLink owned primar-
ily local links connecting homes and businesses to interstate networks.

AT&T, Verizon, CenturyLink and Comcast—

Recent Acquisitions
AT&T, Verizon, CenturyLink and Comcast are the largest telecommunications and cable
TV providers in the United States. The list of their recent acquisitions in Tables 3-2,
3-3, 3-4, and 3-5 illustrate the increasing scope of their businesses. These acquisitions
are aimed at providing software tools to manage their movie and TV content, and
to give them skills for positioning themselves as a resource to enterprise customers.
In addition to the acquisitions in Table 3-2, AT&T has purchased Time Warner, a
media company whose companies include Turner Broadcasting, HBO, CNN, CW, and
Cinemax, plus many others including content in Latin America and Europe.

Table 3-2 AT&T Mergers and Acquisitions

Number of Wireline
Subscribers Recent Acquisitions
25,369,000 DirecTV—Satellite TV provider
Includes 1.2 million FiberTower—High-frequency spectrum
DirecTV subscribers Vyatta: Software platform with anti-virus and network load balanc-
ing software
Carrier IQ: Diagnostic software embedded in smartphones
Nextel Mexico: Wireless network in Mexico
Otter Media: Streaming company that owns digital content includ-
ing CrunchyRoll and Rooster Teeth.
Superclick: Analysis of statistics in Wi-Fi hotspots, and LAN Wi-Fi
Invidi: Platform for advertising campaigns across TV, Satellite and
Streaming TV
Wayport: Wi-Fi hotspots in United States
Time Warner: Entertainment content company that owned HBO,
CNN, CW, Cinemax and CW plus many others including content in
Latin America and Europe.
AlienVault: Cyber Security
134 3  Competition, Industry Structures, and Regulations

Table 3-3 CenturyLink Purchases

Number of
Subscribers Companies Purchased
5,662,000 Tier 3: Cloud management provider
ElasticBox: Enterprise cloud management service
Level 3 Communications: Interstate fiber network
NextDC: Data Centers in Australia
SEAL: Consulting on SAP
Orchestrate: Database as a service

Table 3-4 Comcast Purchases

Number of
Subscribers Company Purchased
23,500,000 Adelphia and Time Warner Cable: Cable TV providers
iControl Networks: Connected home platform for secu-
rity, remote management and video management.
OneTwoSee: A technology platform to deliver real time
sports
Contingent Network Services: Manages technology, and
IT projects for enterprises
Watchwith: Advertising platform
This Technology: IT network
30% of Hulu
Sky: A British pay-TV satellite provider, owns sports-
media content
Wilco Electronic Systems: Provides cable TV service
Stringify: Internet of Things developer
Visible World: Television advertising to targeted
audiences
PowerCloud System: A way for telephone and cable
companies to provide cloud services to subscribers
NBCUniversal: TV and Universal Studios content
The 1984 Breakup of AT&T 135

Table 3-5 Verizon Purchases

Number of
Subscribers Company Purchased
12,600,000 Sensity Systems: A suite of smart city solutions
Niddel: Uses machine learning to autonomously detect security threats
FiberTower: Spectrum and cell site owner
Straight Path: Wireless spectrum suitable for fifth generation networks
XO Communications: Fiber network
Yahoo!: Mail, search, and news. Verizon sold Yahoo!’s photo
sharing company Flickr.
AOL: News, Weather, Entertainment, and Finance. Verizon merged
Yahoo! and AOL to form Oath.
Vessel: Web-video
Fleetmatics: Mobile fleet tracking, fuel usage, speed, and mileage
using GPS
Telogis: Fleet management
WideOpenWest (WOW): Fiber-optic network in the Chicago area for
5G implementation. The sixth largest pay-TV company when purchased.

Cable TV Providers—Comcast, Charter, COX

Communications, and Altice
Comcast Corporation, Charter, Cox Communications, and Altice USA are the largest,
second largest, third and fourth largest cable TV providers in the United States respec-
tively. Charter operates under the Spectrum brand name. The first cable television
station was started in 1948 in a mountainous area of rural Pennsylvania where high
mountains blocked over the air television signals. Gradually, other providers started
creating cable TV networks.

G
Gradually, more communities added Community Antenna TV (CATV), as the
first systems were known. These systems were made up of large antennas
to
o which heavy coaxial cabling was connected. Because the systems were
analog, they were susceptible to rain leaking into their systems and other
impairments. Gradually, cable TV systems became digital with clearer signals
and increased subscribers who wanted a wider choice of programs than
those available on over-the-air broadcast TV. In the early 1950s there were
259 small providers, but by 1961 there were 288 systems in 36 states.
136 3  Competition, Industry Structures, and Regulations

Most of these early cable TV operators were gradually bought by larger operators,
and became part of Comcast, Charter, or Altice USA. When Netherlands-located
Altice purchased New York cable company Charter, it changed its name to Altice.
Altice sells services in 21 states under the Optimum and SuddenLink brand names.
All four large cable operators are experiencing large losses of cable TV custom-
ers due to competition from streaming services offered by Netflix, Hulu, Amazon,
Disney, and over a hundred others. The largest cable companies are fighting back
by expanding the scope of their offerings and by offering their own streaming ser-
vices. For example, Comcast is in the process of upgrading its hybrid copper/fiber
optical network with more fiber cabling directly to residences and businesses as well
as bringing fiber closer in neighborhoods for the ability to offer the gigabit data rates
needed to support dramatically increased traffic from access to cloud services and
streaming. Infrastructure capable of supporting this is important for marketing and
sales to enterprise customers.
Cable TV providers are also participating in a quasi-price war with competitors
where each provider offers a low initial rate and then raises the price after the term
of subscribers’ initial contract expires. Their main competitors are satellite provid-
ers and telephone companies. Telephone companies are building out their broadband
networks in competition with cable TV providers for the many broadband customers
who have dropped traditional voice service in addition to cable TV, but who do want
high-speed broadband service. The following is a quote from Comcast’s 2017 annual
report discussing what they consider their major competitor—AT&T’s DirecTV
satellite service.
A quote from Comcast’s 2017 Annual Report:

Competition for our cable services consists primarily of DBS* provid-

ers and phone companies with fiber-based networks that typically offer
features, pricing and packaging for services comparable to ours. Some
of these competitors are also offering smaller packages of channels at
price points lower than our standard packages, both through traditional
and online distribution platforms, which could cause us to offer more
customized programming packages that may be less profitable. AT&T,
our largest phone company competitor, acquired DirecTV, the nation’s
largest DBS provider in 2015 to create an even larger competitor, and
in 2016 announced a proposed merger with Time Warner a media and
entertainment company.

*Direct Broadcast Service (DBS) refers to satellite TV providers.

The 1984 Breakup of AT&T 137

Cable TV Service for Business Clients

All cable TV providers offer broadband services to small business and enterprise
customers. In order to be viable competitors to facilities-based providers like AT&T,
Verizon, and CenturyLink, cable TV companies have added additional fiber to their
networks to enable them to offer gigabit data rate service and cloud computing. In
particular, they provide a direct fiber link to enterprise customers’ buildings and cam-
puses in areas where they have nearby fiber-optic cabling.

Regional Telecommunications Providers

While the largest telecommunications and cable TV providers dominate the market,
there are important regional providers. The largest ones have bought up other smaller
companies resulting in regional providers that cover rural as well as metropolitan
areas. The two largest regional providers outside of the “big 4” are Windstream and
Frontier. There are additionally hundreds of very small companies with only a few
hundred subscribers each. The small companies are located in rural parts of the United
States and in Guam.

Windstream and Frontier—Tier 2 Providers

Tier 2 providers are regional carriers. Their networks do not cover the entire
United States. But they do own core, fiber backbone networks that are con-
nected to peering points where traffic is handed off between providers.
These regional providers for the most part sell cable TV and terrestrial
copper and fiber network services. Neither Windstream nor Frontier sell
cellular services. They both do sell DirecTV and Dish Network satellite
television services as authorized agents. Authorized agents contract with
an infrastructure provider to sell services and equipment for which they
receive a commission.
Windstream and Frontier depend on the Connect America Fund (CAF) sub-
sidies for service to their high cost areas. The Connect America Fund is
described below in Government Regulations. They both offer Internet access
and security services to business and consumer subscribers. Neither owns a
cellular network. However, Windstream offers fixed wireless Internet access in
some areas that is enabled by government subsidies. They both reported losses
of voice and video subscribers, and both raised their rates to compensate for
subscriber losses.
Continued
138 3  Competition, Industry Structures, and Regulations

Windstream Holdings Inc. is headquartered in Little Rock, Alabama. It is the

main telephone company (incumbent local exchange carrier) in rural areas in
18 states, where they sell service under the Kinetic brand. They additionally sell
wholesale fiber service to carriers outside of the Windstream network on fiber
they acquired by their 2017 purchase of EarthLink. They also offer cloud com-
puting and hosting services. Windstream provides 25Mbps service to 55 percent
of their subscribers and 50Mbps data rates to 31 percent of their subscribers.
According to their 2017 annual reports, 25 percent of their subscribers do not
have cable TV. Windstream sells services in areas outside of their network infra-
structure as well as within their own network. In the first quarter of 2018 they
reported a total of 1,432,000 customers.
Frontier Communications Corporation, which is headquartered in Norwalk Con-
necticut, offers services in 29 states. Frontier purchased Verizon’s rural wire-
line properties in California, Florida, and Texas in 2016, which resulted in an
additional 3.7 million customers to Frontier’s network. This doubled the number
of Frontier subscribers to 4.8 million subscribers. Verizon at the time of the sale
was concentrating on building out their cellular service.

REGULATORY ISSUES .............................................

Telecommunications and cable TV are heavily regulated sectors. Companies are sub-
ject to local, intrastate, and interstate regulations. Here is a quote from Frontier Com-
munications 2017 Annual Report:

The FCC generally exercises jurisdiction over information services,

interstate or international telecommunications services…State regula-
tory commissions in general exercise jurisdiction over intrastate tele-
communications services…Certain federal and state agencies, including
attorneys general, monitor and exercise oversight related to consumer
protection issues. In addition, local governments often regulate the
public rights-of-way necessary to install and operate networks and may
require services providers to obtain licenses or franchises regulating
their use of public rights-of-ways.

Utility Pole Attachments—Critical for 5G

Attaching fiber optical cables to utility poles is critical for cellular providers upgrading
to fifth-generation mobile protocols. Fifth-generation mobile protocols require a huge
Regulatory Issues 139

amount of new fiber because antennas are closer together and need to be connected by
fiber to other antennas and to providers’ data centers.

Who Owns Utility Poles?

According to the law firm Electrocution PLLC, in a September 8, 2016, article
by Jeffrey Feldman, there are an estimated 180 million utility poles in the
United States. The highest two or three wires on the poles carry electricity, and
the lower wires carry telecommunications and cable TV signals. The majority
of poles are owned by local utility companies. However, Verizon jointly owns
utility poles with the local utility in many parts of the country where it man-
ages them jointly with the electric utility that owns the poles. Verizon is also in
charge of placing new ones and replacing old ones. Verizon charges $6 per pole
for each wire a provider attaches to a pole. As part of their management service,
if a wire becomes detached from a pole and is hanging down, a Verizon techni-
cian will identify the wire owner so that the utility or the correct provider can
reattach it to the pole.

One Touch Make Ready to Streamline Pole Attachments

Utility pole placement and replacements are regulated by the FCC. Formerly, a local
permit was required to move, replace, or install each pole. The process for adding
equipment to, moving, or replacing damaged poles required a separate permit for each
pole replaced or moved, and for each piece of equipment or wire added to it. Industry
groups lobbied the FCC for streamlined rules on pole attachments and replacements.
One Touch Make Ready (OTMR) allowed licensed contractors to replace, install, or
attach equipment to multiple poles with a single truck roll. A single truck roll refers to
sending out a truck once to work on multiple poles. In 2018 the FCC made this change
to its regulations on pole attachments.
The industry groups contended that a single truck roll is necessary to build out fifth
generation infrastructure and backhaul fiber facilities without the delays of requesting
permission separately to change or move each telephone pole and attachment. Cur-
rently, each provider sends its own installer to do the work. The new rules, which allow
contractors to do the pole changes, was opposed by the unionized installers retained
by telephone companies.

Universal Service and Rate of Return

In 1913, when the former AT&T was given a monopoly in telecommunications service
in the United States, it made a commitment to offer reasonably priced universal ser-
vices everywhere in its territories. In exchange, the government guaranteed that AT&T
140 3  Competition, Industry Structures, and Regulations

could earn a specific rate of return on its telecommunications services. This marked the
beginning of the concepts of universal service and rate of return guarantees.
While rate of return guarantees did not encourage efficient operations, they did
enable the company to invest in research and development through its Bell Labs divi-
sion. AT&T inventions included touch-tone service, integrated circuits, and laser tech-
nologies. These innovations were freely available without patent fees, were adopted
worldwide, and are one of the reasons that global networks are compatible with one
another today.
In the late 1970s, the introduction of competition from lower-cost long-distance
providers such as Sprint and MCI (now part of Verizon) made it untenable for AT&T
to continue charging high fees for its own long-distance calling. Gradually, AT&T low-
ered its long-distance fees and increased its local service rates to compensate. To make
up for local service subsidies, regulators set fees for carriers to pay one another for
connecting calls to one another’s customers. These are known as Intercarrier Compen-
sation (ICC) fees, and they marked the beginning of the imposition of access charges.

Decreasing ICC Payments for Connecting

Traffic—Gradually Being Reduced
• Intercarrier Compensation (ICC) are federally mandated fees for interstate
calls and state-mandated fees for intrastate calls. When a college student
called his parents who lived in another telephone company’s territory, the
student’s phone company paid an ICC (Intercarrier Compensation) fee to the
other telephone company for connecting the call. These fees are gradually
being reduced and rural carriers are instead receiving subsidies to build out
their infrastructure.

There are two types of access fees: originating access fees and terminating access
fees. They apply to mobile, wireline, and interconnected VoIP traffic. Interconnected
VoIP calls are those made to people on the Public Switched Telephone Network
(PSTN). The PSTN is an older network architecture for home telephones connected
directly to older telephone company switches, not part of data networks.
The following are examples of originating terminating and access fees.

• Originating access fees are paid by phone companies whose customers lease
toll-free numbers.
− A subscriber on a different carrier’s network calls a toll-free (800-888)
number that belongs to another carrier’s subscriber.
− A person places a VoIP call to a toll-free number connected to someone
on the PSTN.
Regulatory Issues 141

• Terminating access fees.

− A person whose phone is connected to the PSTN calls someone on
another carrier’s network.
− A person places a VoIP call to someone on the PSTN.

Access fees paid to carriers in rural, high-cost areas are set higher than those in
urban areas. Moreover, intrastate access fees, which are set by states, are generally
higher than interstate access fees. Access fee rates for local calls are minimal.
The FCC’s November 2011 Transformation Order laid out a plan for reducing ICC
fees. Terminating access fees, at the receiving telephone company, have been reduced
dramatically over the last 7 years, from several cents per minute down to $0.007 cents
per minute—and even going to zero in most cases by July 2019. To make up for the
loss of revenue experienced by many rural carriers, the FCC also revamped the subsidy
fund from which rate of return carriers can draw. A rate of return carrier is an incum-
bent telephone company that is allowed to adjust their rates so that they earn a set
return, a profit. The rate reductions for originating access fees are the current subject
of another FCC project, for which the FCC is still accepting comments from the public
and affected organizations.

Alternate Connect America Model

The United States has a long history of subsidizing telephone service through universal
service that initially only applied to voice telephone service. The goal of subsidizing
telephone service was to enable subscribers in rural areas to have access to the same
quality voice and broadband options at rates comparable to subscribers in urban and
suburban areas.
Comparable prices and services in rural areas cost more to provide than those in
urban areas where costs for upgrading to, say, fiber from copper are offset by revenue
from having more customers per mile.
The Telecommunications Act of 1996 codified universal service by establishing
the Universal Service Fund (USF), which subsidizes costs for Internet access in rural
and high-cost (for example, mountainous) areas. In 2016, the FCC introduced Alterna-
tive Connect America Model (A-CAM) and changed the Universal Service Fund name
to the Alternate Connect America Model. The A-CAM is paid for by contributions
from long-distance, paging, and mobile carriers. Contributions are based on a percent-
age of revenue from these services. Carriers that mix voice and data on transmission
lines that carry traffic to the Internet and to long-distance switches also contribute
based on revenue from these services.
The four groups eligible for A-CAM subsidies are:

• Lifeline for low-income subscribers and residents of Tribal lands

• The E-rate for schools and libraries
142 3  Competition, Industry Structures, and Regulations

• Subsidies for rural areas where costs for telecommunications facilities are
high because there are fewer homes and businesses per mile
• Rural healthcare facilities

The goal is to enable providers in rural and high-cost areas to offer services at
reasonably comparable rates for similar services in urban areas. The portion of the
A-CAM that applies to schools and libraries is known as the E-rate. The E-rate sub-
sidizes Internet access and infrastructure costs needed for high-speed Internet access.

A-CAM Implementations
In February 2016, the FCC issued a Notice of Proposed Rule Making (NPRM) that
recommended support for broadband services as well as the existing phone subsidies as
a universal service. The proposed rule would gradually eliminate access fees between
long-distance and local telephone companies and offer to replace high-cost support
with the A-CAM. The FCC gave rural providers a choice of staying with high-cost
subsidies or moving to A-CAM payments. The Connect America Fund funds support
new projects and maintenance of existing broadband.
Additionally, there are funds for subsidizing broadband for rural healthcare facili-
ties and hospitals. The goal is to bring these costs down to the same level as healthcare
facilities in urban areas.
The FCC stated that a guaranteed rate of return removes the incentive to oper-
ate efficiently because rate of return guarantees a certain profit regardless of possible
operating inefficiencies. The FCC introduced competitive reverse auctions for granting
money for non-served areas. With reverse auctions, organizations win grants for low
bids for subsidies needed to upgrade infrastructure rather than high bids.
Carriers in these rural areas had a choice of remaining on the high-cost subsidies
or participating in the A-CAM reverse auctions to obtain funding. Because the A-CAM
supports new projects and maintenance of existing projects, most rural providers that
had already upgraded their infrastructure to fiber service opted not to sign up for the
A-CAM. Rather, they kept their high-cost subsidies. In contrast, rural providers that
had not yet upgraded their networks with fiber-optic cabling more suited to broadband
data rates, bid in the reverse auction for A-CAM funds.
Recipients that successfully bid for funds to build broadband networks are subject
to requirements to build out their broadband facilities within 10 years. They must also
make these services available for a defined period of years. The Connect America
Fund supports ongoing maintenance and operations of broadband wireline and wire-
less networks. Moreover, these carriers will no longer receive funding based on rate of
return analysis. Rather, price cap systems will be instituted so that carriers will have
incentives to operate efficiently rather than have guaranteed revenues. With price caps,
carriers agree to impose an upper limit on their rates and keep them at an agreed-upon
level for a specific number of years.
Regulatory Issues 143

As part of the plan, the amount of money collected for A-CAM was capped at
the amount collected in 2011. This did not take into account inflation. This is a major
issue for rural carriers building out their networks. Although, more money has been
allocated to the program, adequate funding is still an issue.

Lifeline Subsidies for Low-Income Residents

In October 2016, the FCC finalized rules to include affordable broadband in universal
service for rural, low-income, and other underserved areas. The fund supports wire-
line and mobile broadband as well as voice. The FCC currently defines broadband as
25Mbps downstream (from the provider to the customer) and 3Mbps upstream (from
the customer to the provider). Currently, 18 million households in the United States
do not have broadband access. For the most part these are low-income residents and
households in rural areas.
The Lifeline program provides a $9.25 monthly subsidy for Internet access and for
mobile services to low-income residents, veterans, and people on or near Tribal lands.
This covers only a portion of the monthly fixed line or mobile broadband fees. The
fund also supplies subsidies to rural healthcare facilities so that their broadband costs
are not higher than for those in urban areas.

Cutbacks in Lifeline Funds

The FCC, beginning in 2016, noted that the program had a great deal of waste
and abuse. The Government Accounting Office completed a study showing $137
million of benefits went to fake accounts or dead people. Subsidies are paid for
by fees on subscribers’ phone bills, which telephone companies collect and pay
to the FCC. In cutting back on waste, and slimming down the program, by 2018,
many people that actually need the benefits were deprived of them.
In addition to cutting back on waste, the FCC narrowed the eligibility require-
ments for Lifeline. The new rules specified that only facility-based telecom-
munications, cellular, and broadband providers were permitted to participate in
Lifeline subsidies. The rulings eliminated resellers such as TracFone Wireless
and Consumer Cellular from the Lifeline program. This is problematic because
many facility-based providers such as Verizon and AT&T that own networks
backed out of providing Lifeline subsidies. This created rural areas where people
formerly on Lifeline lost their subsidies because there were no facility-based
fixed line and cellular providers, only resellers. The facility-based providers in
their area had stopped providing services because their revenues were so low.
This occurred in areas where the only providers left were resellers who don’t
own network infrastructure. They are not facility-based providers.
144 3  Competition, Industry Structures, and Regulations

E-Rate Subsidies for Schools and Libraries

A portion of the Lifeline Fund is used for libraries and schools. E-rate subsidies are
used to make broadband and Wi-Fi more affordable to these institutions. The subsidies
include basic maintenance as well as discounts on Wi-Fi equipment and broadband.
Discounts range from 20 percent to 90 percent. The higher discounts are available for
higher poverty areas and rural schools and libraries.
Eligible schools and libraries submit requests to the Universal Service Administra-
tion Company (USAC). USAC posts the requests on its website for its list of preferred
vendors to bid on. After completion of the broadband or Wi-Fi project either the ven-
dor or the institution submits a request for reimbursement.

Media Consolidation Issues

Radio and television over-the-air broadcasts are regulated by the FCC because they use
spectrum allocated and controlled by the FCC. The FCC issues licenses to broadcasters
for specific channels. The FCC has established rules for these broadcasters including
providing equal airtime for political candidates. Rules enacted in the 1970s prohibited
one company in each local market from owning both a newspaper and a TV station.
It also did not allow TV stations in the same market to merge with each other if that
would leave fewer than eight independently owned stations in the local market.

A cable TV stations don't use the public airwaves, they are not regulated
As
under the media consolidation rules.
u

In 2017 the Federal Communications Commission voted to roll back the 1970s
restrictions on media ownership. The new rules allow common ownership of news-
papers and broadcast stations in the same market. Critics in the United States Senate
stated that the order would enable media conglomerates to manage news content and
broadcasts. In particular, senators criticized Sinclair’s proposal to purchase Tribune
Media.
FCC Commissioner Mignon Clyburn also dissented stating:

Mark my words, today will go down in history as the day when the FCC
abdicated its responsibility to uphold the core values of localism, compe-
tition and diversity in broadcasting.

In response to his critics, FCC Chairman Ajit Pai stated that the changes were
necessary to allow media companies to compete with online giants such as Facebook
and Google.
Regulatory Issues 145

Sinclair Broadcast Group owns 173 radio stations in 81 broadcast markets and
locations across the United States. It has been accused of promulgating conservative
views in these local markets. Moreover, many of the stations repeat the very same
broadcasts as all of the rest along with the same conservative commentary on the news.
In August of 2018 the FCC denied Sinclair’s request to purchase Tribune Media.
Sinclair would have acquired 42 more local television stations. The FCC opted not to
waive media ownership rules.

Spam Calls—Robocalls
Robocalls are those dialed by banks of automated dialers that call thousands of house-
holds each hour. It’s illegal to call phone numbers on the national-do-not-call (DNC)
list without explicit permission. According to the Federal Trade Commission (FTC),
in 2017 2.4 billion robocalls were placed every month. Not only are these calls annoy-
ing, but many telemarketers that place these calls defraud people by impersonating
the Internal Revenue Service and asking for a credit card payment to settle a supposed
debt to the IRS. Others make false promises for non-existent goods and services. One
telemarketer was fined for trying to sell fake auto warranties.
Another issue is that robocall traffic can flood 911 centers to such an extent that
legitimate emergency calls are blocked. This occurred in 2017 in large swaths of the
United States. The telemarketers’ automatic dialers sent thousands of calls to the ten-
digit numbers associated with each 911 call center. Because call centers are designed
so that calls forward to backup call centers when there are large volumes of calls, the
robocalls affected 911 centers nationwide.
The following is a quote from an October 4, 2017, Federal Trade Commission
press release, “FTC Testifies Before U.S. Senate Special Committee on Aging on the
Continuing Fight to Combat Illegal Robocalls”:

The FTC’s most recent victory in the fight against illegal Robocalls came
this past June, when a federal district court in Illinois issued an order
imposing the largest civil penalty ever in a DNC* case—$280 million
against satellite television provider Dish Network. The case charged
Dish and its telemarketers with making tens of millions of calls—often
Robocalls—to consumers on the DNC Registry, as well as continuing to
call consumers who had previously asked not to be called again.

Fighting Back—Authentication and Verification

The telecommunications industry is fighting back against robocalls that clog their net-
works and result in millions of calls to telephone companies’ customer service centers
about fraudulent calls. They have formed an industry group, the Robo Strike Force, to

*Do Not Call

146 3  Competition, Industry Structures, and Regulations

develop technology to identify and block illegal calls, launch a consumer education
program, and explore legal options to deter telemarketers. The Robo Strike Force is
made up of telephone companies and smartphone manufacturers. Currently, individu-
als and companies that make illegal robocalls are subject to fines. The Robo Strike
Force is lobbying the Federal government to make robocall telemarketers subject to
criminal penalties, in addition to civil fines.
And, significantly, the Robo Strike Force is developing technology to iden-
tify “spam” calls. The technology is called SHAKEN (Signature-based Handling of
Asserted Information using toKENs) and STIR (Secure Telephone Identity Revisited).
SHAKEN and STIR are designed to authenticate that calls are legitimate and to verify
at the receiving provider’s network that they are legitimate. SHAKEN and STIR oper-
ates by attaching a 15-character encrypted token to legitimate calls at the originat-
ing point of the call and sending the encrypted characters along with the call to the
receiving telephone company as a verification that the call is legitimate. SHAKEN
and STIR only work on VoIP (Voice over Internet Protocol) voice traffic. Encryption
uses mathematical algorithms to scramble bits so that only the intended recipients can
decode them.

The Do Not Originate Registry Trial

The intent of the Do Not Originate (DNO) Registry is to block numbers that should
never originate calls: invalid numbers, valid numbers that are not allocated to a voice
service provider, and valid numbers that are allocated but not assigned to a subscriber.
With the FCC’s permission, the Strike Force performed a trial of this concept. The trial
was considered a success by the Strike Force and the FCC, playing a significant role in
reducing IRS scam calls by about 90 percent during the September 2016 to February
2017 test run.

Robocalls that Don’t Ring—Ringless Calls

Ringless calls are those that are routed straight to voicemail without ringing a telephone.
Marketers who use this service have the voicemail message they want to distribute, or
a simple survey recorded on a server at a provider’s data center that is programmed to
go to the server with subscribers’ voicemail boxes. As of mid-2018, the FCC has not
ruled on whether Ringless voice mail is an example of a robocall and therefore illegal.

Exceptions to the Anti-Robocall Regulations

The FCC ruled that robocall prohibitions don’t apply to government contractors’ calls,
debt collectors, or political campaigns. Contractors who are agents of the government
are allowed to make as many calls as they want to. Thus, people can be called by fed-
eral contractors that use voice recordings to ask their opinions on surveys or public
issues. Debt collectors are also allowed to make robocalls.
Regulatory Issues 147

Legislation to Protect the Privacy of Minors

Privacy refers to peoples’ control over personal information, the ability to make deci-
sions regarding how they want information accessed, and which information they want
available. Privacy settings on social networks ostensibly allow users to control what
information is available about themselves and about their children.
Prior to 2013, the only legislation in the United States that protected privacy was
the 1998 Children’s Online Privacy Protection Act (COPPA). This law grants parents
of children 12 years old and younger the ability to control what information web sites
collect about them. It does not apply to adults or teenagers older than 12 but younger
than 18. Furthermore, it makes no mention of privacy on mobile networks or online
apps (applications).
COPPA updates were enacted in 2013 and 2015, but neither of them includes
teenagers between the ages of 13 and 17. Industry organizations opposed the inclusion
of teenagers on the grounds that it was unduly onerous. In addition, they stated that it
would weaken privacy because web sites would collect information about web surfers’
ages. They also argued that it discouraged sites from directing content to teenagers
because of the difficulty of complying with the act, thus limiting services to teenagers.
As a result, young people ages 13 to 17, who often don’t have the maturity to
understand the damage that can be caused by careless web posts, have little legal pro-
tection. It’s also unclear, if a similar privacy act is passed, whether teenagers would
understand the implications of allowing geolocation services to track and keep infor-
mation about their location.
The COPPA revisions passed in 2013 and 2015 included the following provisions:

• Widens the definition of personal information to cookies that track children’s

activity on the Web
• Operators of web sites and online services that are directed to children under
13 or have knowledge that they are collecting information about children
under 13 must contact parents and receive parental consent before collecting
personal information.
• Mobile application owners must also adhere to these rules.
• The FTC maintains a hotline for parents with questions.
• Web sites and mobile phone apps must now obtain permission for parents to
collect photos and geolocations of children.
• Web sites and applications may not collect cookies that track behaviors of
children nor are they allowed to send ads to children based on their browsing
history or demographics.
• If operators of sites or services inadvertently collect data on kids, they must
delete it as soon as possible.
148 3  Competition, Industry Structures, and Regulations

Unfortunately, not all mobile apps adhere to COPPA regulations. An April 17,
2018, article in the Washington Post by Hamza Shaban stated that researchers found
that 6,000 apps available in the Google Play Store violated COPPA by collecting per-
sonal information on children. The research was undertaken by the International Com-
puter Science Institute at the University of California at Berkeley.

Lobbying Efforts to Influence Regulations

Because telecommunication policies are heavily regulated, all large mobile, cable TV,
and landline providers spend sizeable amounts of money on court cases and on lobby-
ists to attempt to influence lawmakers and regulatory agencies.

Lobbying to Influence Government Regulators

Telecommunications and wireless companies are heavily regulated at the federal,
state and local levels. All providers spend time and money on lobbying efforts to
influence these regulations. They contribute to candidates from both the Democratic
and Republican Parties and hire lobbyists to communicate their positions directly
with government officials. The issues these organizations lobby for include merg-
ers, patents, copyrights, auto safety, self-driving cars, privacy, online advertising,
attachments to telephone poles, and permission for installation of cellular antennas
and gear.
Government regulations impact all phases of telecommunications, which is why
almost all large providers such as AT&T, CenturyLink, Comcast, and Verizon, as well
as medium-sized and small providers spend money on lobbyists every year. Accord-
ing to the Federal Election Committee Commission, in the period between January
1, 2017, and April 26, 2018, Comcast spent $23 million dollars on lobbying at the
federal level.
Moreover, lobbying expenditures spike when there are issues providers consider
critical. For example, when AT&T offered to purchase Time Warner to gain their
cache of movies and television content, they lobbied the federal government for per-
mission for the merger. Thus, it’s likely that their lobbying expenses spiked.
Lobbying is not confined to telecommunications organizations. Large technol-
ogy organizations and social networks expend large efforts on lobbying. Facebook
and Alphabet’s Google, which are both facing the specter of regulations, are spend-
ing millions on lobbying. Facebook is under congressional scrutiny due to allegations
that millions of fake posts influenced the outcome of the 2016 presidential elections.
Google, part of Alphabet, spends increasing amounts of money on lobbying to influ-
ence congress on immigration, tax reform, and antitrust issues. It has also faced
questions on its treatment of its own company’s search rating compared to Google’s
rivals.
The State of the Industry—Consolidation via Mergers 149

THE STATE OF THE INDUSTRY—CONSOLIDATION

VIA MERGERS ........................................................
The telecommunications industry is dominated by organizations that are among the
100 largest companies in the United States. Technological innovations have enabled
companies such as Apple, Google, Netflix, and Amazon to encroach on services that
were formerly the exclusive domain of traditional telephone and cable TV operators.
Mobile operators, cable Multiple System Operators (MSOs), and Internet companies
now vie with one another for revenue from mobile, Voice over Internet Protocol (VoIP),
cloud, and streaming services.

Competition to Telephone, Mobile, and

Cable TV Companies
Telephone and cable TV companies compete with satellite companies for streaming
and voice calling; Amazon and Google for household automation; Facebook, Netflix,
and Walt Disney for video, and with each other for all of these services. They addition-
ally compete with upgraded 4th generation and new 5th generation cellular networks
capable of supporting streaming, Internet access, and cloud computing. In order to
stay competitive, they continuously make capital expenditures to upgrade and maintain
their networks.

Mobile Operators
AT&T Mobility and Verizon Wireless are the largest mobile operators in the United
States; they are also the only ones with nationwide coverage. Verizon Wireless’s net-
work covers approximately 322 million people as of 2018 (98 percent of the pop-
ulation). The vast majority of the 325.7 million people in the United States, as of
December 2017, have access to mobile networks. However, high capacity coverage for
data is uneven in rural and mountainous areas.
Mobile network upgrades require sizable capital investments in equipment, fiber
cabling and spectrum to keep up with the growth in traffic. Moreover, upgrades when
new generations of service are introduced require new spectrum, hardware, and soft-
ware. Spectrum is made up of the invisible airwaves that carry wireless signals. See
Chapter 7, “Mobile and Wi-Fi Networks,” for more information on spectrum and
mobile technologies. In addition, mobile providers need to support older generations
of mobile networks until most subscribers have handsets compatible with upgraded
protocols.
150 3  Competition, Industry Structures, and Regulations

B
Because fiber or copper is not needed for every mobile subscriber, initial
deployments of mobile networks cost less than building out cabled, fixed
d
liline networks from scratch. This is why, in developing parts of the world,
most people have cell service, but not fixed-line home telephone service.

Decreasing Churn Rates Among Mobile Providers

In recent years AT&T and Verizon and others have had lower churn rates. Churn
rates refer to the percentage of customers that change carriers annually. Lower
churn rates result in savings on customer service for activating new customers
and deactivating former customers’ accounts. Lower churn rates are the result of
a combination of more costly handsets, improvements in coverage, and service
quality in cellular networks.
When smartphones were first available, mobile networks did not have adequate
capacity to handle the increased e-mail and data traffic, and customers changed
carriers in hopes of better coverage. With the introduction of upgraded 4th
generation LTE service and Wi-Fi networks, and the gradual introduction of 5th
generation networks, this is changing. Subscribers now routinely stream video
and access their cloud accounts and social networks. Each new generation of
smartphone does not need to be upgraded as often to increase capacity.
And importantly, providers are no longer subsidizing smartphone purchases.
Formerly AT&T, Verizon, Sprint, and T-Mobile promised subscribers, for
example, a $600 iPhone for only $200 if they signed a 2-year contract. At the
end of the contract term, subscribers could change to a different mobile provider
and have a new phone that they were able to pay off in a few years with low
equipment charges on their mobile bills. With providers no longer subsidizing
new phones, many subscribers keep their phones longer and don’t change to a
different mobile network.

Consolidation of Mobile Providers

Until mid-2004, there were six major mobile carriers in the United States: AT&T
Mobility, Verizon Wireless, Cingular, Sprint, Nextel, and T-Mobile USA. Currently,
there are only four major mobile carriers, and if the FCC and the Department of Justice
(DOJ) approve the proposed Sprint and T-Mobile USA merger, there will only be three
facilities-based mobile carriers. Table 3-6 lists the largest facilities-based mobile carriers.
Industry consolidation that results in near-monopoly conditions has ramifications
for customers as well as competitors. For customers, it can mean higher prices and less
The State of the Industry—Consolidation via Mergers 151

innovation. This is because monopolies have few incentives to be competitive with

regard to prices or developing new features to attract customers.
Smaller mobile competitors suffer the disadvantage of higher operating costs. For
example, large carriers have the clout to bargain for discounts on quantity purchases of cell
phones and network equipment. These discounts are often unavailable to small carriers.
Another disadvantage is that smaller providers don’t have the resources to mount large TV
and Internet advertising campaigns; thus, it’s more difficult to attract new customers.
In addition to the resources to launch broader advertising campaigns, large mobile
carriers have the financial strength to lease spectrum needed for additional capacity
and fifth-generation data networks.

Table 3-6 The 10 Largest Facilities-Based Cellular Companies

in the United States
Number of
Cellular Provider Connections* Recent Acquisitions
Verizon Wireless 116 million Purchased Cincinnati Bell mobile
network in 2014, which now resells
Verizon Wireless service
Purchased Alltel Corporation and Rural
Cellular in 2008
AT&T Mobility 89.3 million Purchased Centennial in 2008
Sprint 74 million** Purchased mobile provider Clearwire
in 2013
T-Mobile USA 74 million** Purchased Iowa Wireless Services 4th
quarter 2017
US Cellular 4.6 million Operates in Pacific Northwest, parts
of the Midwest, East, and New Hamp-
shire; part of TDS Telecom
C Spire Wireless 1,000,000*** Owned by private company Telapex,
(formerly named Inc. Service in Mississippi, Florida,
Cellular South Inc.) Tennessee and Alabama
*Source: Company web sites; includes postpaid, prepaid, and wholesale. Connections refer to the number the
number of subscribers. However, some customers have more than one account if they have multiple cellular
devices.
** Prior to proposed merger of Sprint Wireless and T-Mobile USA
***Figure is approximate due to the fact that C Spire Wireless is a private company.

It’s unclear if T-Mobile will raise prices if the merger is approved. Until now,
T-Mobile for the most part has had lower rates than Verizon Wireless and AT&T Mobil-
ity. In addition, T-Mobile was the first carrier to offer unlimited voice and data plans
for a fixed monthly fee. Verizon Wireless and AT&T Mobility followed suit, offering
152 3  Competition, Industry Structures, and Regulations

their own unlimited plans, which they have mostly deleted. These unlimited plans are
particularly favorable for subscribers that stream video from companies such as Netf-
lix, Amazon, Hulu, and others.

Analyzing the Impact of a Merger on Consumers

and Competition
Mergers between large telecommunications companies require approval of the Federal
Communications Commission (FCC) and the Department of Justice. The FCC bases
its approval or disapproval on the impact the merger would have on customers. It might
disapprove a merger if it determines that the merger is not in the interest of consumers.
The Department of Justice evaluates mergers based on the competitive nature
of markets and determines if the merger will harm competition. The FCC and the
Department of Justice keep one another apprised during the process. They also bring in
outside consultants to help them evaluate the impact of the proposed merger and addi-
tionally accept comments from the public. As a rule, competitors and other companies
such as suppliers that might be impacted by the merger submit comments.
Generally, when large mergers are approved, there are conditions that must be
satisfied for approval. This occurred when Verizon Wireless acquired Alltel in 2008
and was required to divest itself of certain assets.

The Merger of AT&T and Time Warner

In 2016, AT&T and Time Warner agreed to merge. The merger agreement was set up
with AT&T buying Time Warner. AT&T gained Time Warner content including Turner
Broadcasting, HBO, CNN, CW, Cinemax and CW plus content in Latin America and
Europe. Owning this large cache of TV and movies provides a library of content for
AT&T and their DirecTV unit to better enable them to compete in the growing stream-
ing market.
The merged entities of AT&T and Time Warner, and Comcast, which bought NBC
Universal in 2011 resulted in their owning local networks as well as content. They
have the ability to block others’ content or charge higher prices for access to their local
networks of subscribers by streaming customers such as Netflix, Facebook, Amazon,
and other streaming providers which don’t own network facilities.

Selling Wholesale Network Services

Wholesale telecommunications providers sell to other telecommunications providers.
They don’t sell their products or services to end-user subscribers. All major mobile
and facilities-based operators offer wholesale services to other carriers because no
facilities-based network operator has service everywhere. These operators sell whole-
sale services as a part of their product strategy. There are companies whose major
The State of the Industry—Consolidation via Mergers 153

business strategy is selling capacity on fiber-optic cables they own. These include
Consolidated Telecommunications Services, and NEF.
An example of a wholesale provider is Level 3 whose main line of business was
wholesale services to other telecom companies before it was purchased by Century-
Link. It sold capacity on its interstate long-haul network. Tower builder Crown Castle
purchased fiber network provider Lightower and started a wholesale division called
Crown Castle Fiber to complement its antenna and tower business.
Electric utilities often sell wholesale data network services. Electric utilities own
vast fiber networks over which they transmit electrical signals. They also own dark
fiber, spare fiber that is not “lit” by fiber equipment. When utilities lay fiber, they lay
extra fiber to be prepared for surges in electrical usage or maintenance issues on other
fiber strands.
Carriers that sell wholesale services save money on marketing, retail stores, bill-
ing, and staff. They hope to make up for lower per-user revenues with savings in oper-
ating costs and its customers’ quantity leases. Depending on the arrangement with each
carrier customer, it might also offer handsets and billing platforms to the carrier.

Backhaul Services
Another way that cable TV operators add services to their existing infrastructure
is by leasing spare capacity on their backbone networks to mobile operators.
Multiple Service Operators (MSOs) use their backbone networks to link their
local cable TV facilities to centralized headends that distribute TV and mov-
ies and perform functions such as billing and links to the Internet and other
networks.
Backhaul services that mobile providers lease link cell sites (towers and anten-
nas) to the data centers that support functions such as security and billing. Large
cable TV operators as well as small mobile operators lease backhaul capacity in
locations where they don’t have their own backhaul infrastructure. See Chapter 7
for more information on backhaul and cell sites.

Other Competitors to Broadband

Providers—Overbuilders
Overbuilders were the first facilities-based competitors to cable TV operators in the
United States. They began offering service immediately following passage of the Tele-
communications Act of 1996, which for the first time allowed competitors to offer ser-
vices “over” incumbent cable TV operators’ equipment. Overbuilders run their cables
over incumbent MSOs’ cables on telephone poles in residential neighborhoods. How-
ever, they reuse the drop wires installed by the incumbent cable TV operator. A drop
154 3  Competition, Industry Structures, and Regulations

wire is the cable from the telephone pole to an individual residence. RCN and Atlantic
Broadband are examples of overbuilders.
Overbuilders offer voice telephone service and Internet access in addition to pay-TV.
Some also sell broadband services to business customers in areas where they operate.
However, overbuilders underestimated the cost of building and maintaining these
networks. They also overestimated their ability to win customers from incumbent
cable television operators. One factor in the difficulty of attracting enough customers
to be profitable was their lack of financial heft to mount the widespread TV and print
advertising campaigns incumbents mount.
RCN Telecom LLC is the largest overbuilder. It offers service in New York City,
eastern Massachusetts, Philadelphia, and Washington, DC. Private equity firm TPG
purchased RCN and overbuilder Grande in 2016 and manages both RCN and firm
Grande Communications Network LLC. Grande provides cable TV service in Texas.
Atlantic Broadband was purchased by Canadian cable TV company Cogeco in 2017.

Agents
Agents act as independent representatives for carriers. Like insurance agents, a car-
rier’s agent receives commissions on services that it sells. AT&T, Comcast, Verizon,
and CenturyLink started agent programs as a way to lower the cost of selling services
to small businesses. Today many agents sell telephone services as an adjunct to the
telephone and networking equipment that they offer. Agents are certified and receive
some training from the telephone and cable TV companies they represent. They do
not bill customers directly for the voice and data services they sell; rather, customers
receive bills directly from the carriers.
Primarily small and medium-sized organizations use agents because they are often
easier to reach, and some have the ability to help troubleshoot problems when it is not
apparent whether the problem is in the carrier’s connections or the onsite equipment.
Moreover, carriers often prefer to serve smaller business customers with agents to
reduce their own staffing and selling expenses.
Retail outlets such as Best Buy and Staples act as agents for cellular providers
and prepaid cellular services as do small retail outlets in shopping districts and malls.
Wal-Mart, Target, and Amazon sell TracFone Wireless’s prepaid mobile phones and
services. TracFone Wireless is a unit of Mexico’s TelMex. In addition to large retail-
ers, there are often networks of small retailers that act as agents for larger companies
such as Comcast, T-Mobile, Sprint, and Verizon Wireless. The small retailers display
the logos of the carriers that they represent in their stores and sell hardware and acces-
sories for mobile phones in addition to service plans.

Resellers—Mobile Virtual Network Operators

Like agents, resellers do not own network infrastructure. Resellers are also referred
as Mobile Virtual Network Operators (MVNOs). Unlike agents, however, resellers
The State of the Industry—Consolidation via Mergers 155

provide billing and customer service for their customers and market services under
their own brand. Resellers sell wireline service such as data (Gigabit Ethernet and
other high-speed services), calling cards, Internet access, local calling, long-distance,
mobile services, VoIP services, and international calling. Table 3-7 lists a sampling of
resellers with the networks on which they resell services.
Resellers purchase services at discounts from facility-based telephone and cable
TV providers. They then mark them up, and often offer them below retail cost. Resell-
ers offer services carried on networks owned by AT&T, Sprint, Verizon, T-Mobile, and
other carriers worldwide. Sprint’s network hosts the most resellers in the United States
compared to AT&T and Verizon.

Table 3-7 A Sampling of Resellers on Facility-Based Providers’ Networks

Facility-Based
Provider Resellers
AT&T Consumer Cellular, Cricket Wireless,* H2O Wireless,
Net10,** Pix Wireless, TracFone Wireless**
Sprint Boost Mobile, FreedomPop, Tello, TracFone Wireless,**
Virgin Mobile
T-Mobile MetroPCS, Mint Mobile, Net10,* Project Fi, Red Pocket
Verizon CenturyLink, Comcast, Credo Mobile, GreatCall, Net10,**
Republic Wireless, TracFone Wireless**
*Cricket Wireless is owned by AT&T Mobility
**TracFone Wireless and Net10 resell service on multiple networks

Competitive providers such as Windstream and Frontier resell service in areas

outside of their own coverage areas. This provides them a way to offer nationwide ser-
vice. In their own coverage area, these and other competitive providers have their own
networks and switches and last-mile broadband facilities.
Comcast at one time owned rights to spectrum suitable for cellular service.
Spectrum is made up of invisible airwaves over which mobile, satellite and
other services’ signals are transmitted. Comcast sold their spectrum and instead
they now resell mobile services on Verizon’s cellular network. CenturyLink and
Cincinnati Bell also resell mobile services on Verizon’s cellular network. This
is less costly because it requires less maintenance and capital for building out a
cellular network.

Prisoners Call—Families Pay

In prisons within the United States, when prisoners call their families or attorneys,
they are required to make collect calls. Collect calls are those for which people receiv-
ing the call pay rather than the person making the call. In addition, all prisoners’ calls
are recorded. Prisons hire outside firms to manage the calls, the charges, and the
156 3  Competition, Industry Structures, and Regulations

recordings. The largest prisoner telephony providers are Securus Technologies and
Global Tel Link, also known as GTL.
All of these systems place the calls using VoIP technology. Many of these provid-
ers charge prisoners’ families rates many times higher than those made from home or
business telephones. For example, they tack on a surcharge of up to $3.16 for the first
minute of the call plus $0.16 for each additional minute. Various organizations have
sued these providers on the basis that the rates are exorbitantly high. The most recent
suit, a class action suit against county prisons, was filed in May 2018 at the Suffolk
Superior Court in Massachusetts on the basis that these charges amounted to kickbacks
to the prisons, which were paid commissions for these calls. Prisoners calls in state
prisons cost only $0.10 per minute with no surcharge for the first minute. The class
action suit is against the county jails, which are paid commissions by these telecom-
munications companies.
County prison officials justify these rates by claiming that without these extra
funds they would not be able to offer drug addiction and educational programs to
inmates. However, when asked, prisoners’ families responded that they would prefer
lower rates even if some programs were deleted or paid for by higher taxes. The other
issue, in addition to high costs, are claims by prisoners’ families that not infrequently
calls are cut off and prisoners must make a second or third call and pay the initial min-
ute fee of $3.16 a second and third time. Because many prisoners’ families have low
incomes, receiving these calls is a burden for them.
In another lawsuit, the telecommunications companies sued the FCC stating that
because VoIP calls are not regulated they can charge whatever fees they deem appro-
priate. The outcome of this lawsuit is still pending a decision by the judge. In 2015, the
FCC had set limits on charges for prisoners’ phone calls.

NON-TRADITIONAL COMPETITORS: ALPHABET,

APPLE, AMAZON, FACEBOOK, TWITTER,
SNAPCHAT, AND MICROSOFT .................................
Amazon, Alphabet, Apple, Facebook, Microsoft, and Twitter are multi-billion-dollar
conglomerates. They have each built a near monopoly in their specialty. They were
each started by innovators with vision, and technology perfectly tuned to their times.

Google—A Search Conglomerate that

Morphed into a Multi-Function Software
Company
Sergey Brin and Larry Page, the founders of Google Inc., met when they were PhD
candidates in the computer science department at Stanford. Page was looking at how
sites link to each other and Brin was looking at data mining—what information is
Non-Traditional Competitors 157

available and how to find it. They shared a feeling that web searching needed to be
improved and devised a new approach to sorting results. They took their ideas about
searching for information to other search companies. However, these companies were
focused on expanding into other areas such as adding functions to their portals (the
first screen that people saw when they logged into the site).
In contrast, Brin and Page wanted to focus on search, so they founded their own
company, Google, in 1998 and sought venture capital funding. When Google was
founded, there was competition from other search engines including Microsoft’s Bing
and Yahoo!. However, Google’s site quickly became popular solely by word of mouth
with no advertising.
In August 2015, Google’s founder Larry Page announced the creation of hold-
ing company Alphabet. Alphabet became the vehicle whereby new technologies and
startup companies were funded. Google, a subsidiary of Alphabet, is the cash cow of
the organization. Its revenue from advertising is the driving force that enables Alphabet
to underwrite new ventures such as self-driving cars.
Google has two sources of revenue: licensing its search software to smartphone
manufacturers and enterprises, and advertising on its search sites. Please see “Inves-
tigations into Google Search Practices” in Chapter 6, “The Internet,” for information
on the European Union’s investigation of Google’s privacy practices and page ranking
that favored its own sites for such services as travel and retail over those of competitors.
In addition, Google offers cloud hosting to enterprises in the United States and
internationally. The international locations include Netherlands, Montreal, Finland,
and Hong Kong. Because of their need for capacity for transmitting data between all
of these sites, Google has also invested in subsea, or submarine, cables to ensure that
capacity is available for the massive amounts of data they transmit between all of their
cloud data centers.
In addition to their software, Alphabet purchased former hardware manufacturer
Northern Telecom’s mobile telephone manufacturing unit. They also acquired the
Android mobile operating system from Android Inc. The initial version of Android
was developed by Andy Rubin. The Android operating system is installed primarily
on Google’s Chrome laptops, Google Pixel smartphones, and Samsung smartphones.
Alphabet made over 100 investments using their profits from Google’s advertis-
ing and software rights between 2001 and 2018. Alphabet had total revenue of $31.15
billion in the first quarter of 2018. Growth in mobile services, YouTube, and primarily
Google advertising revenue, is adding to Alphabet’s bottom line. Table 3-8 is a partial
list of acquired companies and services developed by Alphabet and its subsidiaries.
See “Using Search Engines to Unleash Vast Stores of Information” in Chapter 6.
Alphabet has acquired specialty software firms with key patents and software.
Google has additionally enhanced its advertising services with billing and automa-
tion capabilities. In addition, Alphabet is hoping to build future opportunities for ser-
vices and products with its culture of fostering new ideas and innovation by allowing
employees to form spontaneous groups to develop new applications.
158 3  Competition, Industry Structures, and Regulations

Table 3-8 A sample of Alphabet’s Endeavors

Software or
Service Offering Product or Service Capability Status and Capabilities
Google Fiber Fiber to the premises in 10 areas Put on hold in 2016
for Internet access, and cable TV in because of higher than
the following metropolitan areas: expected costs & fewer
Kansas City, Atlanta, Charlotte and subscribers; at that time
Raleigh-Durham, N.C. and Nashville, service had 84,232 TV
Tennessee subscribers and 453,000
broadband subscribers
ITA travel service Airfare search tool ITA is advertised on the
Internet
DoubleClick Technology that automates place- Still in use
ments of display ads for ad agencies
and advertisers
Admeld Software that helps large web sites Blended into its Double-
sell and manage advertising on their Click service
sites
Google Pay Ability to pay bills from smartphones; A specialized Chrome
Verizon, AT&T, and T-Mobile pre- tablet computer for small
installs software on smartphones they retailers or a small device
sell for grocery stores is
needed to accept these
payments
Keyhole Tech- Software from these three organiza- Still in use
nologies, Zipdash, tions was used to develop Google
Inc., and Where2, Maps
LLC
Google Pay Send Peer-to-peer payments A way for people to send
payments to each other
Project Fi Wireless services sold to residential Google sells wireless ser-
subscribers; not available on Apple vice over leased T-Mobile,
phones Sprint, and U.S. Cellular
networks
Nest Automated thermostats to conserve Programmable thermostat
energy with machine learning
that adjusts to customers’
patterns for automatically
controlling lights, heating
and cooling
Non-Traditional Competitors 159

Software or
Service Offering Product or Service Capability Status and Capabilities
YouTube Online short form videos posted by Also provides long-form
subscribers streaming videos on
YouTube TV
Waymo LLC Self-driving car software Aimed at ride-hailing cars,
fleet management, and
public transportation; cur-
rently in road tests

Amazon—From Online Book Sales and

Cloud Services to On-Ground Grocery Stores
Jeff Bezos founded Amazon in 1994 and started its online platform in 1995. The first
items that Amazon sold on its web site were books. Books are not fragile, are relatively
easy to package, and can be mailed at book rates. He additionally discounted books
so that they were often less costly than those at brick-and-mortar stores. Bezos recog-
nized that in order to have a large market presence, he would have to offer low prices.
He did this for many years, often operating at a loss or at low profit margins.
The success of Amazon’s book sales, whose prices undercut brick-and-mortar
retailers, resulted in Barnes & Noble closing a number of stores, and Borders going
out of business. To prop up sales, Barnes & Noble branched out into toys, games, and
music. Many small, independent book stores went out of business because they were
unable to match Amazon’s prices.
When they first sold merchandise online, Amazon did not charge the 5 percent to
7 percent sales tax on consumers’ purchases charged in most states’ retail stores. This
put brick-and-mortar stores at a price disadvantage. States objected because it meant a
loss in tax revenue. This changed, and Amazon now charges sales tax on all purchases.
An innovation at Amazon was the introduction of customer reviews about products
they had purchased. Amazon published both positive and negative product reviews.
This is an important feature for online customers that cannot see products in person.
Reviews are now a standard feature at many online retailers’ sites.
Amazon is the largest online retailer in the United States, about the same size as
Chinese online retailer Alibaba. In addition, Amazon has a retail cloud presence in 14
countries outside of the United States. Amazon’s success is aided by its fast shipping,
free returns, and the breadth of its offerings.
Amazon also offers streaming TV, which is free to Amazon’s Prime customers that
pay $119 annually for free deliveries and returns on Prime goods. In 2018, Amazon
modified its prices for streaming and now offers streaming to non-Amazon Prime cus-
tomers for a flat fee of $9 per month.
It also hosts Marketplace, a service where other retailers list their products on
Amazon.com. In addition to charging Marketplace retailers a hosting fee, Amazon
160 3  Competition, Industry Structures, and Regulations

earns a commission on all goods these retailers sell on its site. They additionally charge
fees for warehousing and delivering packages for these private retailers if they request
warehouse and delivery service. In 2006, Bezos began offering cloud and security ser-
vices to large and small enterprises on its online data centers. It is the largest hosting
provider in the United States. See Chapter 2, “Data Centers and LANs, Storage, and
IP Private Branch Exchanges,” for more information on Amazon’s cloud computing.

Amazon—Expansion and Diversification

In addition to its cloud hosting services and the merchandise on its online site, Amazon
developed a low-priced e-reader, the Kindle. The Kindle is promoted for downloading
books and streaming its music, TV shows, and movies from Amazon’s cloud.
As well as web hosting and e-commerce, Amazon has branched out to providing
streaming video, smart TVs, and the home automation devices Echo and Alexa. It also
sells Fire tablet computers, and over the top streaming set-top box Fire TV. Fire TV is
integrated into smart televisions Insignia, Best Buy’s branded television, and Toshiba
televisions.
Amazon also provides its facial recognition system, Rekognition, to police depart-
ments. The system has a database of hundreds of identified images that it uses to com-
pare to videos that capture unidentified perpetrators committing crimes and people in
crowds. It is currently only 80 percent accurate.

Advertising
Amazon accepts advertising on its site. However, the ads are clearly marked as spon-
sored merchandise. In addition to ads on its own site, it also sponsors an ad network
that places ads on web sites across the Internet.

Subsidiaries and Purchases

Amazon is continually looking at new products and services to offer and subsidiaries
to purchase. The following are some of these subsidiaries:

• Goodreads: A site where people review and comment on books they’ve read.
• Twitch: A video game streaming service that includes chat about games and
video game competitions. It also offers streaming of select Saturday Night
Live shows on which people can comment.
• Audible.com: Audio books.
• Whole Foods Market: 400 supermarkets throughout the U.S. This is
Amazon’s largest purchase at over $40 billion.
• Alexa Internet: Home automation; includes the smaller Echo.
Non-Traditional Competitors 161

• Amazon Game Studio: Online game development.

• Amazon Studios: Producer of original online content for streaming.
• Internet Movie Database (IMDB): Online movie reviews.
• Zappos: Online shoes and clothing retailer.
• Blink: Home security camera that can be used with Amazon Key to monitor
Amazon deliveries to homes with special locks that can be opened by driv-
ers. Blink cameras will monitor deliveries left inside the home.
• Ring: Video doorbells for smart, automated homes.
• Music: Streaming music.
• ComiXology: An online platform for sales of thousands of comic books.

In addition to the above purchases, Amazon is testing the provision of supplies

to hospital chains and individual hospitals. They have also announced Shipping with
Amazon, a service in tests in Los Angeles where Amazon vehicles will pick up pack-
ages from businesses and deliver them to the end users.

Facebook—An Influential Social Network

Facebook is the largest social network in the United States. Its primary source of rev-
enue is advertising.
Facebook, which was launched in 2004 by Mark Zuckerberg and Eduardo Severin,
was in its early years primarily a vehicle for college students to interact with each
other. It has morphed into an enormous social network with over two billion users
where primarily adults exchange information and update each other with news about
themselves.
To attract additional advertising, Facebook has taken steps to attract younger
people to its site. Their subsidiary Instagram is a vehicle for people to socialize and
exchange photos and short videos. It adopted some of the same features that Snapchat
originally implemented. See below for information on Snapchat.
Unfortunately, Facebook is additionally widely used to sway public opinion on
political and economic issues. Moreover, between 2014 and 2016 groups of people
with political agendas used the site to spread false information. Millions of people
opened accounts under pseudonyms. And it is widely believed that the Russian govern-
ment was actively involved in using Facebook to sway public opinion with false claims
made under fake identities.
Facebook’s European headquarters is in Dublin, Ireland where it supports the
company’s growing number of international sites. Facebook is currently working to
establish units in the developing world, including sub-Saharan Africa.
162 3  Competition, Industry Structures, and Regulations

In a similar manner to other social networks, Facebook derives its revenue from
advertising on its network. Its ad revenue grew to $11.69 billion in the first quarter of
2018 alone.
In its effort to attract younger subscribers, Facebook has purchased companies
and developed new services and apps. Many of these are geared to the younger people
Facebook is hoping to win back to its sites to increase its advertising revenue. Adver-
tisers pay higher rates for ads aimed at younger age groups. Its subsidiaries and apps
include the following:

• Instagram: A social networking app with 800 million monthly users where
people share videos and photos. Messaging between users enables multiple
video and photo posts sequentially. The multiple posts are available for only
24 hours. The site has photo- and video-formatted ads that are labeled as
advertising.
• Messenger: A chat app that supports mobile voice and texting. Users are not
required to have a Facebook account.
• Oculus VR: A headset that supports virtual reality. Virtual reality is a tech-
nology that supports immersive reality where people playing video games
feel as though they are actually participating in the game. Samsung smart-
phones can be integrated into Oculus VR. A division of Oculus develops
video games for Oculus virtual reality headsets.
• WhatsApp: A messaging app that supports texting and VoIP calling between
international as well as local locations.
• TBH: A polling app geared to teens; it’s short for “to be honest.” TBH has
a list of short surveys with 15 questions that are sent to users’ Facebook
contacts. Respondents select one of four people that fit each of the poll’s
questions. None of the descriptions describe negative traits.
• Workplace: In 2016, Facebook started Workplace, a cloud-based application
for large enterprises with networking features such as messaging via VoIP
and audio and video calling. Unlike, the majority of Facebook’s consumer
sites, Workplace charges fees based on the number of employees that log
into Workplace monthly. It is not an ad-supported service.
• Watch: An ad-supported streaming media service with long form original
video content. Short ads are shown prior to the start of each video.

Hacking, Fake Names, and Political Influence

Facebook has lost subscribers, but its revenue increased despite publicity about
Cambridge Analytica’s 2014 through 2016 theft of 87 million users’ personal data.
However, it did take steps to prevent another such theft and the proliferation of fake
posts. They disabled one billion fake accounts and millions of posts that contained
Non-Traditional Competitors 163

spam, obscene content, and hate speech. They additionally suspended about 200 suspi-
cious apps and reviewed thousands more. These steps were taken using 10,000 staff
moderators plus automated moderating software programmed to look for key words
and phrases.
Facebook CEO Mark Zuckerberg testified before the United States House of Rep-
resentatives and the Senate in April of 2018 about the Cambridge Analytica’s hacks,
where he pledged to do a better job protecting privacy in the future. He is also now
issuing biannual transparency reports about Facebook’s steps to protect users’ privacy
and efforts to monitor posts and apps on its site.
The ramifications of these hacks is not over for Facebook. Its privacy practices are
being investigated by many states’ Attorney Generals. And the Federal Trade Commis-
sion is investigating Facebook’s violation of a 2011 agreement to protect subscribers’
privacy. If the FTC finds it violated their agreement, they may recommend a record
high monetary fine. In addition, a number of senators stated that Facebook should be
regulated because they are too large to self-regulate themselves.
Facebook additionally testified in May of 2018 before the European Parliament.
The hearing was streamed in real time. It’s unknown at this time what steps if any
the European Parliament will take in response to the hacks and privacy breaches that
occurred at Facebook.

Snapchat—A Visual Social Network App

Snapchat is a social network geared to teens. It aims to be more visual than its competi-
tors, with more video and photos posted.
Snapchat, whose corporate owner is Snap, is the social network of choice for many
teens. It has over 300 million subscribers that visit at least once per month. Snapchat
was founded in 2011 by former Stanford University students Evan Spiegel, Bobby
Murphy, and Reggie Brown. Evan Spiegel is the current CEO. Like Facebook, Snap’s
revenue is derived from advertising on its site. The brief video ads appear mid-stream
in the videos and photos that subscribers view. Many of the long form videos are cre-
ated by Snapchat staff and partners.
Snapchat subscribers post videos and photographs, “snaps,” and socialize on Snap-
chat mainly with students at their school. They post photos of recent get-togethers as
well as messages. One feature that appeals to teens is that photos can be posted as soon
as they’re taken without first saving them to a photo app. Originally, snaps disappeared
10 seconds after they were viewed. Now subscribers are able to designate Snaps that
can be saved. Snapchat has filters and lens that subscribers use to add special effects
to photos. The filters enable people to modify photos of themselves by adding special
effects such as backgrounds and animal ears. Users can also design emojis and com-
municate feelings using Snapchat’s emojis. Emojis are small pictures such as smiley
faces that depict emotions (frowns, winks, etc.) and approval, clapping hands, and
other visual messages.
164 3  Competition, Industry Structures, and Regulations

Snapchat has three functions that subscribers can click on. These include recent
articles about celebrities organized in multiple channels. Another section is for chatting
with friends, and a third section is where subscribers can post multiple snaps into a nar-
rative. Posts can include Snapchat emojis and emojis that subscribers customize using
tools on Snapchat. The February 20, 2017, article by David Pierce, “The New Snap-
chat: Less Social, More Fun,” in the online Wall Street Journal stated that Snapchat is:

a place for hanging out with my friends, taking goofy pictures and
watching some fun videos.

Microsoft—Office Productivity, Operating

System Software, Cloud Hosting, and Xbox
Microsoft, which sells the lion’s share of office productivity software worldwide, owns
the largest network of cloud data centers, Azure. Azure data centers are located in 50
regions worldwide. Azure is a platform on which developers customize Office 365
software for enterprise customers. Azure additionally hosts Microsoft’s enterprise soft-
ware such as Dynamics, Enterprise Resource Planning (ERP) for managing enterprise
processes, and Customer Resource Management (CRM) software for managing enter-
prises’ interactions with current and potential customers.
Enterprise customers’ staff and developers access the software remotely. Microsoft
additionally sells high-security cloud services to governments and in particular to 17
U.S. intelligence agencies.
Microsoft also sells Xbox One gaming controllers and video games. They devel-
oped the motion detection used in their controllers and those of other gaming control-
lers. The other hardware Microsoft sells are laptop and desktop computers as well as
the operating systems on these computers. Microsoft owns and developed the Bing
search engine, which is the most-used search engine behind Google.
Microsoft’s two major subsidiaries are LinkedIn and Skype. LinkedIn is a social
network designed for businesspeople. Professionals use it to network with others in
their field. It is international in scope, with more than half of its members based outside
of the United States. LinkedIn was established in 2003 and is a forum for people to
offer services such as marketing and training in new technologies. The issues discussed
are pertinent to particular fields and technologies. It is not unusual for posts offering
opinions on new technologies to attract hundreds of responses. In addition, recruiters
post job openings and people explore employment opportunities by using these posts,
which are organized by specific careers.
The $8.5 billion purchase of Skype has a number of advantages for Microsoft.
The majority of Skype customers prior to the Microsoft purchase were residential
subscribers. In 2018, Microsoft changed the name of Skype to “Microsoft Teams”
when marketing it to enterprise customers. It additionally added collaboration to the
enterprise package. Skype upgraded and promoted its services from solely residential
customers to small and medium-sized businesses and kept the designation Skype for
Non-Traditional Competitors 165

these smaller and residential customers. It also provides an onsite server for enterprise
customers that integrates with Microsoft Exchange contact management software. In
addition, many businesspeople who travel for work use Skype and Microsoft Teams on
the road for video and audio conferencing and international telephone calls. Table 3-9
presents a partial list of acquisitions.

Table 3-9 A Partial Listing of Microsoft Acquisitions

Acquired Company: Description of Purchased Organization’s
Year Acquired Technologies
Hotmail: 1998 Web e-mail. Microsoft uses the technology to attract
traffic to its Bing search and its Office 365 cloud
applications.
Visio: 1999 Charting software used for applications such as project
management.
Bungee: 2000 Microsoft’s successful Halo series of games that operate
on the Xbox 360 hardware are based on Bungee software.
TellMe: 2007 Automated telephone directory activated by voice
commands. Used by telephone companies for directory
assistance and by large corporations such as airlines,
which use it for reservation systems.
aQuantive: 2007 Online advertising software.
Skype: 2011 Skype and Microsoft Teams are the most widely used
services worldwide for making international voice calls
and audio and video conferences.

Twitter
An international specialized social network, Twitter is another form of social network-
ing. People use Twitter to broadcast microblogs, or “tweets,” of not more than 280
characters to others who “follow” them. Many celebrities and most businesses have a
presence on Twitter. They use it to post timely information about their business and for
public relations purposes. Interestingly, Twitter is used more by people older than 25
than by teens, who mainly use Snapchat and sometimes Instagram. Twitter also streams
live events including inaugurations and sporting events. It includes a “Moments” sec-
tion with photos and updates about celebrities and current events. Users tweet com-
ments on the news and celebrity updates in Moments.
Commercial organizations use both Facebook and Twitter to promote their products
and to monitor people’s reactions to their products and services. In addition to public
relations benefits, feedback on social networks enables businesses to react more quickly
to complaints or to learn how to improve their products. It also enables non-profits to
conduct fund-raising efforts and candidates for public office to gain a following.
166 3  Competition, Industry Structures, and Regulations

Twitter is a public company with 2018 first quarter revenue of $731.6 million.
The majority of Twitter’s revenue is from advertising on its sites and the rest from
licensing fees.

Apple
Apple, Inc., is the world’s most valuable company. It develops both the hardware
specifications and operating system software on its Apple Watches, Apple TV, smart-
phones, desktop computers, Home Ped home automation, laptops, tablets, and Wi-Fi
routers. To a large extent, it also controls the applications that users download from its
App Store. Apple screens every application before it allows developers to sell apps in
its online store.
This control is one factor that has enabled Apple to maintain the high quality of its
products. Apple is currently the leader in premium, high-end products. Its devices are
priced at the high end of their respective market segments. Its high prices are a factor
in Apple’s enormous profits and market capitalization, the number of shares of stock
outstanding multiplied by the current value of each share of stock. As of mid-2018,
Apple’s market capitalization was $1 trillion, the highest of any other company in the
United States.
Apple devices are based on proprietary operating systems and software. They are
“closed” systems that require applications and printers that are compatible with Apple’s
operating systems. Customers who purchase its iPods often use Apple’s iTunes store
for music downloads. Compatibility between the applications in its App Store and the
iTunes web site provides a compelling reason for customers to continue purchasing
Apple gear so that generally all-new apps are not needed for new mobile and wired
computers.
Apple’s major innovation is its user-friendly interfaces, which have been a factor
in the company’s success since its inception, across all of its product lines. The empha-
sis on user-friendly interfaces was instituted by Steve Jobs, Apple’s founder. Prior to
its introduction of the iPad in 2010, only a small number of tablet computers were sold
annually. In contrast, Apple sold 14 million iPads worldwide during the first year they
were available because of the iPad’s innovative, touch-screen interface. This spurred
other manufacturers to introduce their own tablet computers and changed the way
many people in business and homes use computers and watch video today.
Apple introduced its iCloud music, photo sharing, and video storage service in
2011. Subscribers can access their music and video stored on iCloud from any mobile
or wired computer.
The wireless technology, design, and staffing in its retail stores are another exam-
ple of Apple’s innovations. Apple uses wireless service with which its sales associates
can accept credit card payments, print receipts, and have e-mail receipts sent to cus-
tomers, all through handheld devices. The handheld devices include barcode scanners
Non-Traditional Competitors 167

to enter the purchased item and card readers to accept credit card payment. This results
in customers not having to wait in line to pay for purchases, thus saving time and
retail space. There are also demonstration computers, tablets, and iPods on display for
customers to try out. In addition, Apple improved customer service by introducing the
Genius Bar in each store. The Genius Bar is staffed by technical employees who pro-
vide diagnoses of hardware and software issues for customers. The retail stores have
a web-based system for customers to make appointments with the Genius Bar before
coming to the Apple store, further alleviating long waits and lines.
Apple owns iTunes where it sells and streams music, TV shows, and movies. It
also offers streaming music subscriptions called Apple Music. Apple is spending $1
billion to develop original content for streaming. The streaming service is thought to
be available in the spring of 2019.
Like Amazon, Alphabet, and Facebook, Apple acquired expertise for a host of its
offerings by buying companies with the technologies needed for new products and
services. Table 3-10 presents a partial list of acquisitions.

