Chapter 6

Telecommunications
and Networks

McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

 Understand the concept of a network

 Apply Metcalfe’s law in understanding the
value of a network
 Identify major developments and trends in
the industries, technologies, and business
applications of telecommunications and
Internet technologies
 Provide examples of the business value of
Internet, intranet, and extranet applications
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 Learning Objectives

 Identify the basic components, functions,

and types of telecommunications networks
used in business
 Explain the functions of major components
of telecommunications network hardware,
software, media, and services
 Explain the concept of client/server
networking
 Understand the two forms of peer-to-peer
networking
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 Learning Objectives

 Explain the difference between digital and

analog signals
 Identify the various transmission media and
topologies used in telecommunications
networks
 Understand the fundamentals of wireless
network technologies
 Explain the concepts behind TCP/IP
 Understand the seven layers of the OSI
network model
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 Case 1: Starbucks and Others

 Wi-Fi hot spots

– Emerged due to fast-growing popularity of laptops
– Wi-Fi coffee shops supplanted cybercafés, which relied
on the expensive purchase and upkeep of PCs
 Public Wi-Fi access is at crossroad
– Recent moves toward free and advertising-based
Wi-Fi service by Starbucks and others
– Web advertising can offset costs or make money
 Like television, Wi-Fi is increasingly given away
in exchange for ads

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 Case Study Questions

 Do you agree with the plans by Starbucks

to offer time-limited free Wi-Fi to customers?
– Part of the idea is to push the Starbucks card
and reap other business benefits from doing
so. Do you think free Wi-Fi is enough to instill
that kind of loyalty?
– Based on the experiences of the other coffee
houses, do you think free access was a critical
factor in developing a loyal customer base?

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 Case Study Questions

 Part of the reason for Starbucks’ move

had to do with increased competition from
chains like McDonald’s for the morning
breakfast crowd. However, Starbucks and
McDonald’s hardly seem to be targeting
the same public
– Do you think that free wireless access by
such a competitor would have moved a
significant portion of Starbucks customers
away?

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 Case Study Questions

 Some companies offer free Wi-Fi in

exchange for viewing advertisements or
answering questions for market research
studies
– Would you be willing to do so in order to get
free wireless access, say, at an airport?
– Would your answer change if you were using
a corporate laptop versus your own, because
of security concerns?

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 Network Concepts

 A network is an interconnected or interrelated

chain, group, or system

 The number of possible connections on a

network is N(N–1) or N2 –N

N = number of nodes (points of connection)

10 computers on a network = 10(10–1) =
10x9 = 90 possible connections

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 Metcalfe’s Law

The usefulness (utility) of a network equals

the square of the number of users
The more users on a network,
the more useful it becomes

Until critical mass is reached, a change in technology

only affects the technology
Once critical mass is attained, social, political, and
economic systems change
Ex: The Internet is growing exponentially.
We can expect more value, for less cost,
virtually every time we log on

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Telecommunication Trends

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Telecommunications-Based Services

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 Internet Networking Technologies

 Internet networking technologies are being

used as a technology platform
– Web browser suites
– HTML (HyperText Markup Language) Web page
editors
– Network management software(NinjaOne
,Zabbix)
– Firewalls
 Being applied in Internet, intranet, and
extranet applications
 Reinforces previous move toward client/server
networks based on open-systems architecture
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 Open Systems

 Open systems use common standards

for hardware, software, applications,
and networks
– Internet networking technologies are a
common standard for open systems
 Connectivity
– Open systems provide greater connectivity
and network interoperability
– Middleware may be needed to help diverse
systems work together
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 Middleware

Programming that mediates between

Middleware two separate progarams

Allows a particular database to access

other databases without custom
programming

Routes data and information between

back-end data sources and end user
applications
The “Plumbing” Essential component of any IT
infrastructure

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 Digital Network Technologies

