Chapter 06 – Telecommunications and Networks
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6 Telecommunications and Networks
CHAPTER OVERVIEW
Chapter 6: Telecommunications and Networks presents an overview of the Internet and other telecommunication
networks, business applications, and trends and reviews technical telecommunications alternatives.
LEARNING OBJECTIVES
After reading and studying this chapter, you should be able to:
1. Understand the concept of a network.
5. Identify the basic components, functions, and types of telecommunications networks used in business.
6. Explain the functions of major components of telecommunications network hardware, software, media, and
services.
7. Explain the concept of client/server networking.
8. Understand the two forms of peer-to-peer networking.
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SUMMARY
• Telecommunications Trends. Organizations are becoming networked enterprises that use the Internet, intranets,
and other telecommunications networks to support business operations and collaboration within the enterprise and
intranets and extranets, to support enterprise collaboration, e-commerce, and other e-business applications.
• The Internet Revolution. The explosive growth of the Internet and the use of its enabling technologies have
revolutionized computing and telecommunications. The Internet has become the key platform for a rapidly
• The Business Value of the Internet. Companies are deriving strategic business value from the Internet, which
enables them to disseminate information globally, communicate and trade interactively with customized information
• The Role of Intranets. Businesses are installing and extending intranets throughout their organizations to (1)
improve communications and collaboration among individuals and teams within the enterprise; (2) publish and share
valuable business information easily, inexpensively, and effectively via enterprise information portals and intranet
Web sites and other intranet services; and (3) develop and deploy critical applications to support business operations
and decision making.
• The Role of Extranets. The primary role of extranets is to link the intranet resources of a company to the intranets
suppliers, and others.
• Telecommunications Networks. The major generic components of any telecommunications network are (1)
terminals, (2) telecommunications processors, (3) communications channels, (4) computers, and (5)
• Network Alternatives. Key telecommunications network alternatives and components are summarized in Figure
6.11 for telecommunications media, processors, software, channels, and network architectures. A basic
understanding of these major alternatives will help business end users participate effectively in decisions involving
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KEY TERMS AND CONCEPTS
1. Analog ():
An analog signal is one in which a base carrier‘s alternating current frequency is modified in some way, such as
2. Bandwidth ():
Bandwidth describes the transmission speed and capacity of a telecommunications media or network.
4. Client/Server Networks ():
A client/server network is a computing environment where workstations (clients) connect to servers.
5. Coaxial Cable ():
7. Digital ():
Digital describes electronic technology that generates, stores, and processes data in terms of two states. These
states are typically represented as “0” and “1“.
8. Extranets ():
9. Fiber optics ():
10. Internet Service Providers ():
An ISP is a company that provides access to the Internet to individuals and organizations.
11. Internet Networking Technologies ():
12. Inter-network Processors ():
Internetwork processors such as bridges, routers, hubs, or gateways to other networks.
13. Intranets ():
Chapter 06 – Telecommunications and Networks
14. Legacy systems ():
Legacy systems refer to an organization’s outdated business information systems.
15. Local Area Networks – LANs ():
17. Middleware ():
18. Modems ():
19. Multiplexer ():
20. Network ():
The term network means an interconnected or interrelated chain, group, or system.
21. Network Architectures ()
An organization‘s telecommunications environment including computers, software, communications standards,
and transmission media.
a. Open systems interconnection – OSI ():
22. Network computing ():
A system of computing in which “the network is the computer,” that is, the view that a few powerful computers
on the network provide the central computing resource for the network‘s users.
24. Network topologies ():
A network topology describes the relationship between network nodes and telecommunications media.
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25. Open Systems ():
26. Peer-to-Peer Networking ():
P2P networks enable computers to connect and communicate directly with each other.
27. Protocol ():
Protocols consist of a set of rules and procedures for the control of communications in a network.
28. Telecommunications ():
29. Telecommunications media ():
30. Telecommunications network ():
A telecommunications communications network is any arrangement in which a sender transmits a message to a
receiver over a channel consisting of some type of medium .
31. Telecommunications processors ():
Multiplexers, concentrators, communications controllers, and cluster controllers that allow a communications
32. Telecommunications software ():
33. Virtual private network (VPN) ():
A VPN consists of a network created by two private networks connected securely to each other via the Internet.
34. VoIP ():
35. Wide Area Network – WAN ():
A WAN is a data communications network covering a large geographic area.
36. Wireless LAN ():
A wireless LAN is a local area network supported entirely without telecommunications cables.
37. Wireless technologies ():
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ANSWERS TO REVIEW QUIZ
Q.
A.
Key Term
Q.
A.
Key Term
1
VoIP
21
Bandwidth
2
Network interoperability
22
Virtual Private Network
3
Network
23
Coaxial cable
4
Middleware
24
Protocol
5
25
OSI
6
Intranets
26
TCP/IP
7
Extranets
27
Open systems
8
Internet service provider
28
Internetwork processors
9
WAN
29
Internet networking technologies
10
Local area networks
30
Client/server networks
11
Digital
31
Network computing
12
Telecommunications media
32
Peer-to-peer networks
13
Fiber optics
33
Communications satellites
14
Bluetooth
34
Legacy systems
15
Telecommunications processors
35
Telecommunications
16
Telecommunications software
36
Wireless LAN
17
Modems
37
Network architectures
18
Multiplexer
38
Telecommunications network
19
Network topologies
39
Wireless technologies
20
Analog
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ANSWERS TO DISCUSSION QUESTIONS
1. The Internet is the driving force behind developments in telecommunications, networks, and other
information technologies. Do you agree or disagree? Why?