Table 3-10 A Partial Listing of Apple’s Key Acquisitions

Description of Purchased Organization’s
Acquired Company Technologies
NeXT Founded by Steve Jobs to develop user-friendly,
graphics-capable computers. Became the basis for
Apple’s Mac computers.
Emagic Software used by musicians to produce music. Used in
Logic and GarageBand applications.
Placebase The initial basis for Apple Maps
Lala.com A music cloud storage and streaming service. Used for
iCloud and iTunes Match for music storage.
Quattro Wireless Software for mobile advertising
Siri Developer of speech recognition software used in
iPhones.
IMSense Developer of software for cameras. Used on iPhones
and iPads.
Shazam Music Identifying App
Emagic Software used to develop GarageBand for creating
digital music
Beats Electronics Headphones sold at Apple stores and to resellers.
PrimeSense Motion Detection software used in Microsoft’s Xbox
game systems
168 3  Competition, Industry Structures, and Regulations

APPENDIX ..............................................................
Table 3-11 Regulatory Highlights
Landmark Acts and
Court Rulings Summary of Acts and Rulings
The Federal Communica- Congress created the FCC and gave it the authority to regulate
tions Act of 1934 interstate telephone, radio, and telegraph companies.
The 1956 Consent Decree The Justice Department allowed AT&T to keep its monopoly
but restricted it to common carrier functions. The Consent
Decree mandated that any patents developed by Bell Labs, then
AT&T, be licensed to all applicants requesting them. This led
to the availability of—among many other things—microwave
technology to MCI and the ability of competitive carriers to
build fiber-optic–based long-distance networks.
The 1969 MCI Case The Federal Communications Commission ruled that MCI,
then known as Microwave Communications, Inc., could con-
nect its equipment to the public network provided that the
network was not harmed. This decision opened the competi-
tive premises equipment (CPE) market to AT&T rivals such
as Northern Telecom and Executone. Prior to this, only AT&T
was allowed to provide telephones for connection to the Public
Switched Telephone Network (PSTN).
The 1982 to 1983 The Justice Department, in agreement with AT&T and with
Modified Final Judgment approval by Judge Harold H. Greene, agreed to a settlement
that
• Divested the then 22 Bell Operating Companies (BOCs)
from AT&T
• Prohibited BOCs from inter-LATA long distance, sale of
CPE, and manufacturing
• Mandated that the local exchange companies provide
equal access (dial 1) from end users to all interexchange
carriers
The 1984 Divestiture The terms spelled out in the Modified Final Judgment were
implemented on January 1, 1984. The 22 Bell telephone
companies were merged into seven Regional Bell Operating
Companies (RBOCs). The RBOCs were allowed to sell local
and toll calling within the 197 defined local or in-state Local
Access And Transport (LATA) areas. They also retained the
Yellow Pages. AT&T retained manufacturing and inter-LATA
(primarily interstate) and international toll calling.
Part III
Managing Broadband
Networks and Broadband
Network Services
Chapter 4 Managing Broadband Networks
Chapter 5 Broadband Network Services

169
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4 Managing Broadband Networks
In this chapter:
 Introduction 172
 The Public Network 173
 Core Networks—Between Cities and Continents 175
 Bandwidth Capabilities in Carrier Networks 187
 Optical Transport Networks—Carrying Multiple Types of Traffic 191
 Transporting Movies and TV in the Core 195
 Middle-Mile Networks 197
 Last-Mile Access Networks 199
 Access Networks in Cable Operators’ Networks 209
 Using Cable Modem Termination Systems for IP Traffic 211
 Telecommunications Services in National Emergencies 217
 Signaling 220
 Appendix 224

171
172 4  Managing Broadband Networks

INTRODUCTION .....................................................
Growing dependence on cloud computing, social networking, and in particular video
streaming has caused data traffic to increase more rapidly than ever before. According
to Cisco, busy hour data traffic increased 32 percent from 2015 to 2016, and 51 percent
from 2016 to 2017. This increase in traffic volume presents enormous challenges to
carriers. Adding capacity to networks does not solve issues of managing the added
video on networks. In addition to adding capacity, telephone and cable TV operators
are implementing software to:

• Automatically reroute traffic around congested or failed routes

• Prioritize content on networks
• Streamline the process of implementing new revenue, producing services for
residential and enterprise subscribers.
• Quickly and cost effectively deploy and back up network gear
• Quickly add new subscriber and enterprise features by enabling subscribers
to activate them
• Manage routing to minimize traffic delays
• Provide 99 percent network uptime

Software Defined Networking (SDN) is being implemented in providers’ networks

to accomplish the above goals via policies defined in SDN software. SDN control soft-
ware enables automatic network functions, such as rerouting traffic around network
outages. SDN is installed on computers in network operations centers where techni-
cians can react to major outages.
Network Function Virtualization (NFV) is a technology that eliminates the need
to install network functions on proprietary hardware. Instead, multiple network func-
tions, including routing and switching, are abstracted in software and installed on
commodity servers. The power of NFV is that these pieces of abstracted software
can be inexpensively duplicated and backed up in spare servers. Importantly, NFV
in networks provides the ability for network functions to be upgraded and equipment
installed at a faster pace with lower costs.
To accommodate the growing percentage of data traffic, central offices are under-
going a transition that enables them to better manage the data in their networks from
centralized locations. Central Office Re-architected as a Data Center (CORD) specifies
re-engineering central offices to be more like enterprise data centers. CORD is used by
telephone companies to manage their shared, centralized applications and functions in
a similar way to data centers in enterprises.
The Public Network 173

Similarly to carriers’ broadband networks, submarine networks that connect con-

tinents using fiber-optic cabling must manage growing amounts of data. According
to consulting firm TeleGeography, traffic on undersea cables increased 45 percent in
2016. Reflecting the change in international traffic patterns, traffic from carriers no
longer represents the major source of traffic on submarine cables. Rather, traffic from
content and cloud providers including Facebook, Microsoft, and Google now generate
the largest percentage of traffic on submarine networks.
The desire to ensure adequate capacity on submarine cables has led some orga-
nizations to take partial ownership of submarine cable routes. Facebook and Google
together own one third of the capacity of a cable route between Hong Kong and Cali-
fornia. Microsoft and Amazon also own parts of other submarine cables. Modifications
to the electronics connected to fiber-optic cabling on submarine cables are done to
increase capacity on submarine cables.
Telephone companies transport traffic on core networks between large cities. They
additionally carry traffic on middle-mile networks that connect rural areas to on-ramps
to the Internet, and on last-mile networks to individual subscribers and enterprises.
Upgrading and installing last-mile, edge networks is challenging. Last-mile networks
require the most complex cabling, and entail the highest costs. This is because of the large
number of individual connections to homes, enterprises, and multi-dwelling buildings.
Keeping networks available and operational during national emergencies is a goal
of all countries worldwide. Monitoring and managing networks for sustainability and
the ability to communicate during national emergencies is a major challenge. Alternate
routes, software management of networks, and continuous monitoring are critical in
ensuring that vital networks are available when businesses, governments, and individu-
als need them in emergencies and for conducting day-to-day business. In ever-increasing
numbers, people depend on broadband networks to stay in touch, access applications,
get news, and participate in electronic communications during day-to-day activities.

THE PUBLIC NETWORK ..........................................

All networks including mobile, Wi-Fi and LAN networks have access (edge), metro-
politan (backhaul), and backbone sections. Rural areas generally also have middle-
mile networks. The structure of public networks can be broken into five categories. The
list that follows provides a brief description of each.

1. Last-mile (also referred to as edge, first-mile, or access networks).

2. Metropolitan area networks (MANs) within cities.
3. Middle-mile or backhaul, located between small cities and long-haul net-
works, connect rural areas to long-haul (core) networks.
174 4  Managing Broadband Networks

4. Regional networks connect cities that range from 200 to 400 miles apart.
This includes Boston to New York City, and New York City to Washing-
ton DC. These links carry traffic in large cities to cable TV and telephone
company switches or routers where traffic is aggregated and connected to
backbone or middle-mile networks.
5. Core networks connect cities and continents. Core networks are also referred
to as the backbone section of networks.

W
Workers in the telecommunications and data-network industry often use
different nomenclature for the same equipment or type of network. For
d
example, core networks are also referred to as long-haul and backbone
e
networks. Access or edge broadband network are commonly referred to as
last-mile and first-mile, and edge networks. In addition, the terms “providers,”
“carriers,” and “Internet Service Providers” (ISPs) are also used synonymously.
They all provide voice, data, mobile service, video, or Internet access.

Sections of Carriers’ Broadband Networks

Access or edge Access networks, also referred to as first-mile or last-mile
networks networks enable customers to access the network and
telephone companies to reach customers. For the most part,
local telephone companies and cable TV companies own
access network cabling and electronics. For wireless com-
panies, their antennas provide links to customers’ mobile
devices. Access networks also link long-haul providers to
customers via last-mile networks. Some access networks
use fixed wireless, as well as landlines and cellular antennas
to link people’s mobile devices and home telephones to the
network.
Because there are so many cable runs to individual resi-
dences and local businesses, these are costly to upgrade,
and are often the last part of networks to be upgraded from
older copper cabling to higher capacity fiber cabling. Access
networks include connections from major skyscrapers and
office parks to a carrier’s equipment.
Metropolitan Area MANs run from a carrier’s equipment in towns to Points of
Networks (MANs) Presence (POPs) and wiring centers. A wiring center is a
location with a local telephone company switch and con-
nections and electronics for outside cabling. A POP is the
location where a switch hands off traffic to long-haul and
backbone providers, and vice versa.
Core Networks—Between Cities and Continents 175

Middle-mile or Middle-mile networks link rural areas to core (backbone)

backhaul networks networks. They consist of the fiber or wireless links to
backhaul carriers’ switches. For the most part, they connect
rural areas to inter-city networks and to the Internet. Back-
haul refers to “hauling” traffic from local sources to core,
backbone networks.
Core, backbone These links span hundreds of miles and carry traffic between
networks distant cities. In the United States, backbone networks link
Los Angeles to New York City, and Boston to Chicago.
Undersea cables that span oceans are also examples of long-
haul networks. They carry intercontinental traffic between
the United States, Europe, Africa, Australia, New Zealand,
and Asia via submarine cables.

B
Because no single telephone, cellular, or cable TV company has service
everywhere in the United States or the rest of the world, all providers need
e
cconnections to and from other telephone companies to transmit voice and
data traffic between their own customers, the Internet, the cloud, cellular
networks, and customers served by other providers. They additionally need
connections to carriers in other countries.

CORE NETWORKS—BETWEEN CITIES AND

CONTINENTS .........................................................
Core networks, largely based on IP, transmit the highest concentration of traffic in pub-
lic networks. They transmit packetized voice (VoIP), shrinking amounts of non-VoIP
voice traffic, data, and video on high-capacity fiber-optic cabling. Traffic in the core
is transmitted across countries, between countries and continents, and under oceans.
At multiple points along the route, the traffic is:

• Dropped off at wiring centers and Points of Presence (POPs) closer to urban
and suburban areas.
• Handed off to other long-haul carriers to be transmitted on other routes.
176 4  Managing Broadband Networks

• Transmitted to Metropolitan Area Networks (MANs) located in cities.

• Sent to residential and business customers over last-mile networks by either
the long-haul carrier, the local landline telephone company, or a cellular
telephone company.

Carriers also transmit data and VoIP traffic between enterprise sites on long-haul
networks. Special arrangements are made with these customers for optional services
such as security and priority treatment for voice and video conferencing. These net-
works are considered part of a carrier’s private data networks. They are separate from
the Internet and offer guaranteed speeds and low latency (unnoticeable levels of delay
or no delay) on an end-to-end basis. For more on this, see Chapter 5, “Broadband
Network Services.”

Software Defined Networks to Manage

Traffic Surges
Telephone companies are increasingly upgrading sections of their networks, often in
anticipation of upgrading fully to SDN to manage the annual doubling of traffic on
networks. SDN, as the name implies, controls networks via policies created in software
to manage traffic. The growing amounts of traffic in carriers’ networks is due mainly to
data the increasing amounts of traffic to and from the cloud, and from streaming video
from Netflix, Amazon, and others.
Movies and TV shows that formerly were exclusively available on cable TV net-
works are now streamed 24 hours a day from sources such as Amazon, Netflix, and
Hulu. This causes unpredictable spikes in traffic. Increasingly, cable TV and traditional
telephone company customers want anytime-anywhere availability of movies and TV
shows. They stream content to smartphones, tablet computers, and Internet-connected
televisions at any hour of the day or night.
Streaming video needs to be treated differently from e-mail and text messages.
Video in the form of movies and conference calls needs to be prioritized so that delays
don’t cause breaks and pauses in the audio or video. In order to dynamically treat these
massive amounts of traffic, traffic flows are prioritized in real time by type of content
and often by application as well. For example, e-mail usually has a lower priority than
real time streaming video because short delays on e-mail and text messages aren’t
noticeable. The software control in SDN is able to manage these peaks and prioritize
particular types of traffic.
Software Defined Networks have a centralized controller that specifies the treat-
ment of applications and handling of traffic. This is accomplished via policies sent to
network nodes in real time, directing the use of particular routes, and priorities for traf-
fic flows. These policies are transmitted on the control plane. The controller sends out
policies in real time to network nodes (switches and routers) that transmit the actual
data. For example, if a route is out of service, the controller will transmit updated poli-
cies to nodes so that all traffic is rerouted to a functioning path in the network.
Core Networks—Between Cities and Continents 177

The following are examples of control plane policies:

• Redirecting traffic during peaks.

• Opening bandwidth when it is needed during an event such as a presidential
inauguration. For example, carriers commonly rate-limit traffic by running
a 400Gbps pipe at 10Gbps. When required, the bandwidth can be easily
increased to 400Gbps.
• Reconfiguring an optical multiplexer on the fly, automatically, or manually,
via remotely entered computer commands.
• Selling web portal access to IT managers so that they can add more band-
width for a special event without waiting for the carrier to provision more
service.
• Decreasing delays and increasing revenue from new services more quickly
by speeding up installations such as cable modems and high-speed network
access for commercial customers. This means that an installer can make one
visit to an enterprise to install gear, and then power up the service remotely
through software. Previously, multiple onsite trips were required for setup.

Virtual Networks and Functions

The term virtual refers to functions or networks that have all the features and
functions of hardware or network structures that they emulate, but their physi-
cal form is different. In the example of Virtual Network Functions, capabilities
formerly found in hardware such as routers and switches are represented in
software that has the same features and operates the same as hardware-based
switches and routers. The network architecture can also be virtualized. This is
done in Network Function Virtualization below.

Network Function Virtualization—Architecture

Network Function Virtualization (NFV) is an architecture in which network functions
such as storage, routers, and switches are represented in software. These functions
no longer need to be installed on dedicated, vendor-specific hardware. It’s similar
to server virtualization where multiple applications are installed as virtual machines
on servers. However, instead of applications being virtualized, with NFV hardware
devices (network nodes) are represented as software in servers. NFV specifies the way
that these software functions fit together.
178 4  Managing Broadband Networks

Virtual Network Function—Transforming Hardware

Nodes into Software Functions
Virtual network function (VNF) refers to each piece of software in virtualized servers
that represents a hardware function. These functions, some of which are listed below,
can work together, are easily duplicated, and are generally installed on commodity
hardware such as X86 and newer type servers with additional processing power. See
Figure 4-1 for an example of VNFs in a single server. The equipment in which multiple
VNFs are installed is referred to as a White Box.

White Box
The term White Box denotes a server with multiple instances of virtual network
functions (VNFs) within a single server. Each of the functions listed below were
formerly housed in individual, proprietary, vendor-specific hardware “boxes.”
The NFV architecture enables these capabilities, previously implemented in
various pieces of vendor-specific hardware, to exist with other network functions
in a single open source commodity server.
The advantage of a White Box is that functions within it can be more easily
installed and duplicated than installing hardware and backing up each piece of
hardware in the event of failure. Additionally, network functions can be added
more quickly, a factor in increasing the speed of upgrading network functions.

A White Box with Virtual Network Functions (VNFs)

Switch

Router

Firewall

Virtual Network Security software

Functions
Load balancer
Passive optical
network software

Open source operating system

VNF Software on a commodity server with an Open Source operating system, e.g. is Linux, Junos etc.
A proprietary operating system can also be used.

Figure 4-1 A White Box with network hardware abstracted in VNF software.
Core Networks—Between Cities and Continents 179

The following are examples of Virtual Network Functions, which can be virtual-
ized as software within servers and White Boxes:

• Routers that route traffic between networks

• Switches that transmit traffic within a network
• Load balancers that balance traffic between multiple broadband circuits so
that no single circuit (path) is unduly congested
• Controllers that manage applications and send commands to devices
• Gateways that translate between networks that use different protocols
• Network Address Translation (NAT), which translates between external IP
addresses and internal IP addresses for internal devices
• Security software in appliances (appliances are hardware dedicated to a
single function)
• Firewalls that screen incoming traffic for viruses and other types of attacks

The key advantages of installing network functions in software are flexibility, agil-
ity, and speed of implementation. Functions can be deployed and duplicated easily and
quickly using computer commands in software. Instead of programming, purchasing,
and managing distinct pieces of hardware, control software can be used to add network
functions to the parts of networks where they are needed.
Because these critical functions are all in one server, if the server malfunctions,
all of these functions are lost. For greater reliability and sustainability (the ability to be
operational during malfunctions), telephone companies often deploy duplicate White
Boxes. If one fails the other is able to take over.
Policies defined within Software Defined Networks indicate how to route, priori-
tize, balance traffic loads, and program firewalls. The policies that control networks
are programmed and defined by IT staff at computer screens. They are then invoked
automatically as required.

Bringing Up Network Functions—Open Source

MANO
Open Source Management and Organization (MANO) is an ETSI ISG standard. ETSI
ISG is the European Telecommunications Standards Institute Industry Specification
Group. Open source MANO refers to the ability to manage and bring up network func-
tions uniformly by carriers. The goal is to enable networks to interoperate with each
other and for telephone companies to be able to purchase commodity hardware. The
standard defines operations in wired telephone company networks and cable TV as
180 4  Managing Broadband Networks

well as 5G mobile networks. ETSI’s Industry Specification Group’s goal is to prevent

chaos and disorganization when deploying NFV software within SDNs.
Sixty of the largest telephone companies worldwide are members of the MANO
(Management and Organization) specification group that defined the MANO standard.
The standards are meant to be interoperable with SDN controllers, VFN architecture,
and VNF software.
Just as in large data centers where “virtual machine sprawl” can result in unnec-
essary duplication, organizations can lose control of the location and number of vir-
tualized network functions without standards on how to manage and deploy these
functions. MANO is designed to operate in cloud settings as well as onsite data cen-
ters. The ETSI NFV MANO standard includes:

• Interfaces to Operations Support System (OSS) to manage installation of

carriers’ services, and changes
• Ways that carriers’ MANO customers are able to remotely program changes
to their services. This is particularly relevant to enterprises that want control
of their network services
• Interfaces to Billing Support Systems (BSS) to manage telephone compa-
nies’ billing applications
• The ability to manage elements on Amazon’s cloud services including
EC2 (elastic cloud) by use of a plug-in. A plug-in is a small program that
adds capabilities to a parent (larger) program. Plug-ins are also used in
browsers
• Control and management of virtualized computing, storage and other net-
work resources
• The ability to use containers. See Chapter 2, “Data Centers and LANs, Stor-
age, and IP Private Branch Exchanges,” for containers
• Consistent implementation of open standards across the industry
• Troubleshooting capabilities within networks

T term East–West traffic and North–South traffic is used to refer to traffic

The
within data centers and to data centers. East–West traffic refers to traffic
w
between virtual machines in the same server or between servers in data
b
centers, as in Figure 4-2. North–South traffic refers to traffic from a client
where a person types in a request for information from a remote database,
storage network, or specialized server. The client can be at a remote loca-
tion or at the same location.
Core Networks—Between Cities and Continents 181

North South Traffic

Computers accessing
g the Internet –Client server traffic

East west traffic in a data center

Applications on virtual machines that communicate with each other
Or applications in data centers searching for information in data bases

database

Figure 4-2 An example of server-to-server East–West traffic.

Central Office Re-Architected as a Data Center—

Streamlined Central Offices
CORD is a set of specifications that lays out a way to design and equip a telephone
company’s central offices as data centers. The purpose is to implement central
offices to be compatible with SDN and NFV so that new services and applications
can be delivered more quickly. It specifies open source software and commodity
hardware to be used in central offices. ON.Lab, a non-profit industry association
based in Berkeley, California developed CORD, in conjunction with large tele-
phone and cable TV companies, and industry manufacturers. Their goal is to define
standardized open source communications network standards for central offices.
In contrast to CORD’s open source software and commodity hardware, most current
and older central offices are made up of large, costly proprietary switches and specialized
equipment. These switches are similar to telephone switches used by enterprises. How-
ever, they have greater capacity and are “hardened” for greater reliability and sustainabil-
ity to withstand natural disasters such as hurricanes and tornadoes. Moreover, traditional
central offices operate on Direct Current (DC) power. CORD uses Alternate Current (AC)
power. Equipping and upgrading traditional central offices is costly and often ties tele-
phone companies into purchasing costly equipment from a single manufacturer in each
central office so that all the equipment is compatible and able to interoperate together.
CORD is architected for mobile as well as fixed line networks. There are also ver-
sions for telephone and cable TVs’ edge networks, which are connected to enterprise and
consumer customers. In contrast to today’s central offices, Central Office Re-architected
as a Data center makes use of Network Function Virtualization (NFV) to create software
copies of network equipment such as servers, switches, and hardware that support and
manage access to fiber cabling, cable modems, and mobile networks.
182 4  Managing Broadband Networks

CORD is meant to emulate cloud services that depend on virtualization, can scale
up or down easily, and whose features are managed directly by customers. The soft-
ware in CORD-based central offices can be located in the cloud and managed by manu-
facturers, or remotely by telephone companies. They may alternately be managed and
located at carriers’ own data centers.
The goal, in addition to saving money on central offices, is to simplify and impor-
tantly, speed up the availability of new applications for enterprise, mobile, and residen-
tial landline telephone companies’ customers. This is a potential source of new revenue
for carriers and may lower telephone companies’ total cost of ownership (TCO).
The Central Office Re-architected as a Data center standard includes capabilities
that enable enterprise customers to access and download new services and/or change
existing features remotely via centrally located consoles. According to the March
22, 2017, LightReading article “CenturyLink Delivers DSL Using CORD Platform,”
CenturyLink is supplying DSL to enterprise and residential customers from its CORD
central offices. In another article published by Fierce Telecom on February 9, 2017,
Glen Post, CEO and Chairman of CenturyLink, was quoted as following:

We plan to have 100% of those (POPs) virtualized by the end of 2019.

Enterprise customers have the ability to manage services such as DSL at centrally
located consoles from headquarters and branch offices. The modifications and addi-
tions can be performed without carriers dispatching technicians to customer sites. This
saves telephone companies the expense of “truck rolls,” dispatching technicians to
customers’ locations.

The Pace of Implementation of SDN, NFV, and CORD

Software Defined Networks (SDN), and Network Function virtualization (NFV), are
technologies that rely on software to manage functions that previously relied on hard-
ware such as routing and firewalls. Central Office Re-architected as a Data Center
(CORD) enables telephone companies and enterprises to more efficiently manage the
increasing amounts of data.

Capital Depreciation at Telephone Companies

Changes in telephone central office and network architecture often take years
to be implemented. Providers typically depreciate capital expenses such as new
central office and networking equipment over 10 years and even 15 years. Thus,
the costs for older equipment may still be on their balance sheets.
For publicly traded companies, buying software and hardware while older equipment
is on their books lowers their net income. This may result in lower stock prices and
shareholder discontent, dampening telecom companies’ incentives for costly upgrades.
Core Networks—Between Cities and Continents 183

One strategy that telephone companies use to implement Central Office Re-architected
as a Data Center (CORD) is to add CORD data center elements within their traditional
central office. In this way, the functions in traditional central offices can be gradually
transitioned to CORD equipment and virtualized servers.
Telephone companies are additionally merging mobile central office functions (the
core in mobile networks) and their landline central office functions in CORD data cen-
ters. During the transitions clashes between the two types of staff may occur. However,
the end result is lower costs to operate networks.

T type of staff required to manage and program SDNs, CORD, and NFV are
The
software engineers able to design, develop, test, and upload software compati-
s
ble with the cloud environments where CORD offices are located. They addition-
b
ally are required to understand ways to interface and integrate older network
technologies with SDN and NFV via application programming interfaces (APIs).

Staff that monitored network conditions from traditional central offices needed to
monitor large telephone networks. In CORD, central offices cloud development (DevOps)
skills are required to manage new central offices that are essentially large data centers.

Session Routing—On Virtual Routers

Burlington, Massachusetts start-up 128 Technology was founded in 2014 by
staff at former networking company Acme Packet. According to founder Andy
Ory, networks have gotten overly complex and costly, and are not suitable for
today’s traffic patterns. Current networks were designed to connect computers or
remote access devices for brief information look-ups, not present-day network
transactions, which are predominately session based.
During sessions, people typically access applications in clouds, upload videos,
and watch videos. They log onto cloud-based applications such as Microsoft’s
Office 365 and collaborate with remote colleagues using collaboration software.
These sessions are bi-directional with a start, a middle, and an end.
Ory’s vision in establishing 128 Technology is to develop software for routers
to efficiently and cost effectively route sessions more simply by incorporating
additional functions into routers. Per Ory:

Routers need to be stateful to keep track of all the parts of sessions that
belong together.

Continued
184 4  Managing Broadband Networks

A stateful device has real-time awareness of packets’ identity. Stateful routers

have the ability to track and route packets together in a single real time session
on the least congested route available.
128 Technology’s software simplifies network operations by eliminating the
need for “middle boxes,” thereby lowering operating costs. Examples of middle
boxes are:
• Firewalls that screen traffic to keep malware off internal networks
• Load balancers that balance traffic over multiple circuits
• Network address translation gear
• Deep Packet Inspection (DPI) that inspects packets and blocks malware
and spam, and prioritizes specified types of traffic.

The above functions are consolidated into software by 128 Technology, not
managed separately in servers. 128 Technology believes that their software can
control network routing more efficiently in SDN and other broadband services
without layers of abstraction and complexity.
128 Technology’s software is installed on commodity hardware, and pow-
ered by Intel X86 computer chipsets that eliminate latency (delays) and
enable the speed required for real-time, high-speed packet forwarding on
commodity hardware. It is additionally able to operate as network virtual-
ization functions on servers.
Security incorporated into the software is zero trust software that assumes
the presence of malware. It includes perimeter security that checks packets
as they exit the premise to prevent insiders from causing security lapses by
falling for phishing attempts, user error, or malicious employee behavior.
The zero trust policy looks at the first packet, where it’s from (its source),
what service is used, and what it is allowed to access. Packets are addition-
ally checked at every point on the route.
In addition, proprietary encryption developed in-house is used to safeguard
privacy. Encryption uses complex mathematical formulas to ensure that only
authorized devices can “read” user information within packets. Another security
precaution 128 Technology takes is the use of Access Control List (ACL) soft-
ware that filters out packets that are not permitted according to the ACL rules.
128 Technology’s software is an alternative method that provides a way to
manage networks at lower costs with less operational complexity. It addition-
ally includes security software and the ability to route sessions together on the
most optimal routes. 128 Technology’s software is at Amazon Web Services and
Microsoft Azure web sites where it can be used by customers to manage work
flows between cloud suppliers and applications and across data centers.
Core Networks—Between Cities and Continents 185

Submarine Network Systems

Submarine cables connect all of the earth’s continents to each other. They connect
Asia to the United States, and Africa and Europe to the Americas. Underwater cables
are placed directly on the ocean floor. They are connected to land at drop-off points,
also known as landing points, on each continent. Figure 4-3 depicts an example of a
submarine cable system route across the Pacific Ocean.

Hillsboro

Emi
Toyohashi Los Angeles

Pacific Ocean
Piti

Landing points: Landing points are the locations where

undersea cabling systems connect
● Emi, Japan ● Hillsboro, Oregon
with landline networks.
● Toyohashi, Japan ● Los Angeles, California
● Piti, Guam

Figure 4-3 A submarine cable connecting the United States and Japan.
(Courtesy of Telegeography)

At landing points, a packet switch or a router delivers traffic to land-based co-

location sites where many carriers have a presence. One of these co-location sites is on
Eighth Avenue in New York City. At the co-location facility, multiple carriers intercon-
nect their networks and carry one another’s traffic to other cities.

Advances in Submarine Cabling Technology

Advances in submarine fiber-optic cable networks took a leap forward between 2012
and 2015. This is when coherent fiber-optic technology enabled already installed
186 4  Managing Broadband Networks

fiber-optic cables to be upgraded to carry additional traffic. Coherent optical elec-

tronics connected to fiber-optic cables enabled more channels of traffic to be carried
with tighter spacing between each channel of data. Without this innovation, the cur-
rent undersea cables would be out of capacity, and additional cables would have to be
laid. According to Telegeography, a consulting firm owned by Primerica and located in
Washington DC, by 2020 additional cables will need to be built because of anticipated
traffic growth.

Power Limitations
Power must be supplied at the terrestrial end of each fiber bundle. In contrast to terres-
trial fiber where power can be added along the route, it’s not possible to supply power
at various points in each undersea cable bundle.
Currently available power technology at each end of a bundle of fiber cables sup-
ports only six fiber pairs. This limits the number of fiber pairs in each route. Vari-
ous organizations are looking at ways to increase power capabilities so that additional
strands of fiber can be supported in each bundle.

Traffic Usage—Cloud and Content Providers

Content and cloud providers use the lion’s share of capacity on undersea cables. These
hyper-scaled operators are Google, Facebook, Amazon, and Microsoft. Additionally,
in recent years there is added traffic between Africa and Europe, particularly between
the east coast of Africa and Europe. This has resulted in additional undersea capacity
between Europe and Africa.
The above content provider and cloud providers’ primary motivation in taking
ownership stakes in cable routes is to be assured of adequate capacity. Prior to the
enormous growth in cloud and search traffic, carriers such as AT&T and Verizon used
the most capacity in submarine cable systems.

Cable Cuts in Submarine Networks

Cable cuts, when they occur, are major problems, disrupting communications
between entire countries. Fishing trawlers are responsible for most accidental cable
cuts. Due to the specialized equipment needed to repair cables that lie miles deep in
oceans, it often takes weeks to repair a cable. See Figure 4-4 for a list of time to repair
cable cuts. Repairing undersea cable cuts requires the costly deployment of submers-
ible robots tethered to and controlled by motherships. Large trawling fishing nets
are weighted and often snag cabling as they are being dragged across ocean floors.
The second most frequent cause of outages results from ship anchors dragged across
the ocean floor.
Bandwidth Capabilities in Carrier Networks 187

#5 – Route diversity
Repairs per Year Outage (days/year)
Philippines- Taiwan 2.7 42.8
Singapore-Hong Kong 2.6 45.5
Hong Kong-Tokyo 2.1 37.8
Mumbai-Singapore 1.0 26.6
Tokyo-Los Angeles 0.5 8.4
Source: Palmer-Felgate, A., and Booi, P., How Resilient is the Global Cable Network?
SubOptic 2016 #OralWE2A-5

Figure 4-4 Submarine cable outages. (Courtesy of SubOptic, first

presented by Palmer-Felgate, A and Booi, P [Verizon] at SubOptic 2016)

The following are the reasons for delays in repairing cables:

• There are a limited number of ships equipped to repair submarine cable cuts.
• Nations have concerns that ships in their waters could eavesdrop on commu-
nications from ships repairing cables.
• It can take weeks to be granted permission for these ships to be allowed to
repair cuts in other countries’ waters.

The non-profit International Cable Protection Committee’s (ISCPC) goal is to

prevent submarine cable cuts. To reach that goal it communicates the criticality of
undersea cables internationally, distributes cable maps to marine organizations, and
lobbies internationally to reduce nations’ reluctance to allow ships to repair damaged
cables.

BANDWIDTH CAPABILITIES IN CARRIER

NETWORKS............................................................
Carriers mainly use high-capacity 400 Gigabit Ethernet and Terabit (1,000 Gigabit)
services to transport IP data, Ethernet, and VoIP traffic on long-haul networks. They
additionally carry the decreasing amounts of legacy traffic from analog circuit-switched
voice on these networks.

L
Legacy is a term used to describe networks and equipment that are based
on older technologies such as TDM and analog voice service.
o
188 4  Managing Broadband Networks

Carrier Gigabit Ethernet

Gigabit Ethernet is used in both Local Area Networks (LANs) and Wide Area Net-
works (WANs). It operates over fiber-optic cabling. When it is used in telecom-
munications and cable TV networks, it is sometimes referred to as Carrier Gigabit
Ethernet. There are six capacities of Gigabit Ethernet (also referred to as GigE): 1,
2.5, 10, 100, 400, and terabit. These are used in core, Metropolitan Area Networks
(MANs), and access networks. Carrier Gigabit Ethernet is used for VoIP and all IP-
packetized traffic. This includes video, data, and graphics traffic that is bundled in
packets.
A timing source is included in GigE to make it suitable for switched voice,
because it does not natively have timing sources. A timing source provides fixed,
guaranteed capacity that circuit-switched voice requires. Without it, circuit-
switched voice sounds choppy because of brief, intermittent delays, which are
otherwise imperceptible in IP data. An International Telecommunications Union
(ITU) 2010 standard called Synchronous Ethernet was developed for chips with
timing sources. Timing sources are now standard in most Synchronous GigE
switches.

The Drive for Higher-Capacity Carrier

Gigabit Ethernet
Large providers such as AT&T and Verizon support 400Gbps capacity in their back-
bones. The impetus behind 400Gbps Ethernet is the increasing amount of high-definition
streaming TV, personal videos uploaded to social networks, network-based storage,
cloud based data centers, and mobile broadband backhaul traffic. Backhaul networks
“backhaul” traffic from cellular antennas to mobile companies’ data centers. Gigabit
Ethernet was expressly developed for IP traffic and is less costly to purchase, maintain,
and install than SONET.
The wide availability of Gigabit Ethernet switches from many manufacturers
has caused Ethernet switch prices to drop. Moreover, because of its standardiza-
tion by the Institute of Electrical and Electronics Engineers (IEEE), vendors pro-
duce compatible Ethernet gear so that providers are not locked into a single vendor’s
equipment.
Gigabit Ethernet and Ethernet are often used in conjunction with Passive Optical
Networks (PONs), discussed later in this chapter. PONs are a lower-cost method of
extending fiber to premises and neighborhoods because they enable single strands of
fiber to be shared between multiple homes and small businesses.
Bandwidth Capabilities in Carrier Networks 189

Circuit-Switched Voice—Unsuitable for

Packetized Traffic
After 2012, carriers began carrying most traffic over Gigabit Ethernet both because of
its suitability for data and because of decreases in the amount of analog voice and TDM
traffic. Prior to 2012, SONET, a North American standard for multiplexing streams of
traffic onto fiber-optic cabling was the predominant protocol for transporting traffic
at Optical Carrier (OC) speeds. SONET was developed to aggregate (multiplex) and
carry TDM (Time Division Multiplexed) and circuit-switched voice traffic from mul-
tiple sources. TDM multiplexing saves capacity for voice and data in predictable time
slots. However, its top speed of 40Gbps is inadequate for today’s long haul traffic. See
Table 4-2 in the “Appendix” section at the end of this chapter for SONET speeds.

Using Ring Topology—Greater Reliability and Cost

Carrier Gigabit Ethernet can operate as a straight point-to-point line between sites, in
the more fail-safe ring, or in mesh topologies.

To
Topology refers to the design of how devices are physically connected. It is
the “the view from above.”
th

When fiber in a point-to-point arrangement is cut, service is lost. Reliability on

fiber is critical because each failure affects potentially hundreds or thousands of cus-
tomers, particularly if a failure occurs in long-haul networks.
When a medium such as copper carries a conversation or data stream from one
telephone subscriber or computer to another, a failure only impacts one customer.
Because of the large volumes transmitted by fiber, failures in these networks can put
hundreds of businesses, police stations, or hospitals out of service. For this reason, the
majority of carriers deploy bidirectional ring topology in long-haul and Metropoli-
tan Area Networks (MANs), where each fiber ring, multiplexer, and power supply is
duplicated.
Ring topology is costly because the fiber and the multiplexers are all duplicated,
even though this combined capacity is not used on a day-to-day basis when there are
no failures. The spare fiber in ring topology is known as the protect ring. It reroutes
traffic in the other direction, as is illustrated in Figure 4-5. Read the section “Mesh
Configuration Backups,” later in this chapter, to learn about new, lower-cost mesh tech-
nologies that are being deployed.
190 4  Managing Broadband Networks

Control Plane–Enabled Programmable Mesh Network

ADM ADM

Traditional rings
ADM ADM ADM ADM

Primary path
ADM ADM

ADM ADM ADM

ADM ADM ADM ADM ADM ADM

ADM ADM ADM

Protection path Ring topolgy

ADM
• One primary path
• One pre-provisioned* protection
ADM ADM path
• Wasted capacity
• Limited protection against multiple
ADM failures

Multilayer Control Plane–Enabled Optical Resilient Mesh

Egress

Alternate
path

Ingress

Routes with
outages
Resilient mesh
• Automated provisioning*
• Dynamic path choices for multiple failures
• High network availability
• Bandwidth optimization

*Provisioning refers to the planning, design, and installation of network equipment and routes.

Figure 4-5 A comparison of ring to mesh topology. (Adapted figure from

Ciena Corporation)
Optical Transport Networks—Carrying Multiple Types of Traffic 191

OPTICAL TRANSPORT NETWORKS—CARRYING

MULTIPLE TYPES OF TRAFFIC ..................................
Optical Transport Network (OTN) is an International Telecommunications Union
(ITU) G.709 standard for transmitting, monitoring, and managing traffic on fiber-
optic cabling. OTN is an OSI (Open Systems Interconnections) Layer 1 service.
As described in Chapter 1, “Computing and Enabling Technologies,” Layer 1 is the
physical and wireless medium over which traffic travels. OTN is used for asynchro-
nous protocols such as Gigabit Ethernet as well as synchronous protocols such as
Synchronous Optical Network (SONET). In asynchronous protocols, traffic is sent
at irregular intervals, not at specific intervals. This contrasts with synchronous pro-
tocols where bits are sent at evenly spaced, regular intervals according to an internal
timing source. The OTN standard provides a framework for transmitting both types
of traffic.
In a telephone interview with Dave Parks, former director, Segment Marketing at
Ciena Corporation, Parks stated:

OTN can be thought of as the freight containers that carry Ethernet, IP,
and SONET optical traffic together.

The OTN standard was created for the efficient operation of providers’ multi-protocol
metropolitan and global optical networks using interoperable equipment. The standard
provides a framework for programming, monitoring, and transmitting the growing
amounts of IP packet, Gigabit Ethernet, video, and MPLS (Multi-Protocol Label Ser-
vice) traffic while preserving its capability to carry legacy traffic on optical networks.
All of the services—1 and 10 Gigabit Ethernet, SONET, and video can be on the same
line card and are software programmable.
It does so by specifying the encapsulation of legacy SONET/Synchronous Digital
Hierarchy (SDH) traffic into OTN frames and its overhead information for address-
ing and billing on fiber-optic cabling. OTN, which can scale to 400Gbps and Terabit
capacities, overcomes SONET’s 40 Gigabit per second capacity. See Table 4-2 in the
“Appendix” for information on SONET speeds.
OTN equipment has optional modules for connecting to Dense Wavelength Divi-
sion Multiplexing (DWDM) as well as Reconfigurable Optical Add/Drop Multiplexing
(ROADM) so that individual wavelengths can be seamlessly added and dropped off at,
for example, carriers’ POPs. Both SONET/SDH and IP traffic can be carried on the
same wavelength. (DWDM gear splits each pair of fiber cabling into multiple paths
called wavelengths.) Manufacturers that offer OTN gear include Calix, Ciena, Cisco,
Fujitsu, Infinera, and Nokia.
192 4  Managing Broadband Networks

Today’s networks are required to carry a mix of the more efficient gigabit Ethernet
as well as traffic using the older SONET and MPLS protocols. Optical Transport
Network is an important protocol for transporting both digital Internet Protocol (IP)
signals as well older synchronous traffic in a single stream. Gigabit Ethernet sup-
ports the massive increases in traffic due mainly to traffic generated by enterprises and
consumers accessing the cloud, by consumers streaming TV and movies from Netflix,
Amazon, and their competitors, and from applications such as online gaming.
The newer, more efficient Gigabit Ethernet is able to carry many times more
bits per second than SONET and MPLS. Gigabit Ethernet is available at data rates
of 10, 40, 100, and 400 bits per second. While the amount of traffic generated using
Gigabit Ethernet is increasing rapidly, there is still traffic in the SONET and MPLS
format. However, the amount of traffic generated in particular by SONET gear
is decreasing rapidly. At some point OTN use will not be needed as SONET and MPLS
traffic drastically decreases.

Optical Transport Networks and SDN and NFV

Software Defined Networks and Network Function Virtualization traffic are carried
over fiber equipped with OTN functionality. SDN and NFV are higher-layer protocols
than OTN. SDN’s control plane prioritizes and specifies routes on which traffic is to be
carried. NFV, as stated above, virtualizes network hardware. SDN and NFV are func-
tionally different than OTN, which manages how traffic is “packaged” or “wrapped”
and carried on optical fiber.
Examples of control plane technology functions are available above in the section
on SDN.

Mesh Configuration Backups

Mesh backup technology is enabled by signals generated from Control Plane Tech-
nology equipment such as is in WA SDNs. The service utilizes a logical rather than
a physical design. The physical topology is not designed as an actual mesh, wherein
each point on a network is connected to every other node. Rather, as demonstrated in
Figure 4-6 above, traffic is backed up in a logical manner with more than one choice
of alternate routes. In this way, each carrier and each route do not require duplicated
fiber, multiplexing gear, and transmission equipment.
Mesh technology assumes adequate capacity on backup routes. If this capacity is
not sufficient, delays will occur. It’s a trade-off between flexibility in having multiple
backups, idle capacity when the network is operational, cost savings, and possible
congestion during emergencies.
Optical Transport Networks—Carrying Multiple Types of Traffic 193

ROADMs Interoperability Plus Adding and

Dropping Off Traffic
Reconfigurable Optical Add/Drop Multiplexers (ROADMs) enable carriers to:

• Add traffic
• Separate out traffic
• Drop off traffic

ROADM equipment eliminates the extra cost and maintenance for conversion
equipment. Conversion equipment converts signals to electrical signals and back to
light signals. Prior to the availability of ROADMs, light signals had to be converted
to electrical signals before they could be added or dropped off and routed elsewhere.
ROADMs were first deployed in core networks so that, for example, some of the
traffic between cities such as New York and Chicago could be more easily routed to
Los Angeles. As traffic within metropolitan areas increased, ROADMs began to be
used in these areas as well. Dense Wavelength Division Multiplexers (DWDMs) and
OTN equipment can be equipped with ROADM cards so fewer pieces of gear need to
be maintained.
ROADMs are additionally used to connect long-haul carriers to carriers in met-
ropolitan areas. For example, ROADMs enable AT&T to drop local traffic off to local
providers such as Verizon or Comcast. To transmit traffic between different telephone
companies, often technicians from each company call each other to make sure their
ROADMs can interoperate. The technicians often determine a way to connect via com-
patible Application Programming Interfaces (APIs). This causes delays in setting up
connections.
The Open ROADM Multi-Source Agreement (MSA), which is in tests and limited
availability at providers and manufacturers, is a solution to ROADM interoperability.
With ROADM MSA, carriers can add and drop single wavelengths to ROADMs manu-
factured by other vendors. See Figure 4-6 for an example of an open source ROADM.
AT&T announced they were able to add and drop single 100 Gigabit wavelengths
between Ciena and Fujitsu ROADMs. Legacy ROADMs may not be upgradeable due
to older, fixed optical parts that are not programmable for compatibility to the Open
ROADM MSA.
194 4  Managing Broadband Networks

Management Plane
Today's ROADM systems require a single
Vendor A Vendor B vendor with tight coupling of proprietary
ATT OSS
EMS EMS
software (EMS and planning tools)

Provisioning, Routing
Restoration, Network
topology/State,
Monitoring, Alarms,...

City A City B

Need to be able to overbuild metros on a office-by-office basis

Need for open, standardized interfaces and much less proprietary SW

Figure 4-6 An example of carriers connecting using an open sources

ROADM. (Courtesy of Open ROADM Multi-Source Agreement [MSA],
http://OpenROADM.org)

Akamai—The Largest Content Delivery Network in the

United States
People that watch live sporting events, play online games, or stream movies
over the Internet expect to stream these events and movies without experienc-
ing delays that interrupt content they’re watching. Content delivery networks
are an important factor in their ability to seamlessly watch high-quality live and
streamed video and sporting events over broadband networks.
As the name implies, content delivery networks deliver content over broadband
networks. They route the growing amounts of live-streamed sports events,
streaming television and movies, and real time gaming traffic. Content delivery
network customers are the content providers that create and film content includ-
ing large social networks, financial firms, and online gaming companies. Online
retailers and large banks also use content delivery network services. The above
content providers, online retailers, and financial firms hire content delivery
networks to ensure that traffic to their customers is not delayed or interrupted
because of congestion resulting in dropped packets.
At Akamai, technicians monitor networks at their Network Operations Centers
(NOCs) in Cambridge, MA, Santa Clara, CA, Krakow, Poland, and Bangalore,
India. A NOC is a location where network engineers monitor live traffic. Moni-
toring software used in these NOCs depict live traffic in real time. The software
provides engineers information on paths packets travel, congested routes, and
Continued
Transporting Movies and TV in the Core 195

alternate routes available in the event of outages and congestion. NOC staff
reroute traffic in these instances if an alternative path is available.
Akamai developed its own proprietary protocol, FastTCP (Transmission Control
Protocol) as a replacement for the 40-year-old TCP, which introduces delays in
transmissions. TCP was designed for resiliency, not for today’s densely trafficked
networks where delays are unacceptable. Delays in TCP are caused by its continual
acknowledgments of received packets and negative acknowledgments of dropped
packets. Acknowledgments in TCP are known as acks and notice of packets dropped
are known as negative acknowledgments, nacks. FastTCP streamlines these pro-
cesses to prevent delays. FastTCP algorithms are deployed in Akamai edge servers.
According to Eric Buda, Senior Director of Global Platform Operations at Akamai,

When streaming, people will start to abandon a website if it takes more

than 2 seconds for a video to start. Then every second after that you
lose 6 percent of your audience. 80 percent of people abandon a website
if their wait for the screen to start to fill is longer than 30 to 40 seconds.

Akamai also provides a security service for customers. The security software
screens packet headers for malware. It doesn’t look at the actual payload (user
data) in packets. To ensure privacy, payload content is encrypted. When Aka-
mai’s security software sees evidence of malware, such as overly long packets
or hundreds of percentages of more than the usual amount of traffic, it sends the
traffic to Akamai’s scrubbing center, which removes the malware and sends the
legitimate traffic to the network.
Other content delivery networks in addition to Akamai are Level 3 (part of Cen-
turyLink) and Limelight. Some carriers also operate content delivery networks.

TRANSPORTING MOVIES AND TV IN THE CORE ......

Both telephone service providers and cable TV companies have infrastructure in their
core networks to receive and transmit entertainment content to customers. They each
do this from centralized headends.

Using Headends to Receive and Transmit

Programming
The term “headend” refers to the site where providers transmit content that they receive
from satellites. A group of satellite dishes that receives content is referred to as a satel-
lite farm. Central office switches and Voice over Internet Protocol (VoIP) equipment to
support telephone services are also located at headends. Network Operations Centers
196 4  Managing Broadband Networks

(NOCs) capable of monitoring and making programming changes to the network as well as
operations support systems can be located here as well. These centers typically serve 7 to
10 towns. Multiple hubs that distribute content are connected to the headend, as shown in
Figure 4-7.

Coaxial cable
Amplifier to strengthen signals

Transport network Distribution

hub

Distribution Head end

Fiber ring
hub

Coaxial Fiber Fiber

cable node* Distribution
hub

*Fiber nodes convert light signals carried on fiber-optic cabling

to electrical signals for transmission on coaxial cabling, and vice versa.

Figure 4-7 A fiber/coaxial network with transport network linking distribution

hubs to the headend.

Hub Sites
Hubs, also referred to as distribution hubs, are small buildings that are located closer
to customers than headends. Local programming or frequently downloaded content
might be located at a hub, which serves between 10,000 and 50,000 residences. In
addition, cable modem termination systems, which manage traffic to traditional cable
TV customers’ modems and to the headend, are located at hubs. For more information,
see the section “Using Cable Modem Termination Systems for IP Traffic” later in this
chapter. A hub might serve a metropolitan area. Large towns would have two hubs.

Linking Hubs and Headends via Metropolitan

Area Networks
Metropolitan Area Network (MANs) are also referred to as transport networks, or
regional transport networks. They link hubs to headends. MANs typically operate over
Middle-Mile Networks 197

shorter distances than core, backbone networks. They carry a mix of voice, data, and
video on demand, as well as television signals. Cable TV Metropolitan networks are
made up of hybrid fiber/coaxial cabling with fiber for the core that transmits movies to
neighborhoods, and parts of their networks in cities far from the headend. These cities
have nodes with wiring center (transmission) equipment.
Older MANs transmit traffic to headends’ SONET rings. Cable operators and tra-
ditional telephone companies are transitioning parts of their metropolitan networks to
all-IP, Gigabit Ethernet. It is complex and costly to upgrade all of a carrier’s MANs
simultaneously. However, carriers have the option of gradually upgrading a few net-
works at a time. These upgrades don’t involve the immense upgrades as those in core
networks. MANs are equipped with either redundant fiber rings or the simpler Optical
Transport Network (OTN) option as backup technologies in the event of a fiber cut or
equipment failure.

MIDDLE-MILE NETWORKS ......................................

Middle-mile networks are the sections of networks between the access provider and
the connections that carry traffic to the Internet and to national and international core
networks. Figure 4-8 shows an example of connections on middle-mile networks.
Middle-mile networks can be the source of congestion on both wireless and wire-
line networks because they transport increasing amounts of Internet, smartphone, and
video traffic. This is straining existing infrastructure.
Microwave middle-mile link
between the last mile and the
backbone (core)
Rural carrier ABC

Interconnection points with

Ethernet or SONET and
amplification gear
Provider POP
backbone connection to
the Internet
Fiber middle-mile link

Rural carrier XYZ

POP = Point of Presence

Figure 4-8 The middle-mile connection between rural last-mile providers and a
core network interconnection point for transport to the Internet.
198 4  Managing Broadband Networks

Middle-mile networks include the fiber or wireless connections between switches

in small cities and the carrier’s equipment that transmits traffic to a major carrier’s
Point of Presence (POP). Within middle-mile networks, the POP serves as the loca-
tion where a provider’s switches and connections for multiple carriers connect to the
Internet or to a national or undersea cable. The core switches of large providers are
also located at POPs.
Independently operated data centers where data is managed for multiple enter-
prises are another example of sites that require middle-mile connections. These data
centers generate large amounts of traffic for which they require high-speed connections
on middle-mile networks to backbone POPs.
Large carriers such as Verizon and AT&T in the United States carry the major-
ity of middle-mile traffic. Level 3 Communications (now part of CenturyLink) is an
alternative option in some areas. Level 3 offers to connect rural areas to POPs using
spare capacity in its regional and long-haul networks. In the newer networks of these
providers, hubs with Gigabit Ethernet switches are able to add and drop off traffic.
Connections to Gigabit Ethernet are less costly than those to older SONET facilities.
However, they require costly fiber cabling or wireless infrastructure from the rural
provider’s first-mile network to the middle-mile network switch. Because of the low
population densities in rural areas that do not generate adequate revenue, this is not
always financially feasible.

The High Cost of Rural Internet Connectivity

High-speed middle-mile connectivity is a major challenge in rural and
sparsely populated areas worldwide. Although there are a growing number
of fixed-wireless Internet access options, a majority of providers in these
areas offer Internet access—predominately on Digital Subscriber Line (DSL)
service—with some providing cable modems (see Chapter 5 for a more in-depth
description of DSL service). The high costs of laying fiber or high-speed
wireless connections to reach a broadband carrier for transport are passed on to
customers and result in high end-user prices for cable TV and Internet access.
The National Exchange Carrier Association (NECA) is a nonprofit associa-
tion of small, rural carriers that was formed by the Federal Communications
Commission (FCC) to administer access charges. Access charges are the fees
long-distance companies pay to access the networks of the 1,049 small rural
local phone companies to complete their long-distance customers’ calls. In its
publication, Trends 2015, A Report on Rural Technology, NECA stated that in
the United States, NECA carriers cover 37 percent of the territory, but serve only
3.1 percent of the population. In its report, NECA further commented that the
long distances and low population densities in these areas are the primary causes
of the high cost of deploying connections to backbone carriers.
Continued
Last-Mile Access Networks 199

According to Iowa Representative Rod Blum, high cost is the major reason that
39 percent of people in rural areas have no access to broadband compared to 4
percent in urban areas. With fewer customers in their territories, telephone pro-
viders must spread out the cost of upgrades over fewer customers. This results in
lower profits per customer. Blum’s remarks were reported in the June 23, 2017,
B&C online journal article, “Small Business Committee has Big Interest in
Rural Broadband,” by John Eggerton.
The middle-mile costs associated with interconnection to the Internet are passed
on to end users in the form of higher Internet access fees. These higher fees are
another factor that inhibits many customers from purchasing Internet access in
rural areas. Slower speeds that make access to streaming TV videos sluggish and
cumbersome are also a factor in lower adoption rates in these areas.
Connections to middle-mile networks by rural providers are a mix of microwave
and fiber-optic cabling. According to an anonymous staff person at a long-haul
network provider, “The lowest-priced way to reach an interconnection point
in middle-mile networks is microwave, at $150,000 to $200,000 for the tower
and about $40,000 for equipment at the tower.” An interconnection point is the
equipment cabinet with Gigabit Ethernet or SONET gear, which connects rural
providers’ networks to middle mile networks, which connect traffic from rural
locations to large providers’ nationwide, backbone networks.

A
Aerial fiber is less expensive than buried fiber cabling, but
more subject to environmental damage such as tornados, snow
m
storms, fallen branches, and so on.
s

These investments in fiber are too costly for the small rural carriers that NECA
reports have an average customer base of only 4,324 access lines. Few of
NECA’s carriers have more than 10,000 access lines in service, which is the
threshold at which these connections become economically viable.

LAST-MILE ACCESS NETWORKS ...............................

Last-mile networks are the portions of a carrier’s network that connect subscribers
directly to the provider’s equipment. The large number of connections usually means
that the last-mile networks are the last portions of a carrier’s network that benefit from
upgrades. The terms “access networks,” “last-mile networks,” and “first-mile net-
works” are used interchangeably.
200 4  Managing Broadband Networks

Adding Capacity to Access Networks

Upgrading access networks involves numerous devices because service to each
telephone company and cable TV customer as well as equipment in neighborhood
locations must often be changed. This is a challenge for both traditional telephone
companies and cable TV Multiple System Operators (MSOs). However, cable TV pro-
viders have newer voice infrastructure than traditional telephone companies because
the cable TV providers only started delivering these services around 2004. Thus, their
voice switches don’t require upgrades at this time. However, upgrading cabling and
electronics connected to them for higher capacity is costly and complex.
One driving force behind upgraded access networks is the need to support more
channels of high-definition television (HDTV) and video on demand (VOD), so that
individuals are able to select from a menu of movies and premium television. In addi-
tion, customers are requesting HDTV, which requires more bandwidth and complex
electronics than standard definition.
Data traffic is also driving networks to upgrade compression on set-top boxes.
Consumers are additionally consuming more bandwidth by streaming video from Net-
flix and Amazon, and uploading and downloading both short and long form videos to
and from YouTube, Instagram and Facebook.
Improved compression and other techniques such as rate shaping provide the capa-
bility to carry additional video and broadband traffic. Rate shaping adds capacity by
using a form of over-subscription. It’s analogous to pouring one-and-a-quarter quarts
of water into a pail that holds only a single quart. Rate shaping equipment discards bits
in real time so that adding 8 megabits of traffic to a 6-megabit channel does not impact
quality. This assumes that not everyone will be watching TV at the same time.

Legacy Circuit-Switching Service

Switched services operate on landline and cellular networks that use older mobile pro-
tocols. When a person makes a call, the network sets up a path between the caller and
the dialed party. Importantly, the path is available exclusively for the duration of the
call. The path is not shared. Natural pauses in conversation and data transmission are
not used for other voice or data calls. Capacity is reserved in the network for the entire
duration of the transmission. This exclusivity causes wasteful utilization of network
capacity.
Circuit switching is being gradually phased out in public networks. Carriers
increasingly add IP equipment when replacing fully depreciated, older voice switches
or when building new infrastructure.
Last-mile access networks use a mix of primarily IP and some circuit switching
to carry voice. Traditional telephone companies and cable TV providers are in the
process of transitioning to IP in their last-mile networks. When customers select their
telephone provider for Internet access and TV services, the provider offers to move the
Last-Mile Access Networks 201

subscriber’s voice service to the same broadband infrastructure as that used for data
and TV. Most of them provide VoIP over the broadband.

Transitioning Customers to Voice over

Internet Protocol and Fiber
Data and video are the largest source of traffic on landline networks, far exceeding the
shrinking amounts of voice. Many providers now transmit voice in packets, the same
format as data, as a way to use bandwidth efficiently. Providers are additionally adding
capacity to last-mile, edge networks by laying fiber in neighborhoods closer to homes
or by connecting fiber directly to individual homes.

A central office is a centrally located building in which telephone company

and cable TV providers locate their switching, battery backup, and transmis-
a
sion equipment. Transmission equipment is in the form of blocks where
s
cabling is connected to, for example, DSL and Ethernet services. Techni-
cians in remote network operating centers (NOCs) monitor signals sent
over cabling connected to subscribers and central offices. Because of the
need for sustainability during natural disasters, buildings that house central
offices don’t have windows and are built to withstand flooding, tornadoes,
and hurricanes.

Digital Subscriber Line Access Multiplexers

Digital Subscriber Line (DSL) is a service that sends data over the same twisted pair
cabling used for voice. DSL is gradually being replaced by fiber to premises, but is still
used by residential subscribers and small businesses that don’t have fiber. Telephone
companies that have not invested in fiber to the premises (FTTP) offer DSL service
for Internet access and other data services. It is also used where customers don’t have
access to cable modem service. (See below for a description of cable TV networks.)

Using Small DSLAMs and Mini-RAMs for Internet

Access with Digital Subscriber Line Service
DSL Access Multiplexers (DSLAMs) aggregate traffic from multiple customers’ DSL
modems and translate electrical signals on copper cabling to light signals before send-
ing traffic to the central office. From the central office Internet Service Providers (ISPs)
transmit subscribers’ traffic to the Internet or data networks over fiber-optic cabling.
DSLAMs are located in a carrier’s central office or in remote terminals, which are
202 4  Managing Broadband Networks

cabinets placed between the central office and the subscriber. The connection between
the DSLAM and an ISP is a potential site for network congestion and delays, if capac-
ity is insufficient between the DSLAM and the central office.
When telecoms move fiber closer to customers in neighborhoods, they often use
mini Remote Access Multiplexers (mini-RAMs), which are about the size of pizza
boxes, to convert light signals carried on fiber to electrical signals and vice versa.
Installing fiber closer to homes results in shorter copper lengths. Shorter copper runs
have fewer impairments because electrical signals fade less as they travel over shorter
distances. Impairments found on longer copper runs farther from central offices cause
DSL speeds to decrease dramatically and often prevent DSL from being viable at even
slower speeds. Traffic from mini-RAMs is aggregated in DSLAMs, from where it is
transmitted over fiber to central offices and the Internet.
Mini-RAMs can be located on utility poles or in stand-alone boxes on the ground
and serve 10 to 24 customers (see Figure 4-9). Local power is not required because
it is fed to mini-RAMs through the copper telephone lines either on the pole or
underground.

DSLAM
Mini-RAM PSTN
aggregation
switch

Copper-to-DSL
modems in homes
Headend

Central office

Mini-RAM Fiber
Internet

DSLAM = Digital Subscriber Line Access Multiplexer

PSTN = Public Switched Telephone Network

Figure 4-9 Mini Remote Access Multiplexers (mini-RAMs), located in neighborhoods,

deliver cable TV and high-speed Internet access.

The Case for Fiber to the Home—More Capacity

and Less Maintenance
Cable TV providers and telephone companies in the United States and other countries
sell “triple play” services: voice, TV and movies, and Internet access to enterprises,
Last-Mile Access Networks 203

hotels, restaurants, and municipalities as well as residential customers. One way they
provide capacity needed to handle all of these services is to add fiber closer to homes
and businesses or directly to premises. When carriers transition to fiber to homes, voice
signals are sent in digital, voice over Internet (VoIP) packets, rather than as electrical
signals on copper cabling. Providers that transition to fiber to homes or even fiber close
to homes in neighborhoods, gain these advantages:

• Fiber cabling has more capacity than copper to support the continuing
growth in broadband traffic and cloud and streaming media.
• Operating costs are lower because it is more efficient for providers to main-
tain just one type of cabling and equipment than two types of cabling.
• Central offices only need to be equipped with equipment that supports a
single type of cabling rather than both fiber and copper.
• Less network equipment is required because signals on fiber travel further
than those on copper cabling before deteriorating. When signals fade, equip-
ment is required to boost signals.

Power Issues—Electricity for Onsite Fiber Gear

Signals carried on copper cabling are electrical pulses that transmit power from
the central office along with voice and data signals to homes. This enables cen-
tral offices to power plain old telephone service (POTS). Plain telephones are not
plugged into home electrical outlets, and have limited features.
Power delivered from central offices enable POTS phones to operate during
premises’ electrical outages. This is because central offices’ extensive use of
backup generators means for the most part they operate during power outages.
Plain phones without LCD screens or most other features are the only home
telephones able to function without local power if their service is connected to
copper cabling.
Customer premises connected to fiber cabling do lose automatic power backup
on all telephones including their plain telephones. This is because the optical
network terminals (ONTs) that convert fiber signals to those compatible with the
copper wiring inside homes require local power. Signals on fiber cabling don’t
transmit power signals. They are non-electric light pulses, not the electrical
signals carried on copper cabling.
Given the fact that in most homes people have no landline telephone because
they rely on mobile service or have “feature” phones that require local power,
subscribers are often not concerned or even aware of the switch from copper to
fiber cabling.
204 4  Managing Broadband Networks

Battery Backup for Homes Connected to Fiber

The Federal Communications Commission (FCC) requires providers that transition to
fiber from copper cabling in neighborhoods to offer in-home battery backup gear. This
requirement is meant to ensure that residents such as the disabled or elderly are able to
reach 911, police and fire departments, and healthcare facilities during power outages.
An example of battery backup equipment for residential customers is containers with
12 D-Cell alkaline batteries. The battery backup devices are connected to optical net-
work terminals. The backup generally provides eight hours of talk time during power
outages. The customer is responsible for changing batteries about once a year when
they wear down and lose charging ability.

The Economics of Fiber to Large Apartment

Buildings and Enterprises
In contrast to the last-mile networks in residential areas, many of which are made
up of twisted-pair copper or hybrid fiber/coaxial, cable TV providers and traditional
telephone companies lay fiber to their large business customers. This is because the
expense of supplying fiber cable to office and apartment buildings with multiple ten-
ants can be spread across many customers. In addition, fiber is required to handle the
large amounts of data traffic that enterprise customers generate.

Passive Optical Networks

Telephone companies and cable operators install Passive Optical Networks (PONs) to
lower the cost of deploying fiber-optic cabling directly to residential and small busi-
ness customers. Cost savings are achieved by sharing the capacity of single strands of
fiber among multiple homes and small businesses.

Sharing Fiber Capacity—PON Architecture

PON technologies are a less costly way to deploy fiber because the devices, splitters,
in the neighborhoods are small and passive. They don’t require electricity and can be
mounted directly on utility poles or in existing equipment cabinets. Fewer cable runs
are required from the central office to each neighborhood because the splitter divides
the capacity on a single fiber strand among multiple subscribers.

In
Instead of fiber, when cabling is closer to homes, coaxial cabling or
unshielded twisted-pair are often used to transmit signals over the last few
u
h
hundred feet from subscribers.
Last-Mile Access Networks 205

PONs are used extensively in mobile networks as well where they transmit signals
between antennas and carriers’ data centers. Data centers in mobile networks are where
mobile providers manage their wireless networks, collect usage data for billing, and
offer special applications such as voice mail and text messaging.
With PON technology, only one pair of fiber is brought to the neighborhood but
multiple pairs are split out from PON interfaces to homes. Splitters divide the capac-
ity of the fiber among up to 32 homes and small businesses. Figure 4-10 shows one
possible scenario. Splitters are passive in that they don’t require electricity and they
are small; they’re about the size of a smartphone. These are key factors because space
in the network is at a premium and electrical costs are soaring. PON equipment at the
central office, inside customers’ premises, and in cabinets in neighborhoods do require
electricity.

PASSIVE
MSAN Uses GPON Components

Central
Office ADTRAN ONT
IPTV Head End
Splitter

ADTRAN ONT

Internet IP Core

ADTRAN ONT

Voice Switch

ADTRAN ONT
ACTIVE
Uses Active Ethernet Components
ADTRAN ONT

Figure 4-10 PON splitter in neighborhood; an MSAN (Multi-Service Access

node) connects subscribers to the Internet and other networks. (Courtesy of
Adtran, Inc.)

PON Standards—Gigabit Ethernet

In contrast to residential PON services, which have higher capacity for downloads,
PON services for business customers have synchronous capacity; equal bandwidth to
and from their devices. Business and commercial organizations upload and download
applications and data to and from the cloud and the Internet in equal amounts. How-
ever, 10Gb XG PONs support 10 Gigabit service downstream and 2.5 Gigabit service
upstream. Current standards provide the option of symmetric services directly to busi-
ness customers as well as the option to virtualize PON gear in CORD-equipped central
offices.
206 4  Managing Broadband Networks

See Table 4-1 for ITU-T (International Telecommunications Union Terminals for
Telematic Services) PON standards.

Table 4-1 PON Standards

PON Type Description
GPON (Gigabit PON) Supports a bandwidth of up to 2.5Gbps
XG PON1 (10 Gigabit Enables providers to program individual wavelengths
Passive Optical Network) for 10Gbps downstream and 2.5Gbps upstream.
XGS PON Supports 10 Gigabit capacity on both the upstream
(10 Gigabit Symmetric (from the customer to the central office) and the down-
Passive Optical Network) stream (from the central office to the customer) signals.
NG PON2 Equipment is programmable via software and supports
(40 to 100 Gigabit) symmetric streams. Providers can program each wave-
length individually on a fiber strand, and dedicate it to
a large customer. (A wavelength represents a stream of
signals on a particular frequency within a fiber strand.)
Wavelengths can also be bonded together. Bonding
refers to two paths of a communication circuit operating
as a single path. This enables the provider to send extra
capacity to high-usage enterprises or commercial sites.

In the newest PON standard, Next Generation Passive Optical Network 2 (NG
PON2), wavelengths can be turned on remotely and the lasers connected to the fiber
can be modified so that the provider is not required to pay for a “truck roll” to send
out a technician to make a change at the splitter. According to PON provider Adtran,
the ability to add capacity by programming future-proofs NG PON2 against expected
increases in traffic, particularly video streaming and cloud computing. As residents’
and businesses’ broadband use increases, new hardware is not required. Additional
capacity for individual wavelengths can be added via software.
PON service was initially introduced in North America in 2002. Currently, Adtran,
Nokia (through its purchase of Alcatel Lucent), Tellabs, and the Chinese company
Huawei manufacture PON components available in North America. Older PON
standards are listed in Table 4-3 in the “Appendix.”

PON Components—OLTs and ONTs

OLTs (Optical Line Terminals) are switches with ports on each card. They are located
in central offices where they are connected to network nodes in the outside network of
cable TV and telephone companies. See Figure 4-11 for an example of an OLT. OLTs
place optical signals on the correct fiber optic cable. Each OLT card has from four to
eight ports and each port is connected to a specific fiber strand.
Last-Mile Access Networks 207

Figure 4-11 An Optical Line Terminal with ports on cards where fiber is
terminated in central offices. (Photo courtesy of Adtran Inc.)

OLTs for NG PON2s can also be installed in network operators’ cloud-based

CORD central offices where they are virtual network functions (VNFs) in a White Box
on X86 Intel commodity servers. Representing NG PON2s optical line terminals in
software makes them less costly to install than separate pieces of hardware.
Optical Network Terminals (ONTs) translate between signals on fiber cabling and
those on copper cabling as well as between optical signals and wireless signals. ONTs
are located wherever fiber optic cabling is connected to other types of cabling and
wireless medium where signals need to be translated. This makes them compatible
with all types of media.
The following are examples of locations with ONTs:

• Homes
• Enterprises distribution frames where copper cabling is terminated
• Apartment buildings
• Wi-Fi modems if all signals within a building are transmitted on Wi-Fi
• Hospitals
• Cellular backhaul where signals are “backhauled” from cellular data centers
to networks
• Wholesale cellular backhaul providers who resell backhaul capacity to
facilities-based cellular companies
• Coaxial cabling in cable TV networks where fiber is installed in residential
neighborhoods closer to homes
• Nodes in neighborhoods where fiber is terminated closer to, but not directly
connected to a residence or small business
208 4  Managing Broadband Networks

Direct Fiber to Enterprises and Multi-Tenant Buildings

Direct fiber is often installed at enterprises and multi-tenant buildings. Because it is
directly connected from the central office, PON equipment is not needed. In apartment
buildings, data-grade copper carries signals to each apartment unit from the ONT. The
ONT converts light signals to electrical signals in the building’s wiring center. The data
grade twisted-pair copper cabling carries Internet and other broadband signals to each
apartment.

Using PONs to Deliver Fiber to the Home in Cities

and Sections of Metropolitan Areas
PONs to the home are widely deployed in Asian countries such as Japan and South
Korea, and in China, where much of the infrastructure was upgraded or built from
scratch. Dense populations are a factor in making it feasible to lay fiber to homes in
these countries. The lack of density in the United States compared to other countries
makes it costly and challenging to build fiber to homes. Fiber to the home is capable of
reaching up to 32 homes from a single splitter. Figure 4-12 presents a list of countries
with the most fiber to the home (FTTH).
Verizon currently has the largest installed base of PON connected fiber. AT&T,
CenturyLink, and most cable Multiple System Operators (MSOs) bring fiber deep into

2016
True FTTH Connected Penetration
FTTH
vs. Other Most Similar Countries
CONNECT

Spain 15%
USA The US probably has the highest level of
11%
deployment difficulty in the world - high
Canada 6% population (319 Million), and yet low real
China 5% population density (179).
Australia 5% Comparing to countries that have at least
35 million in population, and a real density
Mexico 4%
measure below 500, the US is second in
Russia 3% true FTTH deployment, Canada is third
Turkey 3% and Mexico is fifth. (Based on 2015 Global
ranking data excluding fiber to the
France 2% building.)
Germany 1%
Poland 1%
0% 20% 40% 60% 80% 100%

Figure 4-12 Countries with the largest percentage of fiber to the home.
(Courtesy of Broadband Association)
Access Networks in Cable Operators’ Networks 209

neighborhoods and then use twisted-pair or coaxial cabling to serve customers. Some
providers bring fiber all the way to curbside pedestals in much of their territory. These
implementations serve only 8 to 12 customers per PON device. PON service closer to
customers is more expensive per subscriber to deploy but provides higher-speed ser-
vice because fewer customers share the fiber.
PONs are also used to bring fiber all the way to premises in new “greenfield”
developments (new industrial or residential developments). In addition, they are the
basis for wireline infrastructure in developing countries. In addition to providing large
amounts of capacity, fiber is less costly to maintain than copper cabling. Less equip-
ment is needed to boost signals that fade, there are fewer repair issues, and capacity
can be upgraded by changing equipment connected to fiber. Entire new fiber strands
are not usually required.

Expanding into New Territories

When telephone and cable TV companies expand into new areas, they are faced
with high costs of getting permits from local governments, hanging cables on
telephone poles, and digging up streets to lay fiber. Carriers that want to avoid
these expenses negotiate 20- to 30-year leases for exclusive rights to spare fiber.
These leases are referred to as Indefeasible Rights of Use, IRUs. Examples of
organizations with spare fiber are electric utilities and long-haul network provid-
ers. Electric utilities have large networks of fiber associated with transmitting
power to customers.
According to Google Fiber’s head of business operations in Huntsville, Ala-
bama, Caroline de Gantis, “Leasing the infrastructure in Huntsville rather than
building from scratch allows us to bring Google Fiber to even more people,
faster.” De Gratis was quoted in CNBC.com’s May 23, 2017, article by Colin
Gibbs, “Alphabet’s Cost Cutting on Display as Google Fiber Rolls Out In
Alabama.”

ACCESS NETWORKS IN CABLE OPERATORS’

NETWORKS............................................................
Access networks in cable operators’ and traditional telephone companies’ networks use
a different type of customer modem. However, both telephone companies and cable
Multiple System Operators (MSOs) face the challenge of upgrading access networks
to increase capacity. Access networks are those portions of a network between a pro-
vider’s equipment in neighborhoods and that of the customer. Per Neilson, cable and
satellite TV reception is available to 82 percent of the population in the United States.
210 4  Managing Broadband Networks

M
MSOs are large cable TV providers with service areas that extend over
many states. They are referred to as MSOs because they grew by purchas-
m
ing other cable companies and merging operations with these often smaller
in
companies’ systems. Comcast Corporation, Cox Cable, and Charter Com-
munication are examples of MSOs in the United States.

Using Cable Modems to Access the Internet

The basic functions of cable modems are to convert digital signals from computers or
data networks to those compatible with coaxial cabling and to convert radio frequency
(RF) from cable TV networks to digital signals suitable for Internet access and fiber opti-
cal cabling. In cable TV, electromagnetic waves carried on coaxial cabling are referred
to as RF signals. The cable TV access network is a hybrid fiber/coax (HFC) network.

The Cable Modem “Handshake”

Cable modems perform a “handshake,” an exchange of signals before data is transmit-
ted to and from the Cable Modem Termination Systems (CMTSs) located at the cable
operator site. (See the following section for information regarding CMTS equipment.)
Complex signaling, use of frequencies, the speed at which to transmit, and authentica-
tion are agreed on between the two devices. At startup, the network checks the user’s
login before allowing access to the Web or certain web sites.

Using Set-Top Boxes to Interface to Cable TV

Cable TV set-top boxes are interfaces between televisions, satellite TV, subscrip-
tion television, and cable TV networks for access to television and other services. At
the most basic level, they are tuners that filter out all of the channels except the one
selected by the viewer. Because each tuner filters only one channel at a time, set-top
boxes used for more than one television simultaneously will require multiple tuners.
Personal digital video recorders such as TiVo also have two tuners so that one tuner
filters a channel that is being recorded and the other tuner filters the channel currently
being viewed. Other tuners in end users’ televisions filter signals for interactive ser-
vices such as programming guides, VOD, and pay-per-view.
Cable operators remotely administer filters and traps in set-top boxes to allow
subscribers access to basic cable TV or premium channels. Set-top boxes also have
advanced security functions and contain links to billing systems. The security func-
tion scrambles and unscrambles TV signals based on the information provided by the
billing system as to which channels the subscriber is permitted to receive. Security
Using Cable Modem Termination Systems for IP Traffic 211

is higher and TV theft is lower on digital service because of improved scrambling

(encryption).
Set-top boxes are becoming more sophisticated. Comcast’s X-1 set-top box sup-
ports speech recognition on remotes, and access to services including Netflix, Pandora
music, photos, and weather. The X-1 is required for the MPEG-4 compression that
Comcast is upgrading to on their cable networks. MPEG-4 compresses video signals
so that they require less capacity on networks. Software in set-top boxes decompresses
the compressed signals so that video resolution is acceptable. See Chapter 1 for infor-
mation on compression.

The High Capital Cost of Set-Top Box Upgrades

On a cost-per-subscriber basis, when cable TV networks are upgraded, the new set-top
boxes required cost more than any other part of the network. This is because upgrades
to the headend or core network are amortized over the entire network. By contrast,
each set-top box is amortized from payments received from the individual customer.
New set-top boxes add up to an enormous amount of money for cable providers with
millions of customers. In addition, set-top box upgrades require more administrative
time for programming the set-top boxes and answering customer inquiries.
These costs are a major factor in many providers’ decision to gradually implement
upgrades in their coverage areas. This spreads out the costs over a few years rather than
during a single year.

Soft Set-Top Boxes

One way that cable TV providers are saving money is by eliminating set-top boxes on
certain Internet-connected televisions. On Samsung, for example, Comcast offers an
app with full access to Comcast’s program options. Comcast’s app is also available on
Roku devices. RCN, a regional cable TV provider, offers its program guide on other
set-top boxes as well.

USING CABLE MODEM TERMINATION SYSTEMS

FOR IP TRAFFIC
Cable Modem Termination Systems (CMTSs) are located at the cable or distribution
center (the hub). They modulate and demodulate (hence, the term “modem”) digital
voice and data signals and place them on cable infrastructure. Modulation is the tech-
nique of making digital signals suitable for radio frequencies (electromagnetic waves)
that carry signals on cabling infrastructure. CMTSs demodulate signals received from
customers to make them suitable for transmission on a cable company’s fiber-optic
rings, which connect smaller hubs to headend facilities.
212 4  Managing Broadband Networks

CMTSs monitor the level of traffic at each fiber node so that cable providers are
aware when congestion occurs and nodes need to be added to serve fewer homes per
node. Moreover, they are responsible for encryption to ensure privacy, security, and
conditional access. Conditional access is the determination of whether a customer is
entitled to certain features. CMTS devices have built-in routers that send traffic to dif-
ferent destinations such as the Internet, long-distance providers, or the cable MSO’s
VoIP equipment.
CMTSs are similar in function to Digital Subscriber Line Access Multiplex-
ers (DSLAMs) that are used in traditional telephone company networks in that both
devices translate between modems at customers’ premises and equipment in back-
bone networks. They both also aggregate traffic from multiple subscribers into a single
stream for transmission in the backbone. (See the section “Digital Subscriber Line
Access Multiplexers,” earlier in this chapter, for a discussion on DSLAMs.)