 Telecommunications are being revolutionized

by the switch from analog to digital
– Analog: voice-oriented transmission
– (sign waves ,noise low copy)
– Digital: discrete pulse transmission
– (high quality and high speed easy to copy)
 Benefits
– Higher transmission speeds
– Moves larger amounts of information
– Greater economy and much lower error rates
– Transmits multiple types of communications (data, voice,
video) on the same circuits

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 Wireless Technologies

 Fiber-optic
– Uses pulses of laser-generated light
– Reduced size and installation effort
– Vastly greater communication capacity
– Faster transmission speeds
– Freedom from electrical interference
 Satellite Transmission
– Can move massive quantities of data, audio,
and video over global networks
– Especially useful in isolated areas
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 Business Application Trends

Telecommunications networks now play a vital and

pervasive role in Web-enabled…

E-business processes

Electronic commerce

Enterprise collaboration

Other applications that support operations,

management, and strategic objectives

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 Internet2 – The Next Generation

High performance Different infrastructure

Will not replace In limited use Infinite

current Internet already bandwidth

Users connect via May never become

Abilene at 120 Gbps totally open

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Value of Telecommunications Networks

Overcome
Overcome time
geographic
barriers
barriers
Strategic
Capabilities
Overcome
Overcome cost
structural
barriers
barriers

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 The Internet Revolution

The Internet is a global information superhighway

Millions of smaller, private networks

10 servers in 1991 to over 46 million today

Growing by 1 million servers per month

No central computer system

No governing body

Based on common standards

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 Internet Service Providers

Companies that specialize in providing

easy access to the Internet
For a monthly fee, they provide software, user names,
passwords, and Internet access

ISPs themselves are connected to one another

through network access points
One ISP can easily connect to another to obtain
addresses of websites or user nodes

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 Popular Uses of the Internet

Surf E-Mail

Discuss Publish Buy & Sell

Download Compute

Connect Phone Calls And more…

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Business Use of the Internet

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Business Value of the Internet

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 The Role of Intranets

Many companies Detailed data retrieval

have sophisticated
and widespread Collaboration
intranets
Personalized customer profiles

Links to the Internet

Web browsers and servers

Intranets use TCP/IP network protocols

Transmission Control Protocol/Internet Protocol
Internet
technologies HTML publishing and databases

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 Intranets

Encryption

Intranets are
Passwords Firewalls
protected by…

Customers, suppliers, and other business partners

can access an intranet via extranet links

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Intranets as Information Portals

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 Extranets

Network Uses Internet technologies to

Links connect the intranet of a business
to the intranets of another

Virtual Private Direct private network links, or

Networks private secure Internet links
between companies

Unsecured Link between a company and

Extranet others via the Internet, relying on
encryption of sensitive data and
firewall security systems

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Extranet Connectivity and Value

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Telecommunications Network Alternatives

Telecommunications is a highly technical,

rapidly changing field

Most business professionals don’t need

detailed technical knowledge

However, understanding basic components

and their characteristics is necessary

Can help you make informed decisions about

telecommunications alternatives

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 Case 2: Medicine Through
Videoconferencing
 Every 45 seconds, someone in the U.S.
suffers a stroke
– The first three hours are critical to survival
and recovery
– Not all hospitals can handle stoke patients
 The Neuro Critical Care Center has on-call
critical-care assistance
– Bidirectional videoconferencing and imaging
capabilities
– Mobile Tandberg systems for bedside use
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 Case 2: Medicine Through
Videoconferencing

Arizona Telemedicine Program

Uses technology to permit inter-disciplinary team training

Statewide broadband health care communications network

Links 55 healthcare organizations in 71 communities

Telemedicine services provided in 60 subspecialties

More than 600,000 patients have received services

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Case Study Questions

From the perspective of a

patient, how would you feel
about being diagnosed by
a doctor who could be
hundreds or thousands of
miles away?
– What kind of expectations
or concerns would you
have about that kind of
experience?

