(28!08!2008) Telecommunication & Networks

Telecommunications
And Networks
Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6-1
Learning Objectives
1. Identify several major developments and

trends in the industries, technologies
and business applications of
telecommunications and Internet
technologies.
2. Provide examples of the business value

of Internet, intranet, and extranet
applications.
Learning Objectives
3. Identify the basic components, functions,

and types of telecommunications
networks used in business.
4. Explain the functions of major types of

telecommunications network hardware,
software, media, and services.
Why Study Networking?
• When computers are networked, two

industries – computing and
communications – converge, and the
result is vastly more than the sum of the
parts.
• Suddenly, computing applications become

available for business-to-business
coordination and commerce, and for small
as well as large organizations.
Case #1: Wireless Business Applications
Business Value of Wireless:

• Time is money. Pocket PCs help reduce
travel time at Celanese Chemicals related
to plant equipment diagnosis.
• Fidelity Investments attracts customers by

offering services via wireless devices.
• GM uses wireless devices to improve

forklift operator productivity and cut costs.
1. What is the business value of wireless

technologies in the chemicals and automotive
manufacturing industries? What other
manufacturing applications might benefit from
wireless technologies? Why?
2. What are some of the business benefits of

wireless technologies in finance and
investments? What other applications would
you recommend? Why? Check the website
of Fidelity.com to help you answer.
3. What are some of the business benefits and

challenges of using wireless technologies in
retailing? What are some other applications
that might be beneficial to consumers, as well
as retailers? Why?
4. What are some of the major challenges

limiting the widespread use of wireless
technologies in many business applications?
What can be done to meet such challenges?
Telecommunications
Definition:
• The exchange of information in any form
(voice, data, text, images, audio, video)
over networks
Trends in Telecommunications
Open Systems
Definition:
• Information systems that use common
standards for hardware, software,
applications, and networking
Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 10

Connectivity
Definition:
• The ability of networked computers and
other devices to easily access and
communicate with each other and share
information

Interoperability
Definition:
• The ability of an open system to enable
the many different applications of end
users to be accomplished using the
different varieties of computer systems,
software packages, and databases
provided by a variety of interconnected
networks

Digital Network Technologies
Definition:
• Digital transmission technologies that transmit
information in the form of discrete pulses
Benefits:
• Higher transmission speeds
• Movement of larger amounts of information
• Greater economy
• Lower error rates

Business Value of Telecommunications

Internet
Definition:
• A network made up of millions of smaller
private networks each with the ability to
operate independent of, or in harmony
with, all the other millions of networks
connected to the Internet

Internet

Internet Applications

Business Use of the Internet

Business Value of the Internet

Intranet
Definition:
A network inside an organization that uses
Internet technologies to provide an
Internet-like environment within the
enterprise for information sharing,
communications, collaboration, and the
support of business processes

Business Value of Intranets
• Communications and Collaboration – includes

email, voicemail, paging, faxes, and groupware
• Web Publishing – easy, attractive and low-cost

way of publishing and accessing multimedia
business information
• Business Operations and Management –

platform for developing and deploying critical
business applications to support business
operations and managerial decision making
across the inter-networked enterprise
Business Value of Intranets

Extranet
Definition:
• Network links that use Internet
technologies to interconnect the intranet
of a business with the intranets of its
customers, suppliers, or other business
partners

Business Value of Extranets

Intranets & Extranets

Telecommunications Network Components
• Terminals – any input/output device that uses

telecommunications networks to transmit or receive data
• Telecommunications Processors – devices that perform

control and support functions
• Telecommunications Channels – media over which data

are transmitted and received
• Computers – all sizes and types
• Telecommunications Control Software – programs that

control telecommunications activities

Telecommunications Network Components

Types of Telecommunications Networks
• Wide Area Network (WAN) – network that

covers a large geographic area
• Local Area Network (LAN) – network connecting

information processing devices within a limited
physical area
• Virtual Private Network (VPN) – secure network

that uses the Internet as its main backbone
network, but relies on network firewalls,
encryption, and other security features of its
Internet and intranet connections and those of
participating organizations

LAN & VPN

Types of Telecommunications Networks
• Client/Server – PCs and workstations, called

clients are interconnected by local area
networks and share application processing with
network servers
• Network Computing – Thin clients provide a

browser-based user interface for processing
small application programs
• Peer-to-Peer – file-sharing software connects

each PC to a central server or to another online
user’s PC
Client/Server

Client/Server & Network Computing

Peer-to-Peer

Peer-to-Peer

Telecommunications Media
• Twisted-Pair Wire – copper wire twisted

into pairs
• Coaxial Cable – sturdy copper or

aluminum wire wrapped with spacers to
insulate and protect it
• Fiber Optics – one or more hair-thin

filaments of glass fiber wrapped in a
protective jacket
Telecommunications Media

Wireless Technologies
• Terrestrial Microwave – earthbound

microwave systems that transmit high-
speed radio signals in a line-of-sight path
between relay stations spaced
approximately 30 miles apart
• Communications Satellites - high-earth

orbit communications satellites placed in
stationary geosynchronous orbits

Wireless Technologies
• Cellular and PCS Systems – a geographic area

divided into cells with one low-power transmitter
device per cell used to relay calls from one cell
to another
• Wireless LANs –high- or low-frequency radio

technology installed in an office or building
• Wireless Web – wireless, Web-enabled

information appliances accessing the Internet,
intranets and extranets
Wireless Application Protocol (WAP)