Supporting More Video via Set-Top Boxes

New modulation technologies enable digital cable to increase capacity two to three
times from the former 10 to 12 channels of standard-definition video and two to four
channels of HDTV video on each 6MHz channel. Standard-definition TV has lower
resolution than high-definition television. Moreover, digital cable results in improved
resolution because there is less interference from noise, which creates snow and shad-
ows that appear on the television screen.
Consumers can opt for set-top boxes with hard drives capable of storing content
and playing it back at their convenience. Digital cable is the basis for VOD, which
allows subscribers to order movies for an extra fee. VOD movies are available for a
limited time period of a day or two. Nearly 100 percent of all cable TV subscribers in
the United States are located in areas where they can receive digital cable. Pay-TV via
cable and satellite are available to 82 percent of households of the population in the
United States.

Cable Modem Standards Transition to

Higher Speeds
CableLabs, the research and development arm of the North and South American cable
TV industry, sets cable TV modem standards. CableLab’s standards are intended
to provide a technology “road map” for cable MSOs to move toward implementing
higher-capacity IP networks used for Internet access. These standards are known as
the Data Over Cable System Interface Specifications (DOCSIS). The European Tele-
communications Standards Institute (ETSI) and the International Telecommunications
Union (ITU) have approved the standards listed in Table 4-4 in the “Appendix” section
of this chapter. However, the international versions of DOCSIS vary a little from that
used in the United States. The DOCSIS standard in Europe and parts of Latin America
is referred to as EuroDOCSIS.
Using Cable Modem Termination Systems for IP Traffic 213

Transitioning from Asymmetric to Symmetric

Channels
Until 2016, MSO offerings for residential-consumer Internet access were primarily
asymmetric, with higher speeds in the downstream channel from the cable provider to
the subscriber, and lower speeds upstream from the subscriber to the provider. Split-
ting the frequencies into different ranges enables the same coaxial cables to be used for
both sending and receiving signals. Unlike fiber cabling, for which separate strands of
fiber are used for sending and receiving, a separate coaxial cable does not need to be
installed for the reverse, upstream channel. With the advent of new cable modem stan-
dards (see DOCSIS below), both upstream and downstream capacities are the same.
They are symmetric. Upstream and downstream bits use the entire range of frequencies
in the cable.

Full Duplex DOCSIS 3.1—Symmetric Speeds

The DOCSIS 3.1 standard specifies support for 10Gbps per 6MHz (6 megahertz) chan-
nel. Users on the same node share this capacity. DOCSIS 3.1 is currently the fastest,
most advanced cable modem standard. It is compatible with the previous DOCSIS 3.0
that specified bonding to increase capacity on broadband.
Bonding enables support for higher data rates of 173Mbps to 343Mbps down-
stream to homes, and 123Mbps upstream to the cable operator.

B
Bonding is the process of combining adjacent channels into one large chan-
nel to support higher-speed services. For example, bonding four channels
n
together that each comprise 38 1Mb channels creates a single 152Mb
to
channel. In effect, bonding creates a bigger pipe that is shared by homes
connected to the same node.
Bonding increases capacity for Internet access. However, it does so by
using channels previously available for video, which of course, decreases
the number of available video channels. It does not increase the total
amount of capacity on cable networks, many of which had a top capacity of
860MHz. Bonding, rate shaping, and improved compression increase the
amount of data (throughput) that the network can handle, but they do not
increase overall capacity. For more information on rate shaping, read the
section “Adding Capacity to Access Networks,” earlier in this chapter.

Fiber-optic cabling supports more capacity than current hybrid fiber/coaxial

cabling. For example, Verizon’s fiber to the premises (FTTP) cabling enables it to use
its entire 860MHz for TV, with additional gigabits available for voice and Internet
214 4  Managing Broadband Networks

access. To add capacity on coaxial cable, operators are upgrading their networks using
advanced QAM multiplexing techniques.
Because of its support for Quality of Service (QoS), DOCSIS 3.0 supported appli-
cations such as voice and video, which are sensitive to delays. An upgrade to DOCSIS
3.0 required a new DOCSIS 3.0–compatible cable modem at the subscriber location
and at the CMTS. This made the upgrade a costly endeavor.
Competition from carriers that offer fiber to the premises (FTTP) is one factor
that spurred implementation of DOCSIS 3.0 and full duplex, sending and receiving
on the same cable or channel. DOCSIS 3.1’s higher-capacity offerings have capacities
from 1 to 10Gbps to support broadband to residential and business customers. MSOs
deploy direct fiber to enterprise customers. Unlike offering to residential subscribers,
cable TV direct fiber connections to enterprises are not shared with other customers
that subscribe to broadband. They are connected directly to cable operators’ transport
networks.

Capacity on Coaxial Cable

Signals on coaxial cable in cable TV networks are transmitted as electromag-
netic waves (radio frequencies [RF]). Capacity on these coaxial cable systems
and on TV channels is measured by the amount of frequency. The amount of fre-
quency is determined by the difference between the highest and lowest frequen-
cies on the coaxial cabling.
For example, a 6MHz channel might be within the 60MHz and 54MHz range
(60 – 54 = 6). Upgrading to gigahertz from megahertz networks adds capacity
for additional video channels and higher-speed Internet access for subscribers.
See Chapter 7, “Mobile and Wi-Fi Networks,” for information on frequencies.

Carrying More Data—Quadrature Amplitude

Modulation (QAM)
QAM is a modulation technology specified in DOCSIS standards that increase broad-
band capacity on hybrid fiber cable (HFC) networks. Modulation standards define how
signals are placed on networks and how they are transmitted. Full Duplex 4096 QAM
enables cable TV networks to carry two to three times as many high definition (HD)
movies as the earlier 256 QAM. However, movies must be transmitted using the IP
(Internet Protocol). DOCSIS 3.1 specifies 4096 QAM to deliver 10 Gigabits of sym-
metric capacity shared by nodes within neighborhoods. Currently most cable operators
don’t transmit movies using the IP (Internet Protocol).
QAM 4096 is more sensitive to noise and impairments that occur over long dis-
tances on coaxial cabling. This is one reason cable TV providers are expanding their
Using Cable Modem Termination Systems for IP Traffic 215

fiber footprint closer into neighborhoods. Fiber closer to homes results in shortened
coaxial cable lengths. Shorter coaxial cabling runs have less impairment from electri-
cal noise than longer coaxial cable runs.
There is also a DOCSIS 3.1 specification for half duplex, asymmetric service.
Asymmetric DOCSIS 3.1 specifies 10 Gigabits downstream and 1 Gigabit upstream
from customers to the provider’s headend. In these instances, DOCSIS 3.0 spectrum is
used for the upstream bits toward the cable TV network and DOCSIS 3.1 spectrum for
downstream spectrum to subscribers.
Upgrading to 10GHz adds capacity for Internet browsing as well as movies sent
using IP. Unlike bonding, it does not decrease the amount of capacity for video. How-
ever, it is costly. Optical transceivers and receivers as well as amplifiers and set-top
boxes need to be replaced or upgraded, depending on the age of the existing cabling
and electronics. Optical transceivers and receivers convert signals on optical cabling
to those compatible with copper cabling, and vice versa. Amplifiers strengthen sig-
nals that naturally weaken after traveling over distances, particularly on copper-based
coaxial.

In symmetric transmissions, which are specified in Full Duplex DOCSIS 3.1

implementations, upstream and downstream bits share the same
im
spectrum. This is accomplished by equipment that can listen and transmit
s
at the same time and cancel what the equipment has already “heard.”
Once the transmitted bits are “heard” they can be cancelled, and only
changed bits are transmitted. Symmetric, full duplex transmissions use
the HFC spectrum more efficiently than DOCSIS 3.0. They are spectrally
efficient, enabling both upstream and downstream bits to use the full
capacity of the cabling.
Symmetric service is important for business customers that access
cloud-based applications where more capacity than previously is needed on
the uplink as well as the downlink where data is downloaded from applica-
tions such as Salesforce.com located in the cloud. Upstream capacity is
also needed for residential subscribers who increasingly upload long-form,
high-resolution videos to Facebook, Snapchat, YouTube, and other social
networks.

Competition from Streaming TV and Traditional

Telephone Companies
Customers that “cut the cord” or that never subscribed to cable TV or satellite TV can
opt for over the air service television broadcasts beamed from towers. National broad-
casters (ABC, NBC, CBS, Fox, and Spanish channels) and their local affiliates broad-
cast their programs over the air to customers’ antennas or from cable TV providers that
216 4  Managing Broadband Networks

now offer streaming. Subscribers without cable TV service receive programs over the
air via an antenna wired to their TVs. The antenna can be installed on their roof or the
outside of their home. Subscribers close enough to broadcasting towers are able to use
indoor antennas to receive over the air TV broadcasts.
The escalating subscription fees combined with the many interruptions for com-
mercials on cable TV has motivated many subscribers to “cut the cord” and rely only
on over the top (OTT) streaming media from Netflix, Amazon, Hulu, and others.
According to Nielson, by the first quarter of 2017, 123.6 million people in the United
States subscribed to OTT streaming TV from Netflix, Amazon, Hulu, and others. Oth-
ers subscribe to fewer cable TV stations. They “slim down” their cable TV bundle by
subscribing to fewer cable TV stations. These slimmed down cable TV packages are
referred to as skinny bundles. Many subscribers pay for an OTT subscription in addi-
tion to their slimmed down or full cable TV subscriptions.
Traditional telephone companies including AT&T and CenturyLink are encroach-
ing on cable MSOs by offering subscriptions to their movie and TV programming,
IP voice telephony, and broadband over their copper or fiber infrastructure. Verizon
currently has the most territory in the United States where they offer service bundles
over fiber. They carry IP voice, television, and Internet broadband transmissions over
their fiber to homes. AT&T and most other telephone companies compete with MSOs
by offering triple play services: voice, data, and TV programs. They build out fiber to
the closest neighborhood node (equipment cabinet), and use copper for the last few
hundred feet in areas where they don’t provide fiber directly to homes.

Satellite TV
Satellite TV operators offer bundles with both streaming TV and national broadcast
stations. Dish and AT&T’s DirecTV are the only satellite TV providers in the United
States. Satellite TV is particularly popular in rural areas where fiber to homes is not
available. Satellite TV is important in rural areas in the United States, particularly
where cable TV is not available because low population density makes it unprofitable
to lay cabling directly to homes.

Retransmission Agreements between Pay-TV and

Local Broadcasters
All cable TV subscribers, including those with slimmed down, skinny bundles,
receive national broadcast programming on their cable TV service. Cable TV,
satellite, and traditional telephone companies pay fees to local broadcasters for
the right to carry local broadcasts. These agreements are referred to as retrans-
mission agreements. The fees are mandated in the United States 1992 Cable Act.
Telecommunications Services in National Emergencies 217

TELECOMMUNICATIONS SERVICES IN NATIONAL

EMERGENCIES .......................................................
During natural disasters, extreme weather conditions, and even armed attacks, the gov-
ernment, military, first responders (hospitals, police, 911 call centers, and firefighters),
and ordinary citizens depend on communications to coordinate rescue operations and
to stay in contact with family members. Even in the absence of a disaster, the ability
to call police, fire departments, and hospitals is critical so that people can report emer-
gencies and assistance can be dispatched as quickly as possible. For these reasons,
governments worldwide regulate network reliability and sustainability. Equipment and
network sustainability refers to the capability to operate continuously during adverse
conditions.
In the United States, the Federal Communications Commission (FCC) requires
outage reports from the following providers:

• Wireline
• Wireless
• Paging
• Cable TV
• Satellite TV
• Signaling systems

They must further report disruptions that affect the following:

• E-911 facilities affecting 900,000 user-minutes or 30-minute outages in tan-

dem 911 offices connected to long distance networks and other 911 facilities
• Major military installations
• Key government facilities
• Nuclear power plants
• Certain airports

In addition, fiber-optic outages of lines that carry traffic between backbone net-
work switches must be reported. Reports on outages are reviewed quarterly by the
Network Reliability Steering Committee (NRSC), which is made up of representatives
from nationwide wireline and wireless providers. The committee looks for patterns by
type of failure so that they can determine ways to prevent them.
218 4  Managing Broadband Networks

Planning to Insure Reliability and

Sustainability
Carrier networks are now largely IP-based, converged networks, wherein a single
network infrastructure carries data as well as telephone traffic. Thus, outages cause
disruptions to businesses, governments, and consumers. In addition, traffic volume
increases significantly in emergencies.
During widespread emergencies, mobile carriers free up capacity for the addi-
tional volume required by assigning less frequency to each call. Thus, more calls can
be carried, although at lower sound quality. They can also quickly set up portable
cell sites and additional generators at towers or mobile switches that lose power. This
enables mobile providers to restore service to these areas. In addition, if one part of the
country is hit by a natural disaster, other carriers will send staff members and equip-
ment to assist in restoring service.
Carriers plan for emergencies in various ways. For example, they build backup
wireless routes between critical switches and public safety answering points (PSAPs)
for E-911 calls. They also look at ways to increase security against hackers and terror-
ists at peering sites where carriers exchange IP traffic. In addition, providers consider
methods to avoid user errors. User errors occur most often during network upgrades
and programming changes.

FirstNet—A National Public Safety Network

In the days and hours immediately after the 9/11/2001 terrorist attacks on the
World Trade Center’s Twin Towers in New York City and the Pentagon in Wash-
ington DC, firefighters, police, and other first responders found that because of
incompatible mobile devices they could not communicate with first responders
from other municipalities. This inability to coordinate strategy acted as a heads-
up for the need to be able to communicate with other emergency responders
during cyber and physical attacks, and natural disasters.
Following 9/11/01, the Federal Communications Commission (FCC) set about
making a plan for a nationwide dedicated interoperable wireless network with
spectrum (air rights) to be set aside for the exclusive use of the government
and first responders. The FCC’s plan recommended setting aside a portion of
spectrum, the D block, to be used to build a nationwide network. The D block
had been freed up when national broadcast television networks transitioned from
analog to digital for TV transmissions. Part of the spectrum previously used for
analog television was made available for the FirstNet service.
By 2006, the FCC plan was in place, but Congress needed to approve the plan and
allocate funds to build the network. At this time the plan faced opposition from
some in Congress and from wireless carriers. Members of Congress, federal
Continued
Telecommunications Services in National Emergencies 219

officials, and national public safety organizations held a series of meetings, and by
2007 had ironed out their differences.
By 2012, spectrum had been allocated and Congress authorized the creation of
the public-private First Responder Network Authority, known as FirstNet, an
independent arm of the Department of Commerce. In 2017, FirstNet awarded
AT&T a 25-year contract to build a wireless network dedicated to the use of first
responders in emergencies. The U.S. Congress allocated $7 billion for build-
ing the network. The money was part of the Middle Class Tax Relief and Job
Creation Act of 2012.
Every state in the United States is required to have a compatible wireless
network. They can opt in to the AT&T network, which AT&T would build in
their state, or build their own first responder network. All states’ networks must
be compatible with the FirstNet being built by AT&T by December 2017; all
50 states had agreed to join the FirstNet network. In August 2017, Verizon
announced that it is also building a national public safety network that will be
separate from its commercial network.
First responders in states that have opted into the AT&T offering do have the
choice of using Verizon’s national public safety network. However, as an added
incentive to join their network, AT&T pledged to add cellular infrastructure in
areas sparsely equipped for service.

Internet Security and Sustainability

Internet security is a global issue that cannot be isolated within a single country.
However, the Federal Communications Commission (FCC) currently has no author-
ity to require that Internet providers report network outages and details about cyber
attacks. In its 2009 National Broadband Plan, the FCC recommended looking at
ways to ensure sustainable communications over the Internet. It also stated the desir-
ability of expanding international participation and outreach to manage cyber secu-
rity information. Part and parcel of that, the FCC would like a vehicle for collecting
more detailed information about cyber security. The report also expressed concern
about how dependent first responders are on Internet communications. The FCC
further declared that it is considering asking Congress for the authority to require
reporting on these issues.
Because the Internet is classified as an information service rather than as a tele-
communications service, the FCC has limited authority in regulating it. An information
service is defined in the Telecommunications Act of 1996 as a service that adds value
to a basic transmission path through functions such as processing information. Tele-
communications is defined as the basic transmission (delivery) of voice and data. It’s
essentially the path over which voice is carried as well as the equipment used to send
and receive voice and data traffic.
220 4  Managing Broadband Networks

Because of its critical role, the FCC attempted to alter the way the Internet is
regulated so that the agency has more oversight of cyber security and sustainabil-
ity. It attempted to have the Internet classified as a telecommunications entity rather
than a value-added service. However, with the changeover of the FCC when Donald
Trump was elected president, the FCC has dropped its efforts to classify the transmis-
sion component of Internet services as telecommunications. The effort to regulate
the Internet did not include monitoring content on web sites or content transmitted to
web sites.

SIGNALING ............................................................
Signaling is the process of sending control information over landline and mobile net-
works to monitor, control, route, and set up sessions between devices. These sessions
include video and audio conference calls, data sessions, video calls, and mobile and
landline telephone calls. Signaling is also used to set up instant messaging and chat
sessions. Signaling is used within public landline and, mobile networks, and the Inter-
net as well as for intercarrier connections and billing.

An Overview of Signaling
Signaling is used to process every call on the Public Switched Telephone Network
(PSTN), the Internet, and the public cellular network. When a caller dials a number,
he or she can hear progress tones such as dial tone, ringing, busy signals, or reorder
tones. These are all signaling tones. In addition to tones, callers might hear digital
messages informing them that the number they dialed is not in service or has been
changed.
The PSTN (Public Switched Telephone Network) uses Signaling System 7 (SS7).
IP networks mainly use variations of Session Initiation Protocol (SIP) as the common
platforms for call setup, teardown and activation, and control of advanced features.
SIP was originally designed for the Internet, but is now used in private data networks
and data networks that carry IP voice as well. A form of SIP is also used for text
messages.
Signaling is the basis of interconnection between mobile, global wireless, and
multiple providers’ networks. When AT&T controlled most of the public network in
the United States, it had the necessary control of the public network that enabled it
to set a standard (SS7) that was followed across the country and was later adopted,
with variations, by the international community. SIP is additionally used in IP
PBXs to carry calling identification, and to set up and tear down video and audio
conferences.
Signaling 221

SIP is an Internet Engineering Task Force (IETF)–approved standard. In both SIP

and SS7 protocols, signaling messages are carried separately from user content. In
addition, they both provide common functions.

Signaling—The Basis for Billing and Monitoring

Signaling networks monitor traffic on networks around the clock, worldwide.
When network problems are detected, alerts are sent over the signaling net-
work to centralized Network Operations Centers (NOCs) where technicians see
visual indications of alarms on computer screens. Moreover, sections of carrier
networks can be quickly reconfigured from commands sent by centralized
network control centers.
When carriers transmit traffic to each other, signaling messages are used to
identify each carrier’s traffic. This is the method by which carriers bill one
another for services that they provide. No carrier has facilities everywhere,
so they rely on other providers’ networks outside of their coverage area. For
example, a provider that sells toll-free service to customers nationwide pays a
fee for each call that terminates in another carrier’s coverage area. Termination
refers to the traffic destination. In the preceding example, a call terminates at
the subscriber’s location where it is answered.

Incompatibilities between Different SIP

Implementations
SIP is an extremely flexible protocol that offers different ways to implement many
IP applications. These differing methods are referred to as Requests for Comments
(RFCs). RFCs were originally used only to solicit comments when standards are being
developed. Once approved by standards bodies, the final versions of standards are then
published as RFCs.
SIP has many RFCs, which has been a complicating factor when carriers connect
with one another at peering sites and when carriers purchase new IP equipment from
manufacturers that use different SIP implementations from the carrier’s. In these cases,
manufacturers modify their equipment to match the RFC implemented by the carrier
for its network. The SIP Forum, a non-profit organization that advances interoperabil-
ity and hosts interoperability testing, has simplified internetworking between carriers
as well as between carriers and enterprises. The forum recommends specific profiles
(RFCs) to use when connecting enterprise SIP trunks for VoIP service. Most carriers
now use these and other specified profiles.
222 4  Managing Broadband Networks

Interconnecting Carriers and Providing

Secure Space for Equipment in Co-Location
Facilities
Co-location facilities are sites where network service providers house their switches
and routers and connect to one another’s networks. Co-location facilities are also
referred to as carrier hotels.
There are up to 200 carriers located at the very largest co-location sites. Co-location
facilities are connected to the Internet, public and private data networks, and the PSTN.
Because so many network providers depend on co-location facilities, security and sus-
tainability in the face of natural and human-made disasters are critical. For these rea-
sons, co-location facilities are located in secure buildings with few windows and no
company logos to identify them. They are also monitored by security cameras and
heavily guarded by security firms. They often additionally duplicate their service in a
completely separate facility connected by fiber cabling to their main location.
Carriers rent space in co-location facilities because no provider has outside cabling
everywhere. In addition, certain providers have no cabling facilities. Instead, they own
switches, which they connect to other carriers’ networks. In both of these circum-
stances, rather than construct their own buildings to house their switches, carriers lease
space in carrier hotels. They place their equipment in cages or lease space in equipment
cabinets in the carrier hotel. Locked wire cages surround the equipment and access to
the equipment is available only to employees of the company that owns the equipment.
Carriers also remotely access their servers to monitor and program their equipment.
For even more reliability, some co-location facilities place redundant equipment at an
additional co-location site.
Leasing space in carrier hotels saves network providers the expense of establishing
and maintaining the following:

• Physical security against break-ins

• Access to large amounts of power
• Access to backup power
• Backup generators
• Dual air conditioning systems
• Uninterrupted power supplies
• Backup fiber cabling to the facility
• Fire detection and fire suppression equipment
• Alarms to fire and police departments
• Staff members to plan and maintain the facilities
• Construction of earthquake-resistant facilities
Signaling 223

Carriers such as CenturyLink, AT&T, and Verizon have carrier-owned co-location

facilities. These are generally in the same building as the carrier’s Point of Presence
(POP). Carriers offer a bundle of services at these facilities, including connections to
routes connected to the co-location facility and connections to the carrier’s POP, which
is often located in the same building as the co-location services. AT&T and Verizon
buy services from each other’s co-location sites to reach customers whose locations are
outside of areas in which they own access networks.
Another type of co-location facility is a carrier-neutral facility. Neutral co-location
facilities are owned by non-carrier organizations, including Equinix, Markley Group,
and Telehouse. Neutral refers to the fact that carriers that use these facilities can send
traffic over routes offered by any carrier connected to the same facility. A carrier at a
neutral site can lease routes from any other provider at the site, such as Windstream
or CenturyLink. Carriers locate gateways, switches, and routers in these facilities to
exchange traffic with other providers and to manage their own traffic.
Equinix provides data center services as well as co-location services. It is the larg-
est provider of co-location and data center services worldwide.

Connecting Smaller Providers and

Competitors to Customers
Telephone companies and Multiple System Operators (MSOs) rent various portions of
their networks to smaller providers and to competitors that might have some of their
own switches and/or long-haul networks, but no last-mile connections to customers.
They offer access to their networks on a wholesale basis. For example, they offer con-
nections between their POPs and their local central offices. These connections are
considered transport networks. Smaller providers use these lines to transport traffic
between their own switch (which might be located at the POP) and the local telephone
company’s switch. They also lease last-mile cabling infrastructure to reach each of
their customers.
Both large and small providers make these arrangements with one another and
with large enterprises. For example, Verizon sells services to large enterprises that
have offices throughout the United States and around the world. Often, these enter-
prises purchase nationwide networking services for all of their locations. Verizon rents
transport services from providers such as AT&T in cities where it does not own the
local cabling infrastructure. Providers make these types of arrangements with carri-
ers in other countries as well. AT&T, in turn, leases these services for its own large
customers’ remote offices that are located in areas where AT&T does not have its own
last-mile network.
224 4  Managing Broadband Networks

APPENDIX ..............................................................
Table 4-2 SONET: A North American Standard for Multiplexing Streams of Traffic
onto Fiber-Optic Cabling and Transporting It at Optical Carrier (OC) Speeds*
North American
Synchronous European Synchronous
Transport Synchronous Digital
Signal (STS) Transfer Mode Hierarchy (SDH)
Speed Levels SONET Channels (STM) Levels Channels
52Mbps OC-1 28 DS1s or 1 DS3 STM-0 21 E1s
155Mbps OC-3 84 DS1s or 3 DS3s STM-1 63 E1s or 1 E4
622Mbps OC-12 336 DS1s or 12 DS3s STM-4 252 E1s or 4 E4s
2,488Mbps OC-48 1,344 DS1s or STM-16 1,008 E1s or
48 DS3s 16 E4s
9,953Mbps OC-192 5,376 DS1s or STM-64 4,032 E1s or
192 DS3s 64 E4s
39.812Gbps OC-768 21,504 DS1s or STM-256 16,128 E1s or
768 DS3s 256 E4s
*SONET was developed to aggregate (multiplex) and carry TDM (Time Division Multiplexed) and circuit-switched voice
traffic from multiple sources. The international version of SONET is Synchronous Digital Hierarchy (SDH). SONET SDH
carries traffic at Synchronous Transfer Mode (STM) rates.

Table 4-3 Older PON Standards

GPON
BPON Gigabit 10G-EPON
APON Broadband Ethernet Gigabit Ethernet
ATM PON PON PON PON
Speed 622Mbps* (OC 12) 622Mbps* 2.5Gbps 10 Gbps downstream
downstream upstream and downstream 1Gbps upstream
155Mbps* (OC 3) downstream 1.25 Gbps Or Symmetric
upstream upstream 10Gbps upstream and
downstream
Comment Earliest PON A faster Efficient for IP Symmetric suited for
standard version of traffic commercial customers
APON
*Optical carrier
Appendix 225

Table 4-4 DOCSIS Standards

Standard Capabilities
DOCSIS 1.0 Two-way service for Internet access.
Upstream speed of 5Mbps.
Uniform specifications so that cable modems can be purchased from
retail outlets that are compatible with cable operators’ infrastructure.
DOCSIS 1.1 Increases the upstream speed to 10Mbps.
Improves security and privacy.
QoS enables operators to provide differentiated quality for VoIP and
interactive services such as real time multiplayer games.
Tier-based services such as higher speeds to heavy users who use
more bandwidth or purchase additional data service.
DOCSIS 2.0 Increases upstream capacity to 30Mbps.
Symmetric services such as those for business customers.
Peer-to-peer such as VPN with site-to-site connectivity (see Chapter 5
for further information on VPN service).
DOCSIS 3.0 Supports higher capacity of 173Mbps to 343Mbps downstream to
homes, 123Mbps upstream to the cable operator, and bonding.
DOCSIS 3.0 includes support for IPTV.
This page intentionally left blank
5 Broadband Network Services
In this chapter:
 Introduction 228
 VoIP Calling Services over Broadband 231
 Multi-Protocol Label Switching for Interoffice Connections 235
 IP Virtual Private Networks over the Internet 238
 Adding Security on Traffic Sent over IP VPNs 240
 Managed Services 245
 Digital Subscriber Line—Distance Limitations; Operates on Copper Cabling 247
 Carrier Gigabit Ethernet 249
 Network Topology on Dedicated, Private Lines 252
 Appendix 266

227
228 5  Broadband Network Services

INTRODUCTION .....................................................
T oday’s broadband networks are increasingly made up of high-speed fiber-optic links
with the augmented capacity required by the growing reliance on applications located
on the Internet and in the cloud. Current workplaces cannot come close to functioning
without the reliable, high-capacity broadband links now available. Older broadband
technologies have capacity and flexibility limitations that make them unsuitable for
most of today’s requirements.
Carrier Gigabit Ethernet and dedicated wavelengths are largely replacing older,
inflexible, limited-in-speed, broadband services wherever fiber cabling is available.
Gigabit Ethernet is now commonly deployed on fiber cabling at enterprise locations.
These links support speeds of up 100Gbps. But large social network companies are
deploying 400 Gigabit connections at their data centers. Moreover, telephone compa-
nies’ core networks that carry traffic between cities, states, and across the country are
achieving terabit (thousand gigabit per second) data rates.
Dedicated wavelengths on fiber-optic cabling are a high-capacity alternative to
Carrier Gigabit Ethernet. Dedicated wavelengths refer to a portion of the fiber-optic
cabling capacity, an individual wavelength, dedicated to a single customer. These often
link customers’ branch offices, warehouses, and headquarters together.
While increasing capacity on fiberoptic cables is important, it doesn’t solve
the issues of managing traffic, prioritizing applications and automating functions in
broadband networks. Wide Area Software Defined Networks (WA SDNs) are able to
prioritize applications and automate routing on broadband networks. They can be pro-
grammed to automatically route traffic away from congested routes and parts of net-
works that are completely out of service.
This flexibility and automation is due to the defining aspect of WA SDN: it is con-
trolled by software. This contrasts with earlier network protocols, which used hardware
(routers, switches, and other adjuncts) to control traffic in packet networks. WA SDNs
are a layer of software that runs on top of dedicated wavelengths and Gigabit Ethernet.
Multiprotocol Label Service (MPLS), which does prioritize voice and video, is
still used by enterprises. However, the routing is rigid and the capacity is limited. It’s
not uncommon for MPLS and WA SDN to be present in the same enterprise networks
with MPLS under the control of WA SDN.
Telephone companies, particularly in urban and suburban areas, are often drop-
ping support for older, slower, inflexible services wherever fiber-optic cabling is avail-
able. The older services, mainly T1, T3, and DSL have severely limited capacity and
less-flexible configurations than newer broadband. Moreover, it is more costly for tele-
phone companies to support them than the more flexible Carrier Gigabit Ethernet and
Dedicated Wavelength services. For these reasons, and because customers are demand-
ing higher capacities, telephone companies are phasing out T1, T3, and DSL wherever
fiber cabling is available.
As it’s difficult for organizations to accomplish their day-to-day functions when
their broadband networks are unavailable, reliability and availability are critical con-
cerns. Many customers take it for granted that because there are few network outages,
Introduction 229

their broadband networks will be available 7 days a week, 24 hours a day. However,
for large financial services companies and medical institutions, this is not adequate.
Most of these large institutions have duplicate, backup fiber-optic lines connecting
their buildings to broadband links if their primary links fail. Fiber-optic lines cut by a
backhoe or a failure in the telephone company’s equipment can cause failures.
Managed services are one way that carriers differentiate themselves from regional
and smaller competitors, who sell discounted broadband services. Examples of man-
aged services are managing Wi-Fi networks and consulting on data centers. In addi-
tion, large carriers distinguish themselves from smaller carriers by promoting their
international presence. This is important for enterprises with a global infrastructure.
A discount on mobile services is another distinguishing factor that large carriers offer
major enterprise customers to lure them away from smaller telephone companies that
may offer discounts in smaller regions of the country.

T definition of broadband is not limited to signals carried over fiber optics,

The
ccoaxial cabling, or twisted-pair copper cabling in carrier networks. Broad-
bband capabilities are available in high-capacity mobile networks and satellite
networks as well. Broadband networks are able to transmit large amounts
of voice, data, and video simultaneously. Increased capacity on broadband
networks is the main reason that in many homes, subscribers can watch dif-
ferent Netflix movies on two televisions simultaneously. Wireless broadband
services are discussed in Chapter 7, “Mobile and Wi-Fi Networks.”

Disagreement within the FCC over the

Definition of Broadband
The Telecommunications Act of 1996 requires that the Federal Communications
Commission annually:

• Review the definition of broadband

• Determine if advanced telecommunications (broadband) capability is being
deployed to all Americans
• Analyze whether advanced telecommunications is deployed in a reasonable
and timely fashion
• Define advanced telecommunications capability (data rates)

Defining advanced telecommunications capability means setting the minimum

speed that fixed line network operators need to offer subscribers in order for the ser-
vice to be considered broadband. In 2015 the FCC defined broadband as 25Mbps
230 5  Broadband Network Services

downstream and 3Mbps upstream. In 2017, the FCC affirmed the 25/3Mbps speeds,
and also asked for comments on whether this capacity is adequate for today’s needs.
Not everyone agrees with the FCC’s definition of broadband. On August 8, 2017,
FCC Commissioner Mignon L. Clyburn issued the following statement in response
to the FCC’s majority opinion keeping the definition of broadband as 25Mbps down-
stream and 3Mbps upstream. The following are excerpts from Clyburn’s statement:

We sell consumers short by proposing a speed benchmark that is way too

low. The statute defines … broadband as …‘capable of originating and
receiving high-quality voice, data, graphics and video telecommunica-
tions’… the 25/3Mbps standard we propose would not even allow for a
single stream of 1080p video conferencing….

The designation 1080p (1080 pixels) refers to the resolution (number of pixels) on
televisions and video conferencing. A pixel can be thought of as a dot or picture element.
1080p is the resolution generally found in high-definition transmissions to televisions.

Broadband Worldwide
A report commissioned by the Broadband Forum and conducted by the market analyst
firm Point Topic revealed that there were a total of 871.1 million fixed-broadband
subscribers worldwide at the end of the first quarter of 2017. The report covers only
broadband access over cabling and fixed, point-to-point wireless services. According
to China Money’s April 27, 2017, article “China’s Fixed-Line Broadband Penetration
Rate To Hit 63% This Year” by Pan Yue, China had 310 million broadband subscribers.
This is the highest number of broadband subscribers in a single country worldwide.
According to statistics company Statista, as of the end of the first quarter of 2017, the
United States had 93.9 million broadband subscribers. This is the second-highest num-
ber of broadband subscribers worldwide according to Point Topic.
Many people in less-developed parts of the world access the Internet primarily
over mobile services. This is because dedicated Internet access over landline networks
is frequently either not available or more costly than mobile services in these areas. In
addition, electricity is often expensive. In the Philippines, both ISP-delivered dedicated
Internet access and electricity are too costly for most citizens. Thus, mobile services
are attractive as electricity is only required for charging laptops, tablet computers, and
other devices that are equipped with mobile capabilities. Moreover, a single device can
be used to make calls and to access sites such as Facebook.
While current mobile networks support broadband services, they’re slower than
those over most wireline networks. However, new technologies and upgrades to exist-
ing standards are vastly improving Internet access on mobile networks and spurring
adoption of mobile broadband. See Chapter 7 for information on 5G mobile protocols.
VoIP Calling Services over Broadband 231

Actual Speeds vs. Advertised Speeds: The

Discrepancies Vary
The biggest discrepancies between advertised and achievable, maximum speeds
on broadband occur on DSL services. Maximum speeds on DSL are not always
reached due to factors such as network congestion, slow-loading web sites, long
distances from telephone companies’ equipment, and underperforming network
equipment. According to the FCC 2016 report “Measuring Broadband America,”
cable TV providers and Hughes satellite services mostly attained the highest
advertised speeds. The same is true for telephone companies that build out fiber
to people’s homes. However, advertised speeds were not achieved uniformly
across the United States. In New York City, for example, on February 1, 2017,
New York State’s Attorney General, Eric T. Schneiderman, issued a press release
announcing that he had filed a lawsuit against Time Warner Cable, part of
Spectrum-Time Warner Cable, for advertising misleading Internet speeds. In his
press release Schneiderman stated:

Wired Internet speeds for the premium plan (100, 200, and 300 Mbps)
were up to 70 percent slower than promised.

Exacerbating subscribers’ frustration at the time was the fact that subscribers in
many areas of the city had only Time Warner’s Internet access as a choice for
Internet access.

VOIP CALLING SERVICES OVER BROADBAND .........

When voice is transmitted on broadband networks using Voice over Internet Protocol
(VoIP), voice is digitized and bundled into packets to make it compatible with the data
packets on broadband networks. Packets are similar to envelopes in that they include
headers that specify addressee and sender information (one of the ways that they differ,
of course, is that they also provide error correction). Because headers are carried along
with data packets, they interface more easily with computer services such as e-mail.
Standard computer platforms are used to manage VoIP services.

Residential vs. Enterprise Services

When VoIP services such as Skype were first available, residential customers adopted
them before the more cautious enterprises saw their value and began adopting them in
large numbers. Additionally, small businesses used VoIP and its related services before
large enterprise customers, who were concerned with quality and security lapses. As
232 5  Broadband Network Services

capacity in broadband networks increased and delays decreased, larger enterprises

began using VoIP and its features. Non-profits, businesses, and commercial firms com-
monly use conference calling, unified communications, and other features available at
low costs from VoIP providers over broadband networks. Large telephone and cable
TV companies now commonly offer these features as well.

Lower-Priced, Flexible Consumer VoIP

Services Adopted by Enterprises
Many consumers and organizations use VoIP for their phone calls. These calls are
often carried over their broadband links. Large telephone companies are transitioning
their calling services to low-cost VoIP where voice is just another piece of data on the
network. VoIP services include features such as voicemail, audio conferences, video
conferencing, and unified communications. See Figure 5-1 for transmission of voice
on carriers’ networks. Because this results in the need to maintain only one type of
network—a data network—increasing numbers of enterprise and residential custom-
ers’ calls are now carried as packets along with video and data traffic. Without VoIP,
carriers are required to support both voice and data networks.

VoIP Traffic VoIP providers’ equipment

Local Telco or Cable TV IP*

switches and routers

The Internet

Cable TV or telephone company cabling

Local phone and cable TV providers as well

as Skype, Microsoft, 8X8, RingCentral, and
*IP = Internet Protocol Google offer VoIP (Voice over Internet
Protocol) services

Figure 5-1 Transmitting Voice over IP traffic (VoIP) on carriers’

infrastructure.
VoIP Calling Services over Broadband 233

Skype for Enterprises – Microsoft Teams

Consumers embraced VoIP calling because of its low prices and sometimes free
service. Examples of VoIP providers include Google, magicJack, RingCentral,
Skype, and Vonage. Initially, business customers were leery of using these
services both because they weren’t sure that the quality was up to their standards
and because there wasn’t sufficient security protection. However, as employees
began using VoIP in their homes, that changed.
Skype was the first VoIP service that enterprises used in large numbers. Their
initial rationale for using Skype was the savings on international calling, and
low-cost audio and video conferencing. Acceptance accelerated when Microsoft
bought Skype as a replacement to its Linc VoIP offering. Microsoft’s Skype for
Business, renamed Microsoft Teams, includes a server through which all mes-
sages between employees within the same building and in buildings connected
to the enterprise’s network are sent. The server scans packets for malicious
transmissions. These servers are now typically located in the cloud.
Because VoIP calls are essentially data within packets, telephone and cable TV
providers began rolling out VoIP service to both their enterprise and residential
customers. Providers that deploy VoIP in their networks use up less capacity
for voice because VoIP packets are transmitted as data along the same part of
networks as data traffic. This results in more room for data. In addition, VoIP
switches and servers are less costly to purchase and maintain because the soft-
ware is installed on commodity servers that take up less space than traditional
switches used to transmit voice based on time division multiplexing (TDM).
TDM uses more capacity than VoIP because capacity is saved in each time slot
even when there are pauses in traffic. This wastes capacity. Many providers are
eliminating their TDM services both because its capacity is too low and it is not
efficient for data traffic. They are replacing TDM with Carrier Ethernet.
See below for Carrier Ethernet and the “Appendix” for TDM.

VoIP for Very Small Organizations

Very small organizations and start-ups with fewer than 25 employees often use ser-
vices from companies such as Google, Skype, and Vonage that have been adapted
for business to replace traditional, on-site telephone systems. For example, features
might include the ability to transfer calls to another employee in the same facility or
in a remote office. The features provided also include a fixed, single phone number
for mobile devices, work phones, and home phones, with a single voicemail box for
234 5  Broadband Network Services

messages from these three types of devices. It can also include audio and video confer-
encing. Some of these features were previously only available for large organizations
with complex, onsite phone systems.
These VoIP services enable organizations to develop a new business or service
without purchasing hardware for a telephone system. In addition, the services can be
used for businesses in which all or many of their staff members work at home or in
remote offices.
Even midsize and large organizations with their own onsite telephone systems
often use these network-based VoIP services for certain functions. One of the most
common functions is desktop video conferencing from Microsoft Teams or Google.
Desktop videoconferences are transmitted over data networks, and they typically
require nothing more in terms of equipment than the personal computers or laptops of
the participants. In particular, people working from home or traveling can participate
in these conferences, incurring minimal or no charges. Consumers and small organiza-
tions still use Skype, but large organizations are transitioning to Microsoft Teams.

The Impact of VoIP and Wi-Fi on Traditional

Carriers
Consumers and business people alike use Skype, social media features, and Wi-Fi via
cell phones to call home and the office when they travel. The savings are significant
when travelers use these low-cost services to call their home or business from inter-
national sites. In addition, many immigrants and international students use video and
audio calling to stay in touch with family members in their native countries. Using
these services for free or low cost video conferences is particularly meaningful as
people see facial expressions, and grandparents and close relatives stay in touch with
grandchildren with firsthand images of them as they grow.
In addition, social network apps WhatsApp, Weibo, Weixin (WeChat in English),
QQ, and Viber provide low-cost or free international calls. Moreover, international calls
on certain mobile phones are free if they’re made over Wi-Fi networks. Calls over Wi-Fi
are particularly cost-effective on international calls.

The Demarcation Point at Which Telephone

Companies Wire Trunks
The local telephone company brings telephone lines into buildings and wires them
to interfaces. The interface is called a jack or a punch-down block. Each outside line
is punched down (wired) to the connecting block. RJ11c jacks connect one line per
jack. The RJ stands for registered jack. These are the jacks found in most homes. The
RJ21x, which holds 25 lines, is the interface to which local telephone companies wire
multiple, outside lines in businesses. The RJ21x jack is a point from which telephone
Multi-Protocol Label Switching for Interoffice Connections 235

lines and trunks can be tested. For instance, if there is a question with regard to where
a problem lies, the telephone company can test its trunk to the RJ21x jack, and the
equipment vendor can test service between the equipment or router and the interface.
The RJ21x jack is the demarcation point between the telephone company line and the
inside wiring.
The most common data jack is the RJ48 jack. Data trunks such as Carrier Gigabit
Ethernet terminate on these connectors. Both these jacks are at customer premises,
and they are the points at which telephone companies test trunks if there is an outage.
The most common type of high-speed trunk for incoming customer contact centers
is Carrier Gigabit Ethernet for data. Information on these services is in Chapter 4,
“Managing Broadband Networks.”

MULTI-PROTOCOL LABEL SWITCHING FOR

INTEROFFICE CONNECTIONS .................................
Multi-Protocol Label Switching (MPLS) is a Virtual Private Network (VPN) network
service that large and midsize organizations deploy to link their domestic and interna-
tional sites together. MPLS traffic is carried on a provider’s core private data network
rather than on the Internet. MPLS is suitable for transmitting packetized voice (VoIP),
video, and data between sites. MPLS is starting to be replaced by Wide Area Software
Defined Networks (WA SDNs) services, which have more capacity and flexible treat-
ment by type of content, as well as flexible, real time routing. An example is Com-
cast that no longer offers MPLS and is promoting WA SDNs instead for enterprise
customers.

MPLS Virtual Private Network—A Managed

Service
MPLS provides VPN (Virtual Private Network) features. VPNs have the features and
functionality of private networks. However, unlike private lines, which are not shared
and are for the exclusive use of a single organization, MPLS operates on network links
shared by other customers. The links are virtually private, and offer many of the fea-
tures found on private lines such as user control and privacy. In addition, they are less
costly than private lines to lease and operate.
MPLS has the capability to classify traffic so that voice and video have higher pri-
orities than services such as file transfer and e-mail, which are less sensitive to delay.
Because of these and other capabilities managed by providers, MPLS is also referred
to as a managed network service.
236 5  Broadband Network Services

Routes and Security on MPLS

MPLS is inherently more secure than using the Internet for site-to-site traffic and
access to other networks because it is transmitted over a carrier’s private data network.
For added protection from hackers, customers often use separate circuits to access
MPLS circuits and the Internet. This is more costly than combining access to both
services on the same line, but it isolates MPLS transmissions even further from viruses
and attacks sent over the Internet. Figure 5-2 illustrates an example of segregated cir-
cuits for Internet access and MPLS service.
MPLS minimizes traffic jams by selecting the shortest, least-congested route for
all messages in each transmission. All packets in every message are sent over the same
route. In contrast, in WA SDN networks, each packet can travel on a different path,
depending on congestion or network failures.

MPLS network Internet

Access lines

Customer premises
Router

LAN switch

VoIP phone

LAN = Local Area Network

VoIP = Voice over Internet Protocol

Figure 5-2 Implementing separate access to the Internet and a

Multi-Protocol Label Switching (MPLS) network.

MPLS Implementation
When customers sign up for MPLS service, they give their provider a list of the IP
addresses associated with each site that they want included in their MPLS service.
Each IP address identifies a specific location on a network. The carrier uses this list to
define a closed group of sites that are allowed to communicate with one another over
the MPLS network. The list can be amended by notifying carriers of IP addresses to
be added or deleted.
Multi-Protocol Label Switching for Interoffice Connections 237

In addition to an IP address, each location connected to the MPLS network requires

an access line from the customer to the carrier’s network. However, a single link from
each location can transmit messages to all sites. Each location does not need a separate
physical connection to every other site on the MPLS network. The MPLS service is
referred to as an any-to-any network.

M
MPLS is a Layer 3 protocol that switches traffic between IP addresses
rather than Media Access Control (MAC) addresses. MAC addresses are
ra
assigned to individual computers and other devices on a network. With
a
MAC addressing the message is received at the customer end, and onsite
equipment sends the MPLS content to individual devices. By contrast, IP
addresses are assigned to the network or to the Virtual LAN (VLAN). Man-
aging fewer addresses makes routing by using MPLS with its IP addressing
less complex to manage. It also enables networks to scale to larger sizes.
MPLS is an optional feature in routers.

MPLS for Multinational Locations

Internationally, most large providers have a presence in Europe, the United States,
the Middle East, and parts of Asia. However, they have less presence in fewer Latin
American cities, and the lowest presence in Africa. The term presence means that they
have a switch in a local provider’s Point of Presence (POP). A POP is the physical
building in which a telephone company’s switch (central office) is located. The POP
is connected to the Internet as well as to other central offices that are located close to
customers.
For remote countries in which carriers have a switch, large carriers including Veri-
zon and AT&T have agreements with local providers. These agreements specify the
type of circuit (local access line) from the customer to the local provider’s network and
at what price the local provider will lay cabling from the distant office to the MPLS
carrier’s switch. MPLS carriers place orders with local providers for access lines to the
remote offices of MPLS customers. This creates international MPLS networks.
An issue in designing MPLS networks for international organizations is that rural
and sparsely populated areas often don’t have MPLS available from the same car-
rier that installs the service for the rest of the enterprise. (Because of technical and
network management incompatibilities, MPLS requires that the same carrier supply
end-to-end service for each site on the network.) This is particularly problematic in
underdeveloped areas such as parts of Africa and outside of most populated cities in
Latin America.
238 5  Broadband Network Services

Prioritizing Traffic via Classes of Service

When customers want to differentiate certain traffic for specific treatment, they select
from their carrier’s list of classes of service. These classes of service are used to define
the priority given to traffic for each class. For example, there might be three classes
for data, one for voice, and another (the most expensive) for video. Voice and video
are generally assigned higher priorities than data. Routers at customer sites add bits
to packet headers with Class of Service (CoS) designations. At the MPLS edge router,
these designations are added to the MPLS labels, along with addressing data.
Some organizations use the lowest-priced CoS for most data and higher-priced
CoS for database lookups. This can vary by industry. Retail organizations that depend
on point-of-sale credit card lookups for revenue might assign these applications the
highest priority. Carriers apply CoS according to tags attached to packets for each
protocol. Routers attach a different type of tag to packets containing e-mail messages
from those that contain video. Carriers that don’t meet these SLAs generally rebate
agreed-upon credits to customers.

MPLS Service Components

In addition to classes of service, customers also specify the following:

• A port speed at the provider’s POP, often at a lower speed than their access
line. The port speed refers to the number of bits per second that can enter the
carrier’s network.
• Additional managed services including managed security, and the use of
the provider’s network and staff for operating, setting up, and managing the
videoconferences.
• The speed of the access line, which is the circuit connecting the customer
to the provider’s network. Typically, remote offices use slower-speed
Gigabit Ethernet; higher-trafficked headquarters use Carrier Gigabit Ethernet
at speeds ranging from 100Mbps to 400Gbps. Higher-capacity services cost
more than slower services.

IP VIRTUAL PRIVATE NETWORKS OVER

THE INTERNET .......................................................
Internet Protocol Virtual Private Networks (IP VPNs) provide the features of private ded-
icated links, without the cost of leasing dedicated circuits from ISPs or leasing MPLS.
Rather, each location leases a line connected to the Internet from the local telephone
IP Virtual Private Networks over the Internet 239

company. These leased lines use IP VPN technology for site-to-site links, access to the
cloud, and for remote access from:

• Branch offices
• Employees’ homes to access computer files at headquarters
• Other cities in which employees are traveling

Using IP VPNs between Offices—Less Costly

than MPLS
Organizations use IP VPNs to link sites together so that remote offices can share
resources such as centrally located e-mail, Internet access, and applications. A par-
ticular difference between IP VPN, SDN, and MPLS service is that organizations that
use IP VPNs only pay for Internet access. This is a major cost advantage in favor of
IP VPNs. Some companies do pay carriers for security services to screen incoming
traffic for viruses. However, IP VPNs do not offer Quality of Service (QoS) or Class
of Service (CoS). Thus, voice, video, and remote desktop traffic are treated the same
as e-mail messages.
However, IP VPNs do not guarantee quality of service (QoS). If there’s conges-
tion, packets are dropped. IP-based networks such as the Internet are connectionless.
With connectionless networks, each packet is transmitted as a separate entity. Unlike
MPLS, a path is not saved in the network for the entire transmission. Rather, every
packet can take a different route, and if there is congestion on a particular route, pack-
ets are dropped. The router at the receiving end reassembles packets into their original
form, minus the dropped packets.
Real time applications such as voice, video, and remote desktop access are more
vulnerable to dropped packets than e-mail messages. E-mail messages don’t have the
urgency of delivery and gaps between delivery of parts of e-mails are not noticeable.
However, dropping parts of voice or video streams can result in choppy voice and
video with noticeably poor quality. As more long form video traffic is sent over the
Internet from mobile devices and landline facilities, the likelihood of congestion and
dropped packets increases.
Another issue with IP VPNs is that they are not inherently secure. Thus, organiza-
tions add security protocols to IP VPNs, bits at the beginning and end of each packet
to hide packet content from snoopers and hackers. The main security protocols used
in conjunction with IP VPNs are described below in the section “Adding Security on
Traffic Sent Over IP VPNs.”
240 5  Broadband Network Services

Avoiding Congestion on IP VPNs—Access to the

Internet Service Provider
The most common points of congestion in IP VPNs are the access lines connecting
organizations to the Internet and points in the Internet where carriers connect their
networks together. Organizations can add capacity to their headquarters and branch
office access lines, but they have no control over capacity on the Internet itself. If an
organization experiences congestion on its access circuits, it has the option of adding
access lines or increasing the capacity of its existing access circuits. It can upgrade to
Carrier Gigabit Ethernet from slower data rate megabit Ethernet.
In addition to monitoring and upgrading access circuits, where possible, organi-
zations lease Internet access from the same provider at all of their sites to limit the
number of carriers from whom they get service. This is not possible in remote and
international areas where the primary carrier does not provide coverage.

ADDING SECURITY ON TRAFFIC SENT OVER

IP VPNS..................................................................
Because the Internet is open to users from all over the world, organizations deploy
security software designed to protect information from snoopers. Most security pro-
tocols on IP VPNs employ tunneling and encryption. Tunnels surround packets with
bits that protect privacy on the packets, and encryption uses complex mathematical
algorithms to scramble bits so that only matching protocols at the receiving end of the
transmission can unscramble (decrypt) the bits into readable formats. Virtual Private
Networks have many of the features of private lines dedicated to single organizations,
but they are not dedicated to single enterprises in a carrier’s private network. They are
sent over the Internet where they share capacity other data sent over the Internet.

Security Protocols on Access to IP VPNs

Security protocols designed for IP VPNs all create a tunnel for their transmission.
Tunnels are special bits at the beginning and end of each packet. In essence, the tunnel
encapsulates messages so that others cannot see what is being transmitted.
Tunneling protocols establish a secure connection between the corporate Local
Area Network (LAN) and the remote user by encrypting and tunneling the bits and
hiding the IP header in each packet. This ensures privacy. Tunneling prevents hackers
from learning corporate LAN IP addresses. Specific protocols encrypt packets to fur-
ther protect their privacy. Encryption is the use of a complex mathematical algorithm
to reorder bits so that only the receiving end with matching encryption is able to deci-
pher and read them.
Adding Security on Traffic Sent over IP VPNs 241

To access the corporate network, customers with broadband services log on to

the public Internet. From there, traffic is routed to the Internet and then to the mega-
bit or gigabit dedicated access line connected to their remote place of business. For
organizations that allow remote access to headquarters applications and files, remote
users are routed via the Internet to the organization’s headquarters, as indicated in
Figure 5-3.
The most common security protocols on access networks are the following:

• Internet Protocol Security (IPsec) This is an older security protocol that

requires software to be installed in every computer that accesses the network
remotely.
• Layer 2 Tunneling Protocol (L2TP) This protocol evolved from an earlier
protocol Point-to-Point Tunneling Protocol (PPTP) developed by Microsoft;
it has stronger authentication security for screening devices that access the
network. L2TP is also used with IPsec.
• Transport Layer Security (TLS) This is a newer access method that does
not require client software. The earlier version was Secure Socket Layer.

Secure tunnels hide files from hackers

Internet

Computer with Virtual Private

Network (VPN) software for secure
access to remote files.
Remote data center

Figure 5-3 Secure access to headquarters’ files over an IP VPN with

tunneling protocol to protect data transmitted over the Internet.

The Complexities of Using VPNs with IPsec

Internet Protocal Security (IPsec) is a protocol that requires users to install IPSec soft-
ware on their devices. IT staff members distribute software to each person’s computer.
(They also handle calls from employees who are having trouble logging on to the VPN
or who have lost their laptop or smartphone.) Employees can only access their e-mail
and other applications from their own computer or supported mobile smartphone, such
as an Android or iPhone.
242 5  Broadband Network Services

Users work with IPsec client software installed on their computers launch the
remote access client. Client software enables access to applications located on other
computers or servers, usually in data centers or the cloud. It is supplied and licensed
by the organization that develops the IPsec software. The client software is a spe-
cial program written to interact with security software located in the data center and
cloud.

Layer 2 Tunneling Protocol

Layer 2 Tunneling Protocol (L2TP) initial versions from Microsoft do not provide
encryption and are often replaced by up-to-date versions. There is a new version of
L2TP that has improved its tunneling. Like PPTP, it is also used with IPsec for encryp-
tion. In addition, IPsec has stronger authentication than L2TP.

Secure Sockets Layer/ Transport Layer Security

Secure Sockets Layer (SSL)/Transport Layer Security (TLS) is a newer VPN protocol
than IPsec. SSL/TLS is a clientless protocol; that is, it does not require the installa-
tion of client software on each computer that’s used for remote access. Rather, SSL/
TLS works from within standard browsers on computers and smartphones. This makes
VPNs easier to use and requires less administrative support from IT personnel. The
simplified login results in fewer user errors. Recent releases of SSL are referred to as
Transport Layer Security (TLS). For added security, SSL is frequently used with tun-
neling protocols.
Because it is a higher-level security protocol, SSL installed on appliances can
enable access to particular applications based on privileges granted to classes of
employees. An appliance is a specialized computer that is dedicated to a particular
application.
It’s possible for remote computers to pass viruses to corporate networks, so some
SSL appliances have the capability to scan remote computers for antivirus software
and automatically download patches to computers that don’t have the latest security
updates. Other appliances have the capability to remotely wipe out passwords and cor-
porate data from shared computers in public areas such as libraries and airports. This
eliminates the possibility of computers in locations such as kiosks to store and pass on
private information and passwords.

Adding Additional Layers of Protection with Two-

and Three-Factor Authentication
Most remote access requires two- and sometimes three-factor authentication. Two-
factor authentication requires a password plus a way to identify that the user is who
he or she claims to be. Two-factor security is a safeguard that prevents unauthorized
Adding Security on Traffic Sent over IP VPNs 243

users from using stolen passwords, social security numbers, or birthdays to log into
files. Three-factor authentication might require a token ID in addition to a password
plus biologic identification. A hacker with a stolen password would most likely not
have the means to be authenticated. Authentication refers to the requirement that users
prove to computer systems that they are who they claim to be and are authorized to log
on to the network.
Security software at the user’s organization issues prompts for usernames, pass-
words, and a form or multiple forms of authentication such as:

• A token ID (identification), which is a small dongle with a screen, which

can be attached to a key chain. Random numbers that change about every
60 seconds appear on the token’s screen and are typed into the users’ screen
for access to the cloud, a secure area such as a lab, or particular files.
• A security app from iPhone, Amazon, or Google requesting a user ID and
password plus a code sent by Apple, Amazon, or Google.
• A text message with a code sent to a user’s phone that the user types in to
gain access.
• Biologic authentication such as a fingerprint, iris, or facial recognition scan.

To prevent remote users from passing viruses from the Internet to corporate
networks, the client software will often not function if there is an open connection to
the Internet while the user is logged on remotely.

Deploying Firewalls to Protect against

Malicious Attacks
A firewall is a device, software application, or set of devices at carriers, enterprises,
and homes that screens incoming and internal traffic to prevent hackers from access-
ing files. Firewalls deny hackers access by allowing only designated users to access
networks. In an organization’s network, firewall software is installed on routers and
appliances. For additional protection, organizations that use their carrier’s firewall pro-
tection have onsite firewall protection, as well.
Firewalls provide networks partial protection against Distributed Denial-of-
Service (DDoS) attacks and intrusion. They use various techniques including address
filtering, which looks at a user’s IP address and accepts or rejects messages based on
that address. Important applications might contain their own firewalls for extra protec-
tion. Communications can also be restricted to certain addresses. Firewalls contain
hundreds of ports and can filter on a port-by-port basis. In addition, they can be pro-
grammed to recognize applications and content and pass them through the firewall
244 5  Broadband Network Services

using a specific port. However, even with these filtering capabilities, DDoS attacks can
congest access to the organization’s files.
Firewall ports can be virtual as well as associated with physical equipment
within the firewall. A virtual port is programmed to allow certain traffic such as VoIP
calls to pass through the firewall to its destination. A virtual port is represented in
software.
Because employees use their laptops at home to surf the Web and then bring them
into work, corporations monitor internal transmissions as well as communications
from the Internet. Many organizations program employees’ remote computers to reach
only locations on the Internet deemed secure to avoid contamination from Internet
locations that have viruses that can spread to the corporate LAN.
Firewalls don’t protect against, for example, new (black day) viruses and all
e-mail spam. Corporations often subscribe to security services that keep them posted
about new software attacks. The security software monitors their networks for unusual
amounts or types of traffic and downloads software patches for protection against new
types of attacks.

Firewalls as a Service—FaaS
Instead of supporting on-site firewalls, organizations have the option of using a
cloud provider’s firewall service. For example, a multisite enterprise may choose
to contract for Firewall as a Service rather than installing and maintaining a fire-
wall at each of their branch offices and warehouses. In these instances a service
provider’s staff maintains the firewall and keeps it updated to protect from new
viruses and new security threats.
All traffic flows through the cloud provider’s firewall rather than through onsite
firewalls. Because of their greater capacity, FaaS may be better able to protect
organizations from Distributed Denial of Service attacks because of their fire-
walls’ greater capacities and speed than many customers’ onsite firewalls.

Safeguarding Privacy and Intellectual Property by

Employing Property Data Loss Management
Organizations are legally obligated to protect the privacy of their employees. There are
privacy statutes that prohibit enterprises from sharing employee and customer personal
information such as Social Security numbers, license numbers, credit card data, and
data collected by human resources. In addition, companies need to protect their stra-
tegic plans, medicine formularies, and product designs from leaking. These assets are
considered intellectual property.
Managed Services 245

To accomplish these goals, organizations use property data loss management soft-
ware to scan outgoing e-mail. The software is programmed to flag specific words relat-
ing to their products or services as well as key phrases or formats which indicate that
credit card data, social security numbers, or license numbers are included in a message.
Flagged messages can be manually scrutinized. To protect privacy, enterprises and uni-
versities may have policies limiting which computers store private information such as
social security numbers.

MANAGED SERVICES ..............................................

Managed services are add-on consulting, cloud-based, or software services that carri-
ers offer customers. These offerings are intended to supplement carriers’ long distance
and local calling service revenues. But an important goal is to make it more difficult
and complex for customers to change providers. Managed services are considered
“sticky.” The more managed services that customers use, the more dependent they are
on carriers, and the more complex it is for these customers to change providers.

Managed Services Rather than Dumb Pipe

Providers
Many carriers view broadband offerings such as private data lines, MPLS, and Giga-
bit Ethernet (GigE) as commodities available from other providers. To avoid being
organizations whose only offerings are characterized as dumb pipes with commod-
ity services, carriers often distinguish themselves from competing carriers by offer-
ing specialized and managed services. Without distinguishing features, customers can
shop around for the lowest price on, for example, Gigabit Ethernet.
Managed services are one way that carriers differentiate themselves from smaller
competitors. Moreover, managed services provide an additional monthly revenue
stream for carriers and help to cement the relationship between themselves and their
customers. This is because it is complex and potentially disruptive for international
enterprises to change both their network and their security provider or data center ser-
vice across all of their sites. Thus, supplying this wider range of services creates a
“stickier” relationship with customers, and a sticky customer is one that is less likely
to change vendors.
In addition, carriers such as Verizon, Sprint, and AT&T have the resources to build
international data centers and hosting facilities as well as hire consultants with special-
ized skills in developing applications for vertical markets such as healthcare, transpor-
tation, and insurance.
246 5  Broadband Network Services

Managed Services—For a Variety of

Functions
Carriers have long offered managed services in conjunction with the networking
devices connected to broadband services. In addition to managing servers, routers, and
modems, they now offer to manage the NFV (Network Function Virtualization) hard-
ware containing routers, firewalls, and security applications represented as software in
off-the-shelf servers. The NFV server is connected to a customer’s broadband circuits.
Carriers additionally offer more complex, varied services in the hope that customers
will be attracted to the possibility of one provider managing their wide area, mobile,
Wi-Fi, and computer networks. These offerings include the following:

• Hosting applications in carrier data centers

• Storing and backing up files remotely
• Developing software applications to be run in carrier data centers
• Operating room type video conferences
• Security consulting
• GPS tracking solutions for fleet management
• Consulting on call center services
• Managing outsourced data centers at carrier facilities
• Providing and designing interactive voice response services with menus
such as:
− Press 1 for Sales
− Press 2 for Marketing

• Offering security services that protect against Distributed Denial of Service

attacks and viruses
• Connecting to cloud computing sites
• Storing data in the cloud
• Managing employee mobile devices

In conjunction with managed services, carriers have personnel who have expertise
in particular managed services for wireline as well as mobile networks. These include
experts in enterprise mobile devices, video conferencing, security, data centers, contact
centers, and wireless LANs (Wi-Fi networks).
Many carriers that own mobile and landline networks recognize the potential of
mobile services. Their sales staff who were previously dedicated to only landline or
only mobile products and services now sell products and services for both mobile
Digital Subscriber Line—Distance Limitations; Operates on Copper Cabling 247

and landline networks. They actively promote mobile managed services that improve
productivity such as developing applications for service organizations that dispatch
technicians to homes or businesses. When a carrier’s account staff determines that
there might be a mobile application to increase productivity, it brings in experts to meet
with its customer. After learning about the customer’s needs, these experts propose a
consulting service to develop a software application to address those needs.

DIGITAL SUBSCRIBER LINE—DISTANCE

LIMITATIONS; OPERATES ON COPPER CABLING......
Local telephone companies introduced Digital Subscriber Line (DSL) technology in
1989. The telephone companies saw the advantage of using existing copper cabling to
combine voice and data on the same copper cabling that was ubiquitous in developed
countries. However, DSL has capacity and distance limitations that make it less suit-
able than transmissions now available over fiber cabling. Higher capacity broadband
technologies are replacing DSL in areas with fiber-optic cabling.

How DSL Technology Works

DSL operates over the same copper cabling used for voice in last-mile networks close
to homes and small businesses. Very-High-Data-Rate DSL (VDSL) gear supports
high-definition TV, voice, and Internet access over short lengths of copper cabling.
The most advanced DSL service, VDSL2, supports 200Mbps on cable lengths up to
1,000 feet. The copper cabling transmits these signals between a user’s premises and
a provider’s fiber-optic cabling in cabinets or neighborhood nodes. (See Table 5-4 in
the “Appendix” section at the end of this chapter for information on the types of DSL.)

DSL Limitations
On copper cabling, background noise intrudes, or “leaks,” from adjacent copper wires
(crosstalk) or a nearby electric motor (electromagnetic interference). To prevent trans-
mission degradation and speed loss, equipment on advanced DSL services constantly
monitor the line for noise. Monitoring is complex because noise can change over time.
DSL services over higher frequencies carry more bits in shorter time spans than
lower frequencies. Think of it in terms of a commuter subway system:

• If the trains don’t come very often (low frequencies), fewer people are
moved in a given span of time;
• If the trains arrive more often (higher frequencies), more people will be
moved through the system in the same time period.
248 5  Broadband Network Services

Both copper cabling used for DSL and wireless services carry signals that are
made up of wavelengths (frequencies). Low frequencies have longer wavelengths that
can carry signals over greater distances. High frequencies have shorter wavelengths
that do not travel as far, but they can squeeze more bits into each transmission.
To achieve greater capacity, DSL must use high frequencies. However, the shorter
wavelengths render high-frequency signals more vulnerable to damage from envi-
ronmental sources such as magnetic interference. At the same time, vulnerability to
attenuation (weakening and fading) means that high speeds are supported only on short
lengths of copper cabling. Some carriers use bonding to increase the capacity on DSL.
Bonding also has the advantage of increasing the length of cable over which high
frequency DSL signals can travel before they fade.

B
Bonding is the use of equipment called inverse multiplexers to increase
bandwidth by combining two or more circuits or pairs of copper cabling
b
such that they act as a single circuit. Providers that don’t have fiber in an
s
area may double the speed of DSL service by bonding two DSL circuits
together using an inverse multiplexer. See Figure 5-4 for an example of
bonding on DSL. Bonding is also used to add capacity on direct intercon-
nections to providers’ clouds. See the section “Direct Dedicated Intercon-
nections to the Cloud” later in this chapter for information on Dedicated
Interconnections.

Hospital Medical office sending x-rays

to doctors at the hospital

Inverse multiplexers bonding two lines together to double the capacity

Figure 5-4 An example of bonding two DSL circuits together to

double its capacity.
Carrier Gigabit Ethernet 249

Replacing DSL with Higher-Capacity Fiber and

Wireless
Carriers are replacing DSL because of its lower capacity and because enterprises
and residential subscribers require higher broadband capacity to access cloud-based
applications, stream video, make purchases, and access social networks. Carriers are
replacing DSL with Gigabit Ethernet wherever increasing amounts of fiber cabling are
available. In rural areas they are replacing DSL with fixed wireless to reach customers.

IP Addressing and Symmetric Speeds for Business

Customers
IP addresses use a numerical format such as 193.555.46.329 that is translated
into words such as ABCcompany.com. IP addresses can be either static or
dynamic.
Dynamic IP addressing refers to the fact that carriers don’t assign permanent
IP addresses to particular customers or devices such as routers. Rather, carriers
assign IP addresses on the fly from a pool of addresses as they are transmitted.
Dynamic IP addresses can be reused after being idle for a specified period.
In this way, they don’t use up as many scarce IP addresses. Residential custom-
ers that publish unique e-mail addresses, e.g. [email protected],
obtain their e-mail address from non-telephone companies such as Google. They
specify forwarding for their e-mail messages at their telephone company that
provides their broadband service. Their broadband provider forwards all e-mail
from [email protected] using a dynamic IP address.
Static IP addressing is for the most part used by business customers who buy
the rights to use the address. With static IP, customers select their own unique
fixed-IP address using their domain name (such as J.smith@ABCcompany) for
their e-mail address. Enterprises pay an extra fee for every static IP address that
they have.

CARRIER GIGABIT ETHERNET .................................

Carrier Gigabit Ethernet (GigE) is a site-to-site and Internet access high-speed service.
Gigabit Ethernet uses the Ethernet protocol to reach Gigabit capacity on broadband
networks. It operates over fiber-optic cabling. GigE transmits data, video, images,
and packetized voice (VoIP). It is the most commonly used broadband technology for
enterprises.
250 5  Broadband Network Services

Carrier GigE was first introduced in the late 1990s. At that time, it was not widely
available, both because it required fiber-optic cabling to the customer and because the
central offices of providers were not widely equipped with GigE switches. In contrast,
carriers now offer GigE services to small and medium-sized organizations as well as
large ones. GigE is now more widely available because more central offices have been
equipped to support it and fiber is more widely deployed to business customers. These
services start at speeds of 10Mbps and currently scale up to 100Gbps. Capacity is
expected to increase to 400Gbps in the future. Facebook and Google are experimenting
with 400 Gigabit Ethernet in the WAN.
Bandwidth demand by all types of organizations has created the impetus for car-
riers to invest in gear that meets this demand. Customers that previously used T3 ser-
vice now have either Megabit or Gigabit Ethernet. Smaller organizations can order the
slower Ethernet service of 20, 30, or 60 megabits with the option to easily upgrade
later. Moreover, most carriers including Windstream, Verizon, and AT&T have retired
all non-Ethernet services including T1 and T3 services.

Carrier Gigabit Ethernet Flexibility and

Scalable Speeds
Gigabit Ethernet is offered by carriers for accessing the Internet, MPLS networks,
and connections to other sites within cities. When used for accessing these networks,
enterprises might use GigE at their headquarters. At remote sites, depending on the
level of traffic at each site, slower data rates might be adequate. See Figure 5-5 for an
example of Carrier Gig-E at a multi-site organization. Importantly, once Carrier GigE
is installed, enterprise customers can request that their telephone company provider
increase or decrease the capacity of their service remotely. This is done by modifying
data rates remotely at the central office. Cabling does not have to be changed and most
customers’ Carrier Ethernet switches can be programmed for added capacity. Because
there are few requirements for technicians onsite to make changes, GigE is less costly
to support than the older T1 and T3 services.
Organizations with many buildings within cities also use GigE for point-to-point
private lines within the metropolitan area. See Figure 5-5 for Ethernet links between
buildings in a campus. These organizations include large hospitals, universities, and
government offices that use GigE to transfer large files between sites. One example
is the connection between hospitals and the facilities where patient records and imag-
ing files are stored. It is also used for connections to storage area networks (SANs)
that hold backup files. Access to the backup files is via either the Internet or private
lines. Finally, higher level services such as WA SDN services are carried on Carrier
Gigabit networks. For an over view of broadband network services see Table 5-2 in the
“Appendix.”
Carrier Gigabit Ethernet 251

40 Gigabit Ethernet
Small campuses
in other cities
100 Gigabit
Ethernet
Metropolitan Area Network

10 Gigabit Ethernet at Main campus classroom

smaller sites

Off-campus dorms

Figure 5-5 Carrier Ethernet in between buildings on a campus.

Dedicated Wavelengths
Organizations with high-capacity requirements often lease an entire wavelength on
fiber optical cabling. The entire bandwidth of a dedicated wavelength is reserved for a
customer. It is not shared with other organizations. Dedicated wavelengths may be used
for connections to cloud services, between companies’ offices, at large data centers,
carrier hotels, and long-haul networks that run between cities and between countries.
Passive optical network service NG PON2 supports dedicated wavelength service.
For information on NG PON, see Table 4-1, “PON Standards,” in the “Appendix” of
Chapter 4. Dedicated wavelengths support gigabit and terabit speeds. A terabit is equal
to 1,000 gigabits. Dedicated wavelengths are used in 5G cellular networks to connect
small antennas to each other. See Chapter 7 for information on 5G cellular service.

T1 and T3: Services Largely Replaced by

Higher-Capacity Broadband
T1 service is a digital broadband technology that utilizes a multiplexing scheme, which
enables one circuit to carry 24 voice, video, or data channels. The entire circuit runs
at 1.54Mbps. T3 is also able to carry a variety of traffic types but operates at 44Mbps.
E1 and E3 are the multiplexed services used in Europe. Ethernet, where it’s available,
is largely replacing T1 and T3 because it provides a more scalable solution and is not
limited to 44Mbps.
252 5  Broadband Network Services

In the United States, AT&T and Verizon no longer support T1 and T3. They
are gradually replacing them with Carrier Gigabit Ethernet, which is not limited to
44Mbps and has more flexible speeds, and is less costly for telephone companies to
support.

TDM Shortcomings—Wasted Capacity, Higher-

Support Costs
Each device that communicates over a T1 or T3 line is assigned a time slot. If there
are eight telephones or computers contending for any of the above channels, a time
slot is saved for each telephone and computer for the duration of the particular tele-
phone call or data session. Telephone or computer device 1 might be assigned time
slot A; telephone or computer 2, time slot B; and so forth. During pauses in voice
conversations, the slot is not assigned to another computer. The assigned time slot is
transmitted without any information. These idle time slots result in wasted capacity.
For this reason and because TDM capacity is limited to 44Mbps, TDM is not efficient
for the higher capacities required for cloud and broadband services. In a network
with millions of time slots, empty time slots result in many idle time slots and wasted
bandwidth.

T1 and T3 – Costly to Support and Install

In addition to its lack of flexibility and capacity, T1/T3 service is costly for telephone
companies to support. This is mainly due to the cost of equipment in the central office
required for timing and the interfaces at customers, which providers support. These
issues increase costs for space at the telephone company central offices, as well as
installation, repair, and maintenance expenses. For details on T1 and T3 Digital Signal
Levels See Table 5-3 in the “Appendix.”