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 Case Study Questions

 What other professions, aside from health

care and education, could benefit from
application of some of the technologies
discussed in this case?
– How would they derive business value
from these projects?

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 Case Study Questions

 The deployment of IT in the health profession

is still very much in its infancy
– What other uses of technology could
potentially improve the quality of health care?
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 Telecommunications Network Model

 A telecommunications network is any arrangement where…

– A sender transmits a message to a receiver
– Over a channel
– Consisting of some sort of medium

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 Types of Communications Networks

Wide Area Local Area

WAN LAN
Communication
Networks
Virtual Private
Peer-to-Peer
ALL PC MAKE SPECIFIC ROLE VPN
PRIVATE NETWORK
IN INTERENER

Client/Server
ONLY ONE PC MAKE SPECIFIC ROLE

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 Wide Area Network (WAN)

Covers a large geographic area

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 Local Area Network (LAN)

Connects computers within a limited physical area,

such as an office, classroom, or building
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Virtual Private Network

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Client/Server Network

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 Network Computing

 Networks are the central computing resource

of the organization
– Thin clients provide a browser-based user
interface for processing applets
 Thin clients include
– Network computers
– Net PCs
– Other low-cost network devices or
information appliances

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Network Computing

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 Peer-to-Peer Networks

Central Server Architecture

P2P file-sharing software connects all PCs

to a central server

The server sends the requesting PC a list of

links to all active peers who have the file

Clicking a link connects the two PCs and

automatically transfers the file to the
requesting PC

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 Peer-to-Peer Networks

Pure Peer-to-Peer Architecture

No central directory or server

File-sharing software connects

one PC to another online user
When you request a file, the software
searches every online user, then sends
you a list of active file names
Clicking a link automatically transfers the file
from that user’s hard drive to yours

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Central Server Peer-to-Peer Networks

Advantages Disadvantages

Can better protect Directory server

the integrity and can be slowed or
security of the overwhelmed by
content and users of too many users or
the network technical problems

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Peer-to-Peer Network Diagrams

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 Digital and Analog Signals

Analog Digital

An electrical current is The quantity being

generated that is observed is expressed
proportional to the as a number
quantity being observed
A measurement of 83
If the temperature is degrees would display
83 degrees, a as the number 83
measuring device would
generate 8.3 volts

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 Telecommunications Media

 Twisted-Pair Wire
– Ordinary telephone wire
– Copper wire is twisted into pairs
 Coaxial Cable
– Sturdy copper or aluminum wire
wrapped with spacers to insulate
and protect it
 Fiber-Optic Cable
– One or more hair-thin filaments
of glass fiber wrapped in a
protective jacket
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 The Problem of “The Last Mile”

 Network providers use fiber optic cable

as a communications backbone
– Houses connected to the backbone are
wired with twisted pair
– Users don’t benefit from the faster, better
technology
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 Wireless Technologies

Terrestrial Communications Telephone &

Microwave Satellites Pager Systems

Earthbound Serve as relay Geographic areas

microwave stations divided into cells
systems transmit
Use microwave Each cell has low-
high-speed radio
radio signals power transmitter or
signals
radio relay antenna
Earth stations
Follows line-of-
beam signals to Computers & other
sight path
the satellites communications
between relay
processors
systems spaced Not suitable for
coordinate/control
about 30 miles interactive, real-
transmissions
apart time processing
to/from mobile users
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 Wireless Technologies

Wireless Other Wireless

Bluetooth
LANS Systems

Uses wireless Short-range Cellular phones

radio-wave wireless
Mobile radio
technology to
Connects PCs to
connect PCs PDAs
peripheral
within an office or
devices Personal digital
building
assistant
Fairly low cost to
Can be high-
implement
frequency (like
digital cellular), or
low frequency
(spread spectrum)

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 Wireless Technologies

Telecommunications networks now

play vital and pervasive roles in…

Web-enabled e-business processes

Electronic commerce

Enterprise collaboration

Other applications that support business

operations, management, & strategic objectives

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The Wireless Protocol (WAP)