Telecommunications Processors
• Modems – convert digital signals from a

computer into analog frequencies that can
be transmitted over ordinary telephone
lines
• Multiplexers – allows a single

communications channel to carry
simultaneous data transmissions from
many terminals

Modem

Telecommunications Technologies

Internetwork Processors
• Switch – makes connections between

telecommunications circuits in a network
• Router – intelligent communications processor

that interconnects networks based on different
protocols
• Hub – a port switching communications

processor
• Gateway – connects networks using different

communications architectures

Communications Processors

Network Processors

Network Management
• Traffic Management – manage network

resources and traffic to avoid congestion
and optimize telecommunications service
levels to users
• Security – provide authentication,

encryption, firewall, auditing and
enforcement

Network Management
• Network Monitoring – troubleshoot and

watch over the network, informing network
administrators of potential problems
before they occur
• Capacity Planning – survey network

resources and traffic patterns and users’
needs to determine how best to
accommodate the needs of the network
as it grows and changes
Network Topologies
• Star – ties end user computers to a

central computer
• Ring – ties local computer processors

together in a ring on a relatively equal
basis
• Bus – local processors share the same

communications channel
Network Topologies

Network Topologies

Network Architectures & Protocols
• Protocol – standard set of rules and procedures

for the control of communications in a network
• Network Architecture – the use of standard

protocols, standard communications hardware
and software interfaces and the design of a
standard multilevel interface between end users
and computer systems with the goal of
promoting an open, simple, flexible, and efficient
telecommunications environment

OSI & TCP/IP Models
• Open Systems Interconnection (OSI) -

model is a seven-layer model that serves
as a standard model for network
architectures
• Transmission Control Protocol / Internet

Protocol (TCP/IP) – is a five layer
telecommunications protocol used by the
Internet

OSI & TCP/IP Models

IP Address

Bandwidth
Definition:
• Classification of communications speed
and capacity of telecommunications
networks
Transmission Rates:
• Narrow-band – low-speed
• Broadband – high-speed

Transmission Speeds

Switching Alternatives
• Circuit Switching – a switch opens a

circuit to establish a link between a sender
and receiver; it remains open until the
communication session is completed
• Message Switching – a message is

transmitted a block at a time from one
switching device to another

Switching Alternatives
• Packet Switching – messages are divided

into fixed or variable length packets, and
packets are sent across networks
• Cell Switching – breaks voice, video and

other data into fixed cells of 53 bytes and
routes them to their next destination in the
network

Summary
• Organizations are becoming networked

enterprises that use the Internet, intranets, and
other telecommunications networks to support
business operations and collaboration within the
enterprise, and with their customers, suppliers,
and other business partners.
• Telecommunications technology is moving

toward open, inter-networked digital networks
for voice, data, video and multimedia.

Summary
• Open systems with unrestricted connectivity

using Internet technologies are the primary
telecommunications technology drivers in e-
business systems.
• Companies are deriving strategic business

value from the Internet, which enables them to
disseminate information globally, communicate
and trade interactively with customized
information and services for individual
customers, and foster collaboration of people
and integration of business processes within the
enterprise and with business partners.

Summary
• Businesses are installing and extending

intranets throughout their organizations to:
• Improve communications and collaboration
among individuals and teams within the
enterprise
• Publish and share valuable business
information easily, inexpensively, and
effectively via enterprise information portals
• Develop and deploy critical applications to
support business operations and decision
making
Summary
• The primary role of extranets is to link the

intranet resources of a company to the intranets
of its customers, suppliers, and other business
partners.
• The major generic components of any

telecommunications network are:
• Terminals
• Telecommunications processors
• Communications channels
• Computers
• Telecommunications software

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Telecommunications

1. Identify several major developments and

2. Provide examples of the business value

3. Identify the basic components, functions,

4. Explain the functions of major types of

• When computers are networked, two

• Suddenly, computing applications become

Business Value of Wireless:

• Fidelity Investments attracts customers by

• GM uses wireless devices to improve

1. What is the business value of wireless

2. What are some of the business benefits of

3. What are some of the business benefits and

4. What are some of the major challenges

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 10

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 11

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 12

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 13

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 14

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 15

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 16

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Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 19

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 20

• Communications and Collaboration – includes

• Web Publishing – easy, attractive and low-cost

• Business Operations and Management –

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 22

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 23

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 24

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 25

• Terminals – any input/output device that uses

• Telecommunications Processors – devices that perform

• Telecommunications Channels – media over which data

• Computers – all sizes and types

• Telecommunications Control Software – programs that

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 26

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 27

• Wide Area Network (WAN) – network that

• Local Area Network (LAN) – network connecting

• Virtual Private Network (VPN) – secure network

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 28

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 29

• Client/Server – PCs and workstations, called

• Network Computing – Thin clients provide a

• Peer-to-Peer – file-sharing software connects

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 31

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 32

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 33

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 34

• Twisted-Pair Wire – copper wire twisted

• Coaxial Cable – sturdy copper or

• Fiber Optics – one or more hair-thin

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 36

• Terrestrial Microwave – earthbound

• Communications Satellites - high-earth

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 37

• Cellular and PCS Systems – a geographic area

• Wireless LANs –high- or low-frequency radio

• Wireless Web – wireless, Web-enabled

Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved. 6 - 39

• Modems – convert digital signals from a