NETWORK TOPOLOGY ON DEDICATED,

PRIVATE LINES .......................................................
As the name implies, private lines are those dedicated to a single institution; not
shared by various organizations. In contrast to IP VPNs, the transmissions are not
sent over the Internet. Private lines are used by organizations such as financial insti-
tutions, armed forces, weapons suppliers to armed forces, and government agencies
that require the highest levels of security on transmissions to other sites. Other than
these institutions, private lines dedicated to individual organizations have been largely
replaced by newer, less costly and easier-to-maintain and configure MPLS, VPN, and
WA SDN offerings. Network topology refers to how devices and sites are connected to
Network Topology on Dedicated, Private Lines 253

one another in networks. It is essentially the “view from the top.” Topologies include
straight lines, hub-and-spoke designs, and mesh designs.

Dedicated Private Lines—For Greater Security

Dedicated services, also known as private lines, are circuits leased by enterprises for
their exclusive use. Private lines are expensive, and the number of them used by com-
mercial organizations has decreased dramatically. For all but the largest organizations,
MPLS, WA SDN, and IP VPNs have largely replaced private lines. These are less costly
to maintain and boast lower monthly lease rates. However, large enterprises, utilities,
armed forces, weapons suppliers to governments, and financial services organizations
still use high-speed private lines for applications such as money transfers because they
are the most secure method of transmitting data. Most of these organizations have the
expertise for the initial design and sizing of the dedicated network, ongoing mainte-
nance, and redesign for new applications.

Dedicated Services in Wide Area and Metropolitan

Area Networks
Dedicated, private lines are available for the exclusive use of the customer that leases
them from a network service provider. Large organizations such as the Department of
Defense, large cloud computing organizations, and pharmaceutical companies connect
their multistate sites via circuits running at 100 gigabit and greater data rates.
Metropolitan Area Networks (MANs), which are a type of Wide Area Network
(WAN), consist of private lines that connect buildings within a city or metropolitan
region. Large hospitals transmit customer records, research files, and radiology images
over MANs; major universities also use them.
Private lines have the following characteristics.

• Fixed monthly fees Private, dedicated links are priced at flat monthly fees.
The fees are not based on minutes used or the amount of data transmitted.
• Fixed, inflexible routes Dedicated lines are not flexible. Calls and data
can only be sent between the fixed points to which the lines are connected.
Thus, communication with a site that is not on the network is not possible.
• Exclusive use Only the organization that leases private lines can use them.
For example, companies with dedicated connections to video conferencing
equipment can only hold video calls with organizations that are a part of
their private network.
254 5  Broadband Network Services

• Voice, video, and data Dedicated lines are suitable for transmission of
video, voice, and data. These services can share the same dedicated services
or they can use completely different dedicated lines.
• Fixed capacity Dedicated services are leased or built from carriers such as
AT&T, Verizon, or CenturyLink with a fixed capacity or bandwidth. These
speeds range from a low 10Gbps to higher Gigabit Ethernet speeds.
• Security GigE is used in large, private networks operated by entities such
as financial firms and the military for data communications between sites.
Some organizations feel that the extra fees and maintenance are justified.
Private networks are more secure than even MPLS networks for transmitting
sensitive military information and financial transactions.

An important factor when deciding to use dedicated services is the desire for
secure transmissions. Some firms believe that network services such as MPLS are too
public or prone to hacking for confidential applications such as funds transfer. They
want to control their own networks and have staff members available to monitor trans-
missions over these facilities. Additionally, encryption is used to further ensure privacy
and security.

Local and Inter-Exchange Channels

Rates for private lines are based on distance and speed. Higher-speed lines that run
over longer distances cost more than slower circuits that run over shorter distances.
A 10 Gigabit line is less expensive than a 100 Gigabit line.
Pricing for dedicated, private lines consists of two items:

• Local channels Local channels run from a customer’s premises to the car-
rier’s equipment. One local channel is required at each end of the private line
in a point-to-point circuit. Local channels are also referred to as local loops.
The incumbent telephone company often supplies local channels. Because
of limited competition for this service, pricing on these short links is often
close to the same as that for the longer inter-exchange circuit. Local channel
fees are also charged for circuits used to access the Internet, SDN networks,
and MPLS networks.
• Inter-exchange miles Inter-exchange mileage is the portion of the circuit
located within a carrier’s network. The mileage runs from the access point,
where it enters the carrier’s network, to the egress point, where it leaves the
carrier’s switch.

Organizations that lease T1 circuits for Internet access also pay for the local loop
that connects their site to their carrier. The local loop is a private, dedicated service
Network Topology on Dedicated, Private Lines 255

from the customer to the local provider. When traffic reaches the Internet, it is carried
over a shared network. The same is true for access lines to VPNs.

Network Topologies—The View from Above

Topology refers to the way nodes or circuits in a network are connected together. For
example, are all the locations or computers connected in a straight line? Are all devices
or locations connected to a central headquarters? Can every location reach every other
location without going through a central site?
Topology is a consideration in designing private lines in the following:

• Carriers design of networks

• Organizations design of internal networks
• Large enterprises leasing or building their own private, dedicated line networks

The shape of the network (the configuration in which lines are connected to one
another), impacts cost, the ability to scale (add or delete sites), reliability, and access to
the lines.
Consider the multipoint configuration in Figure 5-6. An application for multipoint
design is one used by utilities for communications to monitor the control equipment in
their plants. They run fiber-optic cabling on their existing rights of way, over which sig-
nals are sent. If the link to one of the large sites is out of service, the other sites cannot
reach the main location. However, in the mesh configuration presented in Figure 5-8,
if one link is out of service, traffic can be rerouted over other links. There is a trade-off
between designing and constructing the more reliable mesh networks that are more
costly and simply using a less reliable multipoint configuration.
Multipoint fiber private line connecting large sites

Network Operations Center

Small sites
Hubs connected to spokes

Figure 5-6 Multipoint private lines connecting large sites.

256 5  Broadband Network Services

The following are common network configurations.

• Point-to-point One line connects two locations. An example is a hospital

with a private line to a medical office where hospital doctors see patients.
• Multipoint One line connects more than two sites together. This is also
referred to as multidrop.
• Star (hub-and-spoke) All locations connect to, or “hub into,” a central
site. Data switches in Local Area Networks (LANs) are configured in star
topologies. Another example is a corporation with centralized e-mail, finan-
cial, and sales applications. If the central site, the switch, or headquarters
crashes, all sites connected to it are also out of service. This is illustrated in
Figure 5-7 with the sites connected by Carrier Gigabit Ethernet.
• Secondary hub-and-spoke A secondary “hub” is wired to a central site
and connects to a cluster of smaller locations. The secondary hub sends traf-
fic from the small locations to the backup central site.
• Mesh design All points on the network nodes connect to one another in a
flat or non-hierarchical manner. Peer-to-peer networks for music sharing are
examples of mesh networks. Carriers often design their core, backbone networks
in a mesh configured with multiple failover routes. Mesh networks are the most
expensive because they require the most links. See Figure 5-8 for mesh topology.

bit
ga
0 Gi net 100 Gigabit Ethernet
4 her Seattle
Et

Internet

Wide area network

Los Angeles
Centralized
applications at
headquarters
40 Gigabit Ethernet

Houston

Miami

Figure 5-7 A hub-and-spoke design for centralized applications such as

e-mail. The disadvantage here is that if e-mail or another application at the
central site crashes, all sites lose access to it.
Network Topology on Dedicated, Private Lines 257

Seattle
Portland Maine
Detroit
St. Louis
Los Angeles New York City

Houston
Louisiana
Miami

Each site can connect directly with every other site

Figure 5-8 A mesh network connecting all sites together.

Direct Dedicated Interconnections to the Cloud

Customers have a choice of accessing the cloud from the Internet or via a dedicated
connection. To access the cloud via the Internet, residential and business customers log
in via their same broadband connections from which they access the Internet. These
connections are sometimes slower and can cause delays if there is congestion in the
Internet. They additionally are not as secure as direct dedicated connections.
Large organizations with critical applications in the cloud often directly connect
their locations to their servers and applications on the cloud. These direct interconnec-
tions can have capacity of 10 to 100 Gbps. The fact that the data is in the cloud or at a
hosting center is seamless to end users because there are minimal delays. In this way they
emulate connections within the building to internal data centers in the same organization.
To ensure low latency, close to continuous uptime, and low mean time to repair prob-
lems, many companies sign a Service Level Agreement (SLA) with commitments from
their interconnection provider, specifying the percent of uptime, mean time to repair,
and the amount of latency in accessing the cloud. If the SLA conditions are not met, the
customer has the option of discontinuing the service without a monetary penalty.
An additional option on dedicated interconnections is to bond multiple Gigabit
Ethernet trunks together to double or triple the connection capacity. For example,
Google supports bonding of up to eight connections to reach its services.
Amazon Web Services, Microsoft Azure, Oracle, and, Equinix all support direct,
private interconnections to organizations’ cloud-based applications on their hosting
and cloud data centers. Equinix and Coresite provide a service whereby multi-location
enterprises connect to Equinix or Coresite from their main location. They both in turn
connect enterprises to each of the cloud sites at which their applications are located.
See Figure 5-9 for an example of direct interconnection to multiple clouds. This obvi-
ates the requirement for a separate connection directly to each provider’s site. In addi-
tion to minimizing latency (delays in getting responses to queries), direct dedicated
connections provide more security and privacy than do Internet connections to cloud
and hosting sites.
258 5  Broadband Network Services

Enterprise needs only a single link (plus a backup link) for direct
interconnections to organizations servers at multiple cloud providers

Amazon Web
Salesforce.com Equinix or Coresite Microsoft Azure Oracle Cloud
Services

Enterprise hub at
interconnection data center
Backup link Main link

Enterprise campus

Figure 5-9 A direct connection to multiple cloud providers from corporate

hub sites.

Session Initiation Protocol—Out-of-Band

Signaling
SIP signaling is used for connections between telephone companies in:

• IP networks
• Telephones connected to internal telephone systems
• Trunks that carry traffic into enterprise locations.

Using SIP Trunks for Caller Identification in Call

Centers
Session Initiation Protocol (SIP) signaling is an IETF (Internet Engineering Task
Force). It is used in broadband networks for connections between carriers and in on-
premises telephone systems. Because SIP trunks carry signaling bits including those
with the calling party’s names and telephone numbers, most call centers’ incoming
calls are carried on SIP trunks. The telephone system captures the caller information
and sends it to display-equipped telephones. Figure 5-10 illustrates a SIP trunk for
transporting caller ID. Employees who receive heavy volumes of calls from vendors
or who prefer to only take calls from certain callers use caller information on SIP
trunks to screen calls. Unanswered calls are automatically forwarded into voice mail.
Network Topology on Dedicated, Private Lines 259

Large call centers that use SIP trunks have an additional benefit—the caller ID
data can be treated differently than the call itself. This is significant because it enables
the telephone system to access information differently from the call. It can send the
telephone number to a database that matches the telephone number to the customer
account number. The data network sends the account number to the agent’s terminal
to which the call is sent, which saves agents time by eliminating the need to key in
account numbers.
Call center agents
*SIP Trunk with 555-525-5678 caller ID

Voice network

AT&T or Verizon Call and telephone

switch
switch number are routed
to agent.
Inside the company’s
building

Internet

Caller’s telephone number is 555-525-5678 *SIP = Session Initiation Protocol

Figure 5-10 SIP trunks used in an organization to identify callers’ names

and phone numbers. (Stock photo by Chun-Tso Lin/123RF)

Wide Area Software Defined Networks for

Enterprises
In earlier generation networks, hardware—routers and switches—were key factors in
operating local area and wide area networks. They were programmed to perform spe-
cific routing tasks such as routing packets to other networks. In software designed
wide area networks (WA SDNs), software external to router and switching functions
control the routing, switching, and other functions in the network. See Figure 5-11 for
an overview of routing on WA SDNs. A controller is programmed with rules that are
applied under specified conditions. For example, alternate routes are set up so that if
there is congestion or a malfunctioning section, traffic is automatically sent over an
alternate route. WA SDN is used to manage traffic at branch offices, headquarters, and
data centers as well as in carriers’ core networks.
260 5  Broadband Network Services

Network Controller at telephone company with script for

alternate routes if there’s congestion on the main route

Congested default route on data plane

Control plane signals

Branch Router & Router & Headquarters

firewall firewall

Alternate route

Figure 5-11 An overview of routing on Wide Area Software Defined

Networks.

SDN software can be located in the cloud, or at the telephone company’s data
center—within their CORD. CORD is short for Central Office Re-architected as a Data
Center. For information on CORD, see the section “Central Office Re-architected as a
Data Center (CORD)—Streamlined Central Offices” in Chapter 4, “Managing Broad-
band Networks.” Or, large enterprises may use WA SDN to manage traffic within their
own broadband networks.
WA SDNs are used to invoke commonly used operations under specified condi-
tions. For example, configurations for branch offices can also be defined and tested
centrally before being downloaded to each location. In large organizations with many
branch or warehouse locations, network configurations can be downloaded sequen-
tially to each location once there are circuits installed at the locations.
An Application Program Interface (API) is used as an interface between external
software and each device on the network that is configured for SDN. The API trans-
lates between external software on controllers and each device or service on the NFV
server. NFV is a key element of WA SDNs.
The APIs used in WA SDNs are Open APIs. Open APIs are those which can be
used by the public. They enable customers to access features in SDN from enterprises’
third-party applications. Private APIs give certain users access to only specified appli-
cations. Private APIs are most often deployed in enterprises to give access to particular
parts of their network to contractors or employees. For information on NFV see the
section “Network Function Virtualization (NFV)—Architecture” in Chapter 4.
Companies that supply hardware and software for SDNs include: ADVA, Advan-
tech, Cisco, Ciena, Citrix, Dell, Riverbed Technology, VeloCloud, Versa Networks,
and Viptela.
Network Topology on Dedicated, Private Lines 261

Control Plane vs. Data Plane Signals

All networks need to transmit both control plane and data plane signals. Control
plane signals include addressing, routing, and billing signals. The data plane car-
ries actual applications or user data such as cash register receipts to retailers’ head-
quarters, database look-up requests, applications, and PowerPoint presentations.
In newer networks, data and control signals are sent separately so that the network
can route them individually as needed to servers for billing and other functions.
In SDN networks addressing, billing, and other overhead bits are transmitted in
the control plane and applications and user data on the data plane. Control plane
signals and data plane signals are transmitted within both wireline and mobile
networks. In SDNs, the controller transmits control plane bits identifying bill-
ing and network identification. The actual data and configuration updates and
changes are transmitted on the data plane. On SIP trunks, control and data plane
signals are also treated separately. Although control and data plane signals are
treated individually, both are carried on the same cables. Older networks trans-
mit control and data plane signals within the same channel.

Orchestration and Automation

Orchestration and Automation are features within WA SDNs.
Automation is the use of software to control specific functions within the network.
Scripts written in software are used to perform particular tasks. Examples are use of
a script for routing traffic to alternate routes in networks if there is congestion on the
main route. Or it may define when traffic should overflow to a private line from an
Internet-connected IP VPN. Another example is when telephone companies automate
turning on ports in optical equipment in response to traffic levels in broadband net-
works. For instance, a large bank used the same configuration at each of its 50 branch
offices. A configuration might include policies on routing critical applications, videos,
and the Internet. For the bank, a telephone company contact person first tested a con-
figuration at one branch location. Once the test was completed, the same configuration
was downloaded to each branch via access circuits at the branch. Note that a working
circuit was already in place at each of the 50 branches.
Orchestration refers to the ability to use automation to control many functions
within open source software on SD WANs. It may, for example, send instructions to
configure all branch office locations within an organization uniformly. Orchestration is
intended to automate on-demand services across multiple providers.
Automation and orchestration are challenging to implement for customers and
telephone companies with hardware and software from multiple vendors. This greatly
increases the complexity of implementing WA SDN. WA SDNs operate best and are
least complex to implement and manage for customers and telephone companies with
commodity hardware and servers with open source software.
262 5  Broadband Network Services

The Hybrid Wide Area Network—MPLS and WA SDN

Many organizations keep their Multi-Protocol Label Switching (MPLS) service at
some locations and deploy WA SDN at headquarters. MPLS’s primary advantage is
that it prioritizes voice and video using bits in the MPLS label. Its disadvantage is the
long lead time needed to configure and implement the service. However, once it’s in
place, MPLS does have advantages in that it prioritizes voice and video. WA SDNs
are able to control which traffic goes over the MPLS service so that MPLS links are
integrated via control plane signaling into the SDN network. See Table 5-1 for a com-
parison of broadband services.

Implementing WA SDN—Staff Buy in a Challenge

A major challenge in implementing WA SDN service at enterprises is IT employee
resistance due to fears of being laid off because some operations are automated.
There is additionally often a lack of expertise to manage WA SDN service. This is
because once automation is operational, fewer employees may be required to imple-
ment changes that are now automated. Additionally, some organizations hire their
telephone company to implement and manage some or all of WA SDN’s functions.
Moreover, SDN is new and requires new skills to program scripts for automation and
knowledge of orchestration.
Another issue is that employees that manage the service might not have the author-
ity to implement needed, more costly features. This creates delays and confusion.

Table 5-1 A Comparison of Broadband Services*

Gigabit Dedicated
SD WAN MPLS IP VPN Ethernet Wavelength
A managed Carriers man- Carriers man- Managed by No No
service age traffic age network customer
Layer 2** No No No Yes Yes
broadband
Why used To prioritize To pri- To secure To attain To guarantee
and route oritize voice site-to-site & high speeds speeds up to
traffic and video remote access of 100 to 400 a 1,000 Giga-
between over the Gigabits bits (1 TB)
offices Internet
Factors Complex to Costly, lim- Speed not Can carry Can carry
install; routes ited capacity guaranteed, SDN traffic SDN traffic
applications low cost
*For additional broadband services, see Table 5-2 in the “Appendix.”
**Layer 2—Data layer of the Open System Interconnection (OSI)—The protocol of transferring data between networks.
Network Topology on Dedicated, Private Lines 263

Network Backups—Protection from Outages

Cellular services are a lower-cost backup to their fiber-optic–based broadband links
than DSL because cabling is not required. Small organizations and even some medium-
sized companies use cellular as a backup. It may have less capacity than DSL, but the
costs are lower, the fiber services rarely fail, and it’s possible to designate only to allow
key staff to use the backup service.

DSL as a Backup Option for Business Customers

Medium-sized and large commercial and business customers lease DSL services pri-
marily as a low-cost backup service in the event that their primary Internet access cir-
cuits fail. Many of these primary circuits are installed on fiber-optic cabling. The large
volume of revenue generated by enterprise customers makes a carrier’s investment in
fiber-optic cabling for business customers viable.
Fiber cabling supports higher speeds than the copper cabling used for DSL and
requires less maintenance by providers than copper cabling. For these reasons, major tele-
phone companies are adding more fiber to networks, eliminating DSL, and replacing it
with Gigabit Ethernet circuits over newly installed fiber cabling. However, organizations
may keep DSL for backup in case service on the fiber crashes or the fiber cable is cut.

Cellular Backups for Small and Medium-Sized

Organizations—Outgoing Calls
Cellular backups are lower-cost options than adding duplicate fiber or DSL. How-
ever, in an outage the organization loses incoming calls. In these cases, customers can
request that during an outage, their telephone company forward calls to their cellular
service. Alternatively, onsite routers capable of load balancing traffic between cellular
and fiber-optic lines may be able to automatically fail over to cellular service.
Employees generally have cell phones and can make outgoing calls even when
there is a fiber cut and service to their building is lost. Cellular service is particularly
suited to temporary locations such as pop-up stores, construction trailers, and other
temporary locations. Cellular service is also faster to install than wired connections
that require telephone company technicians onsite and remote programming.

Deploying Duplicate Fiber Cabling—Costly but

High Capacity
Alternate fiber runs are the most costly option for backing up voice and data traffic
to buildings. With fiber backups, organizations provision one set of fiber to, say, the
264 5  Broadband Network Services

left corner of their building and the other fibers at the right-hand corner. In this way, a
backhaul digging up the earth that inadvertently slices fiber on one side would not cut
the fibers on the other side of the building.
However, if the organization’s telephone company equipment malfunctions, ser-
vice will be lost unless each set of fibers is routed to a different provider. Large finan-
cial institutions, large pharmaceuticals, and cloud data centers often provision fiber
with different telephone companies as a precaution in case one provider has a ser-
vice outage. Another commonly used option is to use cable TV providers as a backup
option.

Emergency Call Reporting—911 in the U.S., the

Philippines, and Canada
Almost all countries provide a way for residents to report dangerous situations and
request help in emergencies in the event of fires, natural disasters, accidents and health
crises. Per Trey Fogerty of the National Emergency Number Association, there are
more than 240 million 911 calls answered each year by PSAP (Public Safety Answer-
ing Point) operators in the United States. A PSAP is a call center staffed with person-
nel that answer 911 calls. This statistic was published in a San Antonio publication,
KTSA, on June 3, 2017, in an article titled, “911 Convention in S.A. This Week.”
According to the article, which paraphrased Fogerty:

Soon, 9-1-1 systems will be able to accept text messages, photos and
videos…. Some communities just don’t have the money needed to make
the upgrades.

The main goal of emergency management staff is to quickly respond to calls or

texts by contacting the appropriate emergency responders. If someone is choking, a
delay of 60 seconds can make the difference between life and death. During a rapidly
spreading fire or an armed robbery in progress delays can result in death and extensive
property damage. These types of crises demand rapid responses.

Security, Financial and Technical Hurdles

In the United States, emergency call centers face a number of challenges:

• Adequate funding to purchase up-to-date technology. 911 call centers receive

money from fees tacked onto landline and mobile telephone bills. These fees
are not always adequate to meet the needs of PSAPs with fewer customers
from which to collect fees.
Network Topology on Dedicated, Private Lines 265

• Sustainability to keep their equipment up and running during natural disas-

ters. 911 centers have duplicate cabling to their facilities in case one is dis-
abled or cut. In addition, telephone companies prioritize repairs and outages
at PSAPs. In an outage caused by, for example, hurricane damage, PSAPs
forward all of their calls to another center.
• Security to protect their operations from hackers. Hackers sending massive
amounts of calls to PSAPs with denial of service attacks have caused out-
ages at 911 centers.
• Identification of callers’ locations when they reach 911 agents via text, VoIP
telephone, enterprise telephone system, TTY (Teletypewriter), and mobile
phones.

When 911 was established in 1968, all people reached 911 call centers from their
wired, home telephone. Signaling on these calls transmitted callers’ telephone num-
bers, which were matched up with the address for each telephone number in databases.
Thus, dispatchers were able to quickly notify ambulance, firefighters, or police and let
them know the location of the problem.
With the advent of mobile phones, the location of the nearest cell tower is trans-
mitted to 911 agents. In locations where cell towers are far from each other, it’s difficult
to precisely locate the caller. The issue of location identification is challenging when
people contact 911 via text messaging and VoIP telephones as well. All of these types
of messaging are not necessarily associated with a fixed address. However, text mes-
sages are important in situations such as when a victim is hiding and does not want to
be overheard. The FCC and wireless service providers are working together to resolve
these issues. The 5G cellular protocol specifies cells with antennas close to each other,
narrowing down the location identification.

9
911 is not universally assigned for calls to emergency providers. Most of
Europe reaches Public Safety Answering Points by dialing 112, and in China
E
people dial 120 for an ambulance, 119 for firefighters, and 110 for police.
p
In Japan people dial 119 for medical and fire emergencies, but 110 to
reach the police.
266 5  Broadband Network Services

APPENDIX ..............................................................

Table 5-2 An Overview of Broadband Network Services

Places Typically
Network Service Used How Used
30 to 60 Megabit services Commercial Internet access, connections
T1: 24 voice or data channels organizations to long-distance and local
1.54Mbps Being replaced by telephone companies for
Gigabit Ethernet voice and data, private lines
E1: 30 voice or data channels, between company sites.
2Mbps plus one channel for
signaling and one for framing Each channel = 64Kbps.
and remote maintenance E1 is the European version
of T1.
T3: 672 voice or data chan- Large and medium- Access to long-distance
nels, equivalent to 28 T1s sized organizations companies, Internet access,
E3: 480 voice or data channels Being replaced by high-speed private lines
Gigabit Ethernet between company sites.
This is the European version
of T3.
BRI ISDN: Two voice or data Organizations Video conferencing; but
channels and one signaling new systems mainly use
channel IP; supplanted by other
technologies.
PRI ISDN: 23 voice/data Business and com- Call centers, videoconfer-
channels and one signaling mercial customers encing; PRI ISDN has dif-
channel in the United States ferent speeds in the United
30 voice/data channels and one States and Europe.
signaling channel in Europe
Digital Subscriber Line Residential con- Internet access, television.
(DSL): 128Kbps to 44Mbps sumers, small and
mid-size businesses
where fiber to prem-
ises not available
Telecommuters Remote access to corporate
files and e-mail.
Appendix 267

Places Typically
Network Service Used How Used
Carrier Gigabit Ethernet Mid-size to large Access to the Internet,
1Mbps to 10Gbps over fiber commercial connections to storage area
customers networks, and LAN-to-LAN
connections; data only.
Carrier networks To aggregate traffic in
and cable TV core metropolitan networks and
and metropolitan send it as a single stream
networks to central offices or cable
headends.
Asynchronous Transfer Mode Telephone Not suited to today’s capac-
(ATM): Up to 2.5Gbps companies ity requirements. Transmits
voice, video, and data
traffic. Rarely used because
ATM switches are required.

Table 5-3 Digital Signal Levels—These Services are Being Replaced by

Higher-Capacity Carrier Ethernet
North America Japan Europe
User User User
Level Chan. Speed Chan. Speed Chan. Speed
DS-0 1 64Kbps 1 64Kbps 1 64Kbps
T1 (DS-1) 24 1.544Mbps 24 1.544Mbps 24 2.048Mbps
T2 (DS-2) 96 6.312Mbps 96 6.312Mbps 120 8.448Mbps
T3 (DS-3) 672 44.7Mbps 480 32.06Mbps 672 34.368Mbps

Table 5-4 Digital Subscriber Line Standards

Digital Upstream Downstream
Subscriber Line Top Data Top Data
Service Rate Rate Voice Comments
ADSL 800Kbps 7Mbps Yes Offered to residential
(Asymmetric customers. Uses one
DSL) pair of wires.
ADSL2 1Mbps 8Mbps Yes Most common stan-
dard worldwide for
Internet access.
268 5  Broadband Network Services

Table 5-4 (Continued)

Digital Upstream Downstream
Subscriber Top Data Top Data
Line Service Rate Rate Voice Comments
ADSL2+ 1Mbps 24Mbps Yes Supports video on
demand on short cable
runs.
ADSL2— 1Mbps 8Mbps Yes Increases reach of
Reach extended ADSL2+.
SHDSL— 5.6Mbps 5.6Mbps Yes Single or two pair. Two
Symmetric pair speeds higher than
High-Data Rate single pair.
VDSL (Very- 1.5Mbps 13Mbps Yes
High-Bit-Rate 2.3Mbps 52Mbps
DSL)
VDSL2—12MHz 30Mbps 55Mbps Voice Requires short cable
length; TV/data/voice.
VDSL2—30MHz 100Mbps 100Mbps Yes Requires short cable
length; TV/data/voice.
Part IV
The Internet and
Cellular Networks
Chapter 6 The Internet
Chapter 7 Mobile and Wi-Fi Networks

269
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6 The Internet
In this chapter:
 Introduction 272
 What Is the Internet? 273
 Streaming—A Disruptive Technology 280
 The Structure of the Internet 290
 Security: Connected, Ubiquitous Networks—Vulnerable to Malicious Hackers 297
 Privacy 306
 The Impact of E-Commerce 308
 Fostering Civic Participation and Engagement—Online Forums 309
 Network Neutrality 311
 The Digital Divide: Bandwidth, Skills, and Computers 315
 Intranets and Extranets 317

271
272 6  The Internet

INTRODUCTION .....................................................
T he Internet is the single most important innovation of the 21st century. It’s a ubiq-
uitous network available in much of the world, and a disruptive technology that has
displaced many traditional retail businesses and services. It has created the perception
that the world is smaller and changed how we communicate, shop, and spend leisure
time. It has upended numerous industries, shrunk distances, led to new industries, and
enabled improved communications across countries, between countries, and between
continents. According to an international university student from China:

I am my parent’s only child, and the ability to make free video calls over
the Internet to them weekly is the thing that most helps me stay in touch
with them and share my experiences. Knowing that I will chat with them
every week makes my parents and myself less lonely.

Technologies used in the Internet are radically changing the ways consumers
access and view movies and television shows and negatively affected movie theater
attendance. People can now view high-definition movies and television on their wides-
creen TVs in the comfort of their living rooms. Many additionally have high-end audio
systems to supplement their viewing experience. Increases in the number of people
using streaming, the high video and audio quality, and improvements in actual content
have all precipitated large decreases in the numbers of adults that go to movie theaters
and lower profits for movie theaters. Attendance at movie theaters has dropped steadily
since 2016 and is expected to continue dropping as more people adopt streaming.
The Internet has radically changed how companies conduct commerce. The Inter-
net is the main vehicle by which businesses contact customers, handle customer ser-
vice, and interact with internal staff. The Internet is particularly attractive to young
people, many of whom grew up with the Internet as a part of their daily lives. Web sites
that are well designed and make it easy for customers to find what they need and to
check out, lessen customers’ desire to actually speak with or e-mail a customer service
rep. A well-designed, easy-to-use web site, an extranet, saves costs for businesses.
Extranets are online e-commerce sites where consultants, partners, and customers
access particular databases and services.
The Internet is not a single entity. It is made up of multiple large networks con-
nected to each other by routers and switches and with growing amounts of capacity
enabled by the following advancements: fiber-optic cabling, and more powerful serv-
ers and computer chips, all of which have resulted in higher-capacity broadband fiber-
optic networks.
Streaming is a major disrupter of home entertainment and pay-TV. It has been
enabled by both the Internet and home Wi-Fi. The number of people using streaming
services has grown every year since Netflix first offered it in 2007 and many ana-
lysts expressed skepticism over its future. Streaming is widely available worldwide in
What Is the Internet? 273

developed countries in Asia, Europe, the Americas, and some countries in Africa. The
rise of streaming has caused the bankruptcy of Blockbuster and other DVD retailers,
and decreased the number of people subscribing to cable TV packages. Importantly,
it’s changed the way people get their home entertainment.
Because of its acceptance, pay-TV providers now offer their own streaming
services with content they create, own, or lease. For example, Verizon owns Yahoo!,
and AOL, which they merged into their Oath unit, and AT&T, which owns DirecTV,
purchased Time Warner, the owner of HBO. Furthermore, Comcast owns NBC and
Universal, with its cache of movies and television shows. Thus, the three largest
broadband providers own and create content through their subsidiaries. This results in
competition between content providers Amazon, Netflix, and other streaming content
companies including Facebook, and large telephone, cable TV, and satellite companies
over which Amazon, Netflix, and others stream movies to homes and apartments. This
often creates a situation where pay TV providers compete with the very organizations
that stream movies and TV shows over their networks.
To prevent large telecoms from slowing down or blocking competitors’ content,
the Obama era FCC instituted network neutrality. Under network neutrality rules, own-
ers of broadband (pay-TV providers) are not allowed to slow down or block com-
petitors’ content. Cable TV providers, however, lobbied for the elimination of network
neutrality, stating that they should be compensated for carrying streaming traffic. The
Federal Communications Commission eliminated network neutrality in 2017. How-
ever, their ruling is being adjudicated in courts and in legislatures in the United States.
Worldwide connectivity has led to the challenges of keeping networks secure and
information private. Organizations, individual subscribers, and governments grapple
with keeping information secure and employees’ and customers’ personal data private.
Hackers know how internal networks are architected and where to look for vulnerabili-
ties. Furthermore, malicious employees and staff errors add another layer of complex-
ity in maintaining secure networks. Keeping enterprises 100 percent secure is almost
impossible. Hacking is profitable and not often punished. Thus, hackers have a huge
incentive to steal information they sell, or otherwise profit from illegal tampering with
businesses’ computer data and networks. It’s an ongoing race between hackers find-
ing new and novel ways to interrupt and steal information and to damage and hijack
networks, vs. enterprises and governments keeping networks safe.

WHAT IS THE INTERNET? .......................................

The term Internet is derived from inter and network. It’s a vast network of globally
interconnected networks. If one part of the Internet is down, routers send traffic on
alternate routes. It’s a survivable, robust network with parts of it able to function dur-
ing natural disasters and attacks. The United States Department of Defense funded the
original Internet with the intention of having a robust network able to survive an attack
274 6  The Internet

or national disaster. They awarded money to the University of California at Santa Bar-
bara for the purpose of developing a resilient network. In addition, faculty in the IT
department at the University of Michigan collaborated on new protocols to be used in
the Internet.
At that time, 1969 until the mid-1990s, researchers at universities and government
agencies were the main users of the Internet. They used it to collaborate on research.
Additionally, staff at universities used the Internet to access early forms of electronic
mail (e-mail) using arcane commands such as k to display the previous message and
n to display the next message. Logging into the Internet and using e-mail acquired a
user-friendly interface when Tim Burners Lee developed the Nexus browser in 1989.
Examples of browsers include Chrome, Internet Explorer, and Safari. Mosaic and
Netscape were early browsers. Easily accessible, user-friendly browsers are a large
part of the reason that the Internet was widely adopted.

Features of the Internet

The following are some of the most prominent features of the Internet:

• It uses a common set of IP protocols

• It is a packet network
• Routers send packets on the least congested routes
• Routers send packets around disabled, broken links
• It has defined protocols, such as IPv4 and IPv6 for addressing
• It can grow to keep up with growing amounts of traffic
• The backbone is made up of fiber-optical cabling connected to electron-
ics in which capacity can be increased, often using software at remote data
centers
• The United States federal government does not regulate the Internet
• Because of the simplicity of its protocols, IP, TCP, and HTML markup lan-
guage, the entire world can communicate over the Internet
• Voice, video, and data are transmitted on the Internet
• Carriers exchange traffic at peering points

Protocols Used on the Internet

The single most important factor in the worldwide spread of the Internet is the stan-
dard, easily implemented protocols used on the Internet. Worldwide, all countries use
What Is the Internet? 275

the same IP protocols to transmit data across their sections of the Internet. This means
that people access broadband in a uniform way regardless of their location. When the
Internet was designed, simplicity was purposely kept in mind so that the networks
could be uniformly and easily duplicated. The fact that these designs are accepted
worldwide has been a critical factor in adoption.
The following are examples of the Internet protocols:

• Internet Protocol: IP is a “best effort” protocol. When a message is sent

over the Internet, it is broken up into packets. Each packet is sent on a
different route and reassembled at the receiving end in the correct order.
If there is congestion the router drops packets. The dropped packets are
not resent. This is why IP is known as a best effort transmission protocol.
• HTTP: HyperText Transport Protocol links are the standard way documents
are moved around the Internet.
• HTML: HyperText Markup Language is used to compose web pages. It is
not, strictly speaking, a protocol.
• TCP: Transmission Control Protocol provides error checking on messages
sent over the Internet. It is a connection-oriented protocol. Messages are sent
between sending and receiving computers on the Internet that communicate
whether the message was received or whether errors occurred. If there are
errors, bits are retransmitted.
• IPv4 and IPv6: Internet Protocol v4 and v6 define the numeric structure of
Internet addresses. The newer IPv6 was launched in 2012. It specifies longer
addresses and is being implemented by Internet providers and telephone com-
panies. It has capacity for more IP addresses than the shorter IPv4 structure.

The Impact of Capacity—The Availability of

Broadband Networks
An important factor in the wide use of the Internet in everyday life and business is the
availability of high-capacity broadband and cellular services. This availability exists in
Western Europe, North America, much of Asia, parts of Africa, and in the Middle East.
The capacity and availability of the networks that make up the Internet are enabled by
technologies such as fiber-optic cabling and the supporting electronics connected to it:
lower-cost, smaller graphical processor chips in wireless handsets and laptops; faster
computers; and improved compression to support multimedia video streaming and
high-capacity content downloads. These improvements, along with search engines,
enhance the user experience for consumers and businesses alike, as do improvements
in web site designs.
276 6  The Internet

The Public Network Prior to the Internet

At the time the Internet was developed and through the 1990s, the public switched tele-
phone network, which carried only voice, was made up of large central offices called
tandem offices. Smaller central offices were connected in a hub-and-spoke design to
each tandem office. If the tandem office crashed, all the local central offices were also
out of service. The designers of the Internet wanted to avoid this centralized control
where an outage at a central or tandem office disabled large swaths of the public tele-
phone network.

The Internet—A Distributed Network with No

Central Control
The Internet is a distributed network with no single ISP (Internet Service Provider) or
other entity controlling it. It’s a distributed network in which multiple carriers man-
age particular parts of the network. If a router crashes, other routers send traffic along
alternate paths in the Internet’s backbone. The backbone is the part of the Internet that
carries traffic across the country between cities and states, and between countries.
Although the Internet was designed to function when any route crashes, if the
central databases that hold IP addresses are disabled, the Internet won’t function. See
the section “The Criticality of Root Servers” below for information on root servers.

Largest Carriers Worldwide—Backbone Providers

The telephone companies with the largest Internet backbones in the United States are
Sprint, Verizon, CenturyLink (through its purchase of Level3), and AT&T. There are
a number of local carriers (ISPs) that connect users to the Internet because no single
provider has service everywhere.
According to the May 24, 2017, article by Antoine Gara in the Forbes online arti-
cle, “The World’s Largest Telecom Companies: AT&T & Verizon Top China Telecom,”
the following are the largest telephone companies by total revenue worldwide. The list
includes their headquarters locations. However, most of them have services in other
countries as well:

• AT&T—U.S.
• Verizon—U.S.
• China Mobile—Hong Kong, China
• Nippon Telegraph & Telecom—Japan
• Softbank—Japan
What Is the Internet? 277

• Deutshe Telekom—Germany
• Telefonica—Spain
• KDDI—Japan
• China Telecom—China

Using Search Engines to Unleash Vast Stores

of Information
The introduction of sophisticated search engines by organizations such as Google,
Microsoft, and Yahoo! (part of Verizon) made browsing the Internet convenient by
organizing the enormous amounts of information available on the Internet. Search
engines from Google and Baidu in China and others including DuckDuck Go Search,
Bing (part of Microsoft), Dogpile Search, Yippy Search, and Webopedia Search earn
revenue from advertising on their sites and from ranking companies that pay fees for
higher placements (rankings) in search results.
Page ranking refers to the placement on a web page of search results. Ranking a
product or service higher places it closer to the top of search results, with a higher like-
lihood of people clicking on the link. In addition to paying for higher ranks, ranking is
done by analyzing the number of other sites that link to a particular site. For example,
if someone searches for Greek restaurants in San Francisco, the Google engine looks
at and ranks the restaurants partially on how many sites link to particular Greek restau-
rants in San Francisco and the type of sites linking to it.
Google not only earns the highest search-engine-based advertising revenue in the
United States, but because of its many acquisitions, it has the potential to skew results
of searches in favor of its own sites. When search results are returned, search engines
such as Google can rank their own sites higher than those of competitors. Google’s
search engines are located in hundreds of countries worldwide in addition to its pres-
ence in the United States.
Over the years, Google’s owner Alphabet acquired many software companies,
including the following:

• Zagat (restaurant and hotel reviews)

• Android operating system software for smartphones
• Adsense (Google’s network for advertising sales)
• DoubleClick (advertising network used to target ads to particular classes of
people)
• Google Maps (GPS plus local guides and advertising)
278 6  The Internet

• Keyhole Technologies, Zipdash Inc., and Where2 LL2 (software that forms
the basis of Google Maps)
• ITA (airline flight aggregation information)
• Motorola Mobility (mobile devices; patents for mobile services)
• YouTube (online videos and streaming TV)
• Waze GPS (global positioning service)
• Zipdash (now part of Google’s location services)

In addition to possibly skewing search results toward their own sites, search
engines have implications for privacy. Marketers can determine the following based
on terms people search on:

• Gender
• Income Range
• Health
• Type of computer (Mac or Microsoft Windows)
• Location

This information may be shared with advertisers who target ads at particular demo-
graphics based on search history. For example, they might show pop-up and sidebar
ads on the Internet based on people’s purchasing history. See the section “Privacy”
below.

Search Engines—Mathematical Algorithms

and Page Ranking
Google, a unit of Alphabet, attracts the most search engine traffic worldwide. Baidu
in China is second and Microsoft’s Bing and Verizon’s Yahoo! are third and fourth
respectively. Search software uses mathematical algorithms and page ranking to deter-
mine search results. Proprietary mathematical algorithms analyze keywords, titles, site
structures, and descriptions to determine which sites fit the search terms specified by
Internet users. They look at headlines, bolding, and the proximity of words to each
other for relevance of textual data on the page.
Search engines have massive indexes (lists) in databases of past searches and
URLs, or locations of web sites. They additionally have the ability to find and add
new web sites and discover sites that are removed. This is done by spiders, software
What Is the Internet? 279

that continuously and automatically crawl through the Internet looking for new and
updated sites.

Search Revenue—Advertising, Page Ranking, and

Software Licensing
Google has the largest revenue from search worldwide, primarily from advertising on
its sites. As reported by its parent company, Alphabet, it had $26 billion in total sales
for the quarter ending June 30, 2017. Of that total, $25.8 billion was from search:
advertising, software licensing, and page ranking.
Search companies earn revenue by a combination of ads, favorable ranking of
web sites in search results, and licensing software to other search companies and to
enterprises. Large enterprises deploy the licensed search software to assist staff in find-
ing information on health and retirement benefits, information about departments, and
directories of employee addresses and telephone numbers.

Investigations into Google Search Practices

In June 2017, the European Union fined Google $5 billion for favoring its own compa-
nies in search results. The European Union judged that Google demoted rivals’ links in
favor of its own company’s links and search results. This is important because the top
10 ranked search results receive about 90 percent of all clicks. The EU’s investigation
was prompted by complaints from EU companies, that search results were skewed in
Google’s favor and that EU companies’ results were demoted to lower rankings on
search result pages. For example, Google might rank its own flight information ser-
vice higher than a competitive flight information service. The EU complaint stated in
part that Google was using anti-competitive tactics to take advantage of its 90 percent
market share in searches.
As a result of the EU fine and agreement, Google stated that it would let compa-
nies bid for the top placement in search, rather than ranking search results by links to
products retailers who had paid Google to rank high in searches. Google further agreed
to make some changes in its search shopping methodologies, and to stop promoting its
own shopping services while demoting rivals’ comparison sites.
The EU left it up to Google to create its own solutions to these issues. Per EU
competition commissioner Margrethe Vestager, if the EU is not satisfied with Google’s
changes made within 90 days of the fine, the EU will fine Google up to 5 percent of its
total global search revenue each day. The EU hired accounting firm KPMG and search
engine optimization marketing company Mavens to monitor Google’s search results
for compliance with the EU agreement. Despite this agreement, Google has stated that
it will continue to challenge the fine in the courts.
280 6  The Internet

In addition to the EU’s investigation into Google’s search practices, in 2016

the EU filed anti-trust charges against Google over its dominant position in search
on Android operating system mobile phones and tablet computers. The complaint
alleged that Google is monopolistic in requiring that Android phone manufacturers
pre-load the Google Chrome browser and Google Search on phones. The charges
are further based on Google’s practice of offering financial incentives to carriers
and manufacturers to make Google’s search services the only pre-loaded search
on mobile phones. In 2016, Russia filed a similar anti-trust complaint against
Google’s policies on mobile phones and tablet computers. In 2017, Google and
Russia reached a settlement where Google agreed to pay Russia $7.8 million to
settle the claim.

Internet2—A Non-Commercial Outgrowth of

the Internet
Internet2 is the predecessor of the Internet. In contrast to the public Internet, it is a non-
profit private network. Internet2 was established as a way for university and research
professionals to collaborate over a private connected network. Internet2 is the largest
private network in the world. The scope of Internet2 has grown from university and
research organizations to include corporations, and private and governmental national
research entities in over 100 countries.
A core group of Internet2 technology staff maintain and upgrade the network to
include high data rate services including SDN and Gigabit Ethernet. In addition to the
local data centers at members’ locations, Internet2 maintains a central data center at
Indiana University. An important focus of operations at the data center is maintaining
the security and privacy of information transmitted over Internet2 links.
In the United States, Internet2 drops are located in metropolitan areas on the east
and west coasts, as well as throughout populated areas along the southern coast. There
are fewer Internet2 locations in less densely populated cities in the midwest.
Collaboration and research data transmitted over Internet2 includes cooperation
between branches of large universities. For example, many universities now have
branches throughout urban and rural areas, as well as in distant cities of large countries.
Internet2 also links university sites in distant continents. Scientists and researchers are
able to partner with distant colleagues on designing new drugs and other innovative
technologies using Internet2 links.

STREAMING—A DISRUPTIVE TECHNOLOGY ............

Streaming media, also called Over-the-Top (OTT), refers to television, movies, and
music streamed directly to people’s homes and apartments from the Internet. OTT
streaming has had and is continuing to have a direct impact on decreased cable TV
Streaming—A Disruptive Technology 281

and broadcast TV revenues and is a leading cause in the decline of movie theater atten-
dance as more people abandon cable TV and move to Netflix, Amazon, and YouTube
TV for movies and TV shows.

Growth in Streaming
Streaming entertainment from the Web to televisions is a key application that is grow-
ing year after year and causing losses for pay-TV (cable TV, telephone companies, and
satellite TV) providers. However, not all subscribers that stream have “cut the cord” on
all pay-TV. According to an October 27, 2017, article by Wayne Friedman in TELE-
VISIONNewsDaily, “53% of U.S broadband homes subscribe to pay TV as well as to
OTT streaming.” But streaming hours grew 100 percent from 2016 to 2017, according
to the article, “Streaming Hours Up Over 100% in 2017, Study Says,” by Alex Weprin.
The article cited Conviva for the statistics and for the statement that live sports were an
important driver of the increase.
However, in increasing numbers, subscribers are canceling their pay-TV service.
According to a September 13, 2017, Variety article by Todd Spangler, “Cord-Cutting
Explodes: 22 Million U.S. Adults Will Have Canceled Cable, Satellite TV by End of
2017,” the 22 million people that have canceled their pay service is a cumulative total
of subscribers that rely entirely on streaming options. These statistics were credited
to eMarketer. Added to these losses is the fact that growing numbers of children
and young adults are growing up assuming that they can access all their television
shows and movies on their mobile devices and computers via streaming. To wit, a
September 15, 2017, USA Today article cited statistics from Videology that 9 percent
of Millennials plan to cancel their cable TV subscriptions in 2017. This does not
include the young adults, college students, and children who already rely entirely
on streaming.
Additional studies have tracked the rise of streaming and the decline in pay-TV
usage:

• A 2017 survey conducted by Hub Entertainment Research found that

52 percent of respondents watched their favorite shows online rather than
through their cable TV set-top box. This causes lower revenue for cable TV
as subscribers sign up for lower cost, less inclusive pay-TV packages. This
statistic was published in DigitalNews in an article published on November
9, 2017, by Alex Weprin, “Study OTT Overtakes Set-Top Box as Source for
Favorite Shows.”
• A survey done by Videology found that only one third of Millennial males
intend to subscribe to pay-TV in 2017. Adam Levy cited these statistics in
a September 15, 2017, article in USA Today titled, “Cost Is Not Why More
Millennials Than Ever Are Cutting the Cord.”
282 6  The Internet

Easier Set-Up and Increased Internet Uptake

When over-the-top streaming was first available in 2007, accessing it from traditional
televisions was complicated because at that time most televisions did not have the
HDMI (High Definition Multimedia Interface) ports needed for set-top boxes such as
Apple TVs and Roku. With the universal availability of HDMI ports on new televi-
sions, this requirement is no longer a major impediment to the adoption of streaming.
In addition, increased capacity in broadband networks and growth in broadband adop-
tion are factors in the growth of streaming. According to Netflix, Inc. CFO David B.
Wells on their October 16, 2017, third-quarter earnings call:

I think, in general, it is the continued adoption of Internet entertainment

that is driving our growth.

Accessing Streaming—Connected TVs, Game

Consoles, and Mobile Devices
Subscribers access streaming media on mobile devices as well as on flat-panel televi-
sions. Streaming movies and TV shows to tablet computers and smartphones is par-
ticularly useful when traveling. In addition, university students who may not have
television in their dorms often stream to laptop computers, smartphones, and tab-
let computers. An additional option for connecting to streaming service is via game
consoles connected to televisions. Subscribers to streaming can easily log into their
streaming service from game consoles such as the Sony Wii and the PlayStation Vue.
Two examples of services compatible with game consoles are Netflix and Hulu movies
and TV shows, which have been made compatible with game consoles so that they can
be streamed directly to them.
Another way streaming is becoming more widely available is via Internet-
connected televisions, also referred to as smart TVs. Internet-connected televisions
have menu-driven screens for surfing the Internet and selecting programming.
New smart TVs also have Roku software integrated. This eliminates the require-
ment for an HDMI cable and a physical set-top box because Roku features are
built into the TV. Consumers can use the televisions’ remote controls to click on
icons from sites such as Netflix, Amazon, and Hulu to stream movies and televi-
sion shows to their TV. These televisions connect to the Internet via home wireless
networks or by connecting Ethernet cabling to the Ethernet port on their televi-
sion. The cable is then plugged into to their Wi-Fi router and their cable TV or
broadband modem.
Streaming—A Disruptive Technology 283

Set-Top Boxes for OTT Streams

Apple TV, Roku, Google Chrome, and Amazon Fire are examples of set-top boxes
made expressly for over-the-top streaming. Each of these devices has software
with options for accessing content from a specific list of providers. The set-top
boxes plug into the HDMI (High Definition Multimedia Interface) port on flat
screen televisions. Streaming content is sent to subscribers’ set-top boxes via their
Wi-Fi networks.

Roku’s Business Model

Roku set-top boxes were first available in 2007 when Roku was a unit of
Netflix. Netflix sold it in 2009 because they were concerned that owning a
streaming device might put them in conflict with hardware providers such
as Apple. Netflix traffic accounts for a third of content streamed over Roku
set-top boxes. And Roku leases space in Netflix’s headquarters location in Los
Gatos California.
While Roku sells the most streaming devices in the United States, ahead of
Amazon, Google, and Apple, the majority of its annual revenue is not from
hardware sales. Rather, Roku makes the bulk of its revenue from platform
sales. Platform sales consist of advertising, sales of its partners’ content sold
through Roku’s software, and subscriptions on its hardware. It additionally has
its own streaming service from which customers can stream movies and
TV shows.
In addition to streaming on connected TVs and its set-top boxes, Roku has
put its name on co-branded televisions manufactured by Insignia, Sharp, TCL,
and others. These televisions have Roku software pre-installed, which enables
consumers to use Roku without adding an external set-top box. Televisions
with embedded Roku software display the Roku menu at start-up. Embedding
software in televisions is a way to keep customers tied to Roku.
Another way that Roku makes content available is by formatting a selection of
movies and TV for mobile operating systems. Customers that stream to mobile
smartphone and tablet computers download a Roku app (a small application)
to their mobile device. Movies and TV shows streamed to smartphones and
tablets are formatted to appear on the particular device and operating system
used on the device to which the movie, TV shows or music are streamed.
In addition to the United States, Roku streaming players and software are sold
under the Roku brand in Canada, Mexico, the United Kingdom, France, and the
Republic of Ireland.
284 6  The Internet

Keeping and Attracting Subscribers—The

Criticality of Content
Quality content that appeals to a wide range of people is an important strategy in
attracting and keeping subscribers. The number of over-the-top providers in the United
States competing for subscribers is on the rise. Whereas in the early days of streaming,
Netflix was able to license content from studios including Disney and Universal, as
these contracts expired, many studios stopped licensing content to Netflix and others
in favor of streaming their own offerings.
Both Amazon and Netflix are building up their collections of original content as
well as attempting to license rights to content from other studios. Netflix announced
plans at their October 2017 third quarter investor conference to spend up to $8 billion
in 2017 for original content. This is riskier than purchasing existing known hits, but
with less licensed content available, it is a necessary strategy.
Disney, with whom Netflix previously had a contract, opted to not renew its licens-
ing agreement with Netflix in 2017. Disney has instead started its own streaming ser-
vice with content from its movies, TV shows, and its ESPN sports division. In 2017,
Disney purchased the studio library of 21st Century Fox. The content that Disney
gained includes Fox’s movies (Star Wars, Avatar, and X-Men), television (The Simp-
sons, This is Us and Modern Family). Importantly, the Fox acquisition strengthens
Disney’s international presence in India and other non-European countries. In a similar
strategy, Comcast purchased Universal Studios in 2011 for their NBC television and
Universal Studios’ libraries of movies. They recognized the importance of content to
round out their offerings of cable TV service.
The issue of content is also complicated by the fact that some cable TV provid-
ers also own rights to movies and TV series and/or national broadcasters. In January
2011, Comcast received approval from United States regulators to purchase a control-
ling stake (51 percent) in NBC Universal, which owns Universal Media Studios and
Universal Pictures’ Focus Features; the NBC broadcast network; and cable networks
USA, Bravo, and CNBC. It is part owner of the Weather Channel and majority owner
of MSNBC.
Major content providers and a partial list of what they own include the following.

• Time Warner owned the most content in the United States and Canada. Some
of its properties were HBO Films, CNN, New Line Cinema, 10 percent of
Hulu, TBS, Turner Entertainment, and Warner Bros. Animation. It owns CW
Television Network jointly with CBS Corporation. AT&T purchased Time
Warner in 2018.
• Comcast with its NBCUniversal division owns NBC, MSNBC, NBCSN,
E! CNBC, Telemundo, Bravo, USA Network, DreamWorks Animation, The
Weather Channel, 30 percent of Hulu, and Universal Studios along with
their parks and resorts. It is the largest broadcasting and cable television
Streaming—A Disruptive Technology 285

conglomerate by revenue in the world. In 2018 it purchased Sky, a pay-TV

service available throughout Europe.
• See below for Walt Disney Company’s purchase of 21st Century Fox’s
library of films and television content.
• Viacom is an international cable TV and content company. It owns Comedy
Central, MTV, Spike, Nickelodeon, VIVA, Paramount Pictures, BET, and
VH1, as well as others. Privately owned National Amusements, Inc. owns
a majority of Class A common stock in Viacom. National Amusements is
controlled by the Sumner Redstone family, which also owns movie theater
companies.
• CBS mainly produces commercial television and radio shows. It owns
CW Television Network jointly with Warner Brothers, CBS films, Smith-
sonian Network, UPN, Infinity Broadcasting, Viacom Outdoor, Showtime
Networks, Simon and Schuster Publishing, and Paramount’s television
studio. National Amusements is a parent company of CBS as well as
Viacom.
• Sony Pictures Entertainment is a wholly owned subsidiary of Tokyo based
Sony Corporation through its Sony Pictures Entertainment Division. It
owns Columbia Pictures, TriStar Pictures, Sony Classic Pictures, Dutch
production company 2waytraffic N.V., and Sony Pictures Animation.
Sony also manufactures Bravia TVs, Blu-ray players, and the PlayStation
game console. It is offers its content through its Internet-connected televi-
sions, Blu-ray players, and home entertainment systems.
• The Walt Disney Company owns the ABC broadcast network, ESPN,
The Disney Channel, A&E Network, Touchstone Pictures, Lucasfilm,
Maker Studios, Marvel Entertainment, and Pixar. It is part owner of Life-
time Entertainment, the History Channel, A&E Networks, and Freeform,
60 percent of Hulu, and 14 theme parks worldwide. In 2018 Disney
purchased 21st Century Fox which included part ownership of National
Geographic Partners. Blue Sky which produces and distributes motion
pictures worldwide, its film libraries, and Fox Home Entertainment. The
purchase did not include Fox’s TV or sports stations. The Walt Disney
Company is the second biggest conglomerate by revenue in the world.

A large part of the reason subscribers enjoy streaming is the absence of

ccommercials in most offerings. Traditional network, cable TV, and satellite
TTV programs have 20 minutes of commercials in every hour of non-premium
programs. The exceptions are pay-TV premium channels such as HBO and
Starz for which subscribers pay extra fees.
286 6  The Internet

A Snapshot of Companies that Offer Streaming

Although, it has the largest customer base of streaming customers worldwide, Netflix
does have competition. According to market research group Parks Associates, there are
over 200 streaming services in the United States alone. This statistic was published in the
December 19, 2017, Wall Street Journal article by Sarah Rabil, “Streaming’s Goldrush
Upends TV.” According to audience measurement firm CommScore as published in the
April 10, 2017, TechCrunch.com article by Sarah Perez, “Netflix Reaches 75% of Stream-
ing Users, but YouTube is Catching Up,” Netflix currently has 75 percent of customers that
stream in the United States. The article further stated that of the Wi-Fi–equipped homes in
the United States, 53 percent of them use streaming services. As more homes are equipped
with Wi-Fi, the number of people streaming content will continue to grow.
And competitive streaming providers are gaining market share:

• Amazon offers free streaming for its Prime customers. Prime customers pay
$100 annually for no-fee fast deliveries, plus other privileges including free
downloads to Amazon’s Kindle e-reader.
• Facebook Watch offers sports videos, short form videos of 5 to 10 minutes in
length, and its own original content of 20- to 30-minute videos.
• Hulu offerings include content from broadcasters and access to live sporting
and other events.
• HBO Now is free to people that subscribe to their pay HBO pay-TV offerings.
• Sling TV includes content from live broadcasts plus many pay-TV channels,
and streaming sporting events.
• The Walt Disney Company has announced its intent to offer streaming chan-
nels with its own content including ESPN and 20th Century Fox’s original
content, which it is purchasing from 21st Century Fox.
• Google’s YouTube TV includes broadcast stations and pay-TV channels such
as ESPN and the Disney Channel.

Ad Revenue on Streaming Services

OTT streaming is available with subscription fees without commercials, or free but with
commercials. Social network giant Facebook has announced its intention to offer longer
form streaming video supported by advertising. Hulu, majority-owned by the Walt Dis-
ney Company and Comcast with minority ownership by AT&T, offers options for low-
cost subscriptions that include ads or higher-cost subscriptions with limited, brief ads.
Hulu has access to premium and broadcast TV content through its broadcast and studio
owners’ libraries of content.
Streaming—A Disruptive Technology 287

Streaming Worldwide
Streaming services are available in most regions worldwide, including Europe, India,
China, North and South America, and parts of Africa. Netflix alone offers service in
190 countries worldwide. In developing countries such as India and where its available
in Africa, coding techniques used in streaming media enable users with slow-speed
mobile and wired broadband connections to receive television shows and movies
of adequate resolution. Coding techniques that use compression to shrink the num-
ber of bits enable many subscribers that would otherwise not have access to receive
an acceptable quality of streaming. According to Netflix Chief Product Officer,
Gregory K. Peters:

Encodes we’re using are super-efficient so that we can provide a really,

really, high-quality video experience, and with lesser and less bits.

Netflix is a global entity with over-the-top streaming available worldwide.

Its online streaming service is compatible with more than 100 formats on devices
such as the Apple iPad and iPod, mobile handheld devices, Roku devices, and game
consoles such as the Microsoft Xbox, Nintendo Wii, and Sony PlayStation.

Ease of Use and Technological Enablers

It is no longer necessary to connect laptops to high-definition televisions to stream
movies from the Internet to the TV. Dedicated set-top devices such as the Roku and
Apple TV are easily linked to flat-panel televisions via the High-Definition Multime-
dia Interface (HDMI) video interface and audio cable.
Significant technological improvements have occurred that enable multimedia
streaming on the Internet in homes and consumer equipment that simplifies streaming
to mobile devices and TVs. These innovations include the following:

• Dedicated electronic devices, such as set-top boxes from Apple TV and

Roku that connect directly to televisions for streaming TV shows and movies
from the Internet.
• Adaptive bit rate streaming software on content providers’ and cloud servers
that dynamically alter the speed of video streams to match consumer devices
and bandwidth. This provides a more consistent video stream with fewer
disruptions.
• Improvements with respect to in-home wireless Wi-Fi networks.
• The availability of Internet-connected televisions with icons on the start-up
screen for Netflix, YouTube, Hulu, Amazon, Roku, and others that negate the
requirement for a set-top box dedicated to streaming.
288 6  The Internet

• The attractiveness, sound quality, and lower prices in home entertainment

sound systems with the capability for high-definition images on large
flat-screen televisions that make home viewing attractive.
• Over-the-top streaming directly to portable, wireless devices including tablet
computers and smartphones with enhanced resolution.

Cable providers and telephone companies that own local broadband facilities now
compete with companies such as Netflix with its 100 million subscribers worldwide
and Amazon Prime. Netflix and its competitors have an advantage in not needing to
build broadband infrastructure to support their services. This eliminates the significant
capital investment required to build a network, and lowers the barriers to entry into
the market. Competitors such as these are referred to as over-the-top (OTT) providers.
See Figure 6-1 for a diagram of OTT streaming. It is one impetus for people to opt for
high-speed Internet access. In a quote from Netflix CFO David B. Wells at the Netflix
2017 third-quarter investor’s conference, he says:

When we try to explain the quarter-to-quarter perturbations or some of

the lumpiness in our net additions, we tend to use explanations that sort
of focus on the incremental, which could be content slate or a particular
title that had some notable strength. But I think, in general, it is the con-
tinued adoption of Internet entertainment that is driving our growth,

Time Warner’s HBO GO.com division makes no-fee HBO content available online
to cable TV subscribers of HBO. Subscribers that pay for HBO can watch any HBO
Go content streamed on the Internet. Comcast and other cable companies now embrace
TV over the Internet as a strategy to retain profits and subscribers for their pay-TV
services in the face of competition from OTT providers.

Cloud with Netflix,

Disney, and Amazon
content

Telephone company
Equipment
Fiber transmits content to neighborhood homes and apartments

Figure 6-1 Over-the-top streaming between the content provider and

residential locations.
Streaming—A Disruptive Technology 289

Specialized set-top boxes for streaming make it convenient for customers to receive
streamed video from the Internet. Set-top devices have interfaces that enable commu-
nications between homes’ Wi-Fi networks and televisions. The set-top boxes interface
wirelessly to home Wi-Fi networks as well televisions. The set-top box connects to the
television’s HDMI port. These set-top boxes commonly also have an Ethernet interface
to connect the TV to a residential network’s Ethernet cabling if it’s available. Blu-ray
players with Wi-Fi and Ethernet interfaces can also be used to stream content from the
Internet, as can Internet-connected TVs.

Pay-TV—Skinny Bundles Plus Streaming on

Set-Top Boxes
Pay-TV providers (cable and satellite TV) companies have a two-pronged strategy to
retain customers that are increasingly moving to OTT streaming to save money on high
pay-TV prices and to watch the appealing and more flexible viewing options avail-
able by streaming. Pay-TV companies now offer options for lower-cost, pared-down
bundles plus streaming services such as Netflix included on their set-top boxes.
To lower prices, and retain customers, they are offering subscribers “skinny”
packages that include just the broadcast stations; ABC, NBC, CBS, Fox, The CW,
Telemundo, Univision, and the non-commercial PBS, plus HBO or another premium
station. Previously, subscribers had to pay for an entire tier of cable channels in order
to have the option to subscribe to commercial-free premium stations HBO or Starz.

Technical Challenges
Chris O’Brien, founder of Motionbox (now part of Snapfish, a Hewlett-Packard com-
pany) and SoftCom (now part of Interactive Video Technologies), stated in a telephone
interview that

the challenge today is keeping up with the incredible diversity of tablets,

mobile phones, and other devices. All of these different devices are creating
an enormous challenge for video publishers, which convert the video into
formats compatible with all the different screens and display capabilities.

This is complicated by the fact that there is no single format that can be displayed
on devices from different manufacturers. Tablets from companies such as Apple, Sam-
sung, and Dell all use a different format, as do mobile devices that use different operat-
ing systems and are connected to mobile networks based on differing protocols.
Even using the same type of compression is no guarantee of compatibility. If oth-
erwise compatible audio and video codecs are stored in a different container (file) for-
mat, the video cannot be played. A container is a server with multiple small programs
290 6  The Internet

that share an operating system. See the section “Containers: A Newer Form of Server
Virtualization” in Chapter 1, “Computing and Enabling Technologies,” for a descrip-
tion of containers. Desktop computers with the same type of audio and video compres-
sion as iPods won’t be able to play the same video if the container format in which the
compression is stored is different.
There are a number of audio/video container formats (QuickTime, Windows
Media Video [WMV], ASF, AVI, and more), and each of these can contain a variety
of different audio and video codecs. So, for example, H.264 video with AAC audio in
an MPEG4 container might play on your desktop player but not on your iPod, even
though they both support H.264 video with AAC audio. Again, this is because they are
stored in different containers.

Conversion and Distribution Engines to

Process Video
Because of challenges in distributing video content to match the many formats used
worldwide, specialized companies such as Brightcove and Ooyala manage the conver-
sion and distribution of video for many online video distributors, including cable TV
operators. Other examples are media companies such as online newspapers and maga-
zines, pay-TV operators, and broadcasters.

Authentication and Reporting

Video processing engines perform other tasks associated with distributing video.
When cable subscribers watch programs from televisions connected to broadband, the
authentication software built into a set-top box automatically sends messages to the
cable provider’s networks verifying that this is a legitimate customer with a subscrip-
tion for particular services such as video-on-demand (VOD).
Authentication is more complex when subscribers attempt to view content from
other devices such as a tablet computer. The authentication software needs to deter-
mine if this device belongs to a legitimate subscriber. Authenticating a set-top box
associated with a particular subscriber is simpler because it involves only a single set-
top box, at a fixed location.

THE STRUCTURE OF THE INTERNET .......................

The Internet is made up of edge and backbone routers that direct traffic based on
addresses contained within the headers of data packets. In an effort to reduce delays,
Content Delivery Networks (CDNs) install servers at their own locations and that of
the carrier’s site at the Internet’s edges, thus placing content closer to the end users that
request it.
The Structure of the Internet 291

Edge Routers
Edge routers are located at the edge of a carrier’s network where they connect to cus-
tomers and to other routers. They are often located at Points of Presence (POPs) where
multiple providers connect to the Internet.
The edge of a network needs to support complex applications, protocols, and video.
Edge routers must support multiple protocols, including Internet Protocol version 6 and
version 4 (IPv6 and IPv4), Multi-Protocol Label Switching (MPLS), Wide Area Software
Defined Networking (WA SDNs), and complex accounting software to track packet usage
per customer. On MPLS networks, edge routers attach labels as described in Chapter 5,
“Broadband Network Services,” that include information regarding addresses, protocol,
and Quality of Service (QoS). For more information about IPv4 and IPv6 addressing
protocols, see the section “Address Structures” later in this chapter.
In addition, edge routers commonly handle aggregated Digital Subscriber Line
Access Multiplexer (DSLAM) traffic in various formats; therefore, routers need to sup-
port both newer and older variations of IP and Wide Area Software Defined Network-
ing (WA SDN). See Chapter 5 for a discussion of WA SDN.
Edge routers also use addressing information to determine how to handle the data.
See Figure 6-2 for an example of a router.

Figure 6-2 An edge router programmed with the features listed above.
These features are not present in backbone routers. (Courtesy of Cisco
Systems, Inc. Unauthorized use not permitted.)

Services on edge routers include the following (if a router is used in the core, it
does not require the extensive services listed here):

• Authentication that verifies the sender is indeed who he identifies himself to

be when he logs on to networks.
• Protected session setup that confirms that each multimedia session conforms
to the features and QoS allowed to the computer making the request. This
protects against fraud and ensures accurate billing.
292 6  The Internet

• Network Address Translation (NAT) addressing that translates external IP

addresses to internal IP addresses, and vice versa.
• Support for IPv4 and IPv6 addressing. IPv6 is designed to replace IPv4; it
supports many more IP addresses than IPv4’s 4.3 billion addresses.
• Layer 2 switching for creating Virtual Private Networks (VPNs) to com-
municate directly with databases and applications in data centers. (See
Chapter 5 for a description of VPNs.)
• Firewall software that protects networks from hackers.
• Accounting to track subscriber packet usage in the event that carriers charge
for usage.
• QoS per application and per user for VoIP and video.

In addition to more intelligence, there are requirements for greater capacity in

routers. This is caused by increasing use of video conferencing, greater demand
for video streaming by residential customers, access to cloud-based services, and
growth in mobile smartphone Internet browsing. Router ports now commonly sup-
port multiple 10Gbps as well as 100Gbps services. Total capacity of edge rout-
ers ranges from 1 to 3 terabits per second (Tbps). A terabit is the equivalent of
1,000 gigabits.

Aggregation Routers in Core Networks

Core routers carry the highest concentration of traffic. A single core router connects to
multiple edge routers, aggregates traffic from these edge routers, and then sends it to
distant cities and countries. If a single router doesn’t have the capacity to handle this
aggregated traffic, multiple routers can be networked together. When this is done, the
networked routers function as a single entity with a single management interface. This
simplifies the carrier’s operations, upgrades, and remote diagnostics.
Networking routers together is commonly done through virtualization. (See the
section “Virtual Network Function [VNF]—Transforming Hardware Nodes into Soft-
ware Functions” in Chapter 4, “Managing Broadband Networks” for information on
virtualization.) Virtualization enables multiple functions including routers to appear
as individual pieces of hardware on servers that can be networked together. In addi-
tion, traffic is balanced among all the networked routers. If one router fails, the others
absorb its traffic.

Ensuring Reliability in the Core and Edge

Routers sold to carriers and to large web sites such as Google and Amazon are designed
for “five 9s” of reliability. This means that they offer 99.999 percent uptime. They are
sold with hot-swappable cards that connect to other services and networks. If a card
The Structure of the Internet 293

fails, it can be replaced without taking the router out of service. They are also offered
with options for duplicate processor cards and often come standard with dual power
supplies. Power supplies connect to sources of electricity. It’s also common for car-
riers to install duplicate routers that can be seamlessly brought online in the event of
a failure. Duplicate routers are crucial at the edge, where if the router fails, all other
networks and customers connected to it lose service.

Enhancing Internet Performance by Using

Content Delivery Networks
Content Delivery Networks (CDNs) provide a number of services at the edge of the
Internet that alleviate congestion on the Internet’s backbone. In its simplest form, a
CDN reduces congestion by decreasing the distance that the traffic must travel. One
way they accomplish this is by storing frequently requested web pages at their serv-
ers, nearer to the end users, often in a service provider’s location. This is referred to
as caching. Many enterprises with large web sites use CDNs to replicate their web
content at many edge locations to prevent delays at their web or e-commerce sites. For
traffic that traverses the Internet backbone, CDNs use mathematical algorithms to map
out the best paths for traffic to take.

Exchanging Data at Peering Points

Large multinational carriers are referred to as Tier 1 carriers. Tier 1 carriers own the
majority of the high-speed lines that make up the Internet backbone. These carriers,
all of whose networks are international, include Nippon Telegraph and Telephone
Corporation (NTT) in Japan; Telefónica in Spain and Latin America; Deutsche Tele-
kom in Germany; France Telecom in France; and AT&T, Sprint, and Verizon in the
United States.
Regional carriers—which are referred to as Tier 2 carriers—also own core, back-
bone facilities. Comcast and Charter are considered Tier 2 carriers because their net-
works do not cover the entire country and they purchase backbone capacity from Tier 1
carriers. These Tier 1 and Tier 2 carriers interconnect with other carriers in places
where they do not have coverage. These interconnections are referred to as peering
points.
Network service providers transfer Internet Protocol (IP) traffic among one another
at peering sites. Peering sites are also referred to as Internet exchanges and Network
Access Points (NAPs). ISPs lease ports on the routers of other providers as a means of
transferring IP traffic between networks. This enables carriers to send traffic that origi-
nated from their own customers to areas where they do not have network facilities, as
demonstrated in Figure 6-3.
294 6  The Internet

Peering Site with Connections between Carriers’ Routers

Racks with multiple carriers’ routers Backup generators

Windowless, hurricane-proof building with

high levels of security and duplicate power sources

Fiber-optic cables to carriers and power sources

Figure 6-3 Traffic at peering points is routed between the facilities of

multiple network operators.

TThe terms “ISP” and “carrier” are used synonymously.

Carriers that own peering points charge other carriers for connections to ports on
their routers. However, traffic at these peering centers has the potential to create delays
in the Internet if carriers lease too few ports from one another in an attempt to save
money. If carriers exchange about the same amount of traffic, they often don’t charge
one another under this arrangement. Security, routing, traffic policing, and Network
Address Translation (NAT) take place at peering points.

Address Structures
Two universal addressing schemes, IPv4 and IPv6, are used to transmit messages from
computers, smartphones, and tablet computers worldwide. The system of routing mes-
sages based on IP addresses is managed by 12 organizations that administer 13 clusters
of servers, called root servers.
The Structure of the Internet 295

The Criticality of Root Servers

The root name server system was implemented in the 1990s. The Internet cannot
function without root servers, which route messages to the correct organization. Root
servers are critical for the sustainability, capacity, and survivability of the Internet. To
lessen the system’s vulnerability to malicious actions such as Denial-of-Service (DoS)
attacks, wherein millions of fake messages bombard a site, root servers balance incom-
ing messages among multiple servers within each root. If one server within the root
is brought down, other servers within the root handle the traffic. Ensuring protection
against hackers is an ongoing endeavor.

The 13 Root Servers Worldwide

The Domain Name System (DNS) is the umbrella name of the Internet’s capability to
translate alpha characters to numeric IP addresses within root servers. Carriers and
organizations send traffic addressed to locations outside their networks to one of the
13 sets of root servers, usually the one nearest to them, to determine where to route
these messages. The root servers, which are massive databases, translate alphabetic
hostnames (gmail.com) into numeric IP addresses (193.22.1.126), and vice versa.
Root servers are connected to peering exchanges where large carriers exchange traf-
fic with each other. Each of the 12 organizations that operate the root servers has root
servers located in multiple cities or countries. They each operate between 2 and 196
locations.
Examples of organizations that operate the 13 root servers are:

• Each of the following organizations operates two sets of root servers:

− Information Sciences Institute manages root servers U.S. Army
Research Lab, which operates root servers in Los Angeles U.S.A. and
in Miami U.S.A.
− U.S. Army Research Lab manages root servers in Aberdeen Proving
Ground, U.S. and San Diego, U.S.
• WIDE operates 196 root servers, the most of any operator

Tracking and Managing Top-Level Domains

The Internet Corporation for Assigned Names and Numbers (ICANN) is the orga-
nization responsible for managing the technical aspects of the databases of domain
names in root servers. It in effect manages the Internet’s address book. In a web or
296 6  The Internet

e-mail address such as [email protected], the .com portion is the top-level

domain name, and companyname is the domain name, which is also referred to as
the secondary-level domain name. Every country has a top-level domain name. For
example, for China, it’s .cn; for Russia, it’s .ru. In the United States, some top-level
domain names include .edu and .mil for educational and military institutions, and.gov
for the government.
Voting ICANN board members were appointed by the United States Depart-
ment of Commerce until 2009 when the Department of Commerce had sole
responsibility for these policies. However, increasing criticism by other countries
regarding what they felt to be too much control by the United States of major
aspects of the Internet has led to the establishment of international review and
policy determination.
Two years after 2013 when Edward Snowden revealed multiple instances of
United States government surveillance of other countries and their leaders, the inter-
national community began organizing increased efforts for representatives from addi-
tional countries to manage ICANN. After years of negotiations, technical leaders from
multiple countries agreed on a framework where control of top level domains would be
managed by an international group of technical people, governments, and representa-
tives from private companies. A group made up of these representatives now controls
ICANN.