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Communications Processors

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Comparing Technologies

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 Communications Processors

 Multiplexer… allows a single communications

channel to carry simultaneous data
transmissions from many terminals
– In time division multiplexing (TDM), the
multiplexer divides the time each terminal
can use the high-speed into short time slots
 Multiplexers increase the number of
transmissions possible
– Does not increase the number of physical
data channels
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 Telecommunications Software

 May reside in PCs, servers, mainframes,

and communications processors
– Vital part of all telecommunications networks
– Used to manage network performance
– WANs often use telecommunications monitors
or teleprocessing monitors
– Other networks use operating system software
– Middleware helps diverse networks
communicate with each other

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 Network Management Functions

Traffic Manage network resources & traffic to avoid

Management congestion, optimize service levels

Provide authentication, encryption, firewall,

Security
auditing, & enforcement

Network Troubleshoot & watch over the network, alerting

Monitoring administrators to problems

Capacity Survey network resources, traffic

Planning patterns, and users’ needs

Determine the best way to accommodate

network needs as it grows and changes

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Network Topologies

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 Network Architectures and Protocols

 Protocol
– A standard set of rules and procedures for control
of communications in a network
 Handshaking
– The process of exchanging predetermined
signals and characters
– Establishes a telecommunications session between
terminals and computers
 Network Architecture
– Master plan of protocols, hardware, software, and
interfaces between end users and computer systems
– Goal is to promote an open, simple, flexible,
and efficient telecommunications environment
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 OSI and TCP/IP Models

ransmission Control Protocol/Internet ProtocolCOMMUNICATIOM MODEM BETWEEN

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TWO PCS
 Voice Over IP

 Internet Telephony
– Using an Internet connection to pass voice
data using IP instead of a telephone network
– Often referred to as voice over IP or VoIP
– Works like a regular phone, but skips long-
distance charges
– Runs over standard network infrastructure
– Requires a well-configured network to work
smoothly
– Skype is a fast-growing example

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 Bandwidth

 Bandwidth
– The frequency range of a telecommunications
channel that determines the maximum
transmission rate
– Speed and capacity typically measured in bits
per second (bps)
– Sometimes call baud rate
 Transmission Rates
– Narrow-band = low speed
– Broadband = high speed
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Transmission Speeds

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 Switching Alternatives

 Circuit Switching
– Switch opens a circuit to establish a link
between a sender and a receiver
– It remains open until the communication
session is completed
 Packet Switching
– Breaks messages into groups called packets
– Transmits packets separately

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 Network Interoperability

 Ensures that anyone anywhere on one

network can communicate with anyone
anywhere on another network
– From a telecommunications perspective,
no need to speak a common language
 Telecommunications would be possible
without
– Complete accessibility
– Transparency
– Seamless interoperability across all networks

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 Case 3: Secure, Self-Managed Network

 Metric & Multistandard Components Corp.

– Telecommunications network managed by outside firm
– Frequent crashes disrupted e-mail communications
and order taking
– Three-year contract limited options
 Requirements for new network
– Reliability
– Scalability
– Security
– Economy
– Responsibility

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 Case 3: Network Project Objectives

 Goals
– Higher reliability, security, and scalability
– Lower costs
 Strategy
– Design IP network with advanced technologies that
can be managed by small IT group
 Technology
– Use virtual private network technologies
– Connect remote office and users securely
– Facilitate company expansion
 Support
– Use Hi-Link technical support whenever needed
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Case 3: Secure, Self-Managed Network

Benefits of new, internally managed network…

Network congestion eliminated

Network bandwidth, reliability, security improved

Improved network management

Downtime reduced to nearly zero

Significant cost savings

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 Case Study Questions

 What were the most important factors contributing

to MMCC’s success with its new, secure,

self-managed network?

 What are some of the business benefits and

challenges of self-managed and externally
managed networks?

 Which type of network management would you

advise small-to-medium business firms to use?

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