The Inclusion of Non-Western Domain Names

Initially, addressing systems used only the Roman alphabet character set (A–Z,
a–z, the digits 0–9, and the hyphen). However, pressure from countries that use
other character systems eventually led to the inclusion of other alphabets for
addresses. These non-Roman alphabets include Arabic, Persian, Chinese, Rus-
sian, Japanese, and Korean. China, South Korea, and Arabic-speaking nations had
already started assigning non-Roman domain names. These addresses introduced
the possibility of duplicate domain names because they were outside of the root
system. This created pressure for ICANN to alter their addressing requirements
and make the technical changes in the root system that translations from other
alphabets require.

Transitioning to IPv6
The main addressing scheme used on the Internet was initially IPv4. IPv4 was devel-
oped in the 1970s and addresses are only 32 bits long. On January 31, 2011, the
Internet Assigned Numbers Authority (IANA), which managed the central supply of
Internet addresses at that time, gave out the last of their IPv4 addresses to each of the
five regional Internet registries. By April 2011, the Asia Pacific region had given out
Security: Connected, Ubiquitous Networks 297

all of their addresses, and the remaining four registries distributed all of their addresses
within the next few years, Capacity is being depleted by the addition of new Inter-
net-enabled wireless devices and the growing number of Internet users, particularly
in Asia.
To ensure that they will be able to get new IP addresses, most organizations are
now transitioning to the newer 128-bit IPv6 protocol, which is capable of accommo-
dating billions of additional addresses. Most carriers have transitioned to IPv6. The
IPv6 IEEE standard was published in 1998.
Most new routers, web browsers, and computers are compatible with both IPv4
and IPv6. The transition to IPv6 can be complex because it means assigning new
addresses to every device with an IP address, including routers, firewalls, network
management software, and all servers, including e-mail servers. In addition, it’s
not a simple matter to determine which applications and devices are compatible
with IPv6. Enterprises that transition to IPv6 often need to be able to handle mes-
sages that are still in the older IPv4 scheme. Encapsulating IPv6 addresses within
IPv4 can address this problem. There are also software packages that support both
protocols.

SECURITY: CONNECTED, UBIQUITOUS

NETWORKS—VULNERABLE TO MALICIOUS
HACKERS ...............................................................
Hackers exploit the inherent openness of the Internet and common protocols to steal
personal and corporate information, earning billions of dollars from selling informa-
tion they steal. Hacking into networks and selling information is not only lucrative,
it’s comparatively punishment free. Hackers are rarely caught and jailed for stealing
personally identifiable information such as Social Security numbers, birthdays, and
intellectual property from businesses. For one thing, it’s not always easy to trace IP
addresses back to their origin; secondly, many countries from which hackers launch
attacks don’t have extradition treaties with Europe and the United States. Without a
treaty, attacked countries are not able to extradite hackers and bring them to trial. This
prevents hackers from countries such as Russia, China, and Iran from being brought
to trial in countries such as the United States and many in Europe in which hacking
attacks occurred.

E
Extradition treaties are agreements between countries whereby a country in
which a crime took place can receive permission to bring criminals back to
w
trial in the country of their suspected crime.
tr
298 6  The Internet

Methods Hackers Use to Attack and

Infiltrate Networks
The following are the most common ways that hackers attack networks:

• Phishing emails
• Stolen passwords
• Weak Wi-Fi security
• Incorrectly configured software
• Unpatched software applications with known vulnerabilities
• Ransomware that encrypts organizations’ computer files, making these files
unreadable
• Distributed Denial of Service where massive amounts of hacker traffic block
legitimate users’ access

The Five Rs of Information Security

Managing security in government agencies, enterprises and commercial organiza-
tions requires 24-hour-a-day scrutiny. Organizations must put in place the tools to
resist multiple types of attacks. They need the capability to recognize when they’ve
been attacked. Viruses have been known to hide in corporate software undetected for
months and even years. Additionally, companies need to respond to, and recover from
attacks. Many also seek legal redress by attempting to identify attack perpetrators and
initiate legal proceedings against them.

Resistance to Hacking
Resistance to hacking is an important way to safeguard private information about person-
nel, customers, and intellectual property containing product and software designs crucial
to organizations’ business success. Firewalls are one way organizations screen incom-
ing traffic for known viruses. Firewalls are software- or hardware-programmed to block
incoming known viruses and malware. In addition to firewalls, organizations typically
have specialized appliances with security software that identifies and blocks malware.
Because of the criticality of security, large and medium-sized organizations hire
Chief Security Officers and specialized security staff that monitor incoming and
outgoing traffic to keep information secure. The jobs of Chief Security Officers and
their staff are increasingly complex due to the fact that employees now access orga-
nizations’ data stored on the cloud, at hosting centers, and branch offices, as well
as at company servers and computers. Staff access this data from mobile as well as
Security: Connected, Ubiquitous Networks 299

landline devices and from remote locations as well as from headquarters. There are
multiple places where viruses can infect internal networks. To protect data stored in
the cloud, organizations use a combination of, for example, Amazon cloud security
software and/or security software designed to operate in the cloud. Security software
can additionally be located on servers to protect particular applications and at remote
branch offices.

Specialized Security Software

Specialty security software is also available for e-mail and other applications. In addi-
tion to security software, firms hire outside organizations to conduct security audits to
identify weaknesses that leave the organization vulnerable to attacks. Auditors might
identify out-of-date software that needs to be patched, or they might find unauthorized
wireless devices without the requisite security software.
As security programs become more sophisticated, hackers find new ways to get
around them by creating increasingly sophisticated malware. It is an ongoing chal-
lenge to respond to every new type of security breach with improved defenses. This is
a particularly difficult challenge because there is generally a lag between when a new
software bug or worm is discovered and a software patch is created to guard against it.
It’s also time-consuming to add patches to not only software security but also appli-
cation programs such as browsers that might introduce security vulnerabilities. One
advantage of Software as a Service (applications in the cloud) is that the cloud provider
adds patches to these applications, thus eliminating breaches caused by software with
known vulnerabilities.

Intentional and Inadvertent Security Breaches by Insiders

Employees who have been fired or those who feel entitled to access information are
frequent causes of these incidents. An employee with high-level authorization to sensi-
tive data can copy it or corrupt it in some way. The employee might then provide the
sensitive data to competitors or cyber criminals.
Employees who change jobs are often in the position to copy entire files and use
them in their new positions. They might use information such as lists of customers to
help them succeed in their new job. They additionally may sell inside information or
use it to start a competing company.
In other instances, employees inadvertently open infected e-mail attachments.
They might unknowingly insert infected portable storage devices such as USB flash
drives into network-connected computers. These viruses can then spread through a
corporate network. To prevent this from happening, organizations often purchase
security software that automatically screens e-mail attachments, laptops, and external
devices for known malware. They can also install software that prevents USB devices
from being inserted into LAN-connected computers.
300 6  The Internet

Other inadvertent security lapses caused by insiders include lost laptops, smart-
phones, tablet computers, backup disks, or flash drives containing files with medical
and demographic patient data or other private or strategic information.
User training is an important strategy toward preventing inadvertent security
breaches and in gaining the cooperation of employees in adhering to corporate prac-
tices. If employees understand the crucial nature of lost data, they might take extra
precautions to protect it. This can include measures as simple as not taking strategic
information out of the organization, reporting losses immediately, and not leaving
passwords on sticky notes under keyboards. They will also be more careful in not
allowing unauthorized outsiders entry into the organization. This can be something
as fundamental as not allowing people without badges to walk into secure areas
behind them. Another point that should be stressed is not leaving unattended com-
puters active so that other users have access to strategic information and e-mail mes-
sages. To prevent this, some organizations configure their computers to time out and
enter a password-protected standby mode if they are inactive for a specified amount
of time, or they institute rules that all employees must shut down their computers
at night.

Training Employees on Security Best Practices

Because employee actions can seriously impair security, training all personnel
on the importance of security including strong passwords, ways to recognize
to phishing, safeguarding passwords, and the importance of using encryption
on company data stored on smartphones or tablets. Depending on the industry,
there may be legal requirements on managing personal employee and customer
information. For example, certain industries such as the medical and financial
fields are required to keep client data stored on their computers private. Training
on steps to protect this data is critical. According to a Chief Security Officer at a
large credit union:
User education is required by financial service regulations and is most
effective. Training is the single most important way to prevent phishing
attacks. We conduct security training every single month—with a new
module monthly on some aspect of security. It’s cloud-based education
software that takes 5 to 10 minutes to complete. It has a small quiz 2
weeks after the security module has been made available. Staff with a
perfect score on the quiz have an opportunity to be in a pool for a gift
card drawing. People really like it and it keeps security fresh in their
head. New employees are required to attend a classroom when they
start at the company. We try to keep them engaged so they retain the
security information. The quizzes and prizes keep staff engaged so they
retain the information.
Security: Connected, Ubiquitous Networks 301

Recognition of a Hacking Attack—Tactics for

New Types of Viruses
Just knowing when an organization has been infected with rogue, malignant data is one
of the most difficult aspects of security management. Malware can lurk in company
networks undetected for years. This occurred in the 2017 Equifax and the 2016 Yahoo!
attacks. Publicity about customers whose private information has been compromised
can cost companies millions of dollars in damages and legal fees responding to law-
suits, and from harm to a company’s reputation.
In past years, organizations have screened traffic for known viruses. This is no lon-
ger as effective as other strategies because of the tens of thousands of known viruses.
Newer security software is able to differentiate a list of applications and bitstreams
from new, unrecognized data streams. The security software quarantines unrecognized
traffic until security staff determines whether the streams contain viruses or are permit-
ted traffic. Never-before-seen attacks are known as zero day attacks. As extra protec-
tion, large organizations often have their broadband provider screen known (zero list)
viruses and the enterprises inspect and quarantine the whitelist of unrecognized bit
patterns that may contain viruses.

Responding to an Attack
To limit damage from malware, organizations use security software to monitor all
incoming and outgoing traffic. Security software is able to issue alerts to specified
telephone or mobile numbers, or send e-mails to security staff. Once alerted, staff can
take action against the attack. For example, infected computers and servers can be
taken offline until the malware is erased from all hard drives and disks connected to it.
Many organizations use Intrusion Detection System (IDS) software or devices to
monitor traffic and attempt to block Distributed Denial of Service attacks of millions
messages meant to block legitimate incoming traffic. These systems monitor packets
for malware and report them. Intrusion Detection and Intrusion Prevention Systems
(IDPSs) attempt to stop these attacks as well as identify and report them. Often these
types of software can divert the attacking bits to a part of the LAN separated from
legitimate servers and computers. However, this is one of the most difficult breaches to
protect against as automated bots, short for robots, are programmed to send millions
of simultaneous strings of data to enterprises. This makes the network unavailable to
legitimate incoming and outgoing traffic.

Security Software
Security software can be embedded in virtualized servers and containers with other
applications or in a standalone appliance (a computer with a dedicated application).
302 6  The Internet

There is a trend to embed security in multifunctional devices. Routers are often

equipped with firewalls, and Local Area Network (LAN) switches also contain optional
security software.
There is also specialty security for e-mail and other applications. Security soft-
ware can be used to encrypt files containing passwords to protect the files from snoop-
ers and employees not authorized to view sensitive files with personal information
or intellectual property. This is important because many employees, contractors, and
business partners now access files remotely and are allowed access only to particular
applications and files.
In addition to all of these practices, firms hire outside organizations to conduct a
security audit to identify weaknesses that leave the organization vulnerable to attacks.
Auditors might identify out-of-date software that needs to be patched, or they might
find unauthorized wireless devices.
Most security software and hardware products and services offer software that
generates audit trails. Software records display indications of security breaches. Pay-
ing attention to them is an aid to identifying network weaknesses. In IT departments
with large workloads, this does not always happen.

E
Encryption is the use of mathematical algorithms to make files unreadable
except to users who have the software, the key, necessary to decrypt the
e
files. Encryption is also used on files transmitted between corporate sites
and between remote staff and their offices.

Block Chain
Block Chain is new a security protocol now being tested to manage data, track
assets, and process financial transactions between banks. It is a distributed proto-
col without a central entity managing the interactions between nodes (comput-
ers). All data transmitted is encrypted when it is sent and decrypted at each node
through which the data passes. All nodes along the transmission path must verify
the data is not spam or fake in any way. Block Chain is made up of three main
components: a network of computers, a protocol, and a way to reach consensus.
Block Chain is envisioned for tracking assets and shipments, and for money
transfers between banks. It is also the basis for digital cryptocurrencies. In tests
of financial transactions between clearing houses, transactions that formerly
took 3 days to complete, were done in just seconds.
Continued
Security: Connected, Ubiquitous Networks 303

Other applications for Block Chain include tracking assets within organiza-
tions and payments between people and institutions; all can be completed
without a central clearinghouse. Block Chain transactions and tracking are
done through the use of a ledger, which has copies of all transactions and
merchandise tracking steps. Each node (computer) in the chain of com-
munications has a copy of the entire ledger and takes part in verifying each
transaction.
One challenge in implementing Block Chain is that all of the nodes in each
transaction need to be based on compatible network operating systems,
network protocols, and back-office systems. Cryptocurrency tokens that are
used for financial transactions include Bitcoin, Zeash, Monero, Ripple, and
Ether.
Block Chain is architected in a mesh configuration with all nodes and institu-
tions able to communicate with each other without a central entity managing
the interactions. Each node verifies and authenticates the data as it is transmitted
through networks. Platforms that use Block Chain operates on include Ethereum,
Cardano, and Shuttle Fund.
It’s likely that there will be additional applications for Block Chain, which is a
security protocol. It’s not known what the future of cryptocurrencies is.

Mounting Defenses via Firewalls

Firewalls are used to screen incoming messages for known viruses, worms, and Trojan
horses. Trojan horses are computer programs that appear to have useful functions but
actually contain malicious code. A video sent from Facebook can have a Trojan horse
embedded within it. Some firewalls can also detect anomalies that are indicative of an
attack, including packets that are too short. Firewalls can be in the form of software
located at the ISP, the cloud, or at enterprise locations.

Protection from Internal Sabotage

The human factor is the weakest link in securing networks. Current technology is
unable to prevent humans from acting in opposition to policy. Many human errors that
result in security lapses are inadvertent. However, there are malicious employees who
purposely steal or copy intellectual property or insert malware into computer files. An
important safeguard against malicious employees is careful screening and reference
checks before hiring staff.
304 6  The Internet

An additional way to guard corporate data is a need to know policy that allows
employees to access only applications that they need for their job. Other strategies
include setting up rules such as not allowing the use of thumb drives in USB ports on
computers, and building in alerts if a thumb drive is inserted into a staff person’s com-
puter. In addition, security staff can revoke all passwords and access to files as soon
as a person’s employment is terminated. Some organizations have security personnel
walk fired staff or staff that quit their job out the door to ensure that they don’t take
company computers and/or files with them when they leave.

Recovery from Ransomware and Other Hacks

Recovery from attacks containing malware requires organizations to rid their net-
work of corrupted files and computers that have viruses and other malware that
enables hackers to spy on computer files. If duplicate files are stored offsite, the
damaged disks containing viruses can be wiped clean or removed and replaced with
the back-up files.
Ransomware attacks occur when a user clicks on a phishing link in their email
that sends her to a malicious web site. The web site then automatically downloads
encryption software to the user’s computer and to other computers connected to the
same LAN segment. The encrypted files are unusable because in most instances
only the hacker has the software key that can decrypt (unlock) the files. Hackers
behind ransomware attacks demand a payment in return for decrypting files to make
them readable. This is a common ploy used against mostly small but also large
organizations.
Small organizations are likely to pay the ransom to get use of their fi les back.
Larger companies are more likely to have backups to the encrypted files, thus mak-
ing them more immune to ransomware. An exception is Uber, which secretly paid
a $100,000 ransom to a hacker in 2016 and only disclosed the breach in November
of 2017. Uber is now facing five lawsuits because of its delay in reporting the
breach.
In a minority of attacks, hacked companies have access to the decryption keys that
can unlock the particular encryption used on their files. This is because they belong
to a ransom security organization that stores decryption keys for a limited number of
encryption codes. No More Ransom is an example of an organization specializing in
decryption and protection against ransomware.

Redress—Taking Legal Action Against Hackers

Redress is the ability to take legal action against hackers and bring them to trial.
One challenge in taking legal action against people responsible for hacking is
the lack of extradition treaties between many western countries with China, Iran,
Security: Connected, Ubiquitous Networks 305

North Korea, and Russia. Thus the hackers originating attacks from these countries
don’t necessarily face trials and legal actions for their crimes of hacking into orga-
nizations in Europe and the Americas. Many of the hackers in these countries have
the blessing of their government to steal data useful in manufacturing or weapons
development.
When a hacker is brought to trial, building an airtight case is challenging. Hard
drives containing viruses must be preserved exactly as they were following the attack.
Computer forensics, evidence on computers, and storage systems must be conserved
and presented in court. Any evidence of tampering with the evidence can invalidate the
court proceeding.

Cyber Terrorism between Countries

In the past, countries engaged in spying and sabotage by planting agents in other coun-
tries. They hoped to learn strategic information about their enemies and potential ene-
mies through networks of spies who often disguised themselves as friendly citizens.
Some spies went beyond gaining information to planning acts of sabotage that dam-
aged property, such as roads, bridges, and factories. These same countries also used
networks of agents to ferret out spies trying to infiltrate their own institutions. All of
these strategies still exist, but they are supplemented by cyber terrorism. Most cyber
terrorism is conducted via the Internet.
Acts of cyber terrorism can also be implemented by using sneaker attacks,
whereby inside employees are co-opted by foreign governments or terrorist groups to
learn government secrets, plant software bugs in computer-controlled weapons sys-
tems, or copy strategic information inside the organization. This strategy is used to
circumvent security measures whereby strategic departments such as armed forces or
defense departments attempt to shield themselves by bypassing the Internet for all data
communications. Entities such as these communicate to other locations on private lines
that they lease or build. These networks only connect to other trusted departments or
perhaps suppliers.
Cyber terrorism attacks not only cause computers systems to malfunction;
they can also disable computer-controlled weapons systems. This is what occurred
when North Korea launched its WannaCry worm that infiltrated computers networks
worldwide. A worm is a software bug programmed to be activated at a later time.
Worms are also referred to as bots. However, bots are more complex than worms
and can do more damage. The May 2017 WannaCry attack was so sophisticated
that many security experts thought a government, not an individual, planned it.
WannaCry attacked hospitals, banks, and over 300 computers in hundreds of
countries worldwide. Microsoft had issued a patch, which it classified as critical.
However, it was ignored by many organizations, highlighting the criticality of keep-
ing patches up-to-date.
306 6  The Internet

PRIVACY.................................................................
Privacy is the ability of people to control who sees information about them. It includes
the ability to not share private information such as social security numbers, birthdates,
job applications, and medical information. Privacy often conflicts with merchants’
desire to use personal data for business purposes.
For example, information about consumer buying habits is a source of valuable
information for advertisers who purchase ad space on the Internet. However, it can also
create issues for people concerned about privacy. Software used by marketers is able
to add small software files to browsers. These software files track which sites an indi-
vidual visits. For example, if a user clicks an ad containing a video that uses Adobe’s
Flash or HTML5, the advertiser can compile a list of sites that he visits after clicking
the ad. With this information, it can display ads based on what these habits suggest
about his interests. For instance, advertisers might display ads about sporting events to
people who visit sports-oriented sites.
When a shopper purchases, say, a skirt online or even browses for skirts, advertis-
ing networks can automatically display ads about these types of clothing to the pur-
chaser when they visit other sites. In addition, information gathered in this manner
from social networks is a powerful way to attract advertisers. In turn, advertising net-
works that use bots, small programs programmed to automatically collect information,
place ads at many different sites and help amass large databases of demographic infor-
mation about users’ browsing and purchasing habits.
Another way that marketers collect information about users is from online games
on social networks such as Facebook. Every time a Facebook member downloads a
game application, the game developer acquires information about the game player.
Developers track the user’s data, compile it into lists along with information about
other users, and then sell the data to marketers.

Web Site Tracking, Connected Devices, and

Free Search Engines
The growth in numbers of computerized connected devices such as home thermostats
connected to the Internet are sources where providers can collect information that can
be sold to marketers. Toys are an example of Internet-connected items that have the
potential to compromise children’s privacy. Toy company Genesis manufactures an
Internet-connected doll that answers questions children ask it. The questions are trans-
mitted via the Internet to Nuance, a speech recognition company. Nuance sends back
answers to their Genesis dolls.
A lack of enforcement in search engines, social networking applications, and
e-commerce sites can compromise privacy. Advertising on search sites and social
Privacy 307

networks is a large percentage of web sites’ business. According to Google owner

Alphabet’s annual report, Google earned 84 percent of its $34 billion revenue from
advertising in the first quarter of 2018.
Merchants that advertise on these venues gain information about consumer
behavior often in exchange for providing free services to consumers. These ser-
vices include free online games, flight information, and travel advice. Information
on consumer behavior is compiled in massive databases and sold to advertising
partners.
Additional connected devices collect information about consumers. Web sites sell
this information to marketing companies that use data analytics to spot trends in user
behavior that they use to target specific groups of individuals for marketing and to
develop new services. The following are examples of where personal data is collected
and organizations that amass data:

• Connected TVs that send data on Internet links on which viewers click. In
2017, the U.S. Federal Trade Commission (FTC) fined television manufac-
turer Vizio $2.2 million for collecting information about customers’ viewing
habits without first getting their permission.
• Overhead drones are able to collect data using sophisticated long range
cameras.
• Credit bureaus have massive amounts of information about people. In the
Equifax security breach made public in 2017, 143 million personally identifi-
able Social Security numbers were stolen.
• Automated toll scanners have the ability to track where cars have traveled by
scanning license plate numbers.
• Late model cars with diagnostic software are able to track cars’ routes and
owners’ driving habits.

In addition to the above, Verizon’s Oath as well as other companies provide

free e-mail. They state that they do not actually read the content in these mes-
sages. However, many do track user data. France’s privacy watchdog fined Google
$165,516 in 2017, claiming Google amassed large amounts of user data for adver-
tising purposes without getting users’ permission to collect the data. The privacy
watchdog also accused Google of collecting data on sites users visited on the Inter-
net. Subscribers to Verizon Wireless’s Up reward program receive credit for every
$300 they spend on Verizon Wireless services. The credits can be used for free
concert tickets, movie premieres and phone upgrades. Verizon uses the data they
collect in the Up ptrogram for the advertising businesses they acquired from Yahoo!
and AOL.
308 6  The Internet

THE IMPACT OF E-COMMERCE ...............................

E-commerce is a major factor, but not the only factor, in the drop in numbers of
shoppers actually going to brick-and-mortar retail stores. Retailers that sell cloth-
ing, electronic devices, groceries, and pharmaceuticals are all suffering a loss in the
amount of foot traffic. According to market research firm Statista, Retail e-commerce
accounted for 10 percent of total retail sales in the third quarter of 2017. Providers of
non-Internet outlets including travel agencies, book stores, and many magazines and
newspaper subscriptions have been losing business to e-commerce since the early
2000s.
In addition to its impact on retail sales, e-commerce has affected how people of all
ages find dating partners through web sites such as Match.com and Tinder. Additional
drivers of e-commerce are massively multiplayer online games, online gambling, and
pornography.

Combining Online Services with

On-Site Stores
Online services provide convenience. People can access them at any time of day
and from anywhere they have a broadband wireless or wireline Internet connection.
Web site owners can also enhance their sites with photographs, video, and links to
other locations. However, there are advantages of having both online and physical
stores.
Amazon is a high-profile example of a business that initially started as an online-
only business that has morphed into a combination of online and on-site retail stores.
They purchased Whole Foods in 2017 as one way to establish a foothold in brick-and-
mortar retailing. One of the advantages of this combination is the availability of a place
where customers can pick-up packages ordered online. The ability to pick up packages
at brick-and-mortar stores avoids the problem of stolen packages. Families where both
people work often don’t have anyone at home during daytime hours when merchandise
is dropped off and left outside. This is an issue for people that live in apartment build-
ings as well.
Amazon is using its own retail outlets as well as its Whole Foods division, as drop-
off points for deliveries. Customers are notified when a package is available at a Whole
Foods location or an Amazon Go store near them for pick-up. An individual locker at
stores avoids the issue of lost and stolen packages. As a rule these orders do not incur
delivery fees.
Amazon, which until recently has had an online-only presence, is now opening
Amazon Go brick-and-mortar convenience stores with automation that does away with
the necessity of cashiers and checkout lines. Rather, people make purchases simply by
taking merchandise off shelves after scanning their smartphones into a reader to enter
Fostering Civic Participation and Engagement—Online Forums 309

the store. Facial recognition is used to match individual shoppers with their credit
card data on their mobile phone. In contrast, Wal-Mart has closed stores, built up its
e-commerce web site, and purchased Jet.com, presumably as a vehicle for distributing
products ordered online in the United States. In 2018 they acquired Flipkart Pvt Ltd,
the largest online commerce site in India and an Amazon competitor there.
Currently, the Amazon Go store is not available to people without a smartphone
with a credit card associated with it. Roughly 67 percent of the population had smart-
phones by early of 2018 according to consulting firm Statista. But, per Statista only
23.16 percent of retail sales were paid for using mobile payments.

FOSTERING CIVIC PARTICIPATION AND

ENGAGEMENT—ONLINE FORUMS .........................
Not all web activity is designed with a profit motive. Many blogs and mailing lists
are started to further social causes or provide support and information to communi-
ties. Numerous online forums are non-profits: They generate no profit to people that
start and support them; they simply disseminate information on topics of interest. For
example, new mothers living in Brooklyn, New York, organized a neighborhood mail-
ing list using the Google Group application to set up the mailing list and invite people
to join. The list quickly grew to 120 mothers who all had babies around the same time
and who lived in the same neighborhood of mostly townhouses and a few apartment
buildings.

Town E-Mail Lists to Keep Communities

Informed
Other examples of e-mail lists that provide a community forum are those organized
around city and local services. One New England city, Framingham, Massachusetts,
uses E-Democracy software to support citizen discussions. E-Democracy forums now
host 50 forums in 17 locations across three countries: the United States, New Zealand,
and the United Kingdom. The first one, a forum with information about elections, was
started in 1994 in Minneapolis.
The city of Framingham has three E-Democracy e-mail forums: Framgov (Fram-
ingham government), Frambors (short for Framingham Neighbors), and Nobscot
Neighbors to which residents can subscribe.

• Framgov is a forum in which people express opinions about upcoming votes

by City officials, including taxes and recent government decisions. It is addi-
tionally a forum in which news and announcements about local government
and schools as well as opinions about ordinances up for a vote are posted.
310 6  The Internet

• Frambors is a forum for subscribers to ask for recommendations for service

providers such as plumbers, contractors, electricians, beauty shops, and
nearby restaurants. It provides a place to post opinions about services with
which locals are happy as well as those they feel are unsatisfactory. Service
providers often respond on Frambors to these comments. Frambors has more
than 1,700 subscribers.
• Nobscot Neighbors is a forum at which people that live in the Nobscot sec-
tion of North Framingham discuss zoning, new building permits, and traffic
in their neighborhood.

The following is a quote from the moderator, Linda Dunbrack, who estab-
lished the Frambors, Framgov, and Nobscot Neighbors online forums after the
founder of the original forum died. At that point maintaining the forum founder’s
server was no longer feasible. The statement was written when the forums were
established.

After Founder Steve Orr’s unexpected death, we wanted to find a way to

carry on the legacy of his community email list Frambors. After consid-
ering a variety of options, we decided to move the list to a non-profit host
called E-Democracy.org.
Steve Clift, Executive Director and Founder of E-Democracy, was a huge
support as we made the transition, and helped us to make the transition
as smooth and as painless as possible. According to the E-Democracy
web site, “It is an organization dedicated to promoting civic engage-
ment.” It seemed to be a perfect fit, and comes with software and support
that is customized to the needs of local issues forums.

Creating the policies that govern it are critical. On Frambors, Framcom, and Nob-
scot Neighbors, the policy is that posts may not make personal slurs about another
person that has posted a comment. Another example of such a policy decision is that
all messages must be signed in the body of the message. This is different from the
comment sections of newspaper articles where virtually all messages are anonymous
and people feel free to say anything that’s on their minds, often with little consider-
ation. On the one hand, signing can inhibit those people who are uncomfortable with
the loss of their anonymity, resulting in lowered written participation. On the other
hand, signing messages has resulted in changing the whole tone of the conversation;
civility, care in detail, and a number of other subtle characteristics all contribute to a
marked degree of integrity in the list as a whole. The moderator of each forum first
warns, and then disallows people from a list in which they post disparaging remarks
about a specific person.
Network Neutrality 311

NETWORK NEUTRALITY .........................................

Network neutrality is the concept of broadband providers treating all traffic equally.
It applies to people’s ability to access the content they choose from wired as well as
mobile devices. The following are the basic tenets of network neutrality:

• Treat all users’ traffic in an equal manner.

• Prohibit slowing down traffic to particular web sites.
• Prohibit blocking lawful content from any provider.
• Prohibit blocking access to lawful content or service.
• Network operators are required to publicly disclose actual attainable speeds
on their networks as well as reasonable network-management practices and
terms of service.
• Landline network operators are not allowed to block lawful content, applica-
tions, or services, subject to reasonable network management. Operators of
wireless networks are not allowed to block access to lawful web sites, sub-
ject to reasonable network management. Wireless operators are additionally
not allowed to block applications that compete with their own voice or video
telephony services.
• Providers of fixed broadband are not allowed to discriminate in transmitting
lawful network traffic over a consumer’s broadband access service.

During the Obama presidency, the primarily Democratic United States Federal
Communications Commission (FCC) enacted the above network neutrality rules for
wireline and mobile companies.

The Issues Surrounding Network Neutrality

However, in 2018, the Republican majority in the FCC rescinded network neutrality
rules specifying that ISPs (Internet Service Providers) that provide access to the Inter-
net (essentially telephone companies) must notify customers of their network policies.
They additionally changed the classification of the Internet from telecommunications
provider to information service. This is significant because the FCC regulates telecom-
munications services and not information services. The FCC order was titled “Restor-
ing Internet Freedom Order.” In overturning network neutrality on July 17, 2017, Ajit
Pai, the chair of the FCC, stated:

Today, we take a much-needed first step toward returning to the success-

ful bipartisan framework that created the free and open Internet and, for
312 6  The Internet

almost 20 years, saw it flourished. By proposing to end the utility-style

regulatory approach that gives government control of the Internet, we aim
to restore the market-based policies necessary to preserve the future Inter-
net Freedom, and to reverse the decline in infrastructure investment, inno-
vation, and options for consumers put into motion by the FCC in 2015.

The two main issues around network neutrality are that some large ISPs such as
AT&T, Comcast, and Verizon control networks throughout the USA and sell mov-
ies and television content. Comcast acquired content through its partial ownership of
Hulu, and its 2011 purchase of NBC Universal. Comcast and AT&T transmit Netflix,
Amazon, and Roku’s content. These companies are competitors with whom these and
other ISPs compete to attract streaming customers. Moreover, the merger between
AT&T and Warner Brothers means that AT&T owns content including HBO and HBO
NOW. Thus, they too will compete with streaming companies.

Network Neutrality Rationale—Compensation for

Adding Network Capacity
Carriers that provide broadband and/or mobile network infrastructure have lobbied the
federal government to overturn the Obama-era network neutrality rules. ISPs’ public
statements are that they should be compensated for investing in new equipment to
carry the added traffic created by streaming services. The number of streaming pro-
viders and its percentage of streaming traffic are both growing. Thus, ISPs want to be
paid for carrying this additional streaming traffic to homes in neighborhoods and over
cellular networks. Below is a December 14, 2017, statement by CEO Jonathan Spalter
of the USTelecom, a trade association made up mainly of broadband service providers,
made the day after the FCC overturned network neutrality and classified the Internet
as an information service, not a telecommunications service. The FCC is empowered
to regulate only telecommunications services, not information services. The Federal
agency referenced below is the FTC (Federal Trade Commission):

Today, the future of our open, thriving internet has been secured. The
nation’s top consumer protection agency now has jurisdiction over
fairness and neutrality across the Internet; ensuring consistent rules
apply to all players, including the most powerful online companies. And
America’s broadband providers—who have long supported net neutrality
protections and have been committed to continuing to do so—will have
renewed confidence to make the investments required to strengthen the
nation’s networks and close the digital divide, especially in rural com-
munities. It’s a great day for consumers and our innovation economy.

The major carriers are in favor of eliminating network neutrality. They want to be
compensated for upgrades to their networks to accommodate increased traffic. Currently,
Network Neutrality 313

most wireline access in the United States offer tiered unlimited plans for residential
customers. Thus, most of these customers have no incentive to cut back on streaming
because they pay a flat fee for broadband capacity however much capacity they use.

Pro Network Neutrality Proponents Against Fees

and Throttling
Network neutrality proponents are concerned that network service providers have a
monopoly or near monopoly on infrastructure and might slow down (throttle) or even
block competitors’ traffic in favor of their own services without concerns that subscribers
will move to a different ISP. This puts competitive services at a disadvantage against the
services offered by broadband providers and might lock consumers out of new, possibly
lower-cost, offerings. This could be a problem for streaming providers because they are
likely to pass on some of these costs to their customers. It will additionally increase con-
sumer and enterprise costs for broadband connections because ISPs will have the option
to charge content providers for not slowing down their traffic. This, essentially, creates a
fast lane in networks for large content providers that are able to pay these fees.
Web site owners such as Zappos and content providers such as Netflix, Amazon,
and Facebook profit from services they sell over the Internet. They pay for connections
from their site to the Internet via local carriers. When these carriers transfer traffic to
other networks needed to reach customers, neither the other network owners nor the
carrier connected to the subscriber are compensated. See Figure 6-1 in the section
“Streaming—A Disruptive Technology” in this chapter, which illustrates Netflix and
others’ streaming traffic connections to telephone companies’ equipment.

Zero Rating
Zero rating is the process whereby ISPs and cellular providers exempt consum-
ers from data fees and data caps for certain services, including unlimited video
streaming. Carriers sometimes exclude their own content from data caps limits
or fees for data. This is what AT&T instituted when it eliminated data caps from
its DirecTV service. In a similar vein, Comcast eliminated data caps for its
Stream TV service.
Another instance of zero rating is AT&T Mobility’s 2012 announcement of a plan
to shift some of its data network costs to developers whose customers generate
the traffic. Under the plan, developers will have the option of paying fees to
AT&T Mobility for cellular traffic generated by their applications. The applica-
tions for which developers pay usage fees will not count toward customers’ data
plans. Critics of the plan charge that it favors established developers that can
afford the fees, which results in free usage for their customers.
314 6  The Internet

The Have’s vs. the Have Nots: First Class and

Everyone Else
Many consumer watchdog organizations feel that creating exceptions for certain pos-
sibly lucrative applications will in effect create two different Internet classes of net-
work services. They fear that the part of the network providing priority “first class”
treatment for new applications will take increasing amounts of capacity away from
ordinary applications and bog them down. This is because without network neutrality,
carriers are free to charge content providers extra for not throttling the movies and TV
shows carried over the Internet to subscribers.
Content providers such as Netflix and Amazon may pass on these fees they incur
to customers. For many ISPs, competition for their wired broadband services has been
non-existent or in a minority of locations; they have one competitor or at the most two
competitors. This means they can demand concessions from Netflix and Amazon and
their competitors without losing broadband customers. This makes it easy for them to
make whichever policies are advantageous to them and to block content from providers
that won’t pay a premium for faster transmission. Customers in these locations have no
or limited options for ISPs to use.
Prioritizing certain applications over others has the potential to increase congestion
and slow down traffic that is not prioritized. It additionally has raises the possibility of a
slowdown innovation and competition by making it costly for start-ups to pay for special-
ized treatment for the traffic they generate. Owners of smaller web sites as well as start-
ups may not have the money to pay broadband networks for not slowing down their traffic.

Attempts to Overturn the Repeal of Network Neutrality

Opponents of the FCC’s cancellation of network neutrality are currently pursuing two
options for overturning this ruling. A coalition of 21 states’ Attorney Generals plus
Washington DC are suing the FCC over its cancellation of network neutrality. In addi-
tion to the states’ efforts, Internet activists have also initiated suits to overturn the FCC’s
ruling. These include Mozilla Corp. (the producer of Firefox), the Open Technology
Institute (part of the New America Foundation), Public Knowledge, the Free Press,
and The Internet Association whose members include Google, Facebook, and Amazon.
There are additionally legislative efforts in the Senate to overturn the FCC’s can-
cellation of network neutrality. However, even if the Senate succeeds, there is the
hurdle of passing the bill in the House of Representatives. And, the president has the
power to veto the legislation if it passes both houses.
Most ISPs agree that both wireless and wireline carriers should adhere to rules on
transparency and that transparency should apply to network management and disclo-
sure in understandable language about conditions and characteristics of their networks.
Network management refers to a carrier’s efforts to handle congestion and security
threats. However, transparency means that ISPs will disclose throttling. It does not
mean that they will not throttle or block certain traffic.
The Digital Divide: Bandwidth, Skills, and Computers 315

THE DIGITAL DIVIDE: BANDWIDTH, SKILLS, AND

COMPUTERS ..........................................................
Most middle- and high-income residents in urban and suburban areas have Internet
access with adequate capacity. This is not always the case with residents in rural areas
where, if broadband services are available, they are often costly and slow compared to
service in more developed regions. The slow speeds discourage users from signing up for
these services because services such as video depend on a higher capacity to work well.
For low-income groups, costs for computers and broadband can be prohibitive,
given their limited resources. These circumstances contribute to what has been termed
the digital divide, by which segments of populations do not have equal access to Inter-
net and computer services. These populations are essentially locked out of online edu-
cational services, the ability to apply for and look for jobs online, and other services
such as instructional materials and electronic training for their children.
While the digital divide between wealthy and poor residents is decreasing, as of
January 2018, FCC member Jessica Rosenworcel stated that there are still over 24 mil-
lion Americans and 12 million children with no broadband services. Government policies
and allocation of resources have a major impact on bandwidth availability. Countries can
provide free computer training for the unemployed to open up new opportunities for them.
Training can enable the unemployed to apply online, which opens additional opportunities.
The digital divide is more than the simple measurement of whether or not Internet
access is available. The digital divide is further measured by the following:

• The amount of available bandwidth This is the network capacity in

terms of bits per second and cost per kilobit or per megabit compared to
urban sections of a country. In 2018, the FCC in defined broadband band-
width as 25/3—25 megabits downstream to subscribers and 3 megabits
upstream to the Internet.
• The quality of computer equipment available to users Is it compatible
with the latest browsers and is it capable of handling video?
• The availability of training Do users know how to navigate the Internet
to accomplish their goals?

The digital divide in the United States is decreasing in part because of the use of
fixed wireless technologies in rural areas. AT&T, CenturyLink, Verizon, and Frontier
all have stated their intention to increase broadband capacity in rural areas using new,
higher capacity fixed wireless. See Chapter 7, “Mobile and Wi-Fi Networks,” for infor-
mation on fixed wireless technologies. However, according to Pew Research Center’s
2016 surveys, the digital divide in the United States is most pronounced in:

• Minority populations
• Groups with lower incomes
316 6  The Internet

• Residents in rural areas

• People with disabilities including those with low vision, hearing loss, and
physical limitations
• Seniors—particularly lower-income, less-educated seniors

Economic policies make a difference in the availability of broadband. Tax credits

for new networks encourage carriers to upgrade equipment and infrastructure. Outright
subsidies are a more direct option for improving networks. Countries such as Australia,
China, and Japan have underwritten the cost of building fiber-optic or advanced mobile
networks in rural areas. Improved broadband is one step in bringing remote areas into
the online economy.
Community resources can bridge some of the gaps in the digital divide. In the
United States, public libraries provide free Internet access, computers, and often train-
ing in how to use them. This is particularly critical in areas where residents do not
have up-to-date computers or the expertise to access the Internet. In an effort dubbed
“The Library of Things,” some libraries lend technology gear to families to promote
computer literacy and Internet access. For example, they lend portable Wi-Fi hot spots
so that people without Wi-Fi can access the Internet from a computer and Roku set-top
boxes so people can try out streaming.

Internet Pricing and Competition

The cost of Internet access is a factor in increasing or lessening the digital divide.
In 2017 the United States had the 12th highest average Internet speed worldwide
according to speed monitoring company Ookla in the December 17, 2017, article
at recode, “Global Internet Speeds Got 30% Faster in 2017,” by Rani Molla. In
contrast, the average cost in the United States—$66.17—was 114th highest in the
world out of a total of 196 countries surveyed. Iran and the Russian Federation
were among the 113 countries with lower-cost Internet access. This statistic was
published in the Forbes November 22, 2017, article, “The Most and Least Expen-
sive Countries for Broadband,” by Niall McCarthy. The source for the statistic was
consulting firm Statista.
Because people in many areas of the United States have few or no choices for an
ISP, there is little incentive for carriers to lower their prices so that it is more affordable
for lower-income people. Another factor on higher prices in rural areas is the higher
cost to cable rural areas. These steep costs result from the fact that there are fewer cus-
tomers per square mile in sparsely populated areas so ISPs don’t earn enough revenue
from the few customers to make it worthwhile to lay fiber and charge lower prices in
these areas.
Intranets and Extranets 317

INTRANETS AND EXTRANETS .................................

An intranet is the use of web technology for the sole, dedicated use of single site and
multisite organizations. Intranets are a way to collaborate, distribute information, soft-
ware, and other services within an organization using web-like software tools.
Extranets extend the reach of intranets from internal-only communications to
sharing documents, fixing software bugs, and providing information for business-to-
business transactions. Online banking is an example of an extranet.

Intranets
When they were first developed, intranets, which are based on web technology, served
as repositories of centralized information. Intranets are still a single source of an orga-
nization’s information. However, they are now as a whole better organized so that
employees can find what they are looking for faster. Clear organization of information
is an important area where intranets can excel. In large organizations this is not always
the case, as some departments do not always update intranets with the latest informa-
tion. Having management to which the intranet is important creates a culture where
departments update their intranet when needed. Examples of intranet software include
Facebook’s Workplace collaboration and networking software, Microsoft’s Teams,
Axero, Jostle, MyHub, and Intranet Connections.
Collaboration where people in distant offices can work jointly on projects and
reports is an important way to improve productivity. Some additional intranet func-
tions include:

• Staff reading documents and agreeing on or modifying parts

• Commenting on sections of documents by employees who work at different
physical locations to foster working together on joint projects
• Discussion forums
• Content approval flows by appropriate staff
• Calendaring for setting up meetings

Intranet functions that support employee functions include:

• Online training that users can complete on the intranet

• Posting internal job openings
• Providing company-recommended software and updates that employees can
download to their computers
318 6  The Internet

• Checking whether user applications need updating and that all security
patches are in place when employees log on to the intranet
• Managing human resources functions such as accessing pay stubs and
appraisals, making changes to tax forms, changing user addresses, and
selecting benefits
• Enabling the ability to submit time cards and expense reports on the intranet
• Making available corporate documents, such as organizational practices,
required documents, templates for résumés and sales proposals, technical
magazines, and corporate directories
• Establishing wikis with information about particular technologies or work-
related information

In addition, intranets at global organizations often mimic web functions by provid-

ing social networking functions. The directory might have fields in which people can
list special interests such as trekking or music. Employees can form groups around
these interests.
Firewall and other security software control staff members’ access to corporate
information on intranets. Restrictions can be applied to prevent employees from
accessing inappropriate databases and applications. Not everyone has access to all
files. Rather, employees can be placed in groups based on the applications to which
they are allowed access.

Potential Issues with Intranets

The most common complaints about intranets are the difficulties in keeping them
updated. Time and attention devoted to organizing information often depends on
whether top management buy into the intranet as a priority. If the information on the
intranet is out of date, the intranet loses much of its value. Organizations without either
management support or tools to support automated or simple maintenance and imple-
mentation might have intranets do little to enhance employee productivity.
In some organizations, every department posts their own updates. If updates are
cumbersome and time-consuming to make, they might not be posted in a timely fash-
ion. To make it easier to update intranets, organizations can deploy software packages
such as Adobe Dreamweaver, Microsoft SharePoint Designer, and Expression Web,
all of which have user-friendly interfaces that make it easier to update intranets and
extranets. Often, a centralized IT organization manages the intranet and sets technical
standards for it. Having a single-password, single-sign-on procedure for a uniform
intranet saves time on calls from users who forgot their passwords.
Intranets and Extranets 319

Extranets—Saving Money on Customer

Service
Extranets use a web interface for secure access by customers, business partners,
and temporary employees. Organizations typically limit access to applications more
so than intranets because they are used with outside individuals and organizations.
Individual vendors or partners have access only to specific applications. Access to
extranets is generally password-protected or password-plus-token. A token is a small
device about the size of a large house key that generates random numbers at predefined
intervals. Users key in the number displayed on their token plus their password to
access applications.
Online banking is an example of an extranet service that saves staffing costs. Cus-
tomers transfer money between accounts, pay bills, and gain instant, graphical inter-
faces to the status of their accounts. This is highly advantageous to banks because
it saves money on financial transactions as well as staffing costs. Moreover, banks’
extranets are a way to solicit business. They offer customers services such as loans,
home mortgages, and other financial instruments. Banks and other organizations also
offer customers online bank statements and electronic bills through their extranets.
These electronic services save mailing expenses and printing costs.
The following is a quote from an employee on the benefits of their extranet, which
is used for business to business transactions:

In my company, each of the customers is given a special identification

number and access to a specific application. The customer can use his
identification number and log bugs and issues that he sees in our prod-
uct. The customer can specify the importance of the bug and keep track
of the progress made on its resolution.

Because of security concerns, many extranets are located at web hosting sites.
The hosting company’s customer has his own computer at the hosting company. High-
speed Carrier Gigabit Ethernet capacity lines connect the hosting company to the
Internet backbone. Companies often remotely upload or download information to their
host-located computer via Carrier Gigabit Ethernet. Online learning is an example of
an extranet service. It provides web-like access to educational material for school staffs
and students. This is an advantage to schools that offer it because it enables them to
offer their courses to students that are not within commuting distance of the college or
university. In addition to supplying extranet software, online-learning companies offer
to host the application at their own site.
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7 Mobile and Wi-Fi Networks
In this chapter:
 Introduction 322
 Spectrum for Wireless Networks—A Critical Asset 323
 More Efficient 4th Generation Digital Networks 333
 LTE—The First True 4th Generation Cellular Protocol 336
 5G Mobile Networks—Small Cells; Additional Capacity 359
 The Internet of Things—IoT 362
 Applications and Services 366
 Wi-Fi Standards, Architecture, and their Use in Cellular Networks 368
 Satellites—Geosynchronous and Low Earth Orbiting 380
 Appendix 382

321
322 7  Mobile and Wi-Fi Networks

INTRODUCTION .....................................................
M obile devices are a central part of many people’s lives. This is especially true of
young people. When graduate students at a university were asked if they agree with the
following statements, the majority of them agreed.

• You wake up in the middle of the night to check your phone.

• You check your smartphone within 10 minutes of going to sleep at night.
• You check your smartphone within 10 minutes of waking up every day.
• You study at cafes, and check your WeChat or Instagram accounts there too.
• You play games on your phone at the subway.
• You check for messages while walking to class.

Some students stated that they check their phones 15 and more times every hour.
Young people and not-so-young people use their phones for online gaming, video
streaming, and social networks. It’s an integral part of their day. High usage is not
confined to teenagers and twenty-somethings. It’s an important part of everyday life
for much of the population.
Growing capacity, availability, and ease of use enable adults as well as twenty-
somethings to use cellular networks for an increasing number of functions. People
use these networks to stay in contact with friends and family, receive email and text
messages, and keep up-to-date on news. While waiting for an appointment in a doc-
tor’s or dentist’s office, most people use their device to make the time pass faster. And
people that travel often bring tablet computers on airplanes and train trips to watch
downloaded videos.
The increased use of smartphones and tablet computers has created pressure on
mobile carriers to add capacity by upgrading their networks to protocols that enable
them to pack more traffic on the airwaves that carry wireless voice and data.
In essence, mobile networks are becoming densified, meaning cell sites with anten-
nas and adjunct equipment are spaced closer together with each supporting higher
data rates. Densification requires adding new cell sites to support gigabit data rates
achievable with upgraded Long Term Evolution 4th generation (LTE) networks and
new 5th generation mobile protocols. Densified wireless networks are architected with
fiber-optic cables that connect heterogeneous networks (HetNets) together. The name
HetNets is derived from the fact that HetNets are made up of cell sites with various
amounts of coverage and antenna sizes.
There is additionally more usage over Wi-Fi networks inside homes, cafes, and
buildings as people increasingly use smartphones and tablet computers for video stream-
ing, reading newspapers, and accessing social networks within buildings. There are new
and emerging protocols that support gigabit data rates and improved security in Wi-Fi
networks. The same phenomenon of large increases in wireless usage is occurring inside
Spectrum for Wireless Networks—A Critical Asset 323

buildings and homes as in cellular networks in wider outdoor areas. In many residences,
it’s not unusual for each person to have multiple devices with many in use simultaneously.
Satellites along with ground-based wireless networks are being designed and
upgraded to support broadband services in areas with sparse availability of high-capacity
cellular networks and broadband networks. In particular, low earth orbiting satellites
(LEOs) that orbit closer to the earth than traditional satellites are being deployed. LEOs
are made up of smaller, less costly satellites than traditional satellites. Because they are
lower in the sky, more LEO satellites are required to cover the entire earth. However,
even at the lower price, it takes a group of investors to raise additional funding to build
these high-cost satellite networks.
The requirement for new satellite networks, 5th generation mobile network infra-
structure, and upgrades to LTE mobile networks require ongoing investments. The same
is true of infrastructure and protocol development in Wi-Fi networks. Moreover, the chal-
lenge of operating these complex networks is sparking an interest on the part of providers
to use cloud-based services to manage the large numbers of dense network components.

SPECTRUM FOR WIRELESS NETWORKS—A

CRITICAL ASSET ......................................................
In wireless networks, spectrum consists of the invisible electromagnetic energy used to
transmit signals. The spectrum over which signals are carried is a critical asset that car-
riers require to operate their mobile networks. All governments regulate the allocation
of spectrum. This is to prevent multiple transmissions from different mobile providers
from interfering with each other. Mobile networks are critical for communications in
national defense and public emergencies, particularly when landline networks may not
be available.

Cellular Structures—The Foundation of

Mobile Networks
Cellular service was first put into operation in 1984. It uses spectrum more efficiently
than earlier, non-cellular systems by enabling networks to reuse the same frequen-
cies in non-adjacent cells within cities and towns. The reuse of frequencies within
non-adjacent cells was a creative innovation that added capacity to cellular networks.
AT&T’s Bell Laboratories (now part of Nokia) created this first generation of cellular
service. At that time, Bell Labs was owned by AT&T, which in turn owned all of the
local telephone companies in the United States. Bell Labs provided the research and
development for all the AT&T-owned telephone companies at that time. See the section
“The Breakup of AT&T” in Chapter 3.
324 7  Mobile and Wi-Fi Networks

The Division of Airwaves into Frequencies

All wireless services operate over spectrum. Spectrum is divided into and allocated by
frequencies. A frequency is the number of times per second that a radio wave completes
a cycle. A cycle can be imagined as a letter S lying on its back, such that it appears
similar to looking at a cross-section of an ocean swell. A cycle is complete when
energy passes through an entire radio wave from the highest to the lowest portions
of the wave. For a visual depiction of a complete wavelength cycle, see Figure 7-1.
Frequency is measured in hertz, which refers to the number of complete cycles per sec-
ond. Thus, for a frequency of 30 million hertz—or megahertz (MHz), as it is called—
energy passes through 30 million resting S’s in one second.

Radio Wavelengths

Long wavelength,
low frequency

Short wavelength,
high frequency

Figure 7-1 A comparison of short, high-frequency wavelengths

and long, low-frequency wavelengths.

The Characteristics of Short and Long

Wavelengths
Spectrum is divided into frequency ranges from low ranges of frequencies of about
30MHz to 300MHz allocated to government agencies, local police, highway, and state
police to high frequencies such as 24 to 50 gigahertz (GHz) for fixed, point-to-point
wireless service and for 5G networks. Each range of frequencies is measured by the
wavelength in the range. Wavelengths in low frequencies, such as AM radio at 100Khz,
measure 9,000 feet (3,000 meters) long. Higher-frequency 10Ghz wavelengths mea-
sure 1.78 inches (3 centimeters).
Spectrum for Wireless Networks—A Critical Asset 325

Because of their longer wavelengths, low-frequency signals travel farther than

high-frequency signals. Their longer lengths allow them to better withstand physical
barriers such as rain and other solid materials. Thus, low frequencies can penetrate
walls, buildings, and similar obstacles better than high frequencies. For these reasons,
broadcast services such as those for traditional TV and for TV broadcasts designed for
mobile devices typically use lower frequencies.
High-speed mobile data networks operate over a variety of spectrum, such as
600MHz, 700MHz, 2.1GHz, 2.6GHz and 39GHz. Higher frequencies require more
closely spaced antennas because these signals fade over shorter distances. New 5th
generation mobile services will be based on high-gigahertz frequencies such as 39GHz
spectrum. For the most part, cells in urban areas cover a smaller area, resulting in many
small cells with small antennas rather than large towers. Smaller, closely spaced cells
are needed to support dense amounts of high-data-rate mobile traffic in metropolitan
areas with high-pedestrian traffic.

Spectrum Blocks
Governments allocate spectrum in chunks of frequency bands that are measured in
ranges of, for example, 12-, 15-, 22-, and 30MHz. The size of the spectrum band is
determined by subtracting the lowest frequency of the range from the highest fre-
quency (highest frequency minus lowest frequency). For example, if an organization is
granted the rights to use the spectrum band from 785MHz to 800MHz, it has the right
to a 15MHz band (800 – 785 = 15).
Spectrum bands, which are set aside for specific services, are divided into blocks
designated by letters of the alphabet. For example, within the 700MHz band (between
700MHz and 799MHz), the A block refers to a different block or range of frequen-
cies within this larger range of frequencies than the B Block. The A Block might be
allocated to one carrier in a region and the B Block to a different carrier for compet-
ing services in the same region. As new technologies are developed, certain spectrum
bands are used for shared spectrum. With shared spectrum, sophisticated protocols in
antennas send signals around signals from other traffic.

Using Numeric Designations for Roaming Compatibility

In addition to alphabetic designations for blocks of spectrum, numeric ranges are des-
ignated for particular portions of spectrum within blocks. Standards bodies designate
the numeric bands of spectrum for uplink and downlink transmissions. These bands are
specified by numerals. For example, the 3rd Generation Partnership Project (3GPP)
designated band 13 spectrum of the 777–787MHz range for uplink transmissions.

• Uplink (UL) transmissions are those from subscribers to carriers’ antennas, and
• Downlink (DL) transmissions are those from the carrier to the subscriber.
326 7  Mobile and Wi-Fi Networks

The goal is to enable equipment compatibility so that customers can more easily
use their mobile devices on other networks. Mobile devices have preset designations
for which frequencies are used for uplink and which are used for downlink communi-
cations. Thus, they only work on networks that use the same bands within frequencies.
The 3GPP specifies other bands, such as 12 and 17, for either uplink or downlink
transmissions. Not all technologies require separate frequencies for uplink and down-
link communications. In these instances, numeric designations are not required.

Using Auctions to Allocate Spectrum

Because it is finite and critical to industry, security, and emergency preparedness, all
governments allocate spectrum for particular uses. Portions of the public airwaves and
frequencies are allocated for satellite, broadcast TV, Wi-Fi, 4th generation, and 5th
generation mobile service as well as other services.
Governments often provide spectrum at no charge when they believe it is in the
national interest to foster development of new services. This happened in Asian coun-
tries such as Japan and others where the government felt it was in the national interest
to foster construction of higher-capacity wireless networks. Japan’s allocation of spec-
trum was based on the government’s evaluation of organizations’ ability to build and
manage a cellular network. These were dubbed beauty contests.

Strategies to Gain Rights to Spectrum

Rules about spectrum allocations are set by the FCC and by Congress. The rights to
these blocks are strategic assets that enable carriers to offer new, competitive services.
Mobile carriers and governments use the following strategies to gain new spectrum:

• Purchase rights to it at government auctions

• Discontinue the use of their older cellular services and refarm this
spectrum for more advanced protocols. Currently, mobile carriers are
building LTE Advanced and 5G networks on spectrum formerly used for 2nd
and 3rd generation networks. (See below for refarming.)
• Purchase entire companies for their spectrum
• Purchase non-cellular companies’ unused spectrum (See the feature
“Acquiring Spectrum by Buying Companies that Own Spectrum Suitable
for 5G” later in this chapter.)

In order to free up spectrum for high-capacity mobile networks or other national

needs, organizations and government agencies already using these bands must be
moved to other bands.
Spectrum for Wireless Networks—A Critical Asset 327

Using Incentive Auctions to Speed Up Spectrum

Availability
In February 2012, Congress allocated $7 billion for the build-out of a nationwide pub-
lic safety network and authorized the use of an incentive auction for that purpose. In
an incentive auction, entities selling spectrum to the government keep lowering their
prices until the FCC determines the amount of money they collect from the auction is
adequate to pay for needed spectrum from the entities giving it up.
The FCC held the first incentive auction in 2016 and announced the results in 2017. It
offered the D Block of 700Mhz spectrum that analog TV stations ceded in return for spec-
trum for digital television. The auction raised $19.8 billion, $10.8 billion to pay for the
broadcasters’ spectrum and more than $7 billion that was deposited in the U.S. Treasury.
AT&T won the bid in the auction held on March 29, 2016, and is in the process of building
out the FirstNet network for first responders from diverse communities to communicate
with each other to coordinate strategy in natural disasters and national emergencies.
This first-ever incentive auction resulted in refarming spectrum from use for analog
TV channels to a national public safety network. As a result of the auction, over-the-
air broadcasters changed from analog to digital TV using the spectrum given to them
by the FCC. Digital airwaves have capacity for two channels in the same amount of
spectrum needed for one analog channel. In addition to spectrum for the public safety
network, cellular providers won spectrum for new mobile wireless licenses needed to
add capacity to their cellular networks.

Auctions Held between 1998 and 2017

• In 1998, the FCC auctioned PCS 1.9GHz spectrum to open mobile services
to new providers. The goal was to increase competition, thus lowering per
minute prices so that more users could afford cellular service. Prior to this
there were only two providers in each part of the United States: the incum-
bent telephone company and a single competitor.
• The FCC auctioned a 700MHz block in 2008 to a variety of carriers for
higher-capacity, higher-data-rate services. Verizon Wireless won regional
licenses to spectrum in the A and B blocks, and AT&T Mobility won rights
in the B and C blocks. AT&T’s B blocks are in a different region from
Verizon’s. None of the licenses cover the entire country. The auction raised
$19 billion for the federal government. All of the auction winners were
required to use this spectrum to build networks capable of supporting higher-
speed data on next-generation LTE networks.
• In 2014 an AWS (Advanced Wireless Services) auction of 1.755 to 1.78GHz
and 2.15 and 2.18GHz spectrum bands was held. Results were announced in
2015. The winners were, in decreasing order of the amount of spectrum won,
328 7  Mobile and Wi-Fi Networks

AT&T Mobility, Verizon Wireless, Dish Network, T-Mobile, U.S. Cellular,

and a mix of five private companies including American Movil, a cellular
company owned by Mexican mogul Carlos Slim and his family. The Ameri-
can Movil spectrum is used in Puerto Rico.
• In 2017, the FCC held a reverse auction of 600Mhz spectrum. T-Mobile won
the largest percentage of this spectrum. AT&T and Dish Network won lesser
amounts. AT&T subsequently began selling the spectrum it won because it
purchased FirstNet for its nationwide spectrum. Other winners included U.S.
Cellular and Comcast. Verizon did not bid, possibly because it is concentrat-
ing on building out a network of small cells using GHz spectrum able to
carry large amounts of data.

Enhancing Spectral Efficiency to Increase Capacity

The ability to carry more traffic within a given amount of spectrum is crucial to keep-
ing up with the growing amounts of mobile data traffic. Carrying more traffic using
the same amount of spectrum is called spectral efficiency. Each successive generation
of wireless protocols is more spectrally efficient than the previous one. For example,
4th generation (4G) wireless technologies are capable of carrying more high-speed
wireless data and video than third-generation (3G) technologies and 5G is expected to
be more spectrally efficient than 4G.
The successive spectral efficiency in newer generations of mobile services is
gained by building more efficient antennas, faster chips in radios located at cell sites
and in users’ mobile devices.

Profits from Unused Spectrum on the

Secondary Market
In addition to obtaining spectrum at auctions, carriers purchase spectrum on the sec-
ondary market from organizations that purchased it at earlier auctions but either did
not build a network on it or were unsuccessful in their service offerings. For example,
beginning in 2011, Dell computer owner, Michael Dell bought up TV and radio sta-
tions for the value of their spectrum, which he sold in the 2016 incentive auction for
billions of dollars.
Taxpayers currently receive no revenue from the sale of unused spectrum by
non-governmental organizations. In 2011, cable TV providers Comcast, Time Warner
Cable, and Bright House Networks agreed to sell the spectrum that they purchased
through at an auction to their joint venture, SpectrumCo, to Verizon Wireless for $3.6
billion. The cable companies earned a windfall of $1.4 billion on their $2.2 billion
spectrum purchase. They subsequently built out a nationwide network of Wi-Fi sites
over which cable TV subscribers reach the Internet from Wi-Fi–enabled cafes and
public spots. None of this profit went to taxpayers.
Spectrum for Wireless Networks—A Critical Asset 329

To ensure that entities that purchase spectrum use it for actual mobile networks,
the FCC has ruled that carriers and other winners of spectrum must use their spectrum
within 12 years. If it’s not used within this time frame, the FCC can reclaim the idle
spectrum. This has not stopped spectrum owners from selling their spectrum at huge
profits to cellular networks before the 12-year deadline.
In fact, the FCC did require that FiberTower return all of its 24GHz that it won,
but on which it did not build infrastructure. It allowed FiberTower to keep its other
spectrum. See below for information on AT&T’s purchase of FiberTower.

F
Fixed Wireless to the Home (WTTH) is the use of cellular service at homes
for broadband service. Fixed wireless requires dishes at subscribers’
fo
homes and equipment on telephone poles for access to the Internet. It
h
also requires a small converter box to convert the cellular signals to those
compatible with the residence’s Wi-Fi signals.

Acquiring Spectrum by Buying Companies that

Own Spectrum Suitable for 5G
In addition to leasing spectrum from governments, large mobile carriers pur-
chase companies that already have underutilized or unused spectrum. In recent
years Verizon Wireless and AT&T Mobility purchased companies for their high-
frequency spectrum. High frequencies are suitable for building thousands of the
small cells needed for 5G services in heavily trafficked downtown areas.
In early 2018, AT&T acquired FiberTower, which owned 24GHz and 39GHz
spectrum. However, they only got a portion of its 39GHz spectrum and none of its
24GHz spectrum. The FCC seized the 24GHz spectrum because FiberTower hadn’t
utilized this spectrum. But AT&T did acquire FiberTower’s 188 billion points
of presence, which are used to backhaul data from cell sites to mobile network
switches and core networks. AT&T also purchased Straight Path Communications
in 2017 for its 29GHz and 39GHz spectrum.
Verizon bought fixed wireless company XO Communications in 2017. Its XO pur-
chase included the rights to lease XO affiliate NextLink’s 28GHz spectrum, which
is located in and around large cities in the United States. These high-frequency
spectrum bands are desired for 5G mobile networks. The FCC must approve these
purchases of spectrum before the spectrum transfers are finalized. The Competitive
Carrier Association (CCA) objected to this spectrum transfer because it had not
been offered at an auction so that smaller mobile carriers would have an opportu-
nity to bid on this valuable spectrum.
Continued
330 7  Mobile and Wi-Fi Networks

The CCA was quoted in a FierceWireless article on January 19, 2018, by Mike
Dano, titled “AT&T to lose hundreds of 5G millimeter wave licenses as part of
FCC/FiberTower settlement.” The CCA stated “If the pending transaction [between
AT&T and FiberTower] is approved, the terms of the settlement agreement will
afford FiberTower a financial windfall for sitting on unconstructed licenses for
years and AT&T a windfall to acquire valuable 5G spectrum.” The FCC approved
AT&T’s purchase of FiberTower on February 12, 2018.

Synchronizing Spectrum Internationally

Spectrum allocation is administered on both an international and a national level. The
International Telecommunications Union-Radiocommunication Sector (ITU-R) man-
ages the allocation of spectrum for services such as satellite and television that cross
national borders. It also acts as the umbrella for other services such as determining
spectrum bands for 3rd, 4th, and 5th generation services. These functions have become
more critical as subscribers worldwide depend on their mobile devices when they
travel for business and leisure.
In the United States, the International Bureau of the FCC, the National Telecom-
munications and Information Association (NTIA), part of the Commerce Department,
and the State Department work with the ITU-R. Generally, working groups comprising
representatives from many countries hash out particular issues under the auspices of the
ITU. Decisions on spectrum and new 4th and 5th generation protocols are made at the
ITU’s World Radiocommunication Conferences (WRC), held every 5 years.

Geographic Licensing Schemes

Because of its large size, and mountainous, sparsely populated areas, no single car-
rier’s network provides complete geographic coverage across the entire United States.
There are six regional groupings in the contiguous United States and others for
regional groupings such as Alaska and Hawaii. The Gulf of Mexico also retains its
own grouping.
Verizon Wireless and AT&T Mobility cover almost all of the metropolitan areas
in the United States, but not all of the rural areas. No other carrier has such extensive
coverage or the financial wherewithal to purchase spectrum to cover these large areas.
In the 2016 auction, T-Mobile was the major bidder. They scooped up almost the entire
spectrum in the 600MHz range. This spectrum is particularly suited to fixed wireless
in rural areas because of its ability to travel distances without fading.
Fixed wireless is important in rural areas where it’s not cost effective to lay fiber
to homes miles apart from each other. See Figure 7-2 for an example of fixed wireless
service. Deploying fixed wireless from telephone poles to homes is many times less
costly than laying fiber in rural areas. There are fewer residences in rural areas from
which mobile companies can recoup the cost of constructing fiber networks to homes.
Spectrum for Wireless Networks—A Critical Asset 331

Homes in a rural area with wireless broadband for Internet access. Each home is connected
directly to the mobile telephone company’s antenna.

Figure 7-2 Fixed wireless in rural areas.

Mitigating Interference
When transmissions use the same frequencies in the same locations or even next to one
another, they can interfere with one another. For example, if people install Wi-Fi wire-
less equipment such as cordless telephones as well as microwave ovens that operate at
2.4GHz near each other, they may experience operability problems. These problems
are caused by interference. Newer wireless protocols have the ability to hop between
channels when they sense that other signals are in the same channel.
Concerns about interference often lead to political conflicts between factions.
This can occur when new uses for spectrum or new technologies are proposed. This
occurred, as illustrated in the next section, when it was first proposed that white-space
spectrum be allocated for other uses and also when LTE U was proposed. See Table 7-2,
“LTE Types.”

Unlicensed Spectrum for “Super” Wi-Fi

Governments specify portions of the spectrum for unlicensed services such as Wi-Fi
and Bluetooth. Bluetooth is a wireless standard for communications between short dis-
tances such as wireless mouse or headsets linked to PCs and smartphones. Unlicensed
spectrum is available free to companies that do not have to apply for a license to use it.
This significantly lowers the cost of deploying service, but it doesn’t mean the govern-
ment does not regulate unlicensed spectrum. Every cellular and wireless device must
be registered with the FCC and adhere to regulations on the amount of power emitted.
332 7  Mobile and Wi-Fi Networks

Devices that emit high power may interfere with nearby devices. Moreover, the
government can designate bands of spectrum as unlicensed for public benefit.
In 2010, the FCC designated licensed spectrum formerly used in conjunction
with analog TV as unlicensed spectrum to lower the cost of bringing new broadband
services to rural areas. When broadcasters changed from analog to digital television
broadcasts, The FCC auctioned off most of the 6MHz of that spectrum formerly used
as guard bands for analog TV and still used for wireless microphones.
Guard bands, also called white spaces, are unused bands of frequencies surround-
ing each channel that prevent wireless signals from adjacent analog channels from
interfering with one another. Wireless signals are not enclosed in cabling, and thus can
leak or spread into adjacent spectrum. Analog signals leak more than digital signals.
For this reason, when the FCC originally allocated spectrum for analog television, it
set aside 6MHz of spectrum as guard bands between all adjacent TV channels.
When the FCC announced its desire to make these white spaces available for Long
Term Evolution (LTE) because they were no longer used as guard bands, broadcasters
and Broadway theater producers objected. They were concerned that new services in the
spectrum might interfere with microphones and other equipment used at public events
such as those in stadiums, concerts, and even churches. After extensive testing, includ-
ing an experimental license granted in a small rural town, the FCC ruled that the former
white spaces could be used as unlicensed spectrum. It ruled that it could be used for
“super” Wi-Fi, a Wi-Fi standard whose signals can travel over longer distances than tra-
ditional Wi-Fi signals. “Super” Wi-Fi is the informal name for the 802.22 IEEE standard.
The FCC hoped that this spectrum would be used to bring high-speed Internet
access to rural areas. Making the spectrum unlicensed further supported the goal of
lowering the total cost to bring Internet access to rural areas. Because this spectrum
is in the 700MHz range, which is a low frequency, the signals can travel the distances
required in rural areas. Using wireless obviates the need to lay fiber-optic cabling and
install costly electronic equipment near customers or directly to premises.

Power-Level Specification for Unlicensed Spectrum

Because of the potential for wireless spectrum to cause interference, governments
establish rules regarding issues such as signal spreading and power limitation to pro-
tect adjacent licensed spectrum bands against egregious interference emanating from
unlicensed spectrum transmissions. All equipment used in licensed and unlicensed
wireless networks must meet government specifications to receive certifications. That
is why even a Bluetooth mouse is certified and assigned an FCC ID number.

Roaming—Using Mobile Devices in Other

Networks
Roaming is the ability to use the same mobile devices when traveling in other carriers’
networks. These other networks may be within the United States or in international
More Efficient 4th Generation Digital Networks 333

locations where a subscriber’s mobile provider does not offer service. Roaming is
important because no single carrier has coverage everywhere. Roaming is a profitable
source of revenue in many parts of the world. Exceptions to this include within Euro-
pean Union countries, most cellular providers for traffic within India, and depending
on each customer’s plan, traffic within the United States.
In June of 2017, the European Union eliminated roaming surcharges for residents
of the EU that travel within EU countries. Another example of no-cost roaming is
T-Mobile, which offers customers on certain plans no-fee texts, voice, and data usage
when they roam in 140 countries internationally.
Agreements among carriers are required for every region in which roaming is
enabled. Roaming agreements spell out costs, billing, and payment terms. To illustrate
the complexity of roaming arrangements, most carriers have agreements with 200 to
250 other carriers. Some carriers use brokers that already have agreements worldwide
and share revenue with the broker. Thus, calls made and received while roaming are
more expensive than those in the subscriber’s home territory; with the additional costs
covering the fees imposed by the other network.
Once the agreement has been signed and the service tested, roaming is activated.
Carriers lease high-speed links to other providers such as AT&T, France Telecom, and
Belgacom (in Belgium), all of which have an international presence. These links carry
the actual voice and data traffic. Signaling links are also established to perform functions
such as the handshake between the handset and the user’s home carrier. The handshake
verifies that users are legitimate customers of the originating network and have roaming
privileges. Gateways are used to translate signaling between handshakes that use incom-
patible types of Session Initiation Protocol (SIP) links over which the handshake is done.
Roaming revenues are shrinking because many customers use Wi-Fi in cafes and
hotels when they travel internationally. For more on Wi-Fi international networks see
the section “Wi-Fi for Roaming” later in this chapter.

MORE EFFICIENT 4TH GENERATION

DIGITAL NETWORKS ..............................................
Mobile protocols define how data and voice are carried on cellular networks. For
example, 3rd generation (3G) networks carry data and voice separately. However, 4th
generation (4G) networks specify that voice and data are to be transmitted on the same
spectrum streams. They essentially treat voice as data and transmit it in IP packets.
This is a significant improvement in spectral efficiency that eliminated the need to set
aside separate spectrum for voice calls.
All 3rd generation and newer cellular services are digital. This improves pri-
vacy as eavesdropping on digital transmissions is more difficult because the digital
bits are encrypted (encryption uses mathematical algorithms to reorder bits, making
them unreadable to unauthorized people) before they are transmitted over the open
334 7  Mobile and Wi-Fi Networks

air between handsets and an operator’s equipment. See Table 7-1 for a list of the main
mobile protocols along with the various implementations within each generation.
Unlike 3rd generation protocols, which used different technologies in Europe and
parts of the United States, 4G LTE is for the most part is implemented uniformly
throughout the United States and Europe, as well as in Asia and parts of Africa.

A current mobile services including 2G (second-generation) services are

All
digital. Digital mobile protocols use codecs to code analog voice into digital
d
bits and decode them to analog at the receiving user device. Digital trans-
b
missions enable features such as caller ID, speed dialing, and voicemail
message notifications. Signals for these features are carried separately in
the signaling channel.

3G standards had various releases or revisions, which improved upon and increased
capacity and suitability for mobile networks capable of carrying voice, video, and data.
However, even in these revisions, voice is transmitted using the less-efficient circuit
switching where spectrum that could be shared with data is set aside for voice. More
information on 3G and 3G standards are in Table 7-6 and Table 7-7 in the “Appendix.”
In 4G networks, voice is carried in Internet Protocol (VoIP) packets on the same spec-
trum as data.
3G protocols are still available in even advanced networks because there are still
older phones that are compatible with only 3G and not 4G protocols. Once mobile
providers find that a large majority of subscribers have phones compatible with newer
protocols, 3G spectrum will be refarmed (repurposed) for 4th and 5th generation cel-
lular services. Refarming refers to using spectrum previously used to carry older gen-
erations of traffic to use with 4th and 5th generation protocols.

Table 7-1 Main 3rd, 4th, and 5th Generation Cellular Service
Generation Variations Where Used Characteristic Transmission
3G** CDMA (Code Implemented by Data carried as Voice transmit-
Division Mul- Sprint and Veri- digital bits ted on separate
tiple Access) zon in U.S. and spectrum
in South Korea
& other Asian
countries
WCDMA Implemented in Data carried as Voice transmit-
(Wideband Europe and most digital bits ted on separate
Code Divi- of the rest of the spectrum
sion Multiple world
Access)
More Efficient 4th Generation Digital Networks 335

Generation Variations Where Used Characteristic Transmission

HSPA+ (High Upgrade from Higher for data Voice transmit-
Speed Packet WCDMA capacity than ted on separate
Access Plus) WCDMA spectrum
4G LTE* Implemented Evolved to support Voice and data
(Long-Term worldwide 100Mbps of data transmitted
Evolution) downlink together in data
packets
5G 5GNR (New WTTH (Wire- A replacement for Less-costly
Radio) less to the low-capacity cop- broadband
Home) is the per links in rural option; not as fast
first 5G service areas as fiber.
implemented
*Additional varieties of LTE are in Table 7-2, “LTE Types.”
**More details on 2G protocols and mobile services worldwide are listed in Table 7-5 in the “Appendix.”

3G Technologies—Incompatible Standards
The International Telecommunications Union (ITU) defined IMT-2000 (International
Mobile Telephone) digital standards for 3rd generation voice and data on cellular net-
works. Unfortunately, the ITU subcommittees endorsed several different, interoper-
able 3G techniques due to political pressure from operators and manufacturers who
wanted standards to more closely match the equipment they produced and used in their
networks.
The two main standards organizations, 3rd Generation Partnership Program (3GPP)
and 3rd Generation Partnership Project 2 (3GPP2), specified non-interoperable
protocols and architectures (the way devices are connected together and
interoperate). 3GPP (3rd Generation Partnership Project) is a collaboration agreement
formed by European, Asian, and North American telecommunications standards for
cellular protocols.
See Table 7-6 in the “Appendix” for more details on 3G networks.

Early LTE Implementations

The earliest version of LTE was a pre-4G service. The capacity on these early LTE
implementations reached ranges between 2Mbps and 25Mbps, not the 100Mbps
defined in the 4G LTE specifications. LTE’s use of Multiple-Input Multiple-Output
(MIMO) antennas is a key factor in increased capacities.
336 7  Mobile and Wi-Fi Networks

LTE—THE FIRST TRUE 4TH GENERATION

CELLULAR PROTOCOL ...........................................
Long-Term Evolution (LTE) is the first protocol to use spectrum more efficiently by
transmitting both voice and data as IP packets over the same spectrum bands. It is no
longer necessary to set aside spectrum exclusively for voice on different spectrum than
that for data. LTE is additionally the first mobile protocol suitable for video and high-
capacity data transmissions.
Initially, LTE protocols did not support the full 4G rates defined by standards
bodies; the ITU-R specified that 4G technologies support 100Mbps downlink trans-
missions from the network to the user. Criteria for 4G protocols are set by the ITU-R.
The ITU-R defines the capabilities required for protocols to be considered 4G, but the
3GPP (Third Generation Partnership Program), does the actual development work of
how these recommendations will be implemented.
According to the ITU-R definition, which was published in November 2010, all
4G technologies must meet certain capabilities. The key 4G criteria are as follows:

• Data rates of 100Mbps downlink (from the network to the user device) for
mobile devices such as those in cars or trains, and 1Gbps downlink speeds
for low-mobility devices. Low mobility refers to devices used in fixed loca-
tions or portable only within a building.
• Internetworking with services based on international mobile telecommuni-
cations (IMT), earlier 3G protocols, and with services transmitted on fixed,
landline networks.
• An all-IP packet infrastructure.
• Internet Protocol version 6 (IPv6) addressing, which has more addresses
than IPv4. See Chapter 6, “The Internet,” for information on IP addressing.
See the section “Addressing Protocols” in Chapter 6 for information on IPv6
and IPv4.
• The ability to support mobile TV.
• Efficient use of spectrum.
• Worldwide roaming compatibility between mobile 4G devices.

Internetworking refers to the fact that 4G devices can seamlessly be handed over
between cell sites that use 3G and 4G protocols without transmission interruptions.
See Figure 7-3 for an example of a handover between 3G and 4G networks. Handovers
are the process that occurs when subscribers travel between networks that support
different protocols.
LTE—The First True 4th Generation Cellular Protocol 337

Traveling between 4G & 5G networks: the handover

Signaling Gateways transfer subscriber data
between 4G and 5G networks
4G Network 5G Network

Billing, text
messaging databases Signaling gateway Signaling gateway

Subscriber billing & text

messaging databases

Smartphone transmits device ID data as subscriber moves to 5G network.

Figure 7-3 The handover between 3G and 4G networks.

A number of manufacturers compete with one another to supply 4G and 5G

network software and hardware. These include Ericsson, Huawei, Nokia, Samsung,
Xiaomi, and ZTE.

4G LTE—Designed to Transmit Data and

Voice in IP Packets
4G technology was developed with the goal of supporting high-speed broadband and
video transmissions. It is the first mobile protocol designed primarily to transmit data.
It supports voice, but only as IP within data packets. LTE has improved antennas, and
faster chips in handsets and in radios in the network. The mobile core is the mobile
carrier’s data center. It is equipped with servers containing databases and software to
control and monitor the network as well as providing connections to other networks.
LTE is the 4G protocol adopted by carriers worldwide. Manufacturers produce a
wide choice of devices for networks that use these air interfaces, because these net-
works represent a large pool of potential customers. Handset prices also tend to be
lower because there are more choices and more competitive pressure.
338 7  Mobile and Wi-Fi Networks

LTE Capacity
LTE (Long Term Evolution) supports web surfing, mobile broadband, and Quality of
Service (QoS) for video streaming. QoS saves a path in the network for each video
transmission for the entire duration of the video. This provides the consistent ser-
vice required for video. True IMT-Advanced, 4G LTE, based on Release 11, supports
100Mbps downloads, and is available in much of the world.
LTE is not a one-flavor protocol. It has evolved into a true 4th Generation protocol
with variations. These variations are listed in Table 7-2, “LTE Types.” Each variation
operates on specific spectrum bands and is suited for particular applications such as
low-speed Internet of Things (IoT). Another LTE variation is suitable for fixed WTTH
in areas with no fiber or high-speed Internet access to homes.

Io is the ability of equipment and machines to communicate with each

IoT
other and with central servers for monitoring and collecting information.
o
Monitoring automobile traffic is an example of an IOT application. Collecting
M
subway fees and parking meter credit card transactions remotely are other
IOT applications.

Mobile Service in Sub-Saharan Africa

Mobile broadband is particularly significant in developing areas such as countries
in sub-Saharan Africa, where high-capacity fixed broadband is not widely available.
Much of the population in sub-Saharan Africa that live in cities own mobile phones,
but the capabilities are limited in large part to 2G and 3G services. Exceptions are
major cities in Democratic Republic of Congo, Ethiopia, Nigeria, South Africa, and
Tanzania. This is starting to change as mobile operators have announced plans to build
out LTE capabilities. Cell phone ownership in sub-Saharan Africa is lowest among
women and children under 16.

LTE Cell Sites’ Additional Functionality

An LTE cell site consists of antennas, amplifiers to adjust power levels, and a single
piece of equipment, the evolved NodeB (eNodeB). The eNodeB allocates radio fre-
quency (wireless spectrum) to users’ devices and passes calls off to other cell sites and
to the mobile carrier’s core IP network. Importantly, the eNodeB manages Multiple-
Input Multiple-Output (MIMO) antenna functions and Orthogonal Frequency-Division
Multiplexing (OFDM) signaling. See the section “The LTE Orthogonal Frequency-
Division Multiplexing Air Interface” later in this chapter.
LTE—The First True 4th Generation Cellular Protocol 339

Coaxial cabling connects the eNodeB to the cell site’s antenna. The eNodeB con-
tains a blade with a software-defined radio containing the air interfaces tuned to the
applicable spectrum. A blade is a densely packed, horizontally placed circuit board
with many ports. The modem in the software-defined radio translates radio frequency
signals into those compatible with landline networks, and vice versa for outgoing
traffic.
The eNodeB is also referred to as the base station. Together with the antennas,
amplifiers, and spectrum, it is used to access the mobile network. In combination, this
equipment and spectrum make up the Radio Access Network (RAN). The eNodeB
manages the RAN.
LTE architecture is streamlined in terms of the amount of equipment and protocols
required compared to earlier generations of mobile networks. Figure 7-4 presents a
diagram of LTE architecture. This streamlining and distribution of functions at fewer
servers results in data stream transmissions that use fewer protocols and equipment
hops. This decreases latency (delays).
The LTE evolved packet core is a data center that
supports multiple antennas and controllers

Broadband
Network
Internet

Signals
Voice & data traffic

Packet Gateway
PGW**

HSS-Home subscriber server with

SGW* Roaming & subscriber databases
MME***

*SGW: Serving Gateway transmits

actual voice & data
**PGW: Converts wireless signals
to landline signals
***Mobility Management Entity
eNodeB radio controller with LTE chips. transmits user device signals
Takes signals off and on the air

Figure 7-4 Fourth-generation (4G) Long-Term Evolution (LTE) architecture

in the Radio Access Network (RAN) and the evolved packet core.
340 7  Mobile and Wi-Fi Networks

Backhaul—Connecting Cell Sites and Core

Networks
In addition to managing vast amounts of cellular traffic, carriers operate large landline
networks between their cell sites and their IP core. The links between cell sites and
equipment in their core are referred to as backhaul. Backhaul is also referred to as the
transport network. Traffic from many sites is backhauled to a central location—the
operator’s core network. This network transports signals between base stations and
core networks. Transport networks consist of links to mobile switches and other net-
works. From the core, traffic is sent to the operator’s mobile central office switch, the
Internet, or another public data network. See Figure 7-5 for an example of backhaul
links. Depending on the amount of traffic, backhaul networks use the following:

• Microwave (a Wireless Transmission Service at 44Mbps/34.4Mbps) or

wireless Carrier Ethernet at speeds up to 40Gbps
• Fiber-optic cabling transmitting Gigabit Ethernet traffic
• Gigabit Ethernet and Multi-Protocol Label Switching (MPLS) (multiple
100Gbps streams with MPLS-enabled QoS capabilities) on fiber-optic
cabling

A backhaul network is made up of traffic from cell sites that is aggregated and
transmitted to the core.

Provider’s Data
Backhaul Center with Core
Functions*

*Billing, tracking devices, tracking outages, signalling

Figure 7-5 The aggregation backhaul network consolidates traffic from

multiple cells and sends it to the core.

In the United States, most providers have upgraded much of their backhaul net-
work to fiber. In areas of the country and worldwide where fiber is not already installed,
LTE—The First True 4th Generation Cellular Protocol 341

backhaul traffic is carried by microwave and other higher-capacity wireless technolo-

gies. The higher costs for fiber are viable because more traffic is carried on these links.
Fiber is likely to be more readily available in aggregation networks where carriers have
previously laid fiber that often has spare capacity.
In many instances, the landline divisions of mobile carriers build these networks.
When Verizon Wireless upgraded its backhaul network to fiber, it used the wholesale
division of Verizon Communications to build it out. Verizon’s wholesale division offers
backhaul services on a wholesale basis to other providers in addition to Verizon Wire-
less. Cable Multiple System Operators (MSOs), AT&T, and other long-haul network
carriers also provide backhaul links to mobile carriers. The traffic is transported on the
same fiber that transmits traffic from landline carriers.

The Functions of Radios and Modems in Mobile

Networks
Every wireless device contains a radio. Radios in mobile networks extract radio
frequency signals from the air and convert them into small bits of frequency compat-
ible with the devices. The radios then hand off slices of bits of data to modems within
devices. At the transmitting end, radios convert signals to the frequencies used in the
cellular network, and then transmit these wireless signals over the air.
At the receiving end, modems remove noise caused by interference and decode
the radio frequency data signals into those compatible with the landline network. If the
amount of noise is so great that the signal can’t be decoded, the modem requests that
the base station retransmit the signals. Removing the noise from signals is the most
complex function in modems. At the transmitting end, modems encode (modulate) the
signals to make them compatible with the radio frequency wireless network. Modems
also add encryption at the transmission end for protection from eavesdroppers.

Elements of LTE Infrastructure

LTE has a simplified infrastructure and cell sites with fewer pieces of equipment to
manage than early generations of mobile protocols. Moreover, LTE software and hard-
ware can be installed on standard computer platforms so that carriers can choose from
a wide range of equipment manufacturers. LTE cell sites also support more users per
cell site than 3G technologies because the air interface is more flexible and uses spec-
trum more efficiently. See Figure 7-6 for LTE architecture.
The elements of LTE Networks are:

• The RAN is the only wireless part of mobile networks. This is the link
between the user device and the antenna or tower. A base station located
adjacent to the tower or antenna is dubbed an e-NodeB.
342 7  Mobile and Wi-Fi Networks

• The backhaul “hauls” traffic to the core from the RAN and vice versa. It is
made up of fiber-optic cabling or high-capacity microwave.
• Fronthaul is the fiber link between antennas in Heterogeneous Networks
(HetNets) LTE and 5G architecture in which small cell sites are linked to
larger macro cells with fiber. The fronthaul is the fiber linking the small cells
to the macro cell within the same area. These cells are controlled by base
stations at the macro cell site. See the section “Heterogeneous Networks—
Architectures for Densely Trafficked Areas” later in this chapter for informa-
tion on HetNets.
• The evolved packet core is the mobile providers’ data center with routers
and software for signaling systems to manage mobile traffic and identify cell
phones’ owners
• Transmitting traffic to the other networks
• Converting mobile traffic to be compatible with wired networks
• Billing and tracking
• Tracking roaming by users
• Tracking and identifying applications using Deep Packet Inspection, which
identifies bits inside packets

LTE Architecture: Wireless, Backhaul, Core

Router

Backhaul Fibe Databases with roaming, Connects to

r or
Gigabit micro policies, billing, text, Internet &
wave voicemail, and e-mail other
Antenna & controller.
The only wireless part Firewall messages networks
of mobile networks

Servers with security software,

deep packet inspection, and
signaling software

Enhanced IP Core – Provider data center

Figure 7-6 LTE architecture.

LTE—The First True 4th Generation Cellular Protocol 343

Location Indicators—Signals between Handsets and

Mobile Switches
A mobile handset is essentially a radio that can be tuned to particular spectrum
bands (frequencies). In order to operate in a particular area, mobile devices must
have radios capable of being automatically tuned to the same spectrum as that
of the radios in cell sites’ base stations. In addition, each carrier must authorize
every mobile handset before it’s allowed on the network.
Mobile devices constantly send out signals to the nearest mobile company’s
switch, essentially notifying the switch of their location. For example, Verizon
has five major switches in the New England states that receive signals from
Verizon mobile devices. Fiber-optic cabling connects each of these switches
to cell sites at the mobile carrier’s towers, which tracks cell sites. The signals
carried over this fiber cabling indicates each mobile handset’s cell site and tower
location. Moreover, each new tower is tested before it is “turned up” to ensure
that the nearest 911 call center can be reached when users dial 911 when they
are within range of the cell site.

M
Mobile switches and the large amounts of fiber-optic cabling are critical
parts of all mobile networks and they all depend on power to operate.
p
Mobile networks are not immune to power outages caused by storms and
M
natural disasters. Lightning strikes and snow emergencies are particular
challenges because they can knock out electricity to switches and cell
sites. Outages can occur at cell sites not equipped with a back-up genera-
tor. Not all carriers have adequate backup. Some have battery backup for
momentary power glitches and short outages lasting only a few hours.
Adequate backup is a growing challenge because of the increased number
of small cells and natural disasters.

The Three Elemental Functions of the LTE IP Core

The LTE IP Core functions as mobile providers’ data centers. Traffic from hundreds
of cell sites passes through a mobile carrier’s core network. Signaling gateways that
translate protocols for 3G networks are located in the core along with 4G equipment.
The LTE core network, also referred to as the evolved packet core, routes this traffic
344 7  Mobile and Wi-Fi Networks

to data networks, the Internet, other mobile carriers, and other cell sites within the
carrier’s mobile network. Equipment and software located in the core also perform
signaling and tracking calls for billing purposes.
A key factor in improved functioning is LTE networks’ flexibility in handling
voice and data is the fact that signaling messages are carried separately from user data
and IP voice. Signaling messages are used to keep track of usage, perform security
functions (to keep the network free from hackers and malware), authenticate users, set-
ting up a session (voice, data, or video) and enforce policies. Policies include rules on
the number of bits included in various data plans. Signaling enables carriers to monitor
this volume so that a message can be sent to the user’s device, notifying him that he
has used up his planned quota and will be charged extra for additional transmissions.
Functions within the LTE evolved core network are divided into three functional
elements. The evolved packet core contains servers for managing these elements. Two
elements, the Serving Gateway and the Packet Data Network Gateway, are generally
located in the same router. The functional elements making up the LTE’s IP core are
as follows:

• Mobility Management Entity (MME) This performs the signaling func-

tions in the IP core. It sends and receives signaling information needed to
set up, bill, and address calls to the eNodeB and to the Serving Gateway. In
addition, the MME contains the security protocols for authentication and
authorization.
• Serving Gateway (SGW) The SGW forwards the data and voice packets
on bearer paths between the eNodeB at the cell site and the Packet Data Net-
work Gateway. Bearer paths carry the actual user IP data. The SGW handles
the protocol conversions between LTE devices and 3G systems and relays
this traffic to and from the Packet Data Network Gateway and earlier- or
later-generation gateways.
• Packet Data Network Gateway (PGW) This interfaces with the public
data network (the Internet and carrier private data networks). It additionally
allocates IP addresses to user devices and is responsible for policy enforce-
ment. It can classify packets as requiring Quality of Service (QoS). It also
generates usage records that it sends to the carrier’s billing system, indicat-
ing levels of customer voice and data usage. The PGW has links to the roam-
ing database for functions related to roaming and billing roaming traffic.

The PGW and SGW transmit mobile traffic to the Internet and other data net-
works. 3G traffic is handed off to these LTE gateways by earlier-generation controllers
and signaling gateways. Note that Voice over LTE is outside of the evolved packet core.
LTE—The First True 4th Generation Cellular Protocol 345

Databases in the LTE Evolved Packet Core

Gateways in core networks connect to a variety of databases that support roaming, bill-
ing functions, voice messaging, and text messaging services. The following is a listing
of key Evolved Packet Core databases in core 4G networks:

• Home Subscriber Services (HSSs)—Keep track of roamers’ locations and

temporary records of roaming subscribers’ devices. Store telephone identi-
ties and authentication codes for digital phones. Perform security functions
including authenticating that users are subscribers.
• Messaging center databases and processors—Handle text messages. Also
store multimedia messages including voicemail, facsimile, and e-mail.
• Policy and Charging Rule Function (PCRF)—Contains QoS parameters and
details of each subscriber’s plan. A Traffic Detection Function enforces these
Policy and Charging policies. The PCRF sends information to the Packet
Data Network Gateway, which then forwards traffic to the Internet and
broadband networks.
• Billing databases—Contain specific information on contract terms for each
subscriber. The Packet Data Network (PDN) transmits usage records to the
PCRF, which is connected to billing software.

In addition to above databases and functions, there are security applications in

the evolved packet core. This may include firewalls that screen traffic for malware.
The firewall may be located in the cloud.

Voice over LTE—Packetized Voice

Voice over LTE (VoLTE) is an international standard for transmitting voice over LTE.
VoLTE codecs digitize voice and put it into packets to be transmitted along with data
and video. When LTE was first available, voice was carried separately on spectrum
used for older protocols.
The 3GPP developed VoLTE as a standard way to transmit VoIP. The VoLTE pro-
tocol is tightly specified so that roaming and interoperability with earlier-generation
networks are possible. VoLTE is designed to interoperate with Internet Protocol Multi-
media Subsystems (IMS). IMS enables applications for voice, video, and online games
to be stored, billed for, and accessed on a common IP platform. See below for IMS.
346 7  Mobile and Wi-Fi Networks

Advantages of VoLTE include:

• Higher-voice quality equal to that of calls made from landline

phones
• High-quality video calls
• Efficient use of the same spectrum for voice, data, and video
• A standard way of handling voice
• Faster call connection times
• Support for E-911 calls
• Spectrum previously set aside for voice can be re-used for
other services

Simultaneous Voice and Data

The VoLTE protocol specifies that the same device can be used for voice and Internet
access simultaneously. Prior to the advent of VoLTE, when a user received a voice call,
her data connection was dropped. With VoLTE, someone using her device to browse
the Internet, can answer a phone call without dropping her data connection. This is also
true when a subscriber is on his phone and he looks up the weather forecast or checks
his phone’s calendar without dropping his voice call.

Using High-Definition Voice to Improve Quality

Voice quality on LTE has dramatically improved from that of previous mobile genera-
tions. This is due to improved codecs that compress and decompress analog voice for
transmission on digital data networks. The VoLTE standard specifies improved noise
cancellation. Noise cancellation distinguishes between voice and background noise
and removes the noise so that voice is clearer. Matching codecs are required in the
handset and in the network.
High definition voice supports higher and lower frequencies than previous mobile
protocols. See Figure 7-7 for voice frequencies on VoLTE. High frequencies up to
7000Hz (think sopranos) are not cut off, and neither are lower frequencies down
to 50Mz (think bass sounds). This results in clearer sounds in noisy locations. In
short, users in noisy locations can hold clearer conversations on their LTE and 5G
smartphones.
LTE—The First True 4th Generation Cellular Protocol 347

High Definition Voice:

High and low frequencies are not cut-off
Noise cancellation strips out background sounds.

Traditional Voice

300 to 3400 Hz

High-Definition Voice

50 to 7000 Hz

Figure 7-7 Voice frequencies on VoLTE (high-definition voice) compared to

those without VoLTE.

Accessing Applications and VoLTE—The IP

Multimedia Subsystem
IP Multimedia Subsystem (IMS) is a 3GPP open-standards architecture made up of
multiple protocols and standards by which customers can access applications from
many types of mobile devices. These applications include unified messaging and mul-
tiplayer games that are installed in a provider’s network-connected platform. The sig-
naling and control of IMS services are built around session initiation protocol (SIP),
which is the signaling protocol used on IP networks such as the Internet for transferring
traffic between carriers and for linking enterprise sites to IP networks. SIP signaling is
used for functions such as setting up a video session (a call), tearing down the session,
carrying numbers dialed and mobile devices’ identity. For information about SIP, see
the section “Session Initiation Protocol—Out-of-band Signaling” in Chapter 6.
VoLTE is based on the IMS, IP Multimedia Subsystem standard. IP IMS is access
independent. See Figure 7-8 for IP Multimedia System. Access independence refers to
the fact that subscribers, for example, on Gigabit Ethernet, any mobile protocol, Wi-Fi,
or cable modems can access IP-based applications such as video calling or chat services
on the IMS network. In contrast to IMS’s goal of universal access, specialized services
such as WhatsApp and Tencent’s Chinese Weixin—We chat in English—IMS is meant
to be globally interoperable on carriers’ networks and not part of a closed network.
348 7  Mobile and Wi-Fi Networks

The IMS uses Session Initiation Protocol (SIP) signaling to

control VoLTE (Voice over LTE) functions

IP
Multimedia
Subsystem
IMS

Databases Router
Firewall connects to
IMS &
broadband Internet
networks

Servers with security software,

deep packet inspection, and
signaling software

LTE Enhanced Packet Core

Figure 7-8 IP Multimedia Subsystem (IMS) for mobile subscribers. A

Session Border Controller converts signals from the mobile network to
those compatible with VoIP equipment.

IMS is based on IP protocols. Interoperability and control of sessions in interactive

online games, conference calls, instant messages, and so on are managed in Session
Border Controller (SBCs) and signaling gateways. SBCs are located at sites where car-
riers connect their IP networks to one another. These controllers have functions such
as security, session management, policy control, and address translation. Policy control
refers to the ability to prioritize certain traffic based on agreements between carriers.
The following is a sampling of applications that users can access from both mobile
and landline devices:

• Presence so that subscribers are able to determine if friends and colleagues

are available online
• Advertising that works across wired and wireless platforms
• Gaming so that users can participate in online games together
• Text messaging
• Video calling
LTE—The First True 4th Generation Cellular Protocol 349

Connections to Customers and Mobile

Networks via the Cell Site, Towers, and
Mobile Switches
A cell site is the physical area in which a set of frequencies is used. The link between
users’ devices and towers or antennas is the only part of mobile networks that is always
wireless. The increase in data traffic in shopping malls and downtown areas with heavy
pedestrian traffic areas requires dense arrays of cell sites.
The air interface between mobile handsets and equipment at antennas and towers
are the only parts of mobile network that are wireless. The air interface is the wireless
link between the user device and the equipment at the cell site’s tower or antenna. The
base station at the tower or antenna contains a radio that receives and transmits mobile
traffic and amplifies (strengthens) signals. It also transmits traffic to other antennas
and performs the conversion of signals between over-the-air radio frequency formats
such as LTE to those compatible with landline networks, and vice-versa on the traffic
between the backhaul and the base station.

REITs—A Way to Finance New Antennas and Towers

Companies such as Crown Castle and American Tower specialize in building
towers and antennas. They don’t offer cellular service; they lease space on their
towers to mobile carriers who use the land around the towers for cell site equip-
ment. Instead of each mobile carrier owning their own tower, these third-party
companies build towers and lease shared space on them. For example, a large
operator might lease space on a tall water tower for its antenna and land sur-
rounding the tower for ancillary equipment. Carriers often share space on these
towers to save costs.
Crown Castle and American Tower are structured as real estate investment
firms (REITs). With REITS, outside investors underwrite tower construction by
purchasing the land on which the towers and cell sites are located and leasing
the space back to American Tower and Crown Castle. In return, Crown Castle
and American Tower provide investors a stream of payments from their subse-
quent profits providing shared space on their towers to mobile carriers. Some
mobile carriers including Verizon build their own towers or hire contractors to
build them.
350 7  Mobile and Wi-Fi Networks

C sites are the costliest part of mobile networks because there are large
Cell
numbers of cell sites in 4G and especially in 5G networks. These steep
n
ccosts make it challenging for all but the largest mobile providers to build out
their networks for use with new generations of mobile protocols that require
many more cell sites because of their use of high-frequency, gigahertz spec-
trum bands and the increases in the amount of data and video traffic.

In addition to the high costs of operating cell sites, mobile providers manage huge
wired networks made up principally of fiber-optical cabling and some microwave
links. These links connect RAN traffic to:

• Backhaul between the evolved packet core, which is a mobile carrier’s data
center, and cell sites
• Other cells in the mobile network
• Other mobile networks
• The Internet
• Enterprise broadband networks

Heterogeneous Networks—Architecture for

Densely Trafficked Areas
Heterogeneous Networks (HetNets) is a 3GPP architecture that defines the way small
cells connected to each other support mobile networks in areas with dense pockets of
traffic. It is a network made up of a mix of different types of base stations and anten-
nas, thus the term heterogeneous networks. Often these are in downtown areas in cities
with large numbers of pedestrians, office buildings and apartments. HetNets are suited
to handle the increasingly bandwidth-intensive traffic such as streaming video and on-
line games. HetNets were developed to add capacity for the growth in data and video
usage, not to expand coverage. HetNets are used in both LTE and 5G networks.
Capacity is important at the edge of cells where performance may degrade as traf-
fic is handed off between cells. The main issue at the cell edge are delays when calls
are handed over to adjacent cells. HetNets are additionally suited to the increasing
use of high-frequency gigahertz spectrum used because gigabit spectrum is capable
of handling increased traffic. However, gigabit frequencies only travel short distances
before fading, thus more small, low-powered cell sites are needed to support traffic
over gigahertz spectrum.
LTE—The First True 4th Generation Cellular Protocol 351

Characteristics of HetNets
HetNets are made up of large numbers of small cells controlled by larger macro cells to
which they are connected wirelessly or by fiber-optic cabling. HetNets’ low-powered
cells have smaller antennas, and fewer macro cell sites with towers. The architecture
includes larger macro cells that each control small cells as required by locations of
dense traffic. See Figures 7-9 and 7-10 for examples of HetNets architecture.
A low-power antenna at the cell edges result in less
interference with signals in adjacent cells.

Low-power antenna
Remote node low- Macro (donor with controller
power antenna for enodeB) antenna
better coverage at the with controller
edge

Common Public Radio Interface for Dynamic

Control (CPRI) over Fiber

Figure 7-9 An example of HetNet architecture.

HetNet for 5G network in urban area

5G 5G equipment
cabinet cabinet can be
shared by multiple
operators

5G Base
cabinet station 5G equipment
Light pole cabinet

Base stations
• Base station takes signals on and off the wireless network.
• Macro station is connected to backhaul by fiber. Each base station
is connected by fiber over Common Public Radio Interface (CPRI)
to macro station

Figure 7-10 HetNet architecture for 5G networks. (Stock photo by Chun-Tso

Lin/123RF [center] and Thomas Northcut/Getty Images [left, right])
352 7  Mobile and Wi-Fi Networks

Equipment in HetNets—Small Low-Powered Base

Stations
HetNets are made up of small low-power cells. Low power results in decreased areas
of coverage at each cell. Low power is important in HetNets because it is less likely
to cause interference with frequencies in nearby cells. Low-power signals are not car-
ried as far as those at higher powered cell sites. In HetNets, the macro evolved NodeB
(eNodeB) provides the radio in a large cell while a low-powered macro eNodeB is in
a small cell.
The following are low-powered base stations used with existing macro evolved
NodeBs. Macro cells cover larger areas and can be connected to towers, rather than the
smaller antennas seen at low-powered small cells. Macro and small cells are connected
to each other either by fiber-optical cabling or mobile frequencies.

• Remote Radio Heads (RRHs) are small antennas and base stations located
on outdoor furniture such as thin light poles, telephone poles, and the side of
buildings.
• Micro Evolved eNodeBs (eNBs) are smaller eNBs controlled by macro
eNBs
• Home eNodeBs (HeNBs) are small cells used for coverage indoors in a
closed service group within, for example, office buildings. HeNBs are also
termed Femtocells.
• RNs (Relay Nodes) cells are Pico cells that serve smaller groups than
femtocells. These are also in a closed service group within buildings.

In addition to the above base stations, HetNets are made up of:

• Macro cells control traffic to small, remote cells

• Fiber connections between the small cells and to macro cells over the CPRI
(Common Public Radio Interface). CPRI is a specification for carrying traffic
between small cells and to macro cells. It was developed by the following
consortium of mobile equipment manufacturers: Ericsson, NEC, Alcatel
Lucent (now part of Nokia), and Nokia. It was intended as a replacement for
coaxial cabling.
• Backhaul fiber-optic cabling where aggregated traffic from multiple macro
cells is transmitted to the mobile core. Backhaul traffic may also be carried
on high-capacity wireless radios. Higher capacity radios are available that
support full duplex Gigabit Ethernet at 10 Gbps. In duplex services, sending
and receiving signals are sent simultaneously over the same channels.
LTE—The First True 4th Generation Cellular Protocol 353

A Deeper Dive into HetNets—Pico and Femtocells

Pico and femtocells are small cell sites installed in residences, enterprises, arenas, and
outdoor areas within buildings to improve cellular reception. Femtocells cover larger
areas and can handle more users (about 100). Pico cells are used in smaller sites such
as homes with fewer users than femtocells (five or six users). Both technologies pro-
vide relatively low-cost ways to add coverage inside buildings and outdoors. Building
owners rely on carriers to provide pico and femtocells because only carriers have rights
to spectrum used for mobile services. Femtocells can cover about 5,000 square feet
and pico cells about 2,000 square feet. Like traditional base stations, pico cells support
multiple standards LTE and 5G networks as well as multiple frequencies.
New buildings that require coverage often use Wi-Fi rather than pico or femtocells
within office buildings. The Wi-Fi service is connected to the LAN, which links Wi-Fi
traffic to the external broadband network. This eliminates the need to coordinate instal-
lation with a mobile carrier to access their spectrum. Staff with cell phones can now
enable voice over Wi-Fi to use their smartphones for voice calls as well as data.
Mobile providers and tower companies install pico cells that are used for outdoor
coverage. They can be attached to telephone poles, thin poles, and multistory buildings
in densely populated areas with high concentrations of mobile traffic. This solution is
an inexpensive way to gain capacity by reusing a carrier’s spectrum within a smaller
area than that covered by larger macrocells. A macrocell site is a cell site with a larger
antenna and a controller that covers a larger area and can handle more traffic. Pico cells
require local electricity and connections back to the mobile carrier’s equipment.

Femtocells and Pico Cell Gateways

Femtocell traffic within buildings is routed within secure, encrypted software tunnels
over a customer’s broadband connections to a carrier’s data center. At the data center,
femtocell traffic is routed to a gateway. The gateway removes the surrounding bits in
the tunnel and sends the femtocell traffic to the carrier’s core network. The gateway
transmits traffic from thousands of femtocells either to the Internet or, for voice calls,
to the mobile switching center.
A key enabling technology that makes femtocells and pico cells feasible are the
software algorithms that detect signals from macrocells. Traffic at the edge of the
cell has the potential to interfere with frequencies in macrocells because signals can
“bleed” into surrounding areas. Improved software algorithms in femtocells and pico
cells have the capability to sense both the frequencies and the power levels in the
microcell and adjust them as required so that the femtocell signals don’t interfere with
the macrocell traffic.
Femtocells and pico cells can sense the radio conditions in adjacent cell sites
before they start transmitting. This so-called “Network Listen” scan enables the fem-
tocell to, for example, raise its power if the signal from the surrounding macrocell is
strong, or conversely, reduce its power if the signal from the macrocell site is weak.
354 7  Mobile and Wi-Fi Networks

This decreases interference and improves voice quality and data speeds for mobile
users in the vicinity—both those served by the femtocells as well as those in the sur-
rounding macro network.

Cellular on Wheels—Short-Term Coverage for Sporting

Events, Concerts and Natural Disasters
During a sporting event or concert that attracts thousands of people, mobile car-
riers often bring in temporary service in the form of Cellular Service on Wheels
(COWs). COWs are also deployed during natural disasters such as earthquakes,
or hurricanes that may knock out cellular service. COWs are trucks equipped
with antennas and base stations that can be quickly deployed.
However, for COWs to be effective, roads must be passable for the truck with
the COW to reach hard-hit areas. This is a problem during natural disasters
when roads may be washed out or made impassable, as occurred in the after-
math of the 2018 hurricane in the Florida panhandle and Gulf Coast areas. Many
sections of the fiber network connecting cell towers to the core cell network
were also damaged. Repairing and laying new fiber is a time-consuming
endeavor.

Using Distributed Antenna Systems for In-Building

and Subway Coverage
Distributed Antenna Systems (DAS) are an alternative for coverage within buildings.
DASs consist of repeaters connected to coaxial or fiber-optic cabling in buildings. A
repeater amplifies cellular signals transmitted throughout buildings, subways, or stadi-
ums by equipment that the cellular carrier supplies. Repeaters are located throughout
the building and transmit Radio Frequency (RF) signals to the macrocell. Unlike super
femto cells, they don’t actually offload traffic from the larger cellular network because
they are not capable of reusing spectrum. They are connected to building broadband
services to offload traffic from carriers’ backhaul networks.
DASs are also located in subway systems where traditional cell sites don’t gener-
ally reach or provide adequate coverage. Municipalities negotiate contracts for carriers
to install the cabling over which the repeaters are connected and the signals travel. The
carrier installs antennas that provide the cellular signals. In some of these systems, par-
ticularly public spaces such as subways and airports, multiple carriers are connected to
the DAS. This enables travelers and multiple mobile carriers’ subscribers to use their
mobile devices in these locations. An example of a DAS is the one installed at the Kin-
nick Stadium in the University of Iowa. In this DAS, fiber is used between repeaters,
and coaxial cable is installed for the final 30 to 40 feet to antennas and base stations.
LTE—The First True 4th Generation Cellular Protocol 355

Building Out Mobile Networks without

the Challenge of getting Permissions from
Municipalities
Prior to 2018, arranging permission from municipalities to run fiber and place antennas
needed for the thousands of new small cells carriers are building for HetNets in LTE
and 5G networks was the biggest challenges in upgrading mobile networks. Rights of
way for the increased fiber needed to connect small cells to macro cells were one issue.
Another was zoning regulations and other permissions that often cause major delays in
building infrastructure. Officials in cities with historic buildings were reluctant to have
equipment mounted on them. In residential areas, neighbors don’t want antennas near
their homes because of fears that the radiation from antennas may be harmful. It took
years to negotiate these issues with municipalities.
Running fiber required permission from cities to use their rights of way. In cities
with fiber already running in conduits under the ground, mobile providers negotiate
the monthly fees that municipalities charge in return for space to lay fiber within these
conduits. In an effort to speed up the process, telecom and cellular firms lobbyed the
FCC to issue rules that restrict local municipalities from oversight of 5G gear. In 2018
the FCC issued rules that eliminate the majority of these delays in getting permission
to place 5G gear by restrictions on local cities and towns efforts to impose fees and
zoning rules on 5G infrastructure.

Frequency- and Time-Division Air

Interfaces in LTE
The 3GPP standards group has defined two different air interfaces for LTE. An air
interface is the way signals are transmitted between cell sites and user equipment. The
most common air interfaces are Frequency Division Multiplexing and Time Division
Multiplexing.
Frequency-Division Multiplexing (FD-LTE) is the most commonly implemented
air interface. FD-LTE uses one frequency band for down-link from the cell site to the
user device and another set of frequencies on the uplink from the user device to the
network.
Frequency-Division Multiplexing (FDM) requires paired frequencies, which
means that one spectrum band is used for the downlink and another band is used for the
uplink. See Figure 7-11 for an example of FDM and TDM. When mobile carriers that
use FD-LTE acquire new spectrum, they obtain one band specified by the government
for uplink service and a different band specified for downlink service. Most of the rest
of the world, including AT&T and Verizon, have implemented FD-LTE.
356 7  Mobile and Wi-Fi Networks

Frequency Division Multiplexing Time Division Multiplexing

r
ribe
esubsc cribe
r
nk to th e subs
Downli to th
nlink
Dow
ider
prov
the ider
plink
to
e prov
U
nk to th
Upli

Two separate bands of spectrum A single-stream spectrum for the uplink and downlink

Figure 7-11 Frequency Division-LTE compared to the Time Division air

interface.

In contrast to Frequency Division Multiplexing, TD-LTE uses the same set of

frequencies for uplink and downlink transmissions. Time-Division Multiplexing (TD-
LTE) is also referred to as Time-Division Duplex (TDD). TD-LTE does not require
paired spectrum, and unlike FD-LTE, it is asymmetric; a different amount of spectrum
can be used in the downlink and in the uplink. This is more spectrally efficient and
flexible. For example, more spectrum can be allocated to the downlink than the uplink.
China Mobile, the largest mobile carrier in the world, and some carriers in the rest of
Asia use TD-LTE.
Core networks are the same for both types of LTE. The same network core and
backhaul support both Frequency Division and Time Division air interfaces. However,
radios in users’ devices must have chips to match the type of air interface for their
devices to access the cell sites. Chip designers have integrated both TD and FDD into
their platforms so that carriers are able to support both types of LTE. Carriers able to
support both FDD and TD-LTE support roaming for users with either type of handset.

4G Multiple-Input Multiple-Output Antennas

LTE is designed to operate with Multiple-Input Multiple-Output (MIMO) antennas in
base stations. MIMO antennas benefit by having more than one antenna and multiple
receive/send channels. Thus, they can carry as many separate streams of voice or data
as they have input/output channels. Each stream of traffic is carried on a separate
LTE—The First True 4th Generation Cellular Protocol 357

frequency. An 8×8 antenna has eight antennas and handsets communicating with it
also have eight antennas. This is analogous to multilane highways with eight lanes in
each direction.
MIMO antennas are available in 2×2, 4×4 and 8×8 send/receive channels. The
8×8 antenna is specified for LTE Advanced, the 100Mbps, true-4G air interface. As
antennas become more powerful, with additional antennas, it is technically challeng-
ing to equip handsets with multiple antennas because space is required between them
to avoid signal interference. See Massive MIMO below for information on antennas
suitable for 5th generation (5G) networks’ high-frequency bands.

The LTE Orthogonal Frequency-Division

Multiplexing Air Interface
Orthogonal Frequency-Division Multiplexing (OFDM) is the air interface used in LTE
mobile broadband protocols. It is not used in earlier protocols and is an important fac-
tor in increasing capacity in mobile networks. OFDM increases spectral efficiency by
sending several multiplexed streams of data over separate, narrow bands of spectrum
simultaneously in orthogonal streams. Orthogonal streams are those that are transmit-
ted at right angles to one another. Figure 7-12 illustrates an example of orthogonal
streams in OFDM.
Signal A arrives first

Signal B arrives second

● Multiple streams of data at slightly different frequencies arrive at their destination at different times
● Receiver decodes signal A and then signal B

Figure 7-12 Streams of bits sent by using the Orthogonal Frequency-

Division Multiplexing (OFDM) protocol.

In addition, guard bands between each stream of data are not required, which is
an important factor underpinning the spectral efficiency of OFDM. Guard bands are
unused channels of spectrum that provide a buffer between streams to protect data
from interference. Guard bands carry no data. This narrowband, efficient use of spec-
trum is the main reason why LTE supports many more users in each cell site than the
3G technologies.
358 7  Mobile and Wi-Fi Networks

T
Throughout this book, the term “carrier” has been used almost exclusively
in relation to network service providers. However, as it applies to telecom-
munications, the term actually has two meanings. Thus, in addition to
m
describing a network service provider, it can also refer to slices of spectrum
as it does in Orthogonal Frequency-Division air interfaces.

A Variety of LTE Flavors

The evolution of LTE includes technical standards approved and developed by the
3GPP 3rd Generation Partnership Project, a worldwide technical standards group made
up of representative of telephone companies from all over the world. See Table 7-2
for LTE types. Some are being implemented on shared Wi-Fi spectrum and others are
based on high-frequency Gigahertz spectrum. Data on Gigahertz spectrum is able to
travel only short distances before fading. However, it supports higher data rates.

Table 7-2 LTE Types

Name of LTE Use of LTE Spectrum Type Other info
LTE A Aggregates multiple Most spectrum Combining (aggregating)
(Advanced) spectrum streams bands multiple streams of data to
into a single high- achieve more capacity in the
capacity stream air interface.
LTE LAA In tests to use 5 GHz 5GHz Used in small cells to
(License unlicensed spectrum increase LTE availability.
Assisted Access) bands
LTE U LTE used in unli- 1.710–1.755 and Wi-Fi providers are con-
(Unlicensed) censed spectrum 2.110–2.155GHz cerned about interference
In tests for this 5 GHz from Wi-Fi networks in the
spectrum for added same spectrum.
capacity
CBRS 5G Fixed Wireless 3.5GHz Uses different spectrum
Citizens Band service for rural from 27MHz used by truck-
Radio Service broadband access ers to communicate with
each other.
LTE Cat-MI & Computer chips for Various spectrum For low-power, low-
M2 enhanced machine bands previ- bandwidth applications
to machine* ously used in 2G where batteries last 5 to 10
communications networks years. May be replaced by
NB-LTE. In tests for Internet
of Things applications.
5G Mobile Networks—Small Cells; Additional Capacity 359

Name of LTE Use of LTE Spectrum Type Other info

LTE–NB May replace LTE Spectrum previ- Internet of Things, e.g.
LTE Narrow Cat-M1 and M2 ously used in 2G remote meter reading.
Band Networks
LTE C-RAN The core is managed 2.3GHz, Remote management at
Cloud Radio from the cloud. LTE 2.5/2.6GHz, and telecoms’ cloud-based data
Area Network** is at the cell site. 3.5GHz, Verizon centers. Billing and other
testing CRAN functions in cloud.
in 28GHz and
39GHz bands
VoLTE A way to transmit Uses the same Depends on a type of SIP
Voice Over LTE voice in the same spectrum as the signaling in each carrier’s
format as data, in IP LTE network IP IMS
packets on which it’s
transmitted
*Machine-to-machine services include monitoring of automobile and truck fleets, alarms, and electric meters.
**Can also refer to centralized Radio Access Network in heterogeneous networks. See above for HetNets.

5G MOBILE NETWORKS—SMALL CELLS;

ADDITIONAL CAPACITY ..........................................
Fifth Generation protocols support gigabit data rates that are key to carrying the mas-
sive amounts of future streaming, gaming, and Internet traffic from mobile devices.
Most mobile providers are now testing 5G networks, which will be available in a lim-
ited number of areas in 2019 with predictions of wide availability in 2020.

Massive MIMO Antennas for 5G Networks

The 5G specification includes Massive MIMO antennas, each with 16×16 send/receive
channels. In addition to more send/receive antennas, massive MIMO antennas can
handle traffic in a 360-degree pattern: a full circumference of the antenna. Thus, in
addition to handling 16 send and 16 receive streams of traffic, massive MIMO anten-
nas provide service to traffic in all directions of the antenna, in 360 degrees.

5G New Radio Service and 5G Applications

Fifth Generation NR (New Radio) will be one of the first types of 5G service avail-
able. 5G NR will be used over high frequency 28GHz and 39GHz spectrum capable
360 7  Mobile and Wi-Fi Networks

of transmitting gigabit data rates. These high data rates are made possible by aggregat-
ing carriers (channels) together. AT&T and others are now testing applications on 5G
NR. One future use is for controlling applications within cities to manage operations,
including traffic congestion. Other applications envisioned on 5G are self-driving cars
and trucks, the Internet of Things, and monitoring healthcare patients wearing wire-
lessly connected devices including blood pressure monitors.

C-RAN Centralized or Cloud-Based Radio

Access Networks in 5G Networks
C-RAN in 5G networks refers to the management of the radio access network’s antenna,
and controller centrally. C-RAN management is already occurring where mobile net-
work providers manage multiple HetNets and traditional cell sites from within their
data center. The signals that enable centralized management are transmitted over fiber-
optic links from macrocells. These signals are monitored by engineers at computer
screens at data centers. Cloud C-RANs are in the early stages of implementation and
are planned for the future as a way to manage the complex 5G infrastructure. Because
there is no agreed-upon standard, equipment from different vendors might not be able
to interoperate. Cloud RANs will additionally use virtualized components for ease
of replacement and space conservation. The radio access networks will consume less
space because they will be represented in software, not hardware.

Interoperability and Fall Back on 5G Mobile

Networks
A major concern around 5G networks is that different telecom companies’ implemen-
tations may differ in small ways. This can result in non-interoperability between their
networks. Thus, data and voice traffic might not be seamlessly transferred between
providers without dropping calls or causing delays in data sessions.
Another feature that needs to be compatible between mobile networks is fall back.
Fall back is the ability to transition to earlier generations of service as subscribers
move from cell site to cell site. A subscriber that starts a call in a part of the network
already using 5G service needs to be able to continue the data session, voice call, or
Internet browsing when they walk or ride to an area with LTE service. All of these and
other facets of compatibility are in the process of being ironed out. But, earlier network
implementations may hit some bumps.

Device Compatibility—A Multi-Year Gap

A major issue in upgrading from LTE to 5G is when 5G-compatible smartphones,
tablet computers, and laptops with 5G radios on chips in the device will be available.
5G Mobile Networks—Small Cells; Additional Capacity 361

Without 5G chips in mobile devices, they aren’t able to achieve gigabit data rates or
any other features available in 5G networks.
This is the reason that cellular providers continue to support older mobile proto-
cols when new ones become available. It can take 5 years for the majority of subscrib-
ers to upgrade to new generations of cellular service.

Killing Lost or Stolen Portable Computers

Using GPS
A majority of security lapses can be attributed to the loss or theft of corporate laptops
and smartphones. Confidential corporate information and private e-mail messages are
often stored on these devices. Currently, mobile carriers have the ability to remotely
disable and determine the location of mobile handsets, laptops with cellular chips, and
tablets when corporations report them lost.
Global Positioning System (GPS) chips within these devices enable organizations
to locate them so that data can be deleted, or the device can be locked. For the carrier
to locate a device, it must be turned on and within the carrier’s coverage area. Thus, if
a device is turned off, it cannot be located.
Killing and locating lost devices is enabled in all current mobile networks. These
networks depend on GPS to synchronize the timing in their networks so that signals
arrive at their destination only once for functions that require precise timing. GPS-
equipped mobile networks can be used to provide location information, as well.
Location-based applications that use GPS include applications that give parents the
ability to track their children’s locations and to find friends who are in the area.

Pedestrian Injuries While Walking, Talking, and Texting

Walking while using mobile devices is a serious safety issue. The National
Highway Traffic Safety Administration (NHTSA) estimates that 5,000 people
were killed and 76,000 pedestrians were injured in 2016 while using mobile
devices. Another problem with using mobile phones while walking is that
distracted drivers using cell phones or even changing a radio station might miss
a stop sign or just not see a pedestrian in a crosswalk. Injuries from distracted
walking included bumping into someone else, tripping, sprains, broken bones,
concussions, and spinal cord injuries.
A study published in Safety Science on February 2016 found that talking on
mobile phones resulted in the most injuries. Texting and viewing content on
mobile phones resulted in fewer injuries and listening to music had the least
impact on walkers. To combat distracted walking, Honolulu imposes fines of up
to $99 on pedestrians that text while crossing intersections. In Boston and
New York legislators are studying the issue.
362 7  Mobile and Wi-Fi Networks

THE INTERNET OF THINGS (IOT)

Wireless networks have progressed from enabling people to speak together without
being tethered to wires, to transmitting data at broadband rates, and now to machines
autonomously communicating with each other via the Internet of Things. According to
Verizon in their January 1, 2017, Data Breach Digest,

IoT, “the Internet of Things” [is] a term that describes a network of

physical objects connected to the Internet. These may be discrete items
like building automation solutions. Embedded in each device are elec-
tronics capable of network conductivity along with sensors or other
features.

Most IOT devices have embedded batteries on chips that operate over LTE–NB
(narrowband) standard. Early implementations of IoT used LTE–M1 or M2, which
required a gateway to translate between the network and the devices. The fact that
LTE–NB does not require a gateway makes it less costly to manage and implement
because there is one less piece of equipment to install and monitor.
Embedded software in IoT devices can be updated and monitored by centralized
servers. Remotely monitored devices include automobiles, drones, parking meters, gas
and electric meters, municipal traffic signals, water towers, and soil conditions and
farms. A list of IOT applications are included in Table 7-3.

Table 7-3 Examples of IoT Applications

IoT Applications Purpose Comments
Self-driving cars, battery Decrease congestion Improved batteries and Graphical
powered cars on city roads and air Processing chips (GPUs) on which
pollution developers apply machine learning so
that GPUs “recognize” road condi-
tions, obstructions, and traffic signals.
Nvidia computer chips have these
capabilities.
Hybrid battery, Electric Decrease air pollution; if Graphical processing chips as
self-driving cars battery not available car described above.
runs on gasoline
Self-driving, battery Save costs on hiring driv- Trucks can travel for more hours
powered trucks ers; fewer accidents because driver fatigue is not an issue.
The Internet of Things (IoT) 363

IoT Applications Purpose Comments

Drones (unmanned Track wildfires and An improved way to manage natural
aircraft) mudslides; Monitor soil disasters and agricultural produc-
conditions, and live- tivity; used to automate armies for
stock on farms, military attacks and reconnaissance.
surveillance
Parking meters Automate collection of Save municipalities’ expense of
parking meter fees manually collecting coins in meters.
Industrial robots Control manufacturing Industrial robots are used in automo-
systems; speed up ware- tive plants and other manufacturing
house functions systems to speed up processes and
save money on salaries
Subway fare collection Transit passengers use Diminish delays at subway entrances;
payment software in lessen fraud; require less staff.
smartphones to access Enabled by Near Field Communica-
subway trains tions (NFC), a low-power, short-
range communications protocol.
Industry Automate lighting and Save costs on utilities and manage
heating control systems; manufacturing quality.
monitor manufacturing
systems
Highway toll collection Eliminate toll booths and All cars need transponders that
traffic delays caused by identify their license plate number for
manually collecting tolls billing purposes.
Smart cities Monitor traffic, water, Future projects aimed at making
and safety, elevated cities more livable with new types of
trams and underground off-road transportation to lessen traf-
high-speed transportation fic gridlock
systems
Medical devices in Automate data collection Sensors on equipment identify each
hospitals and inventory of equip- wheelchair and other equipment.
ment for more accurate Heart and blood pressure monitors
data send data and alarms to central com-
puters and nurse stations.

Information and Privacy on IoT Services

With the millions of devices connected to the Internet using IoT LTE–NB in the future,
major challenges will be keeping these networks secure and private.
364 7  Mobile and Wi-Fi Networks

Security in IoT Networks

There is no easy answer for securing Internet-connected IoT networks. Devices
connected to the Internet are open and inherently vulnerable. The first step in ensuring
security is to encrypt IoT information as it’s transmitted. This ensures privacy. How-
ever, it doesn’t mean that hackers can’t disrupt services. Many organizations including
major telecom providers such as Verizon Wireless are developing security protocols
for Internet of Things networks.

Privacy on Connected Devices

In addition to security, IoT devices that collect data with identifiable information have
the potential for companies to store vast amounts of private information about people
using IoT equipment and other equipment that collects information about customers.
Computers in cars are a prime example of equipment with the ability to collect infor-
mation about where people drive.
This information and more like it provide data about consumers’ buying habits as
well as the routes they take. This information can help companies choose locations for
billboards and retail operations.
Marketing companies sell this information and give a share of the revenue to car
manufacturers: a lucrative opportunity for marketers and car manufacturers, a loss of
privacy for consumers.

Unmanned Aircraft; Drones—Military and

Commercial Applications
Drones are unmanned aircraft equipped with cameras and remotely controlled from
the ground. Commercial drones can do more than deliver packages, which they are not
suited for because most packages are too heavy for the lightweight, 55-pound drones.
Drones are used in commercial and military applications. Some of these include mon-
itoring combat zones for threats and enemies, and surveying natural disasters such
as wildfires, mudslides, earthquakes, and hurricanes. In 2017’s Hurricane Harvey in
Puerto Rico, drones provided cell service. The drones were tethered to antennas and
radios for temporary cell service and communications. The drones additionally cap-
tured images of oil damage and electrical outages. Movie directors and journalists use
drones to record overhead views and difficult to reach high-altitude locations.
In the future it is likely that cameras within drones will transmit information to
public safety officials. Thus, drones will track criminals so that helicopters won’t be
needed. Often helicopters crash during pursuits of criminals, killing or severely injur-
ing pilots or even people on the ground. One of the security precautions being devel-
oped will track drones in restricted airspace such as military bases and commercial
airports where saboteurs might launch drones to compromise safety in these areas.
The Internet of Things (IoT) 365

Battery Life
Inadequate battery life is a major issue with smartphone and tablet computer owners,
self-driving car and truck developers, and myriad other services that depend on battery
life. Battery technology has not kept up with users’ dependence on mobile services and
development of new, automated technologies. People are more dependent on portable
devices for their voice and text communications as well as social networking, music,
and increasingly, for video. They also use these devices on Wi-Fi networks and for
video conferences.
Data applications require more power from the device. Bandwidth-heavy applica-
tions such as Internet access, video, and e-mail drain batteries more quickly than voice
calls. This is because voice requires fewer bits than data when transmitted. In addition,
large color displays drain batteries more quickly than the less-sophisticated screens on
earlier devices. Thus, as people become increasingly dependent on mobile devices for
more functions, it is important to find ways to extend battery life.
A current focus is on ways to design mobile handsets that use power more effi-
ciently. One such technology extinguishes screen backlighting when it is not required.
The technology senses ambient lighting to determine when backlighting is needed. It
maintains color by creating brighter color pixels so that mobile devices don’t draw
current from backlights in daylight.
Another way that manufacturers design handsets to improve power management
is by including automatic sensing circuitry that shuts down memory, processors, and
peripherals when a handset is not transmitting. For example, if the user is not in a
Wi-Fi zone, the Wi-Fi circuitry is disabled so that it does not draw power when it can’t
even be used. Most smartphones and tablet computers include this form of power man-
agement. Other manufacturers are developing new screen technologies that consume
less power.

More Convenient Way to Charge Batteries

Electronics companies have developed more convenient ways to charge smartphones.
There are wireless charging devices on the market able to charge phones placed on top
of them. So, instead of tossing a phone in a kitchen drawer or on a dresser in the eve-
ning before going to bed, users are able to simply place it on a small charging device
and have a fully charged tablet or smartphone waiting for them in the morning. The
charging device itself must be plugged into an electrical outlet.
Charging mobile devices gradually wears down the battery and shortens its life.
Over time, batteries hold charges for shorter amounts of time. This is because every
charge deposits chemicals on the device’s contacts. These chemicals corrode the
contacts creating resistance to the charge. A lithium-ion (Li-ion) battery experiences
corrosion in a different manner, but it, too, becomes resistant to charges. Thus, less
voltage reaches the circuitry that carries the current to the battery. Voltage refers to the
366 7  Mobile and Wi-Fi Networks

“pressure” of the electricity flowing through the handset’s circuits. Low “pressure” or
voltage means that less electricity is reaching the battery.
People that need more battery power than that built into the phone purchase bat-
tery packs that clip onto their mobile devices or mobile phone cases already equipped
with battery packs.

APPLICATIONS AND SERVICES ................................

Applications on mobile devices attract customers, generate revenue, and are a tool for
retaining customers.

Mobile Payments
Mobile handsets can be utilized for mobile banking, financial transactions, contactless
payments at retail outlets, and instead of cash at subways and toll roads. These mobile
payment options include the following:

• Payments for mass transit Users can pass their smartphone near a reader
to pay for subway, bus, and train transportation instead of using tokens or
purchasing monthly passes. Apps on mobile phones can take advantage of a
short-range wireless technology called Near Field Communications (NFC)
to interact with the reader. The user simply needs to pass her phone within
1.56 inches (4 cm) of the payment reader.
• Check deposits Smartphone apps use the device’s camera to take a picture
of the check and then transmit the image to the user’s bank for deposit.
• Money transfers directly to a mobile phone in a developing country
When a relative or friend sends money to a person in a developing coun-
try via Western Union, the electronic cash is sent directly to the receiver’s
handset. MoreMagic, a Massachusetts software developer, created this
application.
• Online payments People surfing the Internet on their smartphone can
make online purchases through PayPal rather than having to type in their
credit card number along with their name, postal address, and e-mail
address.

All of these transactions require some type of software platform that sits between
credit card processing companies or banks and the mobile network. The platform must
have integrated security protocols and the ability to communicate with the financial
institutions that process payments. They also need to communicate with servers at
merchants’ sites and devices that act as “readers” of the mobile device making the
transaction.
Applications and Services 367

Each mobile handset and reader requires chips with NFC capability or special
software. The cost of these readers is often a stumbling block for retailers because they
need to place one at every cash register. Alternatively, readers can be embedded in por-
table devices that sales associates use to process credit card sales. Another challenge
for retailers is that there is no agreed-upon standard software platform. Thus, different
chips and software are required for Apple OS and Android operating systems because
different carriers and mobile operating systems adopt different software.

Machine-to-Machine Communications
between Devices with Embedded Radios
Machine-to-machine (M2M) mobile services refer to services that automatically mon-
itor the status of other systems or send software updates to devices. An example of an
M2M service is a central system that monitors vending machines remotely to deter-
mine inventory levels and diagnose possible problems. Another example of M2M traf-
fic is automatic monitoring of residential electric meters.
Both of these applications require software platforms and radios at customer data
centers as well as software and radios in the device to be updated or managed. Soft-
ware is required in the vending machines and meters that are able to connect to a
mobile network. However, these upgrades might require large investments. This is
true when new software is added to a utility’s meters. There is a potential to save on
operational costs by eliminating the need for technicians to manually read the meters.
It also has the potential to enable utilities to use energy more efficiently by monitoring
the grid and adjusting power distribution accordingly.
These transmissions are carried over a mobile carrier’s second-generation net-
work. Many of the current applications do not transmit enormous amounts of data.
M2M applications represent a revenue opportunity for mobile carriers. One reason is
that there are many more machines than there are end users, and many machines now
include software that can be upgraded for over-the-air diagnosis and updates.
Automobiles are examples of systems that contain more and more software,
including in-car entertainment systems that require automatic over-the-air updates.
Many new cars include options for touch screens on dashboards to activate various
networked functions and entertainment systems. These include in-car Wi-Fi hotspots
for passengers, outside sensors, rear-view cameras to assist in parking, and embedded
GPSs.
Another advantage to carriers of M2M service is the ease of support. Currently,
carriers operate large customer service centers for responding to questions about bill-
ing and technical issues. Customer service for M2M service is lower than that for
handsets because inquiries and customer service requests are only required for the
centralized staff members who manage these applications for customers.
368 7  Mobile and Wi-Fi Networks

Using Prepaid Mobile Services

Prepaid wireless services are those for which customers pay in advance for mobile
voice and/or data services. Prepaid service is most widely offered to customers who
do not have credit and who pay cash for service. They “top up” their service, making
additional payments when they need more minutes.
This contrasts with the postpaid cellular model by which customers are billed for
and pay for services after the end of the monthly billing period. In the prepaid model
customers give providers a credit card number that is billed every month. Most mobile
providers in the United States rely on postpaid customers for the bulk of their revenue,
but many offer prepaid as a way to round out their offerings.
With postpaid plans, customers receive monthly bills and often sign one- or two-
year contracts for their service. The consumption of prepaid service is particularly high
in developing countries such as India, Bangladesh, and many African countries. Pre-
paid is important in areas where most people don’t have credit cards or bank accounts.
The advantages of prepaid for carriers are mainly the elimination of the costs
associated with issuing bills and collecting overdue payments. For some carriers, it’s a
way to attract lower-income or immigrant customers who don’t have credit. In coun-
tries where mobile penetration is high and most people already have existing postpaid
service, prepaid is another way to add customers.
Whether purchasing prepaid directly through a carrier or through a reseller, cus-
tomers are connected to a prepaid platform, which authenticates their device and tracks
usage to determine either whether to charge a credit card or if the subscriber’s amount
of time or usage has been used up. The prepaid platform is connected to the carrier’s
core mobile network. Wal-Mart sells prepaid services using Straight Talk’s prepaid
platform.

WI-FI STANDARDS, ARCHITECTURE, AND THEIR

USE IN CELLULAR NETWORKS ...............................
Residential consumers and enterprise staff expect the same level of mobility within
homes and work environments as they experience in mobile cellular networks such as
those operated by Verizon Wireless and AT&T Mobility. Wi-Fi provides short-range
wireless service within these locations. Wi-Fi networks are widely deployed in cafes,
libraries, and municipalities as a service to customers and city and town residents.

The 802.11 Wi-Fi Standard

The designation 802.11 refers to the family of Institute of Electrical and Electronics
Engineers (IEEE) standards around which most Wireless Local Area Networks are
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 369

built. Wi-Fi, short for wireless fidelity, is widely accepted worldwide with small varia-
tions. Table 7-4 lists the earliest commonly installed 802.11 network protocols.

Table 7-4 802.11 Wireless Local Area Network (Wi-Fi) Standards

Achievable Number of Frequency
Standard Top Speed Speed Channels* Band
802.11a 54Mbps 25Mbps 24 5GHz
802.11b 11Mbps 5Mbps 3 2.4GHz
802.11g 54Mbps 12- to 25Mbps 3 2.4GHz
*The number of channels varies internationally.

A Deeper Dive into Wi-Fi Standards

The standards presented in Table 7-3 refer to the frequencies, speeds, and number of
channels in each Wi-Fi standard. Other 802.11 standards that specify capabilities such
as security, Quality of Service (QoS), and internetworking with cellular networks are
listed in Table 7-8 in the “Appendix” section at the end of this chapter. Wi-Fi networks
in enterprises commonly support all three of the standards plus additional standards
that specify higher data rates.
The frequency of a signal impacts its range (how far it is able to travel). Signals in
lower-frequency bands travel farther than those in higher bands because these waves
are longer (refer to Figure 7-1). The 802.11b and 802.11g standards cover a range of
about 100 to 150 feet; 802.11a covers only about 75 feet. Because they cover smaller
areas, networks that utilize 802.11a antennas require more antennas. Equipment that
supports both standards is referred to as dual-band equipment. As its name implies,
dual-band equipment supports two frequency bands. Tri-band support is now common
as well.
The higher speeds achieved by 802.11a and 802.11g are possible because both
are based on Orthogonal Frequency-Division Multiplexing (OFDM). This is because
OFDM sends multiple streams of bits simultaneously. See the section “The LTE
Orthogonal Frequency-Division Multiplexing Air Interface” earlier in this chapter to
read more about OFDM in LTE networks.

In order for user smartphones and other devices to access any Wi-Fi
standard, the user device must contain a computer chip that matches the
s
802.11 standard, e.g. 802.11a, 802.11n and 802.11ac as well as other
8
newer Wi-Fi standards.
370 7  Mobile and Wi-Fi Networks

The following factors impact achievable speeds:

• Network congestion
• The distance from antennas
• Overhead, which is the number of bits required in packet headers for infor-
mation such as addressing and error correction
• Interference from thick walls or other material and glare from windows are
factors that can also decrease range

Worldwide, the number of channels available in each standard varies. When

governments set requirements for the number of channels that can be used for each
standard, they do not always do it uniformly. The standards themselves often define
flexible requirements.

Range and Capacity of 802.11n

The 802.11n standard is a Wi-Fi standard that is backward-compatible with 802.11a,
b, and g networks. It enables Wi-Fi networks to cover longer distances by overcom-
ing a certain amount of interference. It also increases achievable speeds, increases
throughput (user data minus packet headers), and supports more users per access point
than earlier Wi-Fi networks. Improvements in the number of users supported in a given
amount of airspace are critical as the number of users and applications on Wi-Fi net-
works increase. 802.11n and 802.11ac mentioned below operate on 5Ghz frequencies.

Using MIMO Antennas to Carry More Traffic

Improvement in antennas is the reason 802.11n and 802.11ac use spectrum more effi-
ciently and overcome many “dead spots.” A dead spot is an area that access points
don’t cover because of interference from building materials or the distance from an
antenna. The 802.11n access points use MIMO antennas, which were not available
in earlier Wi-Fi networks to simultaneously transmit multiple streams at different fre-
quencies within a single channel. 802.11n is being replaced by the higher-capacity
802.11ac described below. Access points that support both 802.11ac and 802.11n are
widely available. These are compatible with user devices with only 802.11n computer
chips.
MIMO antennas are classified by the number of transmit and receive antennas
installed within access points and user devices.

• 2×2 antennas have two transmit and two receiver antennas.

• 2×3 antennas have two transmit and three receiver antennas.
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 371

• 3×3 antennas have three transmit and three receiver antennas.

• 4×4 antennas have four transmit and four receiver antennas.
• 8x8 antennas have eight transmit and eight receiver antennas.

Wi-Fi routers with more antennas support more capacity and higher data rates.
To achieve the highest speeds and capacity, user devices as well as access points must
have an equal number of antennas. See Figure 7-13 for an example of a Wi-Fi access
point.

Figure 7-13 A Wi-Fi access point. (Courtesy of Linksys)

The increasing capabilities of Wi-Fi networks have resulted in greater dependence

on wireless networks. This is particularly true in mobile environments such as hospi-
tals, factories, and educational institutions where employees often do not have a fixed
desk at which to send and receive data. In addition, staff members in organizations now
assume that they can take advantage of wireless access for tablets and smartphones
during meetings, at lunch, and wherever they are within their building or within their
organization’s campus.

Multi-User MIMO—Improvements in MIMO

Multi-User MIMO (MU MIMO) supports transmissions to more than one user device
at a time. Without MU MIMO, transmissions are sent to different devices serially, one
at a time. MU MIMO antennas operate at the 5GHz bands of spectrum that support
gigabit data rates. MU MIMO equipped routers are referred to as Wave 2 or Wave
3 equipment.
372 7  Mobile and Wi-Fi Networks

802.11ac (Wi-Fi 5) Gigabit Data Rates,

Beamforming, and Bonding
The 802.11ac Wi-Fi standard, now dubbed Wi-Fi 5 by the Wi-Fi Alliance supports
bonding, Multi-User MIMO, and gigabit data rates. 802.11ac supports beamforming,
the ability to focus a signal directly to the end-user device rather than transmitting
wireless signals addressed to a particular device in all directions at once. Beamform-
ing transmits separate streams to individual users within the same spectrum. This
decreases congestion.
802.11ac achieves high data rates in part due to its modulation, the way bits are
carried on the wireless streams. 256 Quadrature Amplitude Modulation (QAM) carries
many more bits by varying the amplitude, the height, of each wave in the data stream.
Channel bonding enables high data rates by combining multiple streams into a sin-
gle stream. However, bonding channels together results in fewer channels available to
other devices in the network decreasing capacity to other devices in the Wi-Fi network.

A extender is essentially a repeater. It “repeats” signals to extend their

An
range, the distance they can travel before fading. For example, if a home
ra
has two stories, but the router is on the first floor, the extender will con-
h
nect to the home’s Wi-Fi routers and send Wi-Fi signals to, for example,
the smartphone in the office on the second floor. In this way, both end-user
devices on the first and second floor have good access to the Wi-Fi net-
work. Extenders plug directly into electrical outlets. They are not equipped
to attach to cabling.

User Devices—Capacity Requirements

The growing numbers of connected wireless devices require high-capacity Wi-Fi. It’s
not uncommon for families and students to have a total of five devices connected to
Wi-Fi networks. This is an issue in student apartments where each person may have
their own four or five devices. Thus, Wi-Fi networks able to support increases in wire-
less traffic are becoming crucial. The following is a list of wireless devices commonly
used in homes, universities, and enterprises:

• Laptops
• Desktop Computers
• Connected environmental controls
• Networked light switches
• Cellular modems
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 373

• Smartphones
• Tablet computers
• Televisions
• Set-top boxes connected to HDTVs for streaming TV and movies from the
Internet, via, for example, Roku, Comcast’s Xbox, and Apple TV set-top boxes
• Printers
• Low-power medical devices used to monitor conditions remotely; for
example, blood pressure and glucose monitors

Wi-Fi in Universities, Hospitals, and Warehouses

Large universities, hospitals, and warehouses have extensive Wi-Fi networks
because their staff for the most part aren’t at assigned desks where they are able
to answer telephone calls, or in medical settings where they can look up patient
records and reactions to medication. In large university campuses with multiple
classroom buildings, access points are placed on every classroom’s ceiling.
Students at these universities assume Internet access is available for research on
topics covered in classrooms, and for research in the library. At one large univer-
sity, the library has two floors with books, and another entire floor with carrels
where students and faculty study, do research, and access the Internet. Wi-Fi is
additionally available for guests and neighborhood residents who are able to hop
on a “guest” segment of Wi-Fi where they can reach the Internet, but not any
private, confidential files or databases. In a similar manner, hospitals have Wi-Fi
throughout their administrative offices and patient floors. Like universities, they
provide guest Wi-Fi for visitors and patient rooms. In warehouses, Wi-Fi is used
for communicating with automated systems that track packages.

Wi-Fi Architecture in Enterprises

Wi-Fi networks are within buildings but are connected by cabling to the wired LAN.
All Wi-Fi networks have access points and user devices. The computer chips in por-
table user devices must be compatible with that used in the base station and access
point. For example, a user device cannot use 802.11ac capabilities without an 802.11ac
chip in their device. Enterprise Wi-Fi networks have multiple access points and often
controllers that direct traffic to particular access points. Central monitoring software
can be used to remotely change access point configurations and monitor traffic on the
Wi-Fi network.
374 7  Mobile and Wi-Fi Networks

Wi-Fi access points are connected to switches in each floor’s wiring closets. See
Figure 7-14 for an example of a connection between access points and the wired local
area network. The point is, Wi-Fi is a way to connect internal wireless transmissions
to enterprise LANs, which then transmit Wi-Fi–originated traffic to the Internet or to
staff within the building or campus. A Wi-Fi controller or router is plugged into a port
on Ethernet switches at enterprises.
Controller can be on-site, in the Wiring closet switch
cloud, or at a provider’s data center
Floor 3

Floor 2

Management console Floor 1

• Statistics on usage
• Information on congestion
• Reports on security
• Identities of allowed users Copper cabling
• Console can be in cloud or
headquarters

Figure 7-14 Wi-Fi connections to the wired LAN in an enterprise’s

wiring closet.

Wi-Fi in Homes
In a similar manner to enterprises, Wi-Fi access points connect to LANs within homes.
However, LANs within homes are less complex and the access points are generally
less robust, with fewer features and for the most part less complex security. In homes,
Wi-Fi–equipped gear such as printers, laptops, and smartphones have internal Wi-Fi
computer chips. The Wi-Fi router is directly cabled to cable modems or equipment
associated with the fiber-optic cabling in the outside network.

Mesh Networks—Every Device to Every

Device: Controller-Less Architecture
The main difference between centralized and mesh architecture is that in mesh networks
traffic does not go through a controller. Rather, each access point has the intelligence
to directly connect traffic to other access points. The software essentially establishes
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 375

a point-to-point connection for the duration of the data session. It eliminates conges-
tion at a central point while at the same time avoiding a single point of failure. If an
access point fails, data is routed around the failure to another access point. The ability
to route traffic around failures and coverage gaps and interference from thick walls or
walls that contain wire, and large homes with three stories make them suitable for these
environments and also for outdoor areas.
Moreover, access points in mesh networks filter out traffic from untrusted sources
such as rogue access points. A rogue access point is an unauthorized access point
installed by an employee. Figure 7-15 presents an overview of a Wi-Fi mesh network.
In homes, people use a software app on their smartphone that is provided by their
Wi-Fi vendor to set up the mesh network. The user selects a centralized location for the
first access point and plugs it into power. The app then uses its intelligence to recom-
mend locations for the other access points.
There is currently no mesh networking standard for all of the functions required
in mesh networks. Thus, the entire network must now be provided by a single vendor.
The current standard only specifies how the link layer puts the data on and takes it off
the Wi-Fi network. A new certification program called Wi-Fi Certified Home Design is
still evolving that may enable access points from diverse manufacturers to interoper-
ate together. This will enable people and institutions to use equipment from different
vendors to interoperate with each other.
If an Access Point Fails, Traffic is Routed Around the
Failure to Another Access Point

Access point failed

Paths between access points

Figure 7-15 An example of a mesh Wi-Fi network with every access

point to every access point connection. (Courtesy of NETGEAR)
376 7  Mobile and Wi-Fi Networks

Band Steering, Client Steering and Time Synch in

Mesh Networks
Mesh networks include both band steering and client steering.

• In band steering the network is able to route the same traffic between
2.4GHz and 5GHz depending on band availability.
• Client steering connects clients (user devices) to the access point that has the
strongest signal strength and the least congestion.
• Time synch is a Wi-Fi capability used in mesh networks to distribute and syn-
chronize traffic. It enables clients to connect to multiple access points at the
same time and an application in a server. Over-the-top streaming where speak-
ers and audio are synchronized down to a microsecond so that characters’
speech is coordinated with the way actors speak is an example of time synch.

Devices on Wi-Fi Networks—Access Points

and Controllers
Access points translate between Wi-Fi wireless signals and Ethernet LAN signals and
vice versa. An access point has an antenna and chips with 802.11a, 802.11b, 802.11g,
and 802.11n, or 802.11ac protocols. Access points for the residential market also include
routers with ports to which Ethernet cables are connected. The router aggregates traffic
and sends it to the Internet via Gigabit Ethernet on fiber cable, or cable modems.
Access points for corporations are more expensive and feature-rich than those sold
to residential customers. They contain higher-functioning security capabilities, such
as intrusion detection and protection, the ability to detect hacker attacks, and Quality
of Service (QoS) needed for voice and video. There are also robust access points
for outdoor locations that are made to withstand harsh environmental conditions.
For example, an enterprise might want outdoor coverage on a campus with multiple
buildings. Each access point requires electrical power.

Cabling and Electrical Requirements

In a similar manner to cellular networks, all Wi-Fi networks require wired connections
to switches, controllers and data centers, and electricity to power access points. Access
points in organizations are connected to the LAN via a data jack and, from there,
to unshielded twisted-pair (UTP) copper wire connection to the local wiring closet.
Electrical and cabling requirements represent an often-overlooked cost in implement-
ing Wi-Fi networks. The power each access point requires can be located remotely in
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 377

wiring closets on each floor or locally by nearby electrical outlets. For local power,
new outlets might be needed.

Wi-Fi Controllers
Non-mesh Wi-Fi in small and medium-sized organizations have controllers that man-
age access points and monitor the network. Non-mesh Wi-Fi networks require that traf-
fic be routed through centralized controllers. The controllers are part of core switches
or separate devices. If they are part of separate devices, they sit between the wireless
and wired parts of networks. They are programmed with specifications of the level of
access different staff are allowed. They act as gateways to the network, allowing access
only to certain users. They often allow access to particular applications on a per-user
basis. In addition, centralized controllers authenticate users and access points. Impor-
tantly, they can identify unauthorized rogue access points that staff may bring to work.
They also pinpoint areas of congestion and gather statistics on usage into reports.

Cloud Service and Virtualization for Wi-Fi

Management
Controllers can be installed as virtual entities represented in software on servers. This
lowers the cost of Wi-Fi networks by eliminating a separate server and additional util-
ity fees for air conditioning and electricity. This is often possible because more of the
functions are distributed to access points rather than contained in central controllers.
Some Wi-Fi manufacturers provide an option called Software as a Service. This is
a cloud offering in which the Wi-Fi manufacturer manages the controller and report-
ing functions at its own data center. For more information on cloud computing and
virtualization, see the section “Computing and Enabling Technologies” in Chapter 1.

Securing Wi-Fi Networks—WPA3

The openness of Wi-Fi networks makes them vulnerable to hackers. Access points
continually broadcast their network’s Service Set Identifier (SSID) and Wi-Fi devices
respond to these broadcasts. These broadcast messages are vulnerable to eavesdrop-
pers and can result in attempted and successful logons by unauthorized users. Unlike
wired networks, there are no natural boundaries such as those around fiber and cop-
per cables. Thus, in apartment buildings and businesses, signals often easily leak into
adjacent units and outside areas. This is why most users keep their Wi-Fi networks
password protected. A password is a start, but other factors such as strong encryption
and ease of implementing security are important ways to keep Wi-Fi networks safe
from hackers.
378 7  Mobile and Wi-Fi Networks

The Wi-Fi Protected Access 2 (WPA2) security standard was established in 2004
and is currently used. In 2018, the Wi-Fi Alliance announced an updated security pro-
tocol, WPA3. The Wi-Fi Alliance is an organization supported by equipment vendors
worldwide. It defines Wi-Fi standards and certifies equipment that meets the standards.
The Wi-Fi Alliance specified the following WPA3 improvements:

• 192-bit encryption (a possibility of 192 combinations of zeros and ones for

every bit that is encrypted). WAP2 has 128-bit encryption.
• Personal, individualized encryption on transmissions at places such as cafes,
libraries, and airports. This will enable users to safely use Wi-Fi in public
places.
• Simplified ways to set up security to ensure that more small organizations
and households actually use and implement security.
• To block access to the Wi-Fi network after too many tries at guessing the
password.
• Simplified ways to set up devices that don’t have screens such as home
assistants like Google’s Alexa and connected light switches.
• Easier ways to test Wi-Fi networks when they are reconfigured.

Employees that don’t have the newest smartphones and laptops won’t be able to
take advantage of Wi-Fi Protected Access 3. WPA3 was available in equipment late
in 2018. User devices without WPA3 will be able to continue using WPA2. The same
is true of older controllers, routers, and access points. For WPA3 to operate, each of
these pieces of gear must have WPA3 computer chips. However, the Wi-Fi Alliance has
announced that they will continue to support and enhance security and other features
on WPA2.

Using Wi-Fi to Offload Traffic from

Congested Mobile Networks
To ease congestion caused by increased tablet and smartphone traffic, carriers often
supplement mobile services in densely populated areas with Wi-Fi in airports, train
stations, and cafés where mobility is not required. In addition, Wi-Fi hotspots relieve
backhaul congestion by transmitting traffic back to carriers’ data centers over broad-
band links rather than on the mobile network.
Comcast and Charter operate large networks of Wi-Fi–equipped facilities. Instead
of purchasing costly spectrum, these cable TV providers have built out a network
of thousands of hotspots throughout the United States. The network is available to
Wi-Fi Standards, Architecture, and Their Use in Cellular Networks 379

Comcast customers that download the Comcast App to their smartphone, laptop, or
tablet computer.
Wi-Fi equipment is less costly than base stations in mobile networks and spec-
trum is free. While cellular service excels at covering large areas, Wi-Fi service does
extremely well at providing coverage inside buildings where it is relatively inexpen-
sive to add access points.
This trend has been made possible by the advent of handsets with chips that sup-
port both Wi-Fi and mobile air interfaces. These interfaces are now tightly integrated
and have the capability to automatically hand traffic off between cell sites and Wi-Fi
networks. They additionally support both voice and data. However, using voice on
Wi-Fi networks drains batteries more quickly than on mobile networks.
The downside of operating large numbers of small cell sites and hotspots is main-
tenance. Large carriers can have 50,000 of these sites to manage. Many mobile opera-
tors outsource management of their hotspots to other firms.

Worldwide Roaming on Wi-Fi

When people travel internationally or within the United States they expect Wi-Fi to
be available so that they avoid the extra fees wireless providers charge for using cell
phones over LTE and other mobile protocols in other networks.
Providers such as AT&T and Comcast offer large networks of Wi-Fi hotspots that
are located mainly in the United States. However, using a smartphone in other coun-
tries can be problematic with the exception of hotels that offer in-building Wi-Fi either
at no charge or at low daily rates.
Enterprises that have business in international locations often sign up for Wi-Fi
roaming from aggregators such as iPass and Boingo. Wi-Fi aggregators have agree-
ments with independent hotspots to manage their hotspots and for roaming between
their locations. iPass manages over 64 million hotspots in more than 160 countries in
which their customers’ employees roam. Boingo has more than one million hotspots.
In addition to roaming internationally, Boingo offers Wi-Fi service in airports
for travelers to download video and other content before boarding their airplane. The
airport service is a collaboration with Comcast.
The Wi-Fi Alliance sets standards for roaming between Wi-Fi access points. Wi-Fi
roaming involves middlemen. Intermediaries provide authentication that determines
if the device belongs to a legitimate network provider. The intermediary also handles
accounting functions related to billing.

Wireless Internet Service Providers

A Wireless Local-Area Network (Wi-Fi) hotspot is a public area where people with
Wi-Fi–equipped laptops, tablet computers, and smartphones can access the Internet.
380 7  Mobile and Wi-Fi Networks

The Wi-Fi hotspot business is multilayered and includes aggregators, cellular pro-
viders, and companies that supply back-office services such as billing, roaming, and
secure access to corporate networks from hotspots. Hotspot operators are also referred
to as Wireless Internet Service Providers (WISPs).
The largest hotspot operator in the United States is AT&T Wi-Fi Services (for-
merly Wayport before AT&T purchased it in 2008). AT&T Wi-Fi Services is an aggre-
gator. Aggregators install hardware and Internet access for hotspot services and resell
it to other providers who provide billing, marketing, and customer service to end
users. AT&T offers Wi-Fi access directly to its own subscribers as well as on a whole-
sale basis to other providers. These providers in turn offer it to their own customers.
T-Mobile USA also owns an extensive number of hotspots. It offers the service at no
charge to its subscribers.

SATELLITES—GEOSYNCHRONOUS AND LOW

EARTH ORBITING ...................................................
Geosynchronous satellites orbit 22,300 miles above the earth’s surface. Because of
this distance, each satellite can beam signals to a very large area; therefore, less equip-
ment is required for coverage. This makes satellite service attractive for rural and
difficult-to-cable areas.

Satellite Networks
Satellite networks are composed of a hub, the satellites themselves, and receiving dish
antennas. Receiving antennas also are called ground stations. Receivers on antennas
convert Radio Frequency (RF) wireless signals to electrical signals. The transmitter on
the antenna converts electrical signals to RF signals. The point from which broadcasts
originate is the hub on the ground. The hub has a large dish, routing equipment, and
fiber links to the enterprise’s headquarters for commercial customers. All communi-
cations broadcast from the hub travel up to the satellite and then down to the ground
stations (the satellite dishes).
Satellites are used to broadcast television and radio signals and to transmit posi-
tioning information to aircraft and air traffic controllers. Satellites are particularly
suited to broadcast signals to large areas for applications such as weather monitoring,
mapping, and military surveillance.
Satellites—Geosynchronous and Low Earth Orbiting 381

T area satellites cover is directly related to how high in the sky they are
The
located. Consider a flashlight: Holding it higher enables it to illuminate a
lo
large area. If the flashlight is held low, closer to a tabletop, for example, the
la
beam and coverage area shrinks.

Low Earth Orbiting Satellites—Fewer Delays;

More Satellites; 200 to 1,200 Miles High
Smaller, lower-cost satellites about the size of a shoebox have spurred an increase in
the number of satellites launched into low earth orbits. Low earth orbiting (LEO) satel-
lites are more suitable for broadband because they are launched into orbits 200 to 1,200
miles high, rather than geosynchronous satellites. Therefore, signals from low earth
orbiting satellites travel a shorter distance than satellites in higher orbits.
Orbiting closer to the earth results in smaller coverage areas than for satellites
located further from the earth. Thus, LEO companies invest in launching large num-
bers of satellites in order to cover more sections of the planet. LEO satellite owners
include Aereon, OneWeb, and Viasat. Viasat is owned by satellite provider Iridium.
Because of the multiple billions of dollars it costs to launch even a LEO satellite
network, these companies often require backing from a variety of investors.

High-Frequency Satellite Service within

Airplanes for Internet Access
Satellite service is used to transmit TV, movies, and data signals to Wi-Fi access points
on airplanes. These satellites operate on the higher-frequency Ka band at 17.3–31.0
GHz spectrum. This enables them to support the high bandwidths required for on-
demand services. There is essentially a Wi-Fi router with an antenna located on top of
the airplane’s fuselage. The antenna is protected by a 4-inch to ½-inch thin case called
a radome. Wi-Fi antennas within the plane distribute signals to passengers’ devices
in the aircraft’s cabin. Satellite providers with these higher-frequency satellites also
market their services to rural areas for Internet access. Companies that provide enter-
tainment and data services on airplanes include Gogo, Inmarsat Plc, iPass, Panasonic,
and Viasat.
The challenge in providing data service in an airplane is the fact that both the
airplane and the satellite travel at high speeds. This means that the airplane antenna
must maintain contact with satellites that are also moving.
382 7  Mobile and Wi-Fi Networks

Satellite providers with these high-frequency satellites also market their services
to rural areas and developing countries that have limited or no cable TV service. Dish
Network and AT&T-owned DirecTV distribute television signals in rural areas where
cable TV is not available. These services are prone to disruptions in heavy fog.

APPENDIX ..............................................................

Table 7-5 Mobile Services Worldwide

Technology Frequencies Features Comments
Second-Generation (2G) Cellular Service
Digital cellular ser- UL: 824MHz to Digital service with more CDMA, TDMA,
vice (CDMA, Time- 849MHz capacity than analog ser- GSM, and iDEN are
Division Multiple DL: 869MHz to vice. Provides advanced digital cellular air
Access [TDMA], 894MHz features such as caller interfaces.
Global System for ID and Short Message
Mobile Communi- Service (SMS).
cations [GSM] and
Integrated Digital
Enhanced Network
[iDEN])
Personal Communi- UL: 1.85GHz to PCS added more digital PCS refers to higher-
cation Service (PCS) 1.91GHz spectrum, competitors, frequency 1.9GHz
DL: 1.93GHz to and innovative services, services. Second- and
1.99GHz driving prices down. 4th-generation ser-
vices operate on PCS
frequencies.
GSM UL: 890MHz to A cellular digital tech- Standard used in
915MHz nology. The same hand- Europe, the Far East,
DL: 935MHz to sets can be used in all Israel, New Zealand,
960MHz countries that use GSM and Australia. Also
multiplexing. used by T-Mobile and
AT&T Mobility in the
United States.
Digital Cellular UL: 1.71GHz to DCS service added more DCS refers to higher-
System (DCS) 1.785GHz digital spectrum for most frequency 1.8GHz
DL: 1.805GHz existing carriers and a services in Europe.
to 1.880GHz few new entrants. GSM is considered a
DCS air interface.
Appendix 383

Technology Frequencies Features Comments

Enhanced Special- UL: 806MHz to Nextel (now part of Nextel and other SMR
ized Mobile Radio 821MHZ Sprint Nextel) ser- operators use iDEN
(ESMR) DL: 851MHz to vices operate on these technology developed
866MHz frequencies. by Motorola to sup-
port voice, paging,
push-to-talk, and mes-
saging on the same
telephone. Also suit-
able for 4G service.
*2.5-generation services (2.5G) Many GSM mobile operators deployed these
packet data services in the interim to 3G. They
use the same spectrum as GSM. This is a lower-
cost solution than 3G but with less efficient
spectrum utilization.
GPRS Same as GSM, General Packet Radio Appropriates voice
DCS, and PCS Service channels for data;
40- to 60Kbps.
EDGE Enhanced Data Rates for Data speeds of about
GSM Evolution 110Kbps. Requires
fewer voice channels
for data than GPRS.
*Third-generation services (3G) 3G packs more services into a given amount of
spectrum than 2.5G technology.

Table 7-6 3G Services and Spectrum

Technology Frequencies Features Comments
WCDMA, also IMT-2000 bands: More capacity for voice, Carriers launched
called UMTS UMTS: higher-speed data, value-added 3G
CDMA2000 1X acceptable video, low- services to generate
Uplink: 1.885GHz latency applications, and higher revenues.
CDMA2000 to 2.025GHz (in so on. Standards bod-
1xEV-DO the United States: CDMA2000
ies have specified all of 1xEV-DO (data
UMTS TDD 1.71GHz to these frequency bands
1.755GHz) optimized) is
TD-SCDMA for 3G services. always combined
Downlink: 2.11GHz with CDMA2000
to 2.17GHz (in 1X (voice and data)
the United States: on a single chip.
2.11GHz to
2.155GHz)
384 7  Mobile and Wi-Fi Networks

Table 7-6 (Continued)

Technology Frequencies Features Comments
CDMA2000: WCDMA is nor-
450MHz (NMT), mally combined
800MHz, 1.7GHz with GSM on a
(Korea), 1.9GHz single chip for
(PCS), and 2.1GHz voice services.
(UMTS) UMTS TDD uses
UMTS TDD: one frequency
band for uplink
1.885GHz to and downlink data
1.92GHz or 2.01GHz transmissions.
to 2.025GHz
(primary), plus The Chinese
2.3GHz to 2.4GHz government
(secondary) commercialized
TD-SCDMA, a
TD-SCDMA: homegrown version
TBD (China) of UMTS TDD.

Table 7-7 Releases and Revisions to 3G Cellular Services

Downlink Data Rates: Uplink Data Rates: From
Name of Service and From the Network to the the Subscriber to the
Release Subscriber Network
CDMA2000 Releases (1.25MHz Channel Bandwidth)
CDMA2000 1X (Release 0) Peak data rate: 153.6Kbps Peak data rate: 153.6Kbps
Doubles voice capacity Average data rate: 64Kbps Average data rate: 64Kbps
CDMA2000 1xEV-DO Peak data rate: 2.4Mbps Peak data rate: 384Kbps
(Release 0) Average data rate: 500Kbps Average data rate: 144Kbps
Data optimized to 1Mbps
High data rate (HDR)
CDMA450 Same as 1X and 1xEV-DO Same as 1X and 1xEV-DO.
Same features as other Deployed mainly in rural
CDMA standards but operates areas because of its capabil-
in lower frequencies so that ity to cover large areas.
fewer base stations are needed
CDMA2000 1xEV-DO Peak data rate: 3.1Mbps Peak data rate: 1.8Mbps
(Revision A) or CDMA2000 Average data rate: 1.8Mbps Average data rate: 630Kbps
DO Rev. A per sector (standard)
Supports low-latency (delay) Average data rate:
data in a single 1.25MHz 1.325Mbps per sector
channel.
Appendix 385

Downlink Data Rates: Uplink Data Rates: From

Name of Service and From the Network to the the Subscriber to the
Release Subscriber Network
WCDMA Releases (5MHz Channel Bandwidth)
WCDMA (Release 99) Peak data rate: 2Mbps Aver- Peak data rate: 384Kbps
age data rate: 220Kbps Average data rate: 64Kbps
WCDMA (Release 4) Peak data rate: 2Mbps Same as WCDMA
Enables operators to pri- Average data rate: 384Kbps (Release 99)
oritize data services per cus-
tomer subscription choices.
WCDMA (Releases 5 and 6) Peak data rate: 14Mbps Uplink: 1.4Mbps
HSPD/UPA (high-speed Average data rate: 2Mbps
downlink/uplink packet
access)
Doubles the uplink speed

Table 7-8 802.11 (Wi-Fi) Standards

802.11 Standard Description
802.11ac A Wi-Fi standard designed to provide gigabit speeds on Wi-Fi
networks. A replacement for 802.11n.
802.11ad A Wi-Fi standard gigabit short range of only 30 feet, data rates
over the 60 GHz spectrum bands. Envisioned as a replacement
for HDMI cables and other short-range applications.
802.11af A Wi-Fi standard designed to operate in the white space
700MHz spectrum freed up by TV broadcasters. It has low
power requirements, supports longer-life batteries
802.11ah A Wi-Fi standard for low sub-gigahertz bandwidth applications
802.11ai A standard that supports the discovery and initial connectivity to
the Wi-Fi network.
802.11ay An IEEE draft of a standard that will have four times the data
rates of 802.11ad. It uses bonding to achieve data rates of 20 to
40 GBPS. It has a range of 300 to 500 meters (327 to
547 yards).
802.11ax A proposed standard that will operate in support of 10Gbps in
the 5GHz bands and slower data rates in the 2.4GHz bands.
It supports interoperability and time synch, which is used to
synchronize timing in mesh architectures. 802.11ax gear is
expected to be widely available in 2019. The Wi-Fi Alliance
rebranded 802.11ax as Wi-Fi 6.
386 7  Mobile and Wi-Fi Networks

Table 7-8 (Continued)

802.11 Standard Description
802.11aq An IEEE standard to allow devices to detect which networks are
available before users connect to these services.
802.11az A proposed standard that will make it faster for Wi-Fi networks
to locate devices and connect devices to Wi-Fi networks when
they are moving. Uses power efficiently by reverting to sleep
mode when not active.
802.11d A standard that supports the capability for Wi-Fi devices to
operate in different countries that require different power levels
and frequencies. Enables equipment to be adjusted according to
the rules of each country.
802.11e A Quality of Service (QoS) standard, the Wi-Fi Multimedia
(WMM) section of 802.11e that defines prioritizing voice and
video. Was approved October 2004.
802.11f A standard that supports the capability for access points from
different manufacturers to interoperate in the same Wireless
Local Area Network (Wi-Fi).
802.11h A proposal that defines ways for 802.11a networks to dynami-
cally assign packets to other channels if there is interference
with other access points and services such as radar, medical
devices, and satellite transmissions. In some countries, radar and
satellite use the same frequencies as 802.11a.
802.11i A standard for improved security. It’s also referred to as Wire-
less Protected Access 2 (WPA2) and Wi-Fi Protected Access 3
(WPA3).
802.11k A Wi-Fi standard for roaming between access points. Provides
information to Wi-Fi management systems so they can balance
traffic between access points.
802.11n A standard to increase throughput—actual user data transmit-
ted, and the range covered by each access point. Improvements
achieved through enhancements in antennas that decrease effects
of interference. In new devices replaced by 802.11ac.
802.11p WAVE (Wire- A standard for vehicle-to-vehicle and vehicle-to-roadside struc-
less Access for Vehicular tures, and vehicle safety services. It enables communications
Environments) between vehicles and roadside access points or other vehicles.
802.11r The standard that defines methods for switches to quickly hand
off sessions between access points so that users don’t have to be
authenticated again. This is important to avoid delays for traffic
between access points.
Appendix 387

802.11 Standard Description

802.11s An IEEE networking standard used in mesh networks. It defines
how access points access Wi-Fi in community-wide Wi-Fi net-
works, large homes, and buildings.
802.11u An IEEE standard that enables automatic interworking between
cellular and Wi-Fi networks. A user’s mobile device with
embedded Wi-Fi with 802.11u can automatically switch to
Wi-Fi when it’s in a Wi-Fi hotspot that has an agreement with
the user’s carrier. This is part of the Wi-Fi Alliance initia-
tive known as Hot Spot 2.0 to simplify cellular devices’ Wi-Fi
access.
802.11v Improves the ability to manage Wi-Fi networks by enabling
statistics gathering and power management that will improve
battery life. A must in client devices and access points.
802.11w A standard used for security that protects Wi-Fi devices from
attackers with spoofed (fake) addresses.
802.11x A proposed security standard for authentication and security to
prevent unauthorized packets from entering wired LANs from
Wi-Fi networks. It’s an alternative to creating virtual private
networks.
Control and Provisioning An IEEE standard for Wi-Fi switches to control access points by
of Wireless Access Points centralizing intelligence in one device, a controller.
(CAPWAP)
Unlicensed Mobile A way to route cell phone traffic over Wi-Fi networks. The
Access (WMA) cellular network maintains control of calls so that it can bill for
traffic.
Wi-Fi Direct A Wi-Fi standard that enables any device with Wi-Fi Direct soft-
ware to communicate directly with another device. This allows
a laptop to act as an access point so that nearby computers can
also access the Internet. Can be used for printing directly from a
smartphone to a printer.
This page intentionally left blank
Glossary

2G (second-generation cellular 3GPP2 (3rd Generation Partnership

service) Program 2)
Based on digital access to cellular net- An analogous group to 3GPP, but it is work-
works. GSM and CDMA are 2G cellular ing on evolving technical specifications for
technologies. CDMA2000 networks.

3G (third-generation cellular service)

10base-T
3G mobile standards specify techniques that
An IEEE specification for unshielded, twisted-
are capable of supporting more voice traffic
pair cabling used for Ethernet LANs that
and broadband mobile multimedia (speech,
transmit at 10Mbps. The distance limitation
audio, text, graphics, and video) services.
for 10base-T networks is 100 meters.
There are three main 3G services, including
WCDMA, CDMA2000, and UMTS TDD.
See also 3GPP and 3GPP2. 100base-T
An IEEE standard compatible with 10base-T
3GPP (3rd Generation Partnership for transmitting at 100Mbps over unshielded
Program) twisted-pair cabling on LANs.
A collaborative group that is developing an
agreement to jointly create technical specifi- 802.11
cations for maintaining LTE, GSM, GPRS, A set of IEEE standards for LANs. 802.11a,
and EDGE and for evolving WCDMA and 802.11b, and 802.11g are the most com-
LTE networks. European, Asian, and North mon and are used in homes to share Internet
American telecommunications standards access, in enterprises, and in hotspots.
bodies formed the 3GPP.

389
390 Glossary

802.15.4 charges called Subscriber Line Charges

The IEEE standards upon which the ZigBee (SLCs). VoIP traffic is exempt from access
Alliance tests and certifies equipment, and fees.
adds functions to sensor networks.
ACD (Automatic Call Distribution)
802.20 Equipment and software that distribute calls
A set of IEEE standards for wireless technol- to agents, based on parameters such as the
ogy based on OFDM. Flarion, which is part agent who has been idle the longest. ACDs
of Qualcomm, builds 802.20 equipment. are part of telephone systems or adjuncts to
telephone systems. ACDs are also referred to
8YY toll-free numbers as contact centers. See also contact centers.
An abbreviation describing the format of the
North American Numbering Plan for toll- Active Directory
free numbers. The first three digits of toll- A directory of users on organizations’ LANs.
free telephone numbers must be the number Provides authentication that people are who
8 followed by 0 or 2 through 9 for the second they claim to be and security by encrypting
and third digits. When central office switches calls.
see the 8YY format, they request a database
check to determine where the toll-free num- ANI (Automatic Number
ber should be routed. Identification)
The business or residential customer’s bill-
adaptive bit rate streaming ing number. Customers such as call centers
The capability of equipment (encoders) used pay for callers’ ANIs to be sent to them
to stream video and multimedia content simultaneously with incoming 800 and 888
from the Internet to computers and mobile and other toll-free calls.
devices to adjust the bit rate dynamically to
the user’s processing capabilities and band- APs (Access Points)
width availability. These contain antennas and chips with
802.11a, 802.11b, 802.11g, or 802.11n air
access fees interfaces for 802.11 wireless LANs. Access
Carriers pay access fees to local telephone points translate between radio frequencies
companies for transporting long-distance and Ethernet signals for cabled networks.
traffic to and from local customers. The An access point has similar functions to base
FCC sets access fees for interstate traffic, stations for cordless home phones.
and state utility commissions set access fees
for intrastate traffic. They are intended to API (Application Programming
offset the costs that local phone companies Interface)
incur in providing links to local customers, Software used to translate programming code
but these fees have been decreasing, and between two different programs. An API can
residential and business customers are pay- be used when an application at an enterprise
ing some of the costs in the form of monthly accesses an application on the cloud.
Glossary 391

architecture band refarming

Defines how computers are tied together. The reuse of portions of spectrum for more
Some vendors refer to the architecture of advanced mobile protocols. Many coun-
their equipment in terms of the growth avail- tries are refarming spectrum originally used
able and the hardware and software needed only for older second-generation services to
for their systems to grow. newer fourth-generation technologies.

ASCII (American Standard Code for bandwidth

Information Interchange) The measure of the capacity of a commu-
The main 7-bit code personal computers use nications channel. Analog telephone lines
to translate bits into meaningful language. measure capacity in hertz (Hz), the differ-
Most computers now use extended ASCII, ence in the highest and lowest frequency of
which supports 8-bit codes. Each group of the channel. Digital channels measure band-
8 bits represents a character. Computers can width in bits per second (bps).
“read” one another’s binary bits when these
bits are arranged in a standard, uniform “lan- BGP (Border Gateway
guage.” ASCII is the most commonly used Protocol)
computer code. A routing protocol with more than 90,000
addresses. Used by carriers to route packets
ATM (Asynchronous Transfer Mode) on the Internet. BGP enables routers to deter-
A high-speed switching technique that uses mine the best routes to various destinations.
fixed-size cells to transmit voice, data, and
video. A cell is analogous to envelopes that bill and keep
each carry the same number of bits. Used A carrier-to-carrier billing method that
mainly in older networks. eliminates the requirement for carriers to
bill each other access fees. It is used by bill-
backbone ing companies only to bill carriers that carry
A segment of a network used to connect less traffic than carriers with whom they
smaller segments of networks together. exchange traffic.
Backbones carry high concentrations of traf-
fic between on and off ramps to networks. bit error rate
The percentage of bits received in error in a
backhaul transmission.
A term used mostly to describe the links
between antennas at base stations and blade
mobile central offices, and services in the Circuit boards are often referred to as
cellular networks core. Traffic and signal- “blades” when they are dense, such as when
ing information is backhauled from where it they have many ports (connections) or soft-
enters the network to the mobile core, and ware for a specialized application such as
vice versa. security.
392 Glossary

Bluetooth broadcast
A set of standards for special software on A message from one person or device for-
low-cost, low-powered radio chips that warded to multiple destinations. Video and
enables devices to communicate with one e-mail services have broadcast features
another over a short-range wireless link. whereby the same message can be sent to
Bluetooth eliminates cable clutter between multiple recipients or locations.
computers and peripherals in offices and sup-
ports wireless headsets for mobile handsets. BTA (Basic Trading Area)
A relatively small area in which the FCC
BOC (Bell Operating Company) allocates spectrum. There are 491 basic trad-
One of the 22 local Bell telephone compa- ing areas in the United States.
nies owned by AT&T Corporation prior to
1984. Examples of Bell Operating Compa- CAP (Competitive Access Provider)
nies are Michigan Bell, Illinois Bell, and Pac Originally provided midsize and large orga-
Bell. Bell Operating Companies are now nizations with connections to long-distance
part of AT&T Inc., CenturyLink, and Veri- providers that bypassed local telephone
zon Communications. companies. CAPs are now often referred
to as Competitive Local Exchange Carriers
border elements (CLECs) or competitive providers.
Another name for media gateways. See also
media gateways. CCIS (Common Channel Interoffice
Signaling)
bps (bits per second) A signaling technique used in public net-
The number of bits sent or received in one works. Signals such as those for dial tone and
second. ringing are carried on a separate path from
the actual telephone call. CCIS allows for
BRI (Basic Rate Interface) telephone company database queries used in
The ISDN interface made up of two B chan- features such as caller ID, call forwarding,
nels at 64 kilobits each and a signaling chan- and network-based voicemail. CCIS chan-
nel with a speed of 16 kilobits. nels are also used for billing and diagnosing
public network services.
bridge
A device that connects local or remote net- CDMA (Code-Division Multiple
works together. Bridges are used to connect Access)
small numbers of networks. Bridges do not An air interface used to transmit digital cel-
have routing intelligence. Organizations that lular signals between handheld devices and
want to connect more than four or five net- cellular carriers’ networks. CDMA assigns
works use routers. a unique code to every voice and data
transmission by using a channel of a par-
broadband ticular carrier’s airwaves. CDMA is a spread-
A data transmission scheme in which mul- spectrum technology that is used by Verizon
tiple transmissions share a communications Wireless, Sprint, and South Korean carriers
path. Cable television uses broadband trans- such as SKT.
mission techniques.
Glossary 393

CDMA2000 (Code-Division Multiple CIR (Committed Information Rate)

Access 2000) A term used in frame relay MPLS networks
A 3G technology for carrying high-speed to indicate the speed of the transmission
data and multimedia traffic on cellular guaranteed for a customer. See also MPLS.
networks.
circuit switching
CDMA2000 1X (Code-Division The establishment—by dialing—of a tempo-
Multiple Access 2000) rary physical circuit (path) between points.
The earliest version of the CDMA2000 3G The circuit is terminated when either end of
technology for carrying high-speed data and the connection sends a disconnect signal by
multimedia traffic on cellular networks. hanging up.

CDMA2000 1xEV-DO (Code-Division CLEC (Competitive Local Exchange

Multiple Access 2000 Data Opti- Carrier)
mized or Data Only) A competitor to incumbent local telephone
A later, higher-data-rate version of CDMA2000 companies that has been granted permis-
1X 3G technology for carrying high-speed sion by the state regulatory commission to
data and multimedia traffic on cellular offer local telephone service. CLECs com-
networks. pete with the incumbent telephone company.
CLECs are also simply called local tele-
central office phone companies.
The site in the Public Switched Telephone
Network with the local telephone company’s CLID (Calling Line ID)
equipment that routes calls to and from cus- The number that identifies the telephone
tomers. It also has equipment that connects number from which a call was placed. For
customers to Internet service providers and most residential customers, the calling line
long-distance services. ID is the same as their billing number, their
Automatic Number Identification (ANI).
channel
A path for analog or digital transmission sig- CO (Central Office)
nals. With services such as ISDN, T1, and The location that houses the telephone com-
T3, multiple channels share the same one or pany switch that routes telephone calls.
two pairs of wires or fiber. End offices are central offices that connect
end users to the Public Switched Telephone
CIC (Carrier Identification Code) Network.
The four-digit code (previously three digits)
assigned to each carrier for billing and call- compression
routing purposes. AT&T’s CIC is 0288. If The reduction in size of data, image, voice,
someone at a pay telephone dials 1010288 or video files. This decreases the capacity
and then the telephone number she is calling, needed to transmit files.
the call is routed over the AT&T network.
394 Glossary

concatenation core networks

The linking of channels in optical networks The portions of carrier and enterprise net-
so that voice or video is transmitted as one works that carry the highest percentage of
stream. This is done to ensure that there are traffic, and where switches and routers con-
no breaks in the transmission. nect to other switches and routers rather than
to customers. High-speed core routers are
connectionless service located in core networks.
The Internet protocol is connectionless.
Each packet travels through the network CPE (Customer Premises Equipment)
separately. If there is congestion, packets are Telephone systems, modems, terminals, and
dropped. Packets are reassembled at their other equipment installed at customer sites.
destination.
CSU/DSU (Channel Service Unit/Data
contact center Service Unit)
Another term for automatic call distribu- A digital interface device that connects cus-
tion. The term contact center implies that tomer computers, video equipment, multi-
call centers have the capability to respond to plexers, and terminals to T1/E1 and T3/E3
e-mail and facsimile as well as voice calls. lines.

containers CTI (Computer Telephony

Application programs surrounded by soft- Integration)
ware that enables a group of programs in the CTI software translates signals between
same container to work together. telephone systems and computers so that
telephone systems and computers can coor-
convergence dinate sending call routing and account
The use of one network for voice, data, and information to agents in contact centers.
video.
CWDM (Coarse Wavelength-Division
CORD (Central Office Re-architected Multiplexing)
as a Data Center) A multiplexing technology standard that
Telephone companies that deploy CORD enterprises and carriers deploy to connect
architect their central offices as data centers corporate sites to public networks and to
rather than as typical central offices. They bring the capacity of fiber closer to resi-
use open source software and commodity dential neighborhoods. It carries up to eight
servers and switches and software-defined channels of traffic on a single fiber pair.
networking. The goal is to be able to quickly
add and delete features and services used by dark fiber
customers. Fiber-optic cables without any of the elec-
tronics (that is, multiplexers and amplifiers).
cordless Carriers can lay dark fiber and add SONET,
Cordless telephones provide portability, Gigabit Ethernet, and wavelength-division
mainly within homes and apartments. multiplexers later.
Glossary 395

DCE (Data Circuit-Terminating divestiture

Equipment) In January 1984, divestiture deregulated
A communications device that connects user long-distance service in the United States.
equipment to telephone lines. Examples It separated the former AT&T from its 22
include modems for analog lines and CSUs local Bell telephone companies. Agreement
for digital lines. on divestiture was reached by the Justice
Department, which negotiated an antitrust
dedicated line settlement with the former AT&T, called the
A telephone line between two or more sites Modified Final Judgment.
of a private network. Dedicated lines are
always available for the exclusive use of the DLC (Digital Loop Carrier)
private network at a fixed, monthly fee. Used to economically bring fiber closer to
customers. Carriers run fiber cabling from
de-duplication central offices to DLCs and they lay twisted-
A method of compression that removes pair copper cabling from DLCs to customers.
changes in files sent between two sites
where each site has a copy of the file as it DNIS (Dialed-Number Identification
was originally sent. De-duplication sends Service)
only changes each time after the original The service used to identify and route toll-
transmission. The receiving end adds the free and 900 numbers to particular agents or
changes and puts the file back together. devices within a customer site. For example,
if a customer has multiple 800 numbers,
DID (Direct-Inward Dialing) the network provider routes each toll-free
A feature of local telephone service whereby number to a different four-digit number at
each person in an organization has his the customer’s telephone system. The onsite
own ten-digit telephone number. Calls to telephone system then routes the call to a
DID telephone numbers do not have to be particular group of agents, voice response
answered by onsite operators. They go system, or department.
directly to the person assigned to the ten-
digit DID telephone number. DNSSEC (Domain Name Service
Security Extensions)
DiffServ (Differentiated An Internet security standard for prevent-
Services) ing users from using other organizations’
Used in routers to tag frames. The tags domain names, which is also known as
request a particular level of service on the spoofing. Disguising domain names makes
Internet and other IP-based networks. it more difficult to track the origin of traffic.

disk mirroring domain name

The process of simultaneously writing data Everything after the @ sign in an e-mail
to backup and primary servers. address. It includes the host computer, the
396 Glossary

organization’s name, and the type of organi- digital-to-analog and analog-to-digital voice
zation (for example, .com for commercial and conversions, and packetizes voice and video
.edu for educational). Both .com and .edu are in real time for IP networks.
top-level domain names. The domain name
can also designate the country, such as .bo for DTE (Data Terminal Equipment)
Bolivia. A domain name is part of the TCP/IP Devices that communicate over telephone
addressing convention. lines. Examples include multiplexers, PBXs,
key systems, and personal computers.
DoS (Denial-of-Service) attack
An attack by which hackers bombard net- DVB (Digital Video Broadcasting)
works with thousands of packets intended A standard approved by the European Tele-
to disrupt the capability of the attacked net- communications Standards Institute (ETSI).
work to function. It has lower resolution than HDTV.

downlink (DL) DWDM (Dense Wavelength Division

On broadband and mobile networks, the Multiplexing)
downlink portions are those that carry traffic A way of increasing the capacity of fiber-
from the carrier to the customer. optic networks. DWDM carries multiple
colors of light, or multiple wavelengths, on a
downloading single strand of fiber. Also known as Wave-
Receiving an entire file from another loca- length Division Multiplexing (WDM).
tion. When music is downloaded, the entire
music file must be downloaded to the com- E1
puter’s hard drive before it can be played. The European standard for T1. E1 has a
speed of 2.048 megabits with 30 channels
DS-0 (Digital Signal level 0) for voice, data, or video, plus one channel
A transmission rate of 64Kbps. This refers to for signaling and one for diagnostics.
one channel of a T1, E1, E3, T3, fractional
T1, or fractional T3 circuit. E3
The European standard for T3. E3 has a
DS-1 (Digital Signal level 1) speed of 34.368Mbps with 480 channels. It
The T1 transmission rate of 1.54Mbps. There is equivalent to 16 E1 circuits.
are 24 channels associated with DS-1 or T1.
E-911 (Enhanced 911)
DS-3 (Digital Signal level 3) The capability for agents who answer 911
The T3 transmission rate of 44Mbps over calls to receive the callers’ phone numbers
672 associated channels. (T3 is equivalent to and locations.
28 T1s.)
EDGE (Enhanced Data Rates for
DSP (Digital Signal Processor) Global Evolution)
Compresses (shrinks the number of bits EDGE mobile services offered by cel-
required for) voice and video, performs lular carriers have higher data rates than
Glossary 397

second-generation cellular networks. EDGE of fiber-optic cabling is that it is non-electric.

is often used by carriers as they transition Thus, it is immune from electrical interfer-
to higher-data-rate, third-generation mobile ence and interference from other cables
service. within the same conduit. Fiber-optic cabling
can be used for higher-speed transmissions
end offices than twisted-pair copper cabling.
The central offices connected to end users
and to tandem central offices. Most end Fibre Channel protocol
offices are based on circuit switching, but Used in storage area networks and data cen-
they are slowly being converted to softswitch ters for gigabit-speed, highly reliable, short-
technology to carry VoIP. distance access to devices such as disks,
graphics equipment, video input/output
endpoint devices, and storage devices that hold mas-
Any device connected to LANs, such as sive amounts of data.
computers, printers, and VoIP telephones.
firewall
Ethernet Software and hardware that prevents unau-
Based on the 802.3 standard approved by thorized access to an organization’s network
the IEEE. It defines how data is transmit- files. The intention is to protect files from
ted on and retrieved from LANs. It is used computer viruses and electronic snooping.
by devices such as personal computers to
access the LAN and to retrieve packets car-
firmware
ried on the LAN.
Special software embedded in hardware
(routers, printers, cellular phones etc.) con-
exabyte (EB) taining instructions that control the hardware
A unit of measurement to indicate the num- on which it’s installed. Firmware is non-
ber of bytes in storage networks. An exabyte volatile. It isn’t lost when power is lost.
is equal to 1,000,000,000,000,000,000 bytes
or 1 billion gigabytes. A byte is equal to 8
bits, or one character. fixed mobile convergence
The capability to use the same handset or por-
table computer for Wi-Fi as well as mobile
FDDI (Fiber-Distributed Data
voice and data sessions. For voice calls, it is
Interface)
the capability to continue the call when mov-
An ANSI-defined protocol in which comput-
ing; for example, from a hotspot or home to
ers communicate at 100Mbps over fiber-optic
a cellular network, and vice versa.
cabling. FDDI can be used on backbones
that connect LAN segments together. It is
not widely used. fixed wireless
Wireless service between fixed points. Gen-
fiber-optic cable erally, these are between an antenna on a
A type of cable that is made from glass strands tower and a dish on a business or residen-
rather than copper wire. The key advantage tial customer’s building. It is also used to
398 Glossary

connect two buildings together as a lower- GPRS (General Packet Radio

cost option than running cabling. Used most Services)
often in rural or hard-to-cable areas. A cellular data-packet network service.
Upgrades to digital cellular networks are
fixed wireless access required to provision the service. This is an
Provides similar data rates as Gigabit Ether- “always on” data service that users do not
net technologies using wireless media rather have to dial into to access. Its data rates are
than cabling. LTE and 5G can be used for lower than EDGE and 3G protocols.
broadband wireless access service.
GPS (Global Positioning System)
fractional T3 Used for locational tracking purposes. For
A less expensive T3 access scheme in example, many wireless E-911 systems are
which the customer pays for a fraction of based on GPS satellites along with equip-
the 672-channel capacity of T3 lines. For ment at a carrier’s cell stations and special
example, it might have the capacity of 6 T1s handsets.
or 144 channels. Fractional T3s are cheaper
than a full T3 line. GPU (Graphic Processing Unit)
Specialized computer chips able to manip-
FTP (File Transfer Protocol) ulate graphics. GPUs are used in mobile
A part of the TCP/IP suite of Internet proto- phones, game consoles, and computers.
cols. It is software that lets users download
files from a remote computer to their com- GSM (Global System for Mobile
puter’s hard drive. Communications)
The most widely deployed cellular service,
gateway worldwide. It is a digital service that was
Allows equipment with different proto- first used in Europe in the 1990s.
cols to communicate with one another. For
example, gateways are used when incom- H.320
patible video systems are used for a video The standard for enabling video conference
conference. equipment from multiple vendors to com-
municate with each other by using ISDN
Gigabit Ethernet service.
A high-speed service used for site-to-site
carriers’ backbone networks, metropolitan H.323
area networks, Internet access, and in enter- An ITU-based standard for sending voice
prise internal networks. These networks via IP. H.323 was originally developed for
operate at 1- or 10Gbps. video conferencing.

gigabits per second H.324

Billions of bits per second (Gbps). Fiber- An ITU standard for sending video, voice, and
optic cables carry signals at this speed. data between devices over a single analog,
Glossary 399

dial-up telephone line using a 28.8Kbps without using specialized plug-in languages.
modem. Compression is used on the voice, Apple uses it on its mobile devices in com-
video, and data. petition with the proprietary Adobe Flash.

HBA (Host Bus Adapter) HTTP (HyperText Transfer Protocol)

Used to connect Ethernet switches to net- The protocol used to link Internet sites to
works running Fibre Channel protocols. See one another. For example, HTTP provides
also Fibre Channel protocol. links to servers containing text, graphical
images, and videos.
HDTV (High-Definition Television)
A standard for digital high-resolution televi- hub
sion video and surround sound audio. Prior to the use of switches on LANs, each
device (such as a computer or printer) was
headend wired to the hub, generally located in the
The control center of a cable television wiring closet. Hubs enabled LANs to use
system where incoming video signals are twisted-pair cabling rather than more expen-
received and converted into a format com- sive, harder-to-install and move coaxial
patible for transmission to subscribers and cabling. Hubs are sometimes referred to as
combined with other signals onto the cable concentrators. In wide area network archi-
operator’s fiber infrastructure. tectures, the hub is the headquarters, the
central site, in the network of connected
home page locations.
The default first page of an Internet web site.
A home page is analogous to the first page hyper convergence
and table of contents of a book. Software to simplify data center architecture
by tightly integrating computing devices,
hotspot storage, network, and virtualization.
A public area where people with Wi-Fi–
equipped laptops or personal digital assis- hypervisor
tants can access the Internet. Access might Software that monitors and supervises
be free or available for monthly or daily software on servers with virtual machines.
rates.
ILECs (Incumbent Local Exchange
HTML5 (Hypertext Markup Carriers)
Language 5) The former Bell and independent telephone
A language for structuring browsers and companies that sell local telephone service.
web sites. The World Wide Web Consortium This term differentiates incumbent telephone
(W3C) specifies the standard. Its goal is to companies that were the providers of tele-
make browsing the Web from mobile devices phone service prior to 1996 from competi-
faster, particularly for accessing video and tors such as Paetec, XO Communications,
other applications directly from browsers and tw telecom.
400 Glossary

IMS (Internet Protocol Multimedia intranet

Subsystem) The use of web technologies for internal oper-
Enables applications for voice, video, and ations. Intranets are used by organizations as
online games to be stored, billed for, and a way to make corporate information and
accessed on a common IP platform available applications readily accessible by employees.
from mobile as well as wired networks. An example is a corporate telephone direc-
tory that can be accessed by a browser.
Indefeasible Right of Use (IRU)
Long-term lease for fiber-optic cable inverse multiplexer
runs. IRUs are analogous to condominium Instead of combining individual channels
arrangements. One organization lays the into one “fat” pipe, which is what a multi-
cable and leases it to another carrier for its plexer does, an inverse multiplexer separates
exclusive use. out channels into smaller “chunks.” Inverse
multiplexers are used for video conferenc-
independent telephone company ing, where the 24 channels might be trans-
An incumbent local telephone company that mitted in groups of 6 channels at a speed of
was never a part of the former AT&T’s Bell 386Mbps.
system. Examples of independent telephone
companies are Frontier Corporation and IPsec (Internet Protocol Security)
Cincinnati Bell, Inc. A protocol that establishes a secure,
encrypted link to a security device at the car-
instant messaging rier or the enterprise. It is used for remote
The ability to exchange e-mail in near-real access to corporate services (such as e-mail)
time without typing in an address. Users in conjunction with VPNs.
merely click an icon representing the user to
whom the message is intended, type a mes- IPv4 (Internet Protocol version 4)
sage, and then click Submit (or press the An older addressing format for networks.
Return key) to send the message. Each device on an Internet network is
assigned a 32-bit IP address. This limits the
intermodal competition total number of addresses available.
Competition between services based on dif-
ferent media and technology. For example, IPv6 (Internet Protocol version 6)
mobile services compete with wireline A newer Internet protocol format that speci-
services for local and long-distance call- fies 32-bit IP addresses. This increases the
ing. Cable TV companies compete with number of addresses available in networks
telephone companies such as AT&T and and on the Internet. IPv6 also has additional
CenturyLink. security.

Internet ISDN (Integrated Services Digital

The Internet—with a capital I—is an entity Network)
composed of multiple worldwide networks, A digital network standard that lets users
tied together by a common protocol, TCP/IP. send voice, data, and video over one tele-
phone line from a common network interface.
Glossary 401

ISP (Internet Service Provider) companies were allowed to sell local tele-
An organization that connects end users to phone services. LATAs cover metropoli-
the Internet via broadband, mobile networks, tan statistical areas based on population
and dial-up telephone lines. ISPs often own sizes. For example, Massachusetts has two
Internet backbone networks. ISPs supply LATAs and Wisconsin has four, but Wyo-
services such as voicemail, hosting, and ming, which has a small population, has one
domain name registration. LATA. LATAs are sometimes used for bill-
ing telephone calls in the United States.
IXCs (Interexchange Carriers)
The long-distance companies that sell toll- Layer 4
free 800, international, data networking, and One of the seven layers of the OSI model.
outgoing telephone service on an interstate Layer 4 is the Transport layer that routes and
basis. They now also sell local telecommu- prioritizes packets, based on the source of the
nications services. packet, the destination port number, the pro-
tocol type, and the application. For example,
Java Layer 4 devices can prioritize voice and video
A programming language created by Sun so that networks using IP for voice and data
Microsystems. Multiple types of comput- can handle voice without the delays and lost
ers can read Java programs. They increase packets associated with lower-level protocols.
the power of the Internet because programs
written in Java (called applets) can be down- LDAP (Lightweight Directory Access
loaded temporarily by client computers. Protocol)
They do not take up permanent space on the A directory protocol that describes a uniform
client hard drive. Interactive games can use way of organizing information in directo-
Java programs. ries. Examples of LDAP directories include
the address books in e-mail systems. LDAP
LAN (Local Area Network) enables companies to use one central direc-
Enables computer devices such as personal tory to update multiple corporate directories.
computers, printers, alarm systems, and They also facilitate single sign-on to access
scanners to communicate with one another. different applications on corporate intranets.
Moreover, LANs allow multiple devices to
share and have access to expensive periph- leased line
erals such as printers, firewalls, and cen- Analogous to two tin cans with a string
tralized databases. A LAN is located on an between two or more sites. Organizations
individual organization’s premises. that rent leased lines pay a fixed monthly fee
for the leased lines that are available exclu-
LATA (Local Access And Transport sively to the organization that leases them.
Area) Leased lines can be used to transmit voice,
Upon divestiture in 1984, LATAs were set data, or video. They are also called private
up as the areas in which Bell telephone or dedicated lines.
402 Glossary

LEC (Local Exchange Carrier) so that it can be carried more efficiently. In

Any company authorized by the state pub- addition, media gateways are equipped with
lic utility commission to sell local telephone circuit packs with ports for connections to
service. traditional circuit-switched analog and T1
trunks. Thus, they are used to link converged
local loop IP networks to Public Switched Telephone
The telephone line that runs from the local Networks.
telephone company to the end user’s prem-
ises. The local loop can use fiber, copper, or media servers
wireless media. Specialized computers that play announce-
ments and generate ring tones in corporate
LTE (Long-Term Evolution) telephone systems and converged public net-
A 4G mobile protocol that uses packet works. In corporate VoIP systems, they con-
switching to carry voice, data, and multi- trol call processing.
media traffic more efficiently than earlier
protocols. It will eventually support broad- media servers for homes (home
band speeds of up to 100Mbps. LTE was servers)
developed by the 3rd Generation Partnership PCs or separate devices that store content,
Project. music, photos, movies, or TV shows that can
be distributed over home networks to home
LUN (Logical Unit Number) entertainment equipment.
An identifier in Storage Area Networks
(SANs). It identifies the particular database mesh networks
stored in a computer disk. LUNs are part of Networks in which every device is con-
the Fibre Channel protocol used in SANs. nected to every other device. Community
wireless networks and sensor networks often
MAN (Metropolitan Area Network) use variations of mesh networks, as does the
A network that covers a metropolitan area military when it sets up communications
such as a portion of a city. Hospitals, univer- facilities in war zones. Mesh networks are
sities, municipalities, and large corporations also referred to as multipoint-to-multipoint
often have telephone lines running between networks.
sites within a city or suburban area.
microwave wireless services
Mbps (millions of bits per second) Wireless services with short wavelengths
A transmission speed at the rate of millions operating in the frequency range of about the
of bits in one second. Digital telephone lines 890MHz to 60GHz bands. It is a fixed point-
measure their capacity or bandwidth in bits to-point wireless technology used to connect
per second. two points. Line of sight is required between
microwave towers. For example, if there is a
media gateways tree blocking the view between the towers,
Contain Digital Signal Processors (DSPs) the service is inoperable.
that compress voice traffic to make it smaller
Glossary 403

middleware routers how to route each packet so that the

Software used to translate between disparate router does not have to examine the entire
systems. It translates between the hardware header of each packet after the first point in
(set-top devices) and network protocols and the carrier’s network. Voice and video can
the applications in satellite TV and cable TV have tags that classify them with a higher
networks. Middleware also enables interac- priority than data bits.
tive television applications from different
developers to work with set-top box hard- MSOs (Multiple System Operators)
ware from a variety of manufacturers. Thus, Large cable TV operators, such as Comcast
applications don’t have to be designed dif- and Time Warner Cable, with cable fran-
ferently for each type of device with which chises in many cities.
they interact.
MTA (Major Trading Area)
millimeter wireless services A region that includes multiple cities or
Operate at microwave and higher frequen- states. They are made up of some of the 491
cies. Millimeter refers to the very short BTAs. The FCC auctions off spectrum in
wavelengths of high-frequency services. both BTAs and MTAs.
Some next-generation, 5G, mobile services
are implemented on millimeter airwaves. MTSO (Mobile Telephone Switching
The wavelength is the distance from the Office)
highest or lowest point of one wave to the A central office used in mobile networks.
highest or lowest point of the next wave. They connect cellular network calls to the
PSTNs, and vice versa.
MIMO (Multiple-Input Multiple-
Output) antennas multicasting
MIMO antennas simultaneously transmit The transmission of the same message from
multiple streams at different frequencies a single point to multiple nodes.
within a single channel. This improvement is
analogous to the increased capacity on a mul- multicloud
tilane highway vs. a road with a single lane. Using more than one cloud provider to avoid
MIMO antennas are used on 802.11n (Wi-Fi) dependence on a single provider or because
WLANs, LTE, and WiMAX networks. a particular provider meets a customer’s spe-
cific requirement, for example, using both
mobile wireless services Amazon and Microsoft.
Provide mobility over wide areas by using
services such as cellular, as in cities, multiplexing (muxing)
states, countries, and in some instances, A technique in which multiple devices can
internationally. share a circuit. With multiplexing, carriers
do not have to lay cabling for each computer
MPLS (Multi-Protocol Label that communicates. T1 multiplexers and
Switching) fiber multiplexers enable many devices to
Used to increase router speeds and prioritize share strands of fiber, air waves, and copper
packets. Short, fixed-length “labels” instruct cabling.
404 Glossary

MVNOs (Mobile Virtual Network a network is the PSTN over which residen-
Operators) tial and commercial telephones and modems
MVNOs such as Tracfone and cable TV communicate with one another.
operators resell cellular service on cellular
carriers’ networks. NFV (Network Function
Virtualization)
NAS (Network Attached Storage) Virtualizes the functions of devices such as
The use of servers for storing files that can switches, routers, load balancers, and fire-
be accessed directly by computers located walls and installs these functions as virtual
on the LAN. NAS is less costly than tradi- machines in servers. Is used as an adjunct to
tional SANs. software-defined networks (SDNs).

NAT (Network Address Translation) non-blocking

Translates external IP addresses to inter- Switches that have enough capability for
nal IP addresses, and vice versa. Carriers each connected device to communicate at
and enterprises use different internal and the same time up to the full speed of the port
external IP addresses to conserve public to which it is connected.
addresses and to shield IP addresses from
outside sources. number pooling
Allows local carriers to share a “pool” of tele-
NFC (Near Field Communications) phone numbers within the same exchange.
A low-power, short-range protocol used for Number pooling is a way to allocate scarce
contactless payments via smartphones at telephone numbers more efficiently. Without
retailers and at subway systems instead of pooling, a single local telephone company
tokens and credit cards. has rights to the entire 10,000 block of tele-
phone numbers, but it might only use a por-
NEBS (Network Equipment Building tion of the block.
Standards)
Requirements published in a Bellcore (now OSS (Operation and Support Service)
Telcordia) technical reference for products Hardware and software that carriers use for
placed in a central office environment. Bell- billing, maintenance, and changes to cus-
core is the former Bell Telephone central tomer features.
research organization. There are eight stan-
dards referring to issues such as environ- packet switching
mental, electrical, and cabling requirements, A network technique that routes data in
as well as resistance to natural disasters such units called packets. Each packet contains
as earthquakes. addressing and error-checking bits as well as
transmitted user data. Packets from a trans-
network mission can be routed individually through a
An arrangement of devices that can com- network such as the Internet and be assem-
municate with one another. An example of bled at the end destination.
Glossary 405

PAN (Personal Area Network) send a packet to another device or host to see
Operates over small areas within rooms and if the device sends back a response. The ping
buildings. Bluetooth and RFID are examples also tests round-trip delay, the time it takes
of PANs. to send a message to another device.

PBX (Private Branch Exchange) plug-in

Computerized, onsite telephone system A small program that adds capabilities to a
located at an organization’s premises. PBXs parent, usually larger, program. Plug-ins are
route calls both within an organization and used in browsers and in software defined
from the outside world to people within the networks and MANO (Management and
organization, and vice versa. Organization).

PCS (Personal Communications PoE (Power over Ethernet)

Service) A standard that defines how power can be
Originally referred to 2G digital mobile carried from wiring closets on floors to
services that use spectrum in the higher fre- the computers and other LAN-connected
quencies. PCS (or DCS in Europe) is now devices using the same cabling that trans-
used in the industry to refer to all 2G cellular mits packetized voice and data. Thus, every
access technologies. device does not need its own power or
backup power.
peer-to-peer network
Distributes intelligence over devices in the PON (Passive Optical Network)
network instead of relying on central com- Technologies deployed to extend fiber to
puters. Peer-to-peer networks are often used homes, businesses, and neighborhoods.
to download free music and movies from PONs use non-electrical devices located in
the Internet. In addition, companies such as the access network that enable carriers to
Skype use the technology for voice calls and dynamically allocate capacity on a single
other services. pair of fibers to multiple homes, buildings
in a campus, apartments, and small and
petabyte (PB) medium-sized businesses.
A unit of measurement. One petabyte equals
1,000,000,000,000,000 bytes or 1,000 giga- POP (Point of Presence)
bytes. A byte equals 8 bits. A long-distance company’s equipment that
is connected to the local telephone compa-
photonics ny’s central office. The POP is the point at
All of the elements of optical communica- which telephone and data calls are handed
tions. This includes fiber, lasers, and optical off between local telephone companies,
switches and all elements involved in trans- long-distance telephone companies, and the
mitting light over fiber. Internet.

ping (Packet Internetwork Groper) POTS (Plain Old Telephone Service)

A software protocol used to test communica- Telephone lines connected to most residen-
tions between devices. To “ping” means to tial and small-business users. POTS lines
406 Glossary

are analog from the end user to the nearest PSTN (Public Switched Telephone
local telephone company equipment. People Network)
using POTS for data communications with The global network of circuit-switched tele-
modems are limited in the speed at which phone services that telephone companies
they can transmit data. operate. The PSTN comprises traditional
copper-based telephone lines, central office
presence switches, fiber-optic cabling, undersea cable
The ability of users to know when someone systems, cellular systems, microwave con-
within their community of users is available nections, communications satellites, and any
for real time or near real time messaging. other system connected via public telephone
switching centers. It does not include the
PRI (Primary Rate Interface) Internet or carriers’ private data networks.
A form of ISDN with 23 paths for voice,
video, and data and 1 channel for signals. push-to-talk
Each of the 24 channels transmits at 64Kbps. A walkie-talkie type of service pioneered by
Nextel (now part of Sprint) in which custom-
protocol ers reach one another by pushing a button
Defines how devices and networks com- on the side of their phone. They also dial an
municate with one another. For example, a abbreviated telephone number. Push-to-talk
suite of protocols known as TCP/IP spells is used to reach individuals or predefined
out rules for sending voice, images, and groups. Walkie-talkies are used on non-
data across the Internet and in corporate mobile spectrum between people that per-
networks. haps hike together or for parents to monitor
children in other rooms of a house.
proxy server
Authenticates callers to ensure that they are QoS (Quality of Service)
who they say they are before they are sent The ability to offer a number of priorities
to their destination. They serve as interme- for various types of communications includ-
diaries between callers and applications or ing voice, e-mail, and video on LANs and
endpoints, telephones, and other devices WANs.
connected to the LAN. For instance, a proxy
server in a VoIP environment ensures that radio
external devices requesting to communicate A wireless device with an antenna that con-
with an IP telephone are who they say they verts signals to and from formats compat-
are. ible with the airwaves. Wireless handsets are
radios.
PSAP (Public Safety Answering
Point) ransomware
Groups of agents that answer and dispatch A type of security attack where hack-
911 and E-911 calls for their town, county, ers encrypt organizations’ files, and then
or cluster of towns. They are often located at demand payment to decrypt the files to make
police stations. them readable again.
Glossary 407

RBOC (Regional Bell Operating addresses) and network operators. Encryp-

Company) tion is the use of mathematical algorithms to
At Divestiture in 1984, the Justice Depart- scramble data.
ment organized the 22 Bell telephone com-
panies into seven Regional Bell Operating RSS (Really Simple Syndication)
Companies. As a result of mergers and name A series of software standards that auto-
changes, the former RBOCs are now part of mates feeding updates from news sites such
AT&T, CenturyLink, or Verizon. as Forbes.com and blogs to other sites and
users. The use of RSS means that people
reverse channel don’t have to continually check to see news
In cable TV systems, this carries signals headlines or updates to blogs.
from the customer to the cable operator’s
equipment. Reverse channels are required RTMP (Real-Time Messaging
for Internet access, on-demand TV, and VoIP. Protocol)
A realtime streaming protocol developed by
RFID (Radio Frequency Adobe for using Flash servers to improve
Identification) streamed audio, video, and data over the
A non-line-of-sight wireless technology Internet. It is now used with other Adobe
used to control, detect, and track objects. programs. According to Adobe, most of the
Two common applications are merchandise RTMP specifications are open to develop-
tracking and automated tollbooth collection. ers to create applications compatible with
Adobe Flash Player.
roaming
The capability in mobile networks to use the RTP (Real-Time Transport Protocol)
same handset on another carrier’s network. An IETF standardized protocol for transmit-
Carriers set up roaming agreements to define ting multimedia in IP networks. RTP is used
terms such as per-minute fees that carriers for the “bearer” channels, the actual voice,
charge one another. video, and image content.

router SDH (Synchronous Digital Hierarchy)

A device with routing intelligence that con- A world standard of synchronous opti-
nects local and remote networks together. cal speeds. The basic SDH speed starts at
Routers are also used to forward packets in 155Mbps, also called STM-1 (Synchronous
the Internet. Transport Mode-1) in Europe. SONET is a
subset of SDH.
RPKI (Resource Public-Key
Infrastructure) server
An Internet security protocol for routing A specialized, shared computer on the LAN
packets on the Internet. It adds encryption or in a carrier’s network containing files such
between databases called Internet regis- as e-mail or applications. It can be used to
tries (centralized databases with Internet handle sharing of printers, e-mail, and other
applications.
408 Glossary

set-top box networks between customers and electric

A device connected to a television that utilities. A goal is to use energy more effi-
allows access to various content, including ciently by monitoring usage patterns.
pay-per-view programming. Set-top boxes
can be used to distribute content to other SMS (Short Message Service)
TVs and devices. Newer models contain Short, 160-character (including header
hard drives and multiple tuners. They can be address information) text messages that
used to watch one program while recording can be transmitted between digital cellular
a different show, and to pause and rewind telephones.
programs.
SMTP (Simple Mail Transfer Protocol)
signaling gateway The e-mail protocol portion of TCP/IP used
A type of media gateway that converts sig- on the Internet. Having an e-mail standard
naling from IP networks to that compatible that users adhere to enables people on
with traditional, circuit-switched networks, diverse LANs to send e-mail to one another.
and vice versa.
SNMP (Simple Network Management
SIM (Subscriber Identification Protocol)
Module) The Internet Engineering Task Force (IETF)
A clip-on or internal card with microchips in protocol standard used to monitor devices on
mobile handsets that stores user identity and IP networks. SNMP is used on most LAN
other information such as speed-dial lists monitoring software packages.
and e-mail addresses. CDMA phones do not
have SIM cards. softphone
Telephone functionality on a personal com-
SIP (Session Initiation Protocol) puter in VoIP systems. People with soft-
A signaling protocol used to establish ses- phone-equipped laptops can use their VoIP
sions over IP networks, such as those for remotely.
telephone calls, audio conferencing, click-
to-dial from the Web, and instant message softswitch
exchanges between devices. It is also used to Used in converged enterprise and carrier net-
link IP telephones from different manufac- works that carry VoIP traffic. Softswitches
turers to SIP-compatible IP telephones. It is are built on standard computer processors
used in landline and mobile networks. and use standards-based protocols, which
makes them less costly than proprietary
SLA (Service-Level Agreement) switches based on circuit-switched technol-
Often provided to customers by carriers that ogy. Softswitches manage and control traffic
sell MPLS. The SLA defines service param- in IP networks.
eters such as uptime and response time.
SONET (Synchronous Optical
smart grids Network)
Upgraded utility networks for metering that An older standard for multiplexing high-
can carry two-way messages on cellular speed digital bits onto fiber-optic cabling.
Glossary 409

SONET converts electronic impulses to light and audio is used in broadcasting video and
impulses, and vice versa. Telephone compa- audio over the Internet.
nies use SONET to transmit data from mul-
tiple customers over the same fiber cables. switching
Equipment with input and output ports that
spectrum transmits traffic and sets up paths to destina-
Made up of frequency bands or airwaves that tions based on digits dialed or addressing bits.
carry either analog or digital wireless sig-
nals. Spectrum consists of the multitude of T.120
invisible electric energy in frequency bands The ITU-defined standard for document
that surround the Earth and are used to trans- sharing and white boarding. People using
mit segregated radio waves. Radio waves T.120-adherent software can participate in
carry signals as electrical energy on unseen document-sharing conferences with one
waves. another over the Internet. For example, ven-
dors can demonstrate their products to poten-
SSAD (Solid State Drive) tial customers via computers connected to
Contains integrated circuits that store mem- the Internet at dispersed sites.
ory. SSDs are for the most part used as non-
volatile storage where data is not lost in T1
power outages. A North American and Japanese standard for
communicating at 1.54Mbps. A T1 line has
SSL (Secure Sockets Layer) the capacity for 24 voice or data channels.
A newer type of security for VPNs than
IPsec. It is embedded in browsers so that T3
organizations aren’t required to install spe- A North American standard for communicat-
cial client software in each user’s computer. ing at speeds of 44Mbps. T3 lines have 672
channels for voice and/or data. Fiber-optic
statistical multiplexing cabling or digital microwave is required for
Assumes that not all devices are active all T3 transmissions.
the time. A statistical multiplexer does not
save capacity for each device connected to it. tandem offices
It operates either on a first-come, first-served Used in the core of traditional, traditional
basis or on a priority basis in which certain Public Switched Telephone Networks
streams of traffic have higher priority than (PSTNs). Tandem central offices switch traf-
others. fic between central offices. End users are not
connected to tandem offices. Tandem central
streaming video and audio offices are being replaced by lower-cost,
A means of starting to play a message while more efficient softswitches.
the rest of it is being received. Streaming
uses compression to make the voice, video, TCP (Transmission Control Protocol)
and data files smaller so that they can be Includes sequence numbers for each packet
transmitted in less time. Streaming video so that the packets can be reassembled at
410 Glossary

their destination. The sequence numbers such as hosting and e-mail. Examples
ensure that all of the packets arrive and are include AT&T, Level 3, Sprint Nextel, and
assembled in the proper order. If some pack- Verizon.
ets are discarded because of congestion, the
network retransmits them. The numbering TDM (Time-Division Multiplexing)
and tracking of packets make TCP a connec- TDMs, such as T1/E1 equipment, save
tion-oriented protocol. Router-based LAN capacity for each device that is connected
internetworking uses TCP. to the multiplexer. This is less efficient than
other methods such as statistical multiplex-
TCP/IP (Transmission Control ing because capacity is unused when the
Protocol/Internet Protocol) device is not transmitting.
The suite of protocols used on the Internet
and also by organizations for communica- topology
tions among multiple networks. The geometric shape of the physical connec-
tion of the lines in a network—or, the “view
TD-SCDMA (Time-Division Synchro- from the top”—which is the shape of the
nous Code-Division Multiple Access) network, the configuration in which lines are
China Mobile uses TD-SCDMA, which is connected to one another.
a homegrown version of UMTS TDD (3G
mobile protocol), for its 3G mobile service. traffic shaping
A way for carriers to manage traffic to con-
tether trol congestion. Techniques include pro-
The ability to connect laptop or tablet com- viding better QoS for particular types of
puters that don’t have Internet access to traffic such as video, prioritizing traffic for
the Internet via a mobile handset’s Internet higher fees, and throttling traffic (decreasing
connection. This is generally done by con- speeds) for subscribers who exceed allotted
necting the computer and mobile handset amounts.
together through USB ports via USB-com-
patible cables. transponder
Fiber-optic transponders receive, amplify,
throughput and retransmit optical signals on different
The actual amount of user data that can be wavelength channels on fiber cabling. They
transmitted on a telecommunications link or also convert electrical signals to optical sig-
on wireless networks. Throughput does not nals and optical signals back to electrical
include headers, for example, bits used for signals where they connect to twisted-pair
addressing, error correction, or prioritizing copper or coaxial cabling.
packets with voice and data bits.
trunking gateway
tier 1 provider Converts packet network circuits (such as
A loosely defined term for Internet service T1/E1 and T3/E3), to those compatible with
providers that own Internet backbone fiber- the Public Switched Telephone Network
optic facilities in addition to ISP services (PSTN), and vice versa, so that voice traffic
Glossary 411

can be transferred between IP networks and UMTS (Universal Mobile Tele-

traditional, circuit-switched networks. communications System)
A European standard for 3G mobile wire-
trunks less networks that GSM networks generally
The circuits (electrical or fiber paths) between use when they are upgraded. WCDMA is a
telephone companies and enterprise tele- UMTS technology.
phone systems and between central office
switches. A T1 is a trunk. UMTS TDD (Universal Mobile
Telecommunications System/
tuner Time-Division Duplexing)
Used in televisions, radios, and set-top boxes A high-speed wireless technology used for
to filter out all channels (frequencies) except 3G cellular and broadband wireless access
the particular one at the frequency the tuner to the Internet. It is also referred to as TD-
is designed to accept. The tuner then adapts CDMA. It uses the same channel for sending
the frequency to ones compatible with and receiving, with small time slots to sepa-
the TV or radio. Newer set-top boxes are rate the sending and receiving streams rather
equipped with multiple tuners so that one than the larger guard band used in other 3G
channel can be recorded while another is technologies.
being viewed.
UNE (Unbundled Network Element)
tunneling Parts of the incumbent local telephone com-
A method of securely transferring data pany infrastructure required to lease out to
between sites connected by networks such other local exchange carriers. Examples of
as a VPN, the Internet, an intranet, or an UNEs are the copper lines to customers’
extranet. Tunneling puts a new header in premises. Many UNE requirements have
front of the data. This is a way of separat- been eliminated.
ing data from multiple companies using the
same network. unicasting
The transmission of one message from a sin-
UDP (User Datagram Protocol) gle point to another point. This is also referred
Part of the TCP/IP suite of protocols. UDP to as point-to-point communications.
has less overhead because it does not have
bits with packet numbers and acknowledg- unified messaging
ments. UDP is considered a connectionless Computing platform that contains voice-
protocol because packets arrive at their des- mail, facsimile, e-mail, and sometimes video
tination independently from various routes mail on a single system. Users can access all
without sequence numbers. There is no of these services from their computer inbox.
assurance that all of the packets for a partic-
ular message arrive. UDP is suited for appli- unlicensed spectrum
cations such as database lookups, voice, and Governments specify portions of the air-
short messages. waves for unlicensed services at no charge to
412 Glossary

companies; 802.11 services are an example. twisted-pair copper cabling. The twists in
Most governments issue certification, signal- the copper cables cut down on the electri-
spreading, and power-limitation rules to pro- cal interference of signals carried on pairs
tect adjacent licensed spectrum bands from of wire near one another and near electrical
harmful interference from transmissions equipment.
within the unlicensed spectrum.
UWB (Ultra-Wideband)
Uplink (UL) A wireless service that supports higher data
On broadband and mobile networks, the rates than RFID and can be used for some of
uplink carries traffic from the customer to the same applications. However, widespread
the carrier’s equipment. adoption is held up by a lack of an agreed-
upon standard. It is also used by the military
URL (Universal Resource Locator) and by governments for tracking and for
An address on the World Wide Web. The finding people trapped under rubble.
address is made up of strings of data that
identify the server, the folder location, and VLANs (Virtual Local Area Networks)
other information indicating the location of Groups of devices programmed in Layer 2
information on the Internet. switches for special treatment in enterprise
networks. They are not grouped together in
USF (Universal Service Fund) physical networks; rather, they are grouped
Used to fulfill the commitment made by together in software for common treatment
the United States government to affordable and programming purposes. They are “vir-
universal telephone service to all residen- tual” networks that act as if they were sepa-
tial consumers. The Telecommunications rate LANs.
Act of 1996 expanded universal service to
rural healthcare organizations, libraries, and VoIP (Voice over Internet Protocol)
educational institutions for Internet access, The process of sending voice traffic in pack-
inside wiring, and computers. The library ets on IP-based data networks. VoIP digitizes
and educational subsidies are a part of uni- analog voice, compresses it, and puts it into
versal service known as the e-rate. Every packets at the sending end. The receiving
interstate carrier, cell phone, and paging end does the reverse. Unlike circuit switch-
company must pay a percentage of its inter- ing, no path is saved for the duration of the
state and international revenues to the fund. voice session. However, voice packets can
A separate fund, The Connect America be prioritized.
Fund, has been established for residential
broadband. VoLTE (Voice over LTE)
A 3rd Generation Partnership Program pro-
UTP (Unshielded Twisted-Pair) tocol used to carry packetized voice (VoIP)
Most inside telephones and computers are on LTE networks.
connected to one another via unshielded
Glossary 413

VPN (Virtual Private Network) WebRTC (Real-Time

Provides the functions and features of a Communications)
private network without the need for dedi- A set of IEEE and World Wide Web Con-
cated private lines between corporate sites sortiums (W3C) protocols for embedding
or between corporate sites and remote users. software based codecs in applications and
Each site connects to the network provider’s browsers for real time voice, video, and
network rather than directly to another cor- chat among disparate devices and operating
porate location. systems.

VRU (Voice Response Unit) Wi-Fi (Wireless Fidelity)

Provides information to callers based on Wireless networks based on 802.11 IEEE
their touch-tone or spoken commands. VRUs standards. The Wi-Fi Alliance tests and
query computers for responses and “speak” certifies that products meet IEEE 802.11
them to callers. For example, people often standards.
can call their bank or credit card company to
find out their balance or to learn if a payment WiMAX (Worldwide Interoperability
has been received. for Microwave Access)
A forum whose goal is to facilitate interoper-
WAN (Wide Area Network) ability of equipment based on 802.16 stan-
Connects computers located in different dards for high-speed fixed wireless service
cities, states, and countries. using the 2GHz to 11GHz frequency bands.
Newer versions are used for mobile wire-
WAP (Wireless Application Protocol) less service. WiMAX fixed wireless service
A protocol that defines how Internet sites is used for Internet access and for backhaul
can be displayed to fit on the screens of cel- networks, which connect cellular towers to
lular devices and how devices access and mobile central offices.
view these sites.
WiMAX 2
WCDMA (Wideband Code-Division A 4G mobile protocol developed by the
Multiplexing) IEEE. It is not as widely used as LTE, but
The 3G service that most GSM operators was available earlier.
install.
wire speed
WDM (Wavelength-Division The capability of switches to forward pack-
Multiplexing) ets equal to the full speed of their ports.
Also known as dense wavelength division Ports are the interfaces to which cabling is
multiplexing, this enables multiple colors or connected. Wire speed is achieved with pow-
frequencies of light to be carried on single erful switch processors, the computers that
pairs of fiber. WDM greatly increases the look up addresses and forward packets.
capacity of network providers’ fiber-optic
networks.
414 Glossary

wireless local loop 1989 to make information on the Internet

Uses wireless media to bring telephone service more accessible. A browser is required to
to a customer’s premises rather than copper navigate and access the World Wide Web.
or fiber cabling.
XML (Extensible Markup Language)
WISP (Wireless Internet Service A software language that was developed
Provider) to make it easy for disparate computers to
Provides Internet access using non-cellular exchange information. XML uses tags to
wireless technology. identify fields of data. XML is like a data
dictionary in that uniform tags are attached
WLAN (Wireless Local Area to elements so that diverse programs can
Network) read the tags. For example, tags can be used
Local Area Network (LAN) in which devices to identify elements such as prices, model
are connected to other devices or the LAN numbers, product identities, or quantities
wirelessly rather than with cabling; 802.11- ordered.
based Wi-Fi networks are WLANs.
ZigBee
worms Based on the IEEE 802.15.4 standard for
Viruses that are programmed to start infecting wireless networks with devices that operate
networks and other computers at a predeter- at low data rates and consume small amounts
mined future time and date. These time-released of power. The ZigBee Alliance is developing
viruses are also referred to as bots. specifications for higher-level services to be
used in sensor networks such as those that
WWW (World Wide Web) monitor and control heating and electrical
Connects users from one network to another systems in businesses.
when they “click” links. It was developed in
Index

Numbers addresses
filtering, 243–244
3G networks, 334–335 IP (Internet Protocol), 96. See also MPLS
3GPP (3rd Generation Partnership Program), 335 (Multi-Protocol Label Switching)
3GPP2 (3rd Generation Partnership Project 2), 335 dynamic, 249
releases and revisions to, 384–385 IPv4, 275, 296–297
table of, 383–384 IPv6, 275, 296–297
4G networks, 333–335. See also LTE in Layer 3 switches, 71
(Long-Term Evolution) networks static, 249
5G networks, 335, 359–361 structure of, 294–297
utility pole attachments, 138–139 MAC (Media Access Control), 72
VR (virtual reality) and, 37 Adelphia, 134
10G-EPON (Gigabit Ethernet PON), 224 Admeld, 158
21st Century Fox, 126 Adsense, 277
40/100Gbps Ethernet switch standards, 74 ADSL (Asymmetric DSL), 267
128 Technology, 183–184 Adtran, 206
802.11 standards Advanced Audio Coding (AAC), 31
802.1pq, 118 Advanced Research Projects Agency
802.11ac, 372 (ARPANET), 23
802.11n, 370–371 agents, 153–154
capacity requirements, 372–373 aggregation routers, 292
table of, 368–369, 385–387 air interfaces, 355–358
911 call centers, 264–265 Akamai Technologies, 52,
193–195
A Alcoa, 83
Alert Logic, 55
AAC (Advanced Audio Coding), 31 alerts, 96–97
A-CAM (Alternative Connect America Model), Alexa, 116–117, 159, 160
141–142 algorithms
Access Control Lists (ACLs), 184 compression, 30–31, 32–33
access networks. See last-mile access networks search engines, 278–280
access points, 376 AlienVault, 133
ACLs (Access Control Lists), 184 Alltel Corporation, 151
Acme Packet, 183 Alphabet, 156. See also Google

415
416 Index

Alternative Connect America Model (A-CAM), 141–142 Asymmetric DSL (ADSL), 267
Altice USA, 135 asynchronous protocols, 191
Amazon, 5 AT&T
advertising, 159 breakup of, 128, 168
as agent, 153–154 cable TV services, 129–130
Alexa, 116–117 co-location facilities, 223
Amazon Web Services, 257 expenses, 126
brick-and-mortar stores, 308 FTTH (fiber to the home), 208–209
cloud computing, 44, 49–50, 53 ISP services, 276
data centers, 80 large enterprise reliance on, 130
expansion and diversification, 159 lobbying by, 148
expenses, 126 mergers and acquisitions, 126, 129–130, 132–133,
Fire TV, 283 151–152, 329
machine learning in, 22 rate of return guarantees, 139
network neutrality issues, 313–314 resellers, 155
services and offerings, 159 rural availability of, 315
subscriber numbers, 216 spectrum blocks, 327
subsidiaries and purchases, 159–160 subscription services, 216
video conferencing services, 109 Wi-Fi hotspots, 379–380
American Movil, 327–328 zero rating, 313
American Tower, 349 Atlantic Broadband, 153
amplifiers, 9–10 ATM PON (APON), 224
analog signaling, 63 attacks, 296–298
antennas distributed Denial of Service (DoS), 52
DAS (Distributed Antenna Systems), 354 DoS (Denial of Service), 52, 119
MIMO (Multiple-Input Multiple-Output), 356–357, insider breaches, 299–300
359, 370–371 ransomware, 304
any-to-any networks, 237. See also MPLS recognition of, 301
(Multi-Protocol Label Switching) redress against hackers, 304–305
AOL, 135 resistance to, 298–299
APDs (avalanche photodiodes), 17 response to, 301
APIs (application programming interfaces), security software, 299
47, 260 auctions, allocating spectrum with, 326–328
Apollo Global Management, 47 Audible.com, 160
APON (ATM PON), 224 augmented reality (AR), 37
Apple authentication
AAC (Advanced Audio Coding), 31 streaming media, 290
acquisitions by, 166–167 three-factor, 242–243
Apple Music, 5, 31 two-factor, 242–243
AppleTV, 283 automation, WA SDNs (Wide Area Software Defined
devices and offerings, 165–166 Networks), 261
appliances, 242 avalanche photodiodes (APDs), 17
application programming interfaces (APIs), 47, 260 Azure, 52, 53, 163, 257
applications, cloud computing and, 58–60
aQuantive, 165
AR (augmented reality), 37 B
ARM Holdings, Plc.21
backbone networks, 14, 104, 120
ARPANET (Advanced Research Projects Agency), 23
backhaul (middle-mile) networks, 152–153, 175,
asymmetric channels, transitioning to symmetric
197–199, 340–341
coaxial cable capacity, 214
backups
DOCSIS standards, 213–215, 225
cellular, 263
QAM (Quadrature Amplitude Modulation),
DSL (Digital Subscriber Line) technology, 263
214–215
Index 417

duplicate fiber cabling, 263–264 backups, 263–265

mesh configuration, 192–193 bandwidth capabilities, 187
in-band, on-channel (IBOC), 64 Carrier GigE (Gigabit Ethernet), 249–251
band steering, 376 Gigabit Ethernet, 188–190
bandwidth capabilities, 187 legacy systems, 187
Gigabit Ethernet, 188–190 cloud connections, 257–258
LANs (local area networks), 76 co-location facilities, 222–223
legacy systems, 187 comparison of services, 262, 266–267
bare metal servers, 47 core networks, 175–176
Barnes & Noble, 159 definition of, 175
base stations, 339 NFV (Network Function Virtualization),
batteries 177–184
backup, 204 SDN (Software Defined Networking),
life of, 365–366 176–177, 182–184
beamforming, 372 submarine network systems, 185–187
Beats Electronics, 167 dedicated wavelengths, 251
“beauty contests”326 cloud connections, 257–258
Bell Laboratories, 128, 323 inter-exchange mileage, 254
Bennett, Geoff, 6 local channels, 254
Berklee College of Music, 93–94 MANs (Metropolitan Area Networks),
Berners-Lee, Tim, 274 253–254
Best Buy, 153–154 network topology on, 252–253
Bezos, Jeff, 159 T1 services, 251–252, 267
billing T3 services, 251–252, 267
carrier networks, 28 WANs (Wide Area Networks), 253–254
signaling and, 221 definition of, 229–230
Bitcoin, 303 DSL (Digital Subscriber Line) technology
bits, 39 backups, 263
black day viruses, 244 bonding, 248
blade servers, 120 DSLAMs (DSL Access Multiplexers),
Blink, 160 201–202
Block Chain, 302–303 history of, 247
blocks, spectrum, 325–326 how it works, 247
Bluetooth, 331–332 limitations of, 247–248
Blum, Rod, 199 replacing with fiber and wireless, 249
Boingo, 379 standards for, 267–268
bonding, 213, 248 emergency call reporting, 264–265
Borders, 159 entertainment content, transmission of
Boston 360, 35 headends, 195–196
Boston Conservatory of Music, 93–94 hub sites, 196
BPON (Broadband PON), 224 MANs (Metropolitan Area Networks),
bps (bits per second), 39 196–197
Bps (bytes per second), 39 expansion into new territories, 209
Brightcove, 290 international availability, 230
Brin, Sergey, 155 IP VPNs (Internet Protocol Virtual Private
broadband networks, 172–173, 228–229. Networks), 238–239
See also LTE (Long-Term Evolution) advantages and disadvantages, 239–240
networks; signaling; VoIP (Voice over security, 240–243
Internet Protocol) last-mile access networks
access to, 127 access networks in cable operators’ networks,
actual versus advertised speeds, 231 209–216
availability of, 275–277, 315–316 capacity, adding, 200
418 Index

definition of, 174, 199 common configurations, 255–257

DSLAMs (DSL Access Multiplexers), on dedicated lines, 252–253
201–202 transport networks, 223
fiber-optic cabling, transitioning to, 201, WA SDNs (Wide Area Software Defined Networks)
202–204 comparison of broadband services, 262
legacy circuit-switching service, 200–201 enterprise use of, 259–260
PONs (Passive Optical Networks), 204–209, implementation challenges, 262
224 MPLS (Multi-Protocol Label Switching),
power issues, 203 262
managed services orchestration and automation, 261
advantages of, 245 Broadband PON (BPON), 224
definition of, 245 Broadcom, 21
typical offerings, 246–247 Brown, Reggie, 162
MANs (Metropolitan Area Networks), 196–197 Buda, Eric, 195
dedicated services in, 253–254 Bungee, 165
definition of, 174 bytes, 85
mesh configuration backups, 192–193
middle-mile networks, 152–153, 175, 197–199, C
340–341
MPLS (Multi-Protocol Label Switching), 235 C Spire Wireless, 151
CoS (Class of Service), 238 Cable Modem Termination Systems (CMTSs), 210,
implementation, 236–237 211–212
multinational locations, 237 cable modems, 210, 212
routes and security, 236 cable operators’ networks, access networks in
service components, 238 cable modems, 209–210, 212
VPNs (Virtual Private Networks), 235 CMTSs (Cable Modem Termination Systems),
WA SDNs (Wide Area Software Defined 211–212
Networks), 262 competition, 215–216
national emergencies, services in, 217 satellite TV, 216
Internet security, 219–220 set-top boxes, 210–211, 212
reliability and sustainability, 218–220 symmetric channels, transitioning to
NFV (Network Function Virtualization), 172, 178 coaxial cable capacity, 214
OTNs (Optical Transport Networks), 191–192, DOCSIS standards, 213–215, 225
193–195 QAM (Quadrature Amplitude Modulation),
private data networks, 176 214–215
public networks, 173–175 cable TV
SDN (Software Defined Networking), 172 competition in, 135–137
security price of, 126
authentication, 242–243 Telecommunications Act of 1996, 128–130
cloud computing, 55–56 CableLabs, 212
containers, 47 Cablevision, 135
firewalls, 243–245 cabling, 76. See also DSL (Digital Subscriber Line)
IP VPNs (Internet Protocol Virtual Private technology; PONs (Passive Optical Networks)
Networks), 240–243 coaxial, 214
IPsec (Internet Protocol Security), 241–242 copper
L2TP (Layer 2 Tunneling Protocol), 241, 242 in commercial organizations, 16–17
MPLS (Multi-Protocol Label Switching), 236 connecting fiber to, 17
SSL (Secure Sockets Layer), 242 disadvantages of, 18
TLS (Transport Layer Security), 241, 242 fiber-optic compared to, 10–12
SIP (Session Initiation Protocol), 258–259 full duplex operation, 9
in Sub-Saharan Africa, 338 standards, 18–19
topologies UTP (unshielded twisted pair), 19–20
Index 419

fiber-optic, 5 A-CAM (Alternative Connect America

advantages of, 9–10 Model), 141–142
amplifiers, 9–10 e-rate subsidies, 143
backups with, 263–264 Internet connectivity costs in, 198–199
coherent fiber optics, 8 Lifeline subsidies, 142–143
in commercial organizations, 14–16 categories, unshielded twisted pair, 19–20
connecting copper cables to, 17 CATV (Community Antenna TV), 135
connecting copper to, 17 CBS, 285
dark fiber, 12 CCA (Competitive Carrier Association), 329
demand for, 5–6 CDMA (Code Division Multiple Access), 334, 383
DWDMs (dense wavelength division CDNs (Content Delivery Networks), 293
multiplexers), 7–8 cellular networks. See Wi-Fi and mobile networks
FTTH (fiber to the home), 208–209 Cellular Service on Wheels (CoW), 354
FTTP (fiber to the premises), 201, 213–214 Centennial, 151
half duplex operation, 9 Central Office Re-architected as a Data Center (CORD),
Infinera, 13 172, 181–184
information content provider use of, 6–7 CenturyLink
lasers, 8 co-location facilities, 223
in last-mile access networks, 201, 202–204 CORD (Central Office Re-architected as a Data
multi-mode, 13–14 Center), 182
regenerators, 9–10 FTTH (fiber to the home), 208–209
replacing DSL with, 249 history of, 128
single-mode, 13–14 ISP services, 276
super channels, 8 large enterprise reliance on, 130
submarine network systems, 186–187 lobbying by, 148
caching, 293 mergers and acquisitions, 132, 133–134
CAF (Connect America Fund), 137 as resellers, 155
Cambridge Analytica, 162 rural availability of, 315
CAPWAP (Control and Provisioning of Wireless Access subscription services, 215–216
Points), 387 channel bonding, 372
Carbonite, 52 channels
Cardano, 303 local, 254
Carrier GigE (Gigabit Ethernet), 249–251 symmetric
Carrier IQ, 133 coaxial cable capacity, 214
carriers, 25, 276–277. See also competition; DOCSIS standards, 213–215, 225
individual carrier companies QAM (Quadrature Amplitude Modulation),
agents for, 153–154 214–215
bandwidth capabilities, 187 Chapman, Jim, 97
Gigabit Ethernet, 188–190 charging batteries, 365–366
legacy systems, 187 Charter, 135
capital depreciation at, 182 charts, network monitoring with, 98
carrier hotels, 222–223 China, broadband services in, 230
churn rates, 150 chips, 21
co-location facilities, 222–223 Cincinnati Bell, 151, 155
consolidation of, 149–152 circuit-switched voice, 189
largest companies by revenue, 25 circuit-switching service, 200–201
network neutrality issues, 311–314 Cisco WebEx, 109
pricing and competition, 316 Class of Service (CoS), 118, 238
resellers, 154–155 Clearwire, 151
rural areas, 131–132 client software, 79, 242
broadband availability in, 131–132, 315–316 client steering, 376
CAF (Connect America Fund), 137 Clift, Steve, 310
420 Index

cloud computing, 47–49 access networks in cable operators’ networks,

Amazon, 44, 49–50, 53 215–216
applications, 58–60 agents, 153–154
automatic updates, 59 consolidation via mergers
challenges of, 61–62 competition and, 148–149
compatibility issues, 56–57 impact on consumers, 151
data centers, impact on, 81–82 mobile operators, 149–152
DevOps, 56 pre-2011 mergers, 132–133
direct dedicated interconnections to, 257–258 current state of, 126–128
fiber-optic networks and, 6 ISPs (Internet service providers), 316
growth of, 4–5 MVNOs (Mobile Virtual Network Operators),
IaaS (Infrastructure as a Service), 51, 53 154–155
international regulations, 60–61 nontraditional competitors
monitoring, 57–58 Amazon, 159–160
network monitoring systems, 98–99 Apple, 165–167
PaaS (Platform as a Service), 51, 52 Facebook, 161–162
privacy, 60–61 Google, 155–159
private, 49 Microsoft, 163–165
public, 49 Snapchat, 162–163
rationale for, 49–50, 61–62 Twitter, 165
regulations, 54 overbuilders, 153
SaaS (Software as a Service), 51–52 prisoner telephony providers, 155
security, 55–56 quarterly residential subscriber losses, 131
spinning applications to cloud, 53–54 rural areas, 131–132
submarine network systems, 186 broadband availability in, 131–132, 315–316
video conferencing, 109–110 CAF (Connect America Fund), 137
virtualization and, 43–44 A-CAM (Alternative Connect America
Wi-Fi management with, 376–377 Model), 141–142
Cloud Xpress, 8 e-rate subsidies, 143
Clyburn, Mignon, 144, 230 Internet connectivity costs in, 198–199
CMTSs (Cable Modem Termination Systems), 210, Lifeline subsidies, 142–143
211–212 streaming media, 286
coaxial cable capacity, 214 wholesale providers, 152
Code Division Multiple Access (CDMA), 334, 384 Competitive Carrier Association (CCA), 329
codecs, 34 compression, 29
Cogeco, 153 algorithms, 30–31, 32–33
coherent fiber optics, 8 applications, 33–34
collaboration software, 108–109 codecs, 34
co-location facilities, 222–223 quality and, 102
Comcast, 135–136, 284 standards, 64
lobbying by, 148 conditional access, 211
mergers and acquisitions, 134 conferencing, UC (Unified Communications)
as resellers, 155 cloud solutions, 109–110
set-top boxes, 211 collaboration software, 108–109
Wi-Fi hotspots, 379 desktop video conferencing, 107–109
ComiXology, 160 immersive HD video conferencing, 110
Common Public Radio Interface (CPRI), 352 Connect America Fund (CAF), 137
Communications Platform as a Service (CPaaS), 111 Consent Decree, 168
Community Antenna TV (CATV), 135 Consolidated Telecommunications Services, 152
community forums, 309–310 consolidation via mergers
competition, 130–131, 148–149. See also individual competition and, 148–149
companies impact on consumers, 151
Index 421

mobile operators, 149–152 CPRI (Common Public Radio Interface), 352

pre-2011 mergers, 132–133 C-RAN (Centralized or Cloud based Radio Access
contact centers, 111–112 Networks), 360
CRM (customer relationship management) CRM (customer relationship management) services, 51,
services, 114 114, 163
dispersed, 112 crosstalk, 18
e-mail response management software, Crown Castle Fiber, 152, 349
113–114 cryptocurrency, 302–303
staffing, 112–113 customer relationship management (CRM) services, 51,
statistics, 113 114, 163
virtual, 112 cyber terrorism, 305
containers, 4, 45–47
Content Delivery Networks (CDNs), 293 D
Contingent Network Services, 134
continuous data center operation, 83–84 Dano, Mike, 330
Control and Provisioning of Wireless Access Points dark fiber, 12, 152
(CAPWAP), 387 DAS (Distributed Antenna Systems), 354
control plane, 176–177, 261 data centers
controllers, 79, 376–377 cloud computing, impact of, 81–82
COPPA (Children’s Online Privacy Protection Act), 146 continuous operation, 83–84
copper cabling, 76. See also DSL (Digital Subscriber definition of, 80
Line) technology environmental controls in, 82–84
in commercial organizations, 16–17 security, 81
connecting fiber to, 17 Data Over Cable System Interface Specifications.
disadvantages of, 18 See DOCSIS standards
fiber-optic compared to, 10–12 data plane signals, 261
full duplex operation, 9 databases, LTE (Long-Term Evolution), 343–344
standards, 18–19 DCS (Digital Cellular System), 382
UTP (unshielded twisted pair), 19–20 dedicated wavelengths, 251
CORD (Central Office Re-architected as a Data Center), cloud connections, 257–258
172, 181–184 inter-exchange mileage, 254
core networks, 175–176 local channels, 254
definition of, 175 MANs (Metropolitan Area Networks),
NFV (Network Function Virtualization), 177 253–254
CORD (Central Office Re-architected as a network topology on, 252–253
Data Center), 181–184 T1 services, 251–252, 267
implementation of, 182–184 T3 services, 251–252, 267
Open Source MANO (Management and WANs (Wide Area Networks), 253–254
Organization), 179–181 Deep Packet Inspection (DPI), 25, 26–29, 92
VNFs (virtual network functions), 178–179 Denial of Service (DoS) attacks, 52, 119
SDN (Software Defined Networking), 78–79, 172, dense wavelength division multiplexers (DWDMs),
176–177, 182–184, 192 7–8, 191
submarine network systems, 185 desktop video conferencing, 107–109
cable cuts in, 186–187 desktop virtualization, 90–91
cloud and content providers, 186 DevOps, 56
power limitations, 186 DID (Direct Inward Dialing), 106
technological advances in, 185–186 digital assistant software, 117–118
CoS (Class of Service), 118, 238 Digital Cellular System (DCS), 382
CoW (Cellular Service on Wheels), 354 digital divide, 315–316
Cox Communications, 135 Digital Signal Processors (DSPs), 92, 104–105
CPaaS (Communications Platform as a digital signaling, 63, 92, 104–105, 267
Service), 111
422 Index

Digital Subscriber Line. See DSL (Digital Subscriber ElasticBox, 134

Line) technology Electrocution PLLC, 138–139
Direct Inward Dialing (DID), 106 electromagnetic interference (EMI), 10
DirecTV, 129–130, 133, 216 Emagic, 167
Dish Network, 145, 216, 327–328 e-mail
disk mirroring, 87 community e-mail lists, 309–310
dispersed contact centers, 112 response management software, 113–114
Distributed Antenna Systems (DAS), 354 UC (Unified Communications), 107
distributed Denial of Service (DoS) attacks, 52 emergency call reporting, 264–265
distribution hubs, 196 EMI (electromagnetic interference), 10
DNC (do-not-call) list, 145 employees
DNO (Do Not Originate) Registry, 145–146 contact centers, 112–113
DNS (Domain Name System), 295 security breaches by, 299–300, 303–304
Docker, 47 eNBs (Micro Evolved eNodeBs), 352
DOCSIS standards, 213–215, 225 encryption, 54, 302
Domain Name System (DNS), 295 Enhanced Specialized Mobile Radio (ESMR), 383
domain names, 295–296 eNodeB, 338
do-not-call (DNC) list, 145 enterprise backbone, 104
DoS (Denial of Service) attacks, 52, 119 Enterprise Resource Planning (ERP), 163
DoubleClick, 158, 277 enterprise VoIP (Voice over Internet Protocol) services,
Dow Chemical Company, 83 231–234
DPI (Deep Packet Inspection), 25, 26–29, 92 entertainment content, transmission of. See also
drones, 364, 365–366 streaming media
drop wires, 153 headends, 195–196
DSL (Digital Subscriber Line) technology hub sites, 196
backups, 263 MANs (Metropolitan Area Networks),
bonding, 248 196–197
DSLAMs (DSL Access Multiplexers), environmental controls, 82–84
201–202 Equinix, 223, 257
history of, 247 e-rate subsidies, 143
how it works, 247 ERP (Enterprise Resource Planning), 163
limitations of, 247–248 ESMR (Enhanced Specialized Mobile Radio), 383
replacing with fiber and wireless, 249 Essence Group, 116
standards for, 267–268 Ethereum, 303
DSLAMs (DSL Access Multiplexers), 201–202 Ethernet, 40, 77
DSPs (Digital Signal Processors), 92, 104–105 10G-EPON (Gigabit Ethernet PON), 224
Dunbrack, Linda, 310 40/100Gbps Ethernet switch standards, 74
DWDMs (dense wavelength division multiplexers), Carrier GigE (Gigabit Ethernet), 249–251
7–8, 191 FCoE (Fibre Channel over Ethernet), 88
dynamic IP (Internet Protocol) addresses, 249 Gigabit Ethernet, 188–190
PoE (Power over Ethernet), 105
E Synchronous, 188
ETSI (European Telecommunications Standards
EarthLink, 137 Institute), 179–180, 212. See also DOCSIS
East-West traffic, 180 standards
echo, 102 evolved packet core (LTE), 343–344
Echo (Amazon), 159 exabytes, 21
e-commerce, 308–309 extenders, 372
E-Democracy forums, 309–310 Extensible Markup Language (XML), 41
edge routers, 92, 291–292 extradition treaties, 297
efficiency, spectral, 328 extranets, 319
Eggerton, John, 199 Exxon Mobile, 83
Index 423

F in commercial organizations, 14–16

connecting copper cables to, 17
FaaS (firewalls as a service), 244 dark fiber, 12
Facebook, 5, 21, 52 demand for, 5–6
data centers, 80 DWDMs (dense wavelength division
data privacy issues, 162 multiplexers), 7–8
expenses, 126 FTTH (fiber to the home), 208–209
lobbying by, 148 FTTP (fiber to the premises), 201, 213–214
network neutrality issues, 313 half duplex operation, 9
political influence of, 162 Infinera, 13
privacy issues, 127 information content provider use of, 6–7
subsidies and apps, 161 lasers, 8
FastFilmz, 33 in last-mile access networks, 201, 202–204
FastTCP (Transmission Control Protocol), 195 multi-mode, 13–14
FCC (Federal Communications Commission) regenerators, 9–10
approval of AT&T purchase of Time Warner, 126 replacing DSL with, 249
broadband defined by, 229–230 single-mode, 13–14
in-home battery backup requirements, 204 super channels, 8
incentive auctions, 327–328 FiberTower, 133, 135, 329
media consolidation issues, 144 Fibre Channel over Ethernet (FCoE), 88
NECA (National Exchange Carrier file compression. See compression
Association), 198 file servers, 79, 120
network neutrality, 311–314 file streaming. See streaming media
regulatory issues, 138–140 Fire TV, 159, 283
A-CAM (Alternative Connect America firewalls, 303
Model), 141–142 benefits of, 243–244
e-rate subsidies, 143 definition of, 29
ICC (Intercarrier Compensation) fees, FaaS (firewalls as a service), 244
139–141 first-mile networks. See last-mile access networks
Lifeline subsidies, 142–143 FirstNet, 218–219
media consolidation issues, 144 FISMA (Federal Information Security Management
rate of return guarantees, 139 Act), 60
universal service, 139 flash memory, 86–87
utility pole attachments, 138–139 Fleetmatics, 135
FCoE (Fibre Channel over Ethernet), 88 FLIP (Free Lossless Image Format), 32–33
FDM (Frequency-Division Multiplexing), 355 Flipkart Pvt Ltd, 308–309
Federal Communications Act, 168 Fogerty, Trey, 264
Federal Energy Regulatory Commission (FERC), 83 forums, online, 309–310
Federal Information Security Management Act Frambors, 309–310
(FISMA), 60 frames, 77
Federal Trade Commission (FTC), 145 Framgov, 309–310
Feldman, Jeffrey, 138–139 Framingham, Massachusetts, community forums in,
femtocells, 353–354 309–310
FERC (Federal Energy Regulatory Commission), 83 Free Lossless Image Format (FLIP), 32–33
fiber to the home (FTTH), 208–209 frequencies, 324
fiber to the premises (FTTP), 201, 213–214 frequency-division air interfaces, 355–356
fiber-optic cabling, 5, 76. See also PONs (Passive Frequency-Division Multiplexing (FDM), 355
Optical Networks) Frontier, 130, 137, 155, 315
advantages over copper, 9–10 FTC (Federal Trade Commission), 145
amplifiers, 9–10 FTTH (fiber to the home), 208–209
backups with, 263–264 FTTP (fiber to the premises), 201, 213–214
coherent fiber optics, 8 full duplex, 9, 214
424 Index

G HDR (High Dynamic Range), 30

headends, 195–196
G.711 standard, 119 head-mounted displays (HMDs), 35–36
G.723.1 standard, 119 Health Insurance Portability and Accountability Act
G.726 standard, 64 (HIPAA), 60
G.729 standard, 119 HeNBs (Home eNodeBs), 352
Gantis, Caroline de, 209 hertz, 324
gateways, 344 HetNets (Heterogeneous Networks)
Gbps (gigabits per second), 39 characteristics of, 351
General Data Protection Regulation, 61 DAS (Distributed Antenna Systems), 354
Genius Bar (Apple), 165 definition of, 350
geosynchronous satellites, 380 equipment in, 352
GFWX (Good, Fast Wavelet Codec), 33 femtocells, 353–354
Gigabit Ethernet, 188–190 pico cells, 353–354
Gigabit Ethernet PON (10G-EPON), 224 High Dynamic Range (HDR), 30
Gigabit PON (GPON), 206, 224 High Speed Packet Access Plus (HSPA+), 334
Global Positioning System (GPS) chips, 361 HIPAA (Health Insurance Portability and
Global Tel Link, 155 Accountability Act), 60
goggles (VR), 35–36 HMDs (head-mounted displays), 35–36
Good, Fast Wavelet Codec (GFWX), 33 Home eNodeBs (HeNBs), 352
Goodreads, 160 Home Subscriber Services (HSSs), 345
Google, 21 hospitals, Wi-Fi in, 373
Apps, 49–50 hosted IP PBX (Private Branch Exchange), 110–111
Chrome, 283 Hotmail, 165
cloud computing, 53 hotspots, Wi-Fi, 378–380
data centers, 80 hot-swappable cards, 292–293
Docs, 52 HSPA+ (High Speed Packet Access Plus), 334
Glasses, 37 HSSs (Home Subscriber Services), 345
lobbying by, 148 HTML (Hypertext Markup Language), 40–41, 275
Maps, 277 HTTP (HyperText Transport Protocol), 275
Play Music, 31 HTTPS (Hypertext Transfer Protocol Secure), 41
power purchases, 83 Huawei, 206
search engines, 277–280, 306–307 hub sites, 196
software and service offerings, 155–159 hub-and-spoke topology, 256
video conferencing services, 109 Hulu, 4, 134, 216
GPON (Gigabit PON), 206, 224 hyper-converged infrastructure (HCI), 89
GPS (Global Positioning System) chips, 361 Hypertext Markup Language (HTML), 40–41, 275
GPUs (graphic processing units) chips, 22 Hypertext Transfer Protocol Secure (HTTPS), 41
Grande, 153 HyperText Transport Protocol. See HTTP (HyperText
graphs, network monitoring with, 98 Transport Protocol)
ground stations, 380
guard bands, 332 I
H IaaS (Infrastructure as a Service), 51, 53
IANA (Internet Assigned Numbers Authority), 296–297
H.264 standard, 64 IBM, 53
H.323 standard, 119 IBOC (in-band, on-channel), 64
hacking. See security ICANN (Internet Corporation for Assigned Names and
half duplex, 9, 215 Numbers), 295–296
handshakes, 210, 333 ICC (Intercarrier Compensation) fees, 139–141
hardware failure, impact of, 89 iCloud, 165
HCI (hyper-converged infrastructure), 89 iControl Networks, 134
Index 425

IDPSs (Intrusion Detection and Intrusion Prevention privacy issues, 306–307

Systems), 301 ransomware, 304
IDSs (Intrusion Detection Systems), 301 recognition of attacks, 301
IEEE (Institute of Electrical and Electronics Engineers), redress against hackers, 304–305
188. See also Ethernet resistance to attacks, 298–299
IETF (Internet Engineering Task Force), 258–259 response to attacks, 301
IMDB (Internet Movie Database), 160 security software, 299
immersive HD video conferencing, 110 sustainability, 219–220
IMS (IP Multimedia Subsystem), 347–348 streaming media
IMSense, 167 accessing, 282
IMT-2000 (International Mobile Telephone), 335 ad revenue on, 286
incentive auctions, 326–328 competition in, 286
Indefeasible Rights of Use, 209 content available on, 284–285
industry structure. See telecommunications industry definition of, 280–281
Infinera, 6, 13 ease of use, 281–282, 287–289
information services, 219 growth in, 281
Infrastructure as a Service (IaaS), 51, 53 Pay-TV, 289
input-output operations per second (IOPS), 85 set-top boxes for, 283
Instagram, 161 technical challenges, 289–290
Institute of Electrical and Electronics Engineers (IEEE), worldwide availability, 287
188. See also Ethernet structure of
integration, cloud computing, 58–59 address structures, 294–297
Intel, 21 aggregation routers, 292
intellectual property, 244 CDNs (Content Delivery Networks), 293
Interactive Video Technologies, 289 edge routers, 291–292
Intercarrier Compensation (ICC) fees, 139–141 peering points, 293–294
interconnection points, 199 reliability, 292–293
inter-exchange mileage, 254 root servers, 294–295
interference, mitigation of, 331 Internet Assigned Numbers Authority (IANA), 296–297
interlaced displays, 30 Internet Corporation for Assigned Names and Numbers
International Organization for Standardization (ISO), 19 (ICANN), 295–296
International Telecommunications Union. See ITU Internet exchanges. See peering points
(International Telecommunications Union) Internet Movie Database (IMDB), 160
Internet, 272–274. See also broadband networks Internet of Things. See IoT (Internet of Things)
community forums, 309–310 Internet Protocol. See IP (Internet Protocol)
definition of, 273–274 Internet service providers. See carriers
digital divide, 315–316 Internet small computer system interface (iSCSI), 88
e-commerce, 308–309 Internet2, 280
extranets, 319 interoffice connections, MPLS (Multi-Protocol Label
history of, 273–274 Switching), 235
Internet2, 280 CoS (Class of Service), 238
intranets, 317–318 implementation, 236–237
ISPs (Internet service providers), 276–277 multinational locations, 237
network neutrality issues, 311–314 routes and security, 236
pricing and competition, 316 service components, 238
protocols, 274–275 VPNs (Virtual Private Networks), 235
search engines, 277–280 intranets, 317–318
security, 296–298 Intrusion Detection and Intrusion Prevention Systems
cyber terrorism, 305 (IDPSs), 301
firewalls, 303 Intrusion Detection Systems (IDS), 301
insider breaches, 299–300, 303–304 Invidi, 133
IoT (Internet of Things), 364 IOPS (input-output operations per second), 85
426 Index

IoT (Internet of Things) ITU-R, 330

applications, 362–363 PON standards, 206
drones, 364, 365–366 Radiocommunications Sector, 330
privacy issues, 364 Synchronous Ethernet, 188
security, 364 WRU (World Radiocommunication
Iowa Wireless Services, 151 Conferences), 330
IP (Internet Protocol), 275. See also IP PBX (Private iTunes, 165
Branch Exchange); IP VPNs (Internet Protocol
Virtual Private Networks); VoIP (Voice over J
Internet Protocol)
addresses, 96. See also MPLS (Multi-Protocol jacks, 234–235
Label Switching) Jet.com, 308–309
dynamic, 249 jitter, 102
IPv4, 275, 296–297 Jobs, Steve, 165
IPv6, 275, 296–297 JPEG (Joint Photographic Experts Group), 64
in Layer 3 switches, 71
static, 249
structure of, 294–297 K
IMS (IP Multimedia Subsystem), 347–348
Karp, Hannah, 32
IPsec (Internet Protocol Security), 241–242
Keyhole Technologies, 158, 278
IPv4, 275, 296–297
Kimberly-Clark Corporation, 83
IPv6, 275, 296–297
Kindle, 159
telephony
advantages of, 100–101
DID (Direct Inward Dialing), 106 L
media gateways, 104–105
power sources, 105 L2TP (Layer 2 Tunneling Protocol), 241, 242
protocols, 118–120 Lala.com, 167
security, 101–102 LAMP programs, 57
SIP (Session Initiation Protocol), 105–106 LANs (local area networks). See also protocols;
voice QoS (quality of service), 101–102, 119 storage systems; virtualization; WANs
IP Core (LTE), 343–344 (Wide Area Networks)
IP PBX (Private Branch Exchange), 99 backbone networks, 120
advantages of, 100 bandwidth needs, 76
architecture of, 103–104 data centers
DID (Direct Inward Dialing), 106 cloud computing, impact of, 81–82
hosted systems, 110–111 continuous operation, 83–84
manufacturers, 100–101 definition of, 80
IP VPNs (Internet Protocol Virtual Private Networks), environmental controls in, 82–84
238–239 security, 81
advantages and disadvantages, 239–240 definition of, 69–70
security, 240–243 demand for, 68–69
IPsec (Internet Protocol Security), 241–242 media, 75–76
Ipswitch, 97 monitoring
IRUs (Indefeasible Rights of Use), 209 alerts, 96–97
iSCSI (Internet small computer system interface), 88 changes, discovering, 96
ISO (International Organization for Standardization), 19 charts and graphs, 98
ISPs (Internet service providers). See carriers cloud solutions, 98–99
ITA travel service, 158, 278 LAN-connected devices, 93–94
ITU (International Telecommunications Union) purpose of, 94–95
DOCSIS standards, 213–215, 225 system setup, 95–96
G.726 standard, 64 NOSs (Network Operating Systems), 79
H.264 standard, 64 routers
Index 427

functionality of, 91–93 Layer 4 switches, 121

network functions virtualization, 92 layers, OSI (Open Systems Interconnection),
SDN (Software Defined Networking), 78–79 41–42, 65
statistical multiplexing in, 38–39 LC (Little Connector), 14
switches, 70–74 LEDs (Light-Emitting Diodes), 17
Layer 2, 71–74, 121 legacy systems, 187, 200–201
Layer 3, 71, 73–74, 121 legislation. See regulatory issues
Layer 4, 121 LEO (low earth orbiting) satellites, 381
user errors, 75 Level 3 Communications, 134, 152, 195
VDI (Virtual Desktop Integration), 90–91 Library of Things, 316
VLANs (virtual LANs), 75, 121 Lifeline subsidies, 127, 142–143
definition of, 75 Light-Emitting Diodes (LEDs), 17
prioritizing voice and video on, 103 light-source transducers, 17
lasers, 8 Limelight, 195
last-mile access networks Linc VoIP, 233
in cable operators’ networks LinkedIn, 52, 163
cable modems, 209–210, 212 Little Connector (LC), 14
CMTSs (Cable Modem Termination Systems), load balancing, 120
211–212 lobbying, 147–148
coaxial cable capacity, 214 Local Access And Transport (LATA) areas.168
competition, 215–216 local area networks. See LANs (local area networks)
DOCSIS standards, 213–215, 225 local channels, 254
QAM (Quadrature Amplitude Modulation), Loews, 36
214–215 Long-Term Evolution. See LTE (Long-Term
satellite TV, 216 Evolution) networks
set-top boxes, 210–211, 212 loss, packet, 102
capacity, adding, 200 low earth orbiting (LEO) satellites, 381
definition of, 174, 199 LTE (Long-Term Evolution) networks, 335–339
DSLAMs (DSL Access Multiplexers), 201–202 4G LTE, 336–337
fiber-optic cabling, transitioning to, 201, 202–204 architecture, 341–342
legacy circuit-switching service, 200–201 capacity, 338
PONs (Passive Optical Networks) cell site functionality, 338
architecture of, 204–205 customer connections, 349–350
direct fiber to enterprises and multi-tenant evolved packet core databases, 343–344
buildings, 208 frequency-division air interfaces, 355–356
FTTH (fiber to the home), 208–209 HetNets (Heterogeneous Networks)
ONTs (Optical Network Terminals), 207 characteristics of, 351
OTLs (Optical Line Terminals), 206–207 DAS (Distributed Antenna Systems), 354
splitters, 205 definition of, 350
standards, 205–206, 224 equipment in, 352
power issues, 203 femtocells, 353–354
LATA (Local Access And Transport) areas, 168 pico cells, 353–354
latency, 102 history of, 335
Layer 2 switches, 71, 121 IMS (IP Multimedia Subsystem), 347–348
40/100Gbps Ethernet switch standards, 74 IP Core, 343–344
criticality of, 73 MIMO (Multiple-Input Multiple-Output) antennas,
MAC (Media Access Control) addresses in, 72 356–357, 359, 370–371
Layer 2 Tunneling Protocol (L2TP), 241, 242 OFDM (Orthogonal Frequency-Division
Layer 3 switches, 121 Multiplexing), 357–358
criticality of, 73 time-division air interfaces, 355–356
IP addresses in, 71 types of, 358–359
redundancy, 74 VoLTE (Voice over LTE), 345–347
428 Index

M mergers
competition and, 148–149
M2M (machine-to-machine) mobile services, 367 impact on consumers, 151
MAC (Media Access Control) addresses, 72 mobile operators, 149–152
machine learning, 5, 22–23 pre-2011 mergers, 132–133
macro cells, 351–352 mesh design, 192–193, 256, 374–376
magicJack, 233 messages, UC (Unified Communications), 107
managed services, 235. See also MPLS (Multi- Messenger, 161
Protocol Label Switching) metered pricing, 28
advantages of, 245 Metropolitan Area Networks. See MANs (Metropolitan
definition of, 245 Area Networks)
typical offerings, 246–247 Micro Evolved eNodeBs (eNBs), 352
MANO (Management and Organization), microchips, 21
179–181 Micron, 21
MANs (Metropolitan Area Networks), 196–197 Microsoft. See also Skype
dedicated services in, 253–254 acquisitions by, 163–165
definition of, 174 Azure, 52, 53, 257
manufacturers, IP telephony, 100–101 expenses, 126
Maps (Google), 277 middle-mile networks, 152–153, 175, 197–199,
Markley Group, 82, 223 340–341
Massive MIMO antennas, 359 middleware, 53
Mbps (millions of bits per second), 39 mileage, inter-exchange, 254
MCI Case, 168 MIMO (Multiple-Input Multiple-Output) antennas,
media. See also entertainment content, transmission of 356–357, 359, 370–371
consolidation issues, 144 mini Remote Access Multiplexers (mini-RAMs), 202
entertainment content, transmission of. See also minors, COPPA (Children’s Online Privacy Protection
streaming media Act), 146
headends, 195–196 MME (Mobility Management Entity), 344
hub sites, 196 mobile networks. See Wi-Fi and mobile networks
MANs (Metropolitan Area Networks), mobile operators. See individual companies
196–197 mobile payments, 366–367
gateways, 104–105 Mobile Virtual Network Operators (MVNOs),
streaming, 31–32 154–155
accessing, 282 Mobility Management Entity (MME), 344
ad revenue on, 286 modems, 210, 212, 341
competition, 215–216 Molla, Rani, 316
competition in, 286 Monero, 303
content available on, 284–285 monitoring
definition of, 280–281 cloud computing, 57–58
ease of use, 281, 287–289 LANs (local area networks)
growth in, 281 alerts, 96–97
industry impact, 127 changes, discovering, 96
Pay-TV, 289 charts and graphs, 98
set-top boxes for, 283 cloud solutions, 98–99
technical challenges, 289–290 LAN-connected devices, 93–94
worldwide availability, 287 purpose of, 94–95
types of, 75–76 system setup, 95–96
megahertz, 324 MotionBox, 289
memory Motorola Mobility, 278
caching, 293 moving applications between providers, 59–60
flash memory, 86–87 MPEG (Moving Picture Experts Group) standards,
spinning disks, 86–87 31, 64
Index 429

MPLS (Multi-Protocol Label Switching), 235 National Telecommunications and Information

CoS (Class of Service), 238 Association (NTIA), 330
implementation, 236–237 natural language speech recognition, 116
MPLS (Multi-Protocol Label Switching), 262 NBC Universal, 134, 152
multinational locations, 237 NECA (National Exchange Carrier Association), 198
routes and security, 236 NEF, 152
service components, 238 Nest, 158
VPNs (Virtual Private Networks), 235 Netflix, 4, 5, 53
MSOs (Multiple Service Operators), 152, 209. content available on, 284–285
See also individual companies industry impact, 127
MT-RJ connectors, 14 network neutrality issues, 313–314
multi-core processors, 21 plug-ins, 34
multi-mode fiber, 13–14 subscriber numbers, 216
multinational locations (MPLS), 237 NetSuite, 51
Multiple-Input Multiple-Output (MIMO) antennas, Network Access Points (NAPs). See peering points
356–357, 359 network attached storage (NAS), 88
multiplexing, 37–38 Network Function Virtualization. See NFV (Network
DSLAMs (DSL Access Multiplexers), 201–202 Function Virtualization)
DWDMs (dense wavelength division multiplexers), network interface cards (NICs), 19
7–8, 191 network neutrality, 311–314
FDM (Frequency-Division Multiplexing), 355 network operating centers (NOCs), 201, 221
OFDM (Orthogonal Frequency-Division Multi- Network Operating Systems (NOSs), 79
plexing), 338, 357–358, 369 Network Reliability Steering Committee (NRSC), 217
SONET, 189, 224 neutral co-location facilities, 223
statistical multiplexing, 38–39 neutrality, network, 311–314
TDM (Time Division Multiplexing), 189, 224 New Dimensions in Testimony project, 33
TDM (Time-Division Multiplexing), 38, 233, 356 NeXT, 167
multipoint topology, 256 Next Generation Passive Optical Network 2 (NG
Multi-Protocol Label Switching. See MPLS (Multi- PON2), 206
Protocol Label Switching) NextDC, 134
Multi-User MIMO (MU MIMO), 371 Nextel Mexico, 133
MU-MIMO (Multi-User MIMO), 371 NFV (Network Function Virtualization), 92, 172, 177
Murphy, Bobby, 162 CORD (Central Office Re-architected as a Data
music Center), 181–184
compression implementation of, 182–184
algorithms, 30–31, 32–33 Open Source MANO (Management and
applications, 33–34 Organization), 179–181
codecs, 34 OTNs (Optical Transport Networks), 192
standards, 64 VNFs (virtual network functions), 178–179
streaming, 31–32 White Boxes, 178
MVNOs (Mobile Virtual Network Operators), NG PON2 (Next Generation Passive Optical Network
154–155 2), 206
Niantic Labs, Pokémon Go, 37
N NICs (network interface cards), 19
Niddel, 135
nanometers, 7 Nintendo, Pokémon Go, 37
NAPs (Network Access Points). See peering points NOCs (network operating centers), 201, 221
NAS (network attached storage), 88 Nokia, 206, 323
national emergencies, services in, 217 non-interlaced displays, 30
Internet security, 219–220 nontraditional competitors
reliability and sustainability, 218–220 Amazon, 159–160
National Exchange Carrier Association (NECA), 198 Apple, 165–167
430 Index

Facebook, 161–162 OTT (Over-the-Top) streaming. See streaming media

Google, 155–159 Otter Media, 133
landmark acts and court rulings, 167–168 out-of-band signaling, 258–259
Microsoft, 163–165 over the air service, 215–216
Snapchat, 162–163 overbuilders, 153
Twitter, 165 overhead addressing, 24–25
North-South traffic, 180 Over-the-Top (OTT) streaming. See streaming media
NOSs (Network Operating Systems), 79
Notscot Neighbors, 309–310 P
NRSC (Network Reliability Steering Committee), 217
NTIA (National Telecommunications and Information PaaS (Platform as a Service), 51, 52
Association), 330 Packet Data Network Gateways (PGW), 344
Nuance, 22–23, 116 packets
Nvidia, 21 concept of, 23
NXP, 21 contents of, 24–25
definition of, 77
O DPI (Deep Packet Inspection), 25, 26–29
latency, 102
O’Brien, Chris, 289 loss, 102
Oculus Rift, 35–36 per packet flexible routing, 24–25
Oculus VR, 161 stateful inspection, 29
OFDM (Orthogonal Frequency-Division Multiplexing), throughput, 25
338, 357–358, 369 Traffic Shaping, 25, 28–29
One Touch Make Ready (OTMR), 139 Page, Larry, 155
OneTwoSee, 134 Pai, Ajit, 144, 311
online shopping, 308–309 Pan Yue, 230
ONTs (Optical Network Terminals), 207 Pandora, 5, 31
Ooyola, 290 Passive Optical Networks. See PONs (Passive Optical
Open APIs, 260 Networks)
Open Source MANO (Management and Organization), Payment Card Industry Data Security Standard (PCI
179–181 DSS), 60
open source operating systems, 46 Pay-TV, 289
Open Systems Interconnection (OSI) architecture, PBX (Private Branch Exchange). See IP PBX (Private
41–42, 65 Branch Exchange)
Optical Line Terminals (OTLs), 206–207 PCI DSS (Payment Card Industry Data Security
Optical Network Terminals (ONTs), 207 Standard), 60
Optical Transport Networks. See OTNs (Optical PCRF (Policy and Charging Rule Function), 345
Transport Networks) PCS (Personal Communication Service), 382
Optimum, 135 peering points, 293–294
Oracle, 51, 53, 257 PERSEUS, 33
Orchestrate, 134 Personal Communication Service (PCS), 382
orchestration (WA SDN), 261 petabytes, 21, 85
Orr, Steve, 310 photonic chips, 13
Orthogonal Frequency-Division Multiplexing (OFDM), pico cells, 353–354
338, 357–358, 369 pings, 96–97
Ory, Andy, 183 PINs (positive intrinsic negatives), 17
OSI (Open Systems Interconnection) architecture, Placebase, 167
41–42, 65 plain old telephone service (POTS), 203
OTLs (Optical Line Terminals), 206–207 Platform as a Service (PaaS), 51, 52
OTMR (One Touch Make Ready), 139 plug-ins, 34
OTNs (Optical Transport Networks), 191–192, PoE (Power over Ethernet), 105
193–195 Points of Presence (POPs), 198, 237
Index 431

point-to-point topology, 256 Q

Point-to-Point Tunneling Protocol (PPTP), 241
Pokémon Go, 37 QAM (Quadrature Amplitude Modulation), 214–215,
policies, control plane, 177 372
Policy and Charging Rule Function (PCRF), 345 QoS (quality of service), 119
PONs (Passive Optical Networks) definition of, 92
architecture of, 204–205 IP PBX (Private Branch Exchange), 101–102, 119
direct fiber to enterprises and multi-tenant QQ, 5, 234
buildings, 208 Quadrature Amplitude Modulation (QAM), 214–215,
FTTH (fiber to the home), 208–209 372
ONTs (Optical Network Terminals), 207 Qualcomm, 21
OTLs (Optical Line Terminals), 206–207 quality of service. See QoS (quality of service)
splitters, 205 Quan, Mike, 35
standards, 205–206, 224 Quattro Wireless, 167
POPs (Points of Presence), 198, 237
port speeds, 238
portability of cloud computing applications,
R
59–60
Rackspace, 47, 53, 82
positive intrinsic negatives (PINs), 17
Rand Corporation, 23
Post, Glen, 182
ransomware, 304
POTS (plain old telephone service), 203
rate of return, 139, 141
Power over Ethernet (PoE), 105
rate shaping, 200
power sources, 105
RBOCs (Regional Bell Operating Companies), 128, 168
PowerCloud System, 134
RCN Telecom LLC, 153
PPTP (Point-to-Point Tunneling Protocol), 241
Real-time Transport Protocol (RTP), 120
prepaid mobile services, 368
recognition of attacks, 301
presence, 237
Reconfigurable Optical Add/Drop Multiplexers
presence theft, 119
(ROADMs), 193–195
PrimeSense, 167
Red Hat, 46
prisoner telephony providers, 155
redress against hackers, 304–305
privacy. See also security
redundancy
cloud computing, 60–61
controllers, 79
COPPA (Children’s Online Privacy Protection
Layer 3 switches, 74
Act), 146
storage systems, 87, 89
digital assistant software, 118
regenerators, 9–10
Facebook, 127
Regional Bell Operating Companies (RBOCs),
Internet, 306–307
128, 168
IoT (Internet of Things), 364
registered jacks, 234–235
Privacy Shield, 61
regulatory issues, 138–140
private cloud, 49
A-CAM (Alternative Connect America Model),
private data networks, 176
141–142
Privacy Shield, 61
cloud computing, 54
Project Fi, 158
COPPA (Children’s Online Privacy Protection
protocolssee individual protocols
Act), 146
proxy servers, 102, 119
e-rate subsidies, 143
PSAP (Public Safety Answering Point), 218, 264
ICC (Intercarrier Compensation) fees, 139–141
PSTN (Public Switched Telephone Network), 140, 220
landmark acts and court rulings, 167–168
public cloud, 49
Lifeline subsidies, 142–143
public networks, 173–175
lobbying, 147–148
Public Safety Answering Point (PSAP), 218, 264
media consolidation issues, 144
Public Switched Telephone Network (PSTN), 140, 220
rate of return guarantees, 139
punch-down blocks, 234–235
robocalls, 144–146
432 Index

Telecommunications Act, 128–130 A-CAM (Alternative Connect America Model),

Telecommunications Act of 1996, 128–130 141–142
universal service, 139 e-rate subsidies, 143
utility pole attachments, 138–139 Internet connectivity costs in, 198–199
Rekognition, 159 Lifeline subsidies, 142–143
Relay Nodes (RNs), 352 Rural Cellular, 151
reliability
Internet, 292–293 S
national emergencies, services in, 218–220
Remote Radio Heads (RRHs), 352 SaaS (Software as a Service), 51–52
repeaters, 354 Safe Harbor agreement, 60–61
reports, streaming media, 289–290 Salesforce.com, 51, 53
Requests for Comments (RFCs), 221 SANs (storage area networks), 88
resellers, 154–155 satellite networks, 380–382
residential VoIP (Voice over Internet Protocol) services, satellite TV, 216
231–232 SCCP (Skinny Client Control Protocol), 120
resistance to hacking, 298–299 Schneiderman, Eric T.231
retransmission agreements, 216 SDH (Synchronous Digital Hierarchy), 191
revenue SDN (Software Defined Networking), 78–79, 172,
from search engines, 279 176–177
from streaming media, 286 implementation of, 182–184
RFCs (Requests for Comments), 221 OTNs (Optical Transport Networks), 192
Ring, 160 SEAL, 134
ring topology, 189–190 search engines, 277–280, 306–307
RingCentral, 233 secondary hub-and-spoke topology, 256
ringless robocalls, 146 Secure Sockets Layer (SSL), 242
Ripple, 303 Secure Telephone Identity Revisited (STIR), 145
RJ11c jacks, 234–235 security
RJ21x jacks, 234–235 authentication, 242–243
RJ45 data jacks, 103 Block Chain, 302–303
RJ48 jacks, 235 cloud computing, 55–56
RNs (Relay Nodes), 352 containers, 47
ROADMs (Reconfigurable Optical Add/Drop data centers, 81
Multiplexers), 193–195 DoS (Denial of Service) attacks, 52, 119
roaming, 332–333, 378–380 encryption, 302
Robo Strike Force, 145 firewalls, 29, 303
robocalls, 127, 144–146 benefits of, 243–244
Rocket, 46 definition of, 29
Roku, 283 FaaS (firewalls as a service), 244
root servers, 294–295 Internet, 296–298
Rosenworcel, Jessica, 315 cyber terrorism, 305
routers insider breaches, 299–300, 303–304
aggregation, 292 IoT (Internet of Things), 364
definition of, 121 privacy issues, 306–307
edge, 291–292 ransomware, 304
functionality of, 91–93 redress against hackers, 304–305
network functions virtualization, 92 resistance to attacks, 298–299
routing, per packet, 24–25 security software, 299
RRHs (Remote Radio Heads), 352 sustainability, 219–220
RTP (Real-time Transport Protocol), 120 IP PBX (Private Branch Exchange),
rural areas, 131–132 101–102
broadband availability in, 131–132, 315–316 IP VPNs (Internet Protocol Virtual Private
CAF (Connect America Fund), 137 Networks), 240–243
Index 433

IPsec (Internet Protocol Security), 241–242 Signature-based Handling of Asserted Information

L2TP (Layer 2 Tunneling Protocol), 241, 242 using toKENs (SHAKEN), 145
MPLS (Multi-Protocol Label Switching), 236 signatures, DPI (Deep Packet Inspection), 29
recognition of attacks, 301 Simple Object Access Protocol (SOAP), 41
response to attacks, 301 Sina, 5
SSL (Secure Sockets Layer), 242 Sinclair Broadcast Group, 144
TLS (Transport Layer Security), 241, 242 single-mode fiber, 13–14
Wi-Fi and mobile networks, 377–378 SIP (Session Initiation Protocol), 92, 105–106, 120,
Securus Technologies, 155 221, 258–259
Sensity Systems, 135 Siri, 167
servers skinny bundles, 216
bare metal, 47 Skinny Client Control Protocol (SCCP), 120
blade, 120 Sky, 134
definition of, 42, 121 Skype, 109, 163, 165, 233
file, 79, 120 SLAs (Service Level Agreements), 82, 257
proxy, 102, 119 Slim, Carlos, 327–328
root, 294–295 Snap, 162
sprawl, 45 Snapchat, 162–163
virtualization, 43–44 Snapfish, 289
cloud computing and, 43–44 Snowden, Edward, 296
containers, 45–47 SOAP (Simple Object Access Protocol), 41
energy savings, 43 social media
management of, 44–45 Facebook, 5, 21, 52
scalability, 43 data privacy issues, 162
virtual machines, 42–43 expenses, 126
White Boxes, 178 lobbying by, 148
Service Level Agreements (SLAs), 82, 257 political influence of, 162
services, managed. See managed services privacy issues, 127
Serving Gateway (SW), 344 subsidies and apps, 161
Session Initiation Protocol (SIP), 92, 105–106, 120, Instagram, 161
221, 258–259 Snapchat, 162–163
set-top boxes, 210–211, 212 Twitter, 165
Shaban, Hamza, 147 soft set-top boxes, 211, 212
shadow IT, 56 SoftBank Group Corp.21
SHAKEN (Signature-based Handling of Asserted SoftCom, 289
Information using toKENs), 145 Software as a Service (SaaS), 51–52
shared spectrum, 325 Software Defined Networking. See SDN (Software
Shazam, 167 Defined Networking)
SHDSL (Symmetric High-Data Rate DSL), 268 SONET (Synchronous Optical Network), 189, 191, 224
Shoah Foundation, 33 Sony Pictures Entertainment, 285
shopping, 308–309 Spalter, Jonathan, 312
ShuttleFund, 303 spam calls, 144–146
signaling, 220–221 speaker-dependent speech recognition, 116
analog versus digital, 63 speaker-independent speech recognition, 115
billing and monitoring with, 221 spectral efficiency, 215, 328
control plane, 261 Spectrum, 155
data plane, 261 spectrum, Wi-Fi, 323
digital, 63, 92, 104–105, 267 acquisition through corporate acquisitions,
DSPs (Digital Signal Processors), 329–330
104–105 blocks, 325–326
SIP (Session Initiation Protocol), 92, 105–106, 120, cellular structures, 323
221, 258–259 frequencies, 324
434 Index

incentive auctions, 326–328 content available on, 284–285

interference, mitigation of, 331 definition of, 280–281
international synchronization of, 330–331 ease of use, 281, 287–289
profits on secondary market, 328–329 growth in, 281
shared, 325 industry impact, 127
unlicensed, 331–332 Pay-TV, 289
wavelength characteristics, 324–325 set-top boxes for, 283
speech recognition, 115–117 technical challenges, 289–290
speeds, broadband, 231 worldwide availability, 287
Carrier GigE (Gigabit Ethernet), 250–251 Stringify, 134
MPLS (Multi-Protocol Label Switching), 238 submarine network systems, 185
spiders, 278–279 cable cuts in, 186–187
Spiegel, Evan, 162 cloud and content providers, 186
spinning applications to cloud, 53–54 power limitations, 186
spinning disks, 86–87 technological advances in, 185–186
splices, 16 Sub-Saharan Africa, mobile service in, 338
splitters, 205 subsidies
Spotify, 5, 31 e-rate, 143
Sprint Lifeline, 142–143
ISP services, 276 SuddenLink, 135
mergers and acquisitions, 151 super channels, 8
proposed merger with T-Mobile, 126–127 Superclick, 133
resellers, 155 sustainability, 218–220
SS7 (Signaling System 7), 220 SW (Serving Gateway), 344
SSL (Secure Sockets Layer), 242 switches, 70–74
ST (Straight Tip) connectors, 14 Layer 2, 71, 121
stacks, 57 40/100Gbps Ethernet switch standards, 74
Staples, 153–154 criticality of, 73
star topology, 256 MAC (Media Access Control) addresses in, 72
stateful inspection, 29 Layer 3, 121
static IP (Internet Protocol) addresses, 249 criticality of, 73
statistical multiplexing, 38–39 IP addresses in, 71
statistics, contact center, 113 redundancy, 74
steering, band, 376 Layer 4, 121
steering, client, 376 user errors, 75
STIR (Secure Telephone Identity Revisited), 145 symmetric channels, transitioning to
storage area networks (SANs), 88 coaxial cable capacity, 214
storage systems DOCSIS standards, 213–215, 225
HCI (hyper-converged infrastructure), 89 QAM (Quadrature Amplitude Modulation),
memory, 86–87 214–215
need for, 84–85 Symmetric High-Data Rate DSL (SHDSL), 268
performance monitoring, 85 Synchronous Digital Hierarchy (SDH), 191
redundancy, 87, 89 Synchronous Ethernet, 188
SANs (storage area networks), 88 Synchronous Optical Network. See SONET
storage components, 86 (Synchronous Optical Network)
Straight Path Communications, 135, 329 synchronous protocols, 191
Straight Tip (ST) connectors, 14
streaming media, 31–32, 290. See also entertainment T
content, transmission of
accessing, 282 T1 services, 251–252, 267
ad revenue on, 286 T3 services, 251–252, 267
competition, 215–216 tandem offices, 276
competition in, 286 Target, 153–154
Index 435

TBH app, 161 A-CAM (Alternative Connect America

Tbps (terabits per second), 39 Model), 141–142
TCP (Transmission Control Protocol), 275 e-rate subsidies, 143
TCP/IP (Transmission Control Protocol/Internet Internet connectivity costs in, 198–199
Protocol), 40, 78 Lifeline subsidies, 142–143
TDM (Time-Division Multiplexing), 38, 189, 224, Telecommunications Act, 128–130, 219
233, 356 Telecommunications Industry Association (TIA), 19
Telapex, Inc.151 Telehouse, 223
telecommunications, definition of, 219 Tellabs, 206
Telecommunications Act, 128–130, 219 TellMe, 165
telecommunications industry, 132. See also individual TelMex, 153–154
telecommunications companies Telogis, 135
cable TV, 126, 135–137 Tencent, 5
capital depreciation in, 182 thin-client technology, 91
churn rates, 150 This Technology, 134
competition, 130–131, 148–149. See also Threat Stack, 55
consolidation via mergers three-factor authentication, 242–243
agents, 153–154 throttling, 28, 313
MVNOs (Mobile Virtual Network Operators), throughput, 25
154–155 TIA (Telecommunications Industry Association), 19
nontraditional competitors, 155–167 Tier 1 carriers, 293
overbuilders, 153 Tier 2 carriers, 293
prisoner telephony providers, 155 Tier 3, 134
quarterly residential subscriber losses, 131 time in flight, 85
rural areas, 131–132 time synch, 376
wholesale providers, 152 Time Warner, 126, 133
consolidation via mergers Time Warner Cable, 134, 151–152, 284
competition and, 148–149 time-division air interfaces, 355–356
impact on consumers, 151 Time-Division Multiplexing (TDM), 38, 189, 224,
mergers and acquisitions, 132–133 233, 356
mobile operators, 149–152 TiVo, 210
current state of, 126–128 TLS (Transport Layer Security), 241, 242
jacks, 234–235 T-Mobile, 327–328
regulatory issues, 138–140 mergers and acquisitions, 126–127, 151
A-CAM (Alternative Connect America resellers, 155
Model), 141–142 top-level domains, 295–296
COPPA (Children’s Online Privacy Protection topology
Act), 146 common configurations, 255–257
e-rate subsidies, 143 on dedicated lines, 252–253
ICC (Intercarrier Compensation) fees, ring, 189–190
139–141 TPG, 153
Lifeline subsidies, 142–143 TracFone Wireless, 153–154
lobbying, 147–148 traffic
media consolidation issues, 144 DPI (Deep Packet Inspection), 25, 26–29
rate of return guarantees, 139 multiplexing. See multiplexing
robocalls, 144–146 per packet flexible routing, 24–25
universal service, 139 shaping, 25
utility pole attachments, 138–139 stateful inspection, 29
rural areas, 131–132 throughput, 25
broadband availability in, 131–132, Traffic Shaping, 28–29
315–316 Traffic Shaping, 25, 28–29
CAF (Connect America Fund), 137 transducers, light-source, 17
436 Index

Transmission Control Protocol. See TCP (Transmission lobbying by, 148

Control Protocol) mergers and acquisitions, 132, 134–135, 151
Transport Layer Security (TLS), 241, 242 resellers, 155
transport networks, 223, 340–341 rural availability of, 315
Tropicana, 83 spectrum blocks, 327
Trump, Donald, 220 user privacy issues, 307
trunks, 104, 258–259 Very-High-Bit-Rate DSL (VDSL), 268
Twitch, 160 Vessel, 135
Twitter, 165 Viacom, 285
two-factor authentication, 242–243 Viber, 234
video
U compression
algorithms, 30–31, 32–33
Ubuntu, 46 applications, 33–34
UC (Unified Communications), 107 codecs, 34
conferencing standards, 64
cloud solutions, 109–110 conferencing
collaboration software, 108–109 cloud solutions, 108–109
desktop video conferencing, 107–109 collaboration software, 108–109
immersive HD video conferencing, 110 desktop video conferencing, 107–109
e-mail and messaging, 107 immersive HD video conferencing, 110
UHD (Ultra High Definition) TV, 30 streaming, 31–32
Unified Communications. See UC (Unified video processing engines, 290
Communications) video streaming. See streaming media
Uninterrupted Power Supply (UPS) systems, 82 virtual contact centers, 112
Unity, 36 virtual LANs (VLANs), 75, 103
universal service, 139 virtual machines, 42–43, 44–45
Universal Service Fund (USF), 141 Virtual Private Cloud, 44
universities, Wi-Fi in, 373 Virtual Private Networks (VPNs), 53–54
unlicensed spectrum, 331–332 virtual reality. See VR (virtual reality)
unshielded twisted pair (UTP) cabling, 19–20 virtualization, 43–44
upgrading set-top boxes, 211, 212 cloud computing and, 43–44
UPS (Uninterrupted Power Supply) systems, 82 containers, 45–47
U.S. Army Research Laboratory, 33 energy savings, 43
U.S. Cellular, 151, 327–328 hardware failure, impact of, 89
USC Shoah Foundation, 33 management of, 44–45
USF (Universal Service Fund), 141 network functions virtualization, 92
USTelecon, 312 NFV (Network Function Virtualization), 177
utility pole attachments, 138–139 CORD (Central Office Re-architected as a
UTP (unshielded twisted pair) cabling, 19–20 Data Center), 181–184
implementation of, 182–184
Open Source MANO (Management and
V Organization), 179–181
OTNs (Optical Transport Networks), 192
VDI (Virtual Desktop Integration), 90–91
VNFs (virtual network functions), 178–179
VDSL (Very-High-Bit-Rate DSL), 268
scalability, 43
Verizon
VDI (Virtual Desktop Integration), 90–91
cable TV services, 129–130
virtual machines, 42–43, 44–45
co-location facilities, 223
Virtual Private Cloud, 44
expenses, 126
VLANs (virtual LANs), 75, 103, 121
FTTH (fiber to the home), 208–209
VPNs (Virtual Private Networks), 53–54
history of, 128
viruses, black day, 244
ISP services, 276
Visible World, 134
large enterprise reliance on, 130
Index 437

Visio, 165 implementation challenges, 262

Vizio, 307 MPLS (Multi-Protocol Label Switching), 262
VLANs (virtual LANs) orchestration and automation, 261
definition of, 75, 121 Wal-Mart, 153–154, 308–309
prioritizing voice and video on, 103 Walt Disney Co.126, 285
VMware, Inc.43 WANs (Wide Area Networks)
VNFs (virtual network functions), 178–179 dedicated services in, 253–254
V-NOVA PERSEUS, 33 definition of, 121
VOD (video-on-demand). See streaming media statistical multiplexing in, 38–39
Voice over LTE (VoLTE), 345–347 WA SDNs (Wide Area Software Defined Networks)
Voice Response Units. See VRUs (Voice Response comparison of broadband services, 262
Units) enterprise use of, 259–260
VoIP (Voice over Internet Protocol), 28–29, 231. implementation challenges, 262
See also IP PBX (Private Branch Exchange) MPLS (Multi-Protocol Label Switching), 262
advantages of, 100–101 orchestration and automation, 261
DID (Direct Inward Dialing), 106 warehouses, Wi-Fi in, 373
ICC (Intercarrier Compensation) fees, 140 Watch, 161
impact on traditional carriers, 234 Watchwith, 134
IP PBX (Private Branch Exchange), 99 wavelengths
advantages of, 100 characteristics of, 324–325
DID (Direct Inward Dialing), 106 definition of, 7
hosted systems, 110–111 splitting fiber-optic cabling into, 7–8
manufacturers, 100–101 Waymo LLC, 158
media gateways, 104–105 Wayport, 133, 380
power sources, 105 Waze GPS, 278
protocols, 118–120 WCDMA (Wideband Code Division Multiple Access),
residential versus enterprise services, 231–234 334, 385
security, 101–102 Web site tracking, 306–307
SIP (Session Initiation Protocol), 105–106 WebEx, 109
voice QoS (quality of service), 101–102 WebRTC, 108
VoLTE (Voice over LTE), 345–347 Weibo, 5, 234
Vonage, 233 Weixin, 234
VPNs (Virtual Private Networks), 53–54 WhatsApp, 161, 234
IP VPNs (Internet Protocol Virtual Private Net- Where2, LLC, 158, 278
works), 238–239 White Boxes, 178
advantages and disadvantages, 239–240 white spaces, 332
security, 240–243 Whole Food Market, 160, 308
MPLS (Multi-Protocol Label Switching), 235 wholesale providers, 152
VR (virtual reality), 34–35 Wide Area Networks. See WANs (Wide Area
HMDs (head-mounted displays), 35–36 Networks)
technical and content availability challenges, 37 Wide Area Software Defined Networks. See
VRUs (Voice Response Units), 114–115 WA SDNs (Wide Area Software Defined
digital assistant software, 117–118 Networks)
speech recognition, 115–117 Wideband Code Division Multiple Access (WSDMA),
Vyatta, 133 334, 385
WideOpenWest (WOW), 135
W Wi-Fi Alliance, 379
Wi-Fi and mobile networks, 92, 322–323
WA SDNs (Wide Area Software Defined 3G technologies, 334–335
Networks), 235 releases and revisions to, 384–385
comparison of broadband services, 262 table of, 383–384
enterprise use of, 259–260
438 Index

4G technologies, 333–335. See also LTE acquiring through corporate acquisitions,

(Long-Term Evolution) networks 329–330
5G technologies, 335, 359–361 blocks, 325–326
802.11 standards, 368–373, 385–387 cellular structures, 323
access points, 376 frequencies, 324
applications incentive auctions, 326–328
M2M (machine-to-machine) mobile interference, mitigation of, 331
services, 367 international synchronization of, 330–331
mobile payments, 366–367 profits on secondary market, 328–329
prepaid mobile services, 368 shared, 325
backhaul, 340–341 unlicensed, 331–332
Bluetooth, 331–332 wavelength characteristics, 324–325
controllers, 376–377 Wi-Fi Certified Home Design, 375
CoW (Cellular Service on Wheels), 354 Wi-Fi Direct, 387
in enterprises, 373–374 WPA2 (Wi-Fi Protected Access 2), 377–378
in homes, 374 Wi-Fi Certified Home Design, 375
hotspot services, 378–380 Wi-Fi Direct, 387
IoT (Internet of Things) Wilco Electronic Systems, 134
applications, 362–363 Windstream, 130, 137, 155
battery life, 365–366 WinZip, 31
drones, 364 wireless networks. See Wi-Fi and mobile networks
privacy issues, 364 wiring centers, 174
security, 364 Workplace, 161
LTE (Long-Term Evolution), 335–339 World Radiocommunication Conferences (WRC), 330
4G LTE, 336–337 WPA2 (Wi-Fi Protected Access 2), 377–378
architecture, 341–342 WRU (World Radiocommunication Conferences), 330
capacity, 338
cell site functionality, 338 X
customer connections, 349–350
evolved packet core databases, 343–344 Xavier, Bob, 93–94
frequency-division air interfaces, 355–356 Xbox One, 163
HetNets (Heterogeneous Networks), 350–355 XG PON1 (10 Gigabit PON), 206
history of, 335 XGS PON (10 Gigabit Symmetric PON), 206
IMS (IP Multimedia Subsystem), 347–348 XML (Extensible Markup Language), 41
IP Core, 343–344 XO Communications, 135, 329
MIMO (Multiple-Input Multiple-Output)
antennas, 356–357, 359, 370–371
OFDM (Orthogonal Frequency-Division Y
Multiplexing), 357–358
Yahoo!, 135
time-division air interfaces, 355–356
YouTube, 158, 278
types of, 358–359
VoLTE (Voice over LTE), 345–347
mesh networks, 374–376 Z
mobile services worldwide, 382–383
modems in, 341 Zagat, 277
pedestrian injuries during mobile use, 361 Zappos, 160
roaming, 332–333 Zeash, 303
satellite networks, 380–382 zero rating, 313
spectrum, 323 Zipdash, Inc.158, 278
Zuckerberg, Mark, 162
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