Agree
The Internet provides common protocols for information exchange (TCP/IP, HTML, and XML to name the
2. How is the trend toward open systems, connectivity, and interoperability related to business use of the
Internet, intranets, and extranets?
Businesses are looking for the least expensive access to resources available. Open systems, connectivity, and
3. Refer to the Real World Challenge in the chapter. The problems in the case are framed from the
perspective of the health care providers. From that of a patient, what would be your concerns about
“visiting” a doctor that is maybe hundreds of miles away? What could be done to alleviate those
concerns?
In any problem situation, there are two main choices: do something or do nothing. The do nothing is an
obvious choice in many situations because of any number of constraints limiting a decision to do something –
4. How will wireless information appliances and services affect the business use of the Internet and the
Web? Explain.
Affects
The overall effect will be massive growth of wireless information appliances and related applications. The
Chapter 06 – Telecommunications and Networks
Examples
• Marketing can now reach customers right at the point of purchase.
• Sales personnel can reduce sales cycle times by capturing sales real–time.
5. What are some of the business benefits and management challenges of client/server networks? Network
computing? Peer-to-peer networks?
Client/server benefits:
• Clients (end users) take the computing burden off the server, thereby allowing the server to accommodate
more users.
• Servers centrally control information access and flow.
6. What is the business value driving so many companies to install and extend intranets rapidly throughout
their organizations?
Intranets decrease communications costs. They increase the number of employees reached, the volume of
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7. What strategic competitive benefits do you see in a company’s use of extranets?
Strategic benefits derive from offering customers, suppliers, and partners with unique capabilities afforded by
8. Refer to the Real World Solution in the chapter. Why do some insurance companies refuse to cover
telemedicine services, or classify them as “experimental”? What are their concerns? How could those
concerns be addressed so that these approaches can be expanded to other geographical areas with similar
problems?
A very jaded answer to refusal by insurance companies to cover telemedicine would be that insurance
companies are in the business of making profits for their stockholders, not giving away money at every
opportunity, and this would be a place to save financial outlay.
9. Do you think that business use of the Internet, intranets, and extranets has changed what businesspeople
expect from information technology in their jobs? Explain.
Yes. Over the last two decades, employees have seen significant improvements to information and information
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10. The insatiable demand for everything wireless, video, and Web-enabled everywhere will be the driving
force behind developments in telecommunications, networking, and computing technologies for the
foreseeable future. Do you agree or disagree? Why?
Agree: 3G and now 4G devices, applications, and networks have all taken the headlines. The massive number
ANSWERS TO ANALYSIS EXERCISES
1. How many addresses are enough?
a. Express as a power of 2 the number of nodes that can exist using IPv4.
2^32
b. Express as a power of 2 the number of nodes that can exist using IPv6.
2. MNO Incorporated Communications Network
a. Create a database table with an appropriate structure to store the data below. Enter the records shown
below and get a printed listing of your table.
b. Survey results suggest that the peak traffic to and from a site will be approximately 2 kilobits per second
for each phone line plus 10 kilobits per second for each computer. Create a report showing the estimated
peak demand for the telecommunications system at each site in kilobits. Create a second report grouped
by region and showing regional subtotals and a total for the system as a whole.
3. Wireless Radiation
a. Use an Internet search engine and report on what the World Health Organization (WHO) has had to say
about microwave radiation or nonionizing radiation.
Chapter 06 – Telecommunications and Networks
b. Use an Internet search engine to identify the various complaints posed by stakeholders regarding cell
phone towers. Write a one-page paper describing an alternative to cell phone towers that would enable
cell phone use and yet mitigate all or most of these complaints.
Complaints:
4. Maximizing Communications
a. In Excel’s menu, select “Data” and then “Sort” and then press the “F1” key for help. Read through each
of the topics. How would an ascending sort arrange the list “Smith; Jones; Zimmerman”?
b. What feature allows users to sort month lists so January appears before April?
c. Sort the partner data first on Gender, then by Industry, and then by Region, and save the file.
See Analysis Exercise Data Solutions files: [Chapter 06 – Solutions.xls].
The results from this sort will depend on the starting point. The original file has been sorted in ascending order
d. Examine the sorted results from the previous step. Notice that assigning the first eight partners to the
same table would minimize diversity. This result should also provide a clue about how to maximize
diversity. Using this insight, assign a table number in the range from 1 to 50 to each partner in your
sorted list so to maximize diversity. Save the file as “partners_sorted.xls” and explain your logic.
See Analysis Exercise Data Solutions files: [Chapter 06 – Solutions.xls].
Since assigning table #1 to the first eight partners in the list minimizes diversity, assigning tables {1, 2,… 50}
to the first fifty partners will maximize diversity. Start the table numbering over again with the 51st partner.
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5. Fixing the Dead Zones
Solutions:
1) Have you experienced dead zones? If so, describe where or under what circumstances?
Common locations:
• Basements
2) Search for “cell phone signal boosters”. Briefly describe what you found.
Cell phone signal boosters are products that relay cell phone signals between the cell phone and the nearest cell
phone tower.
3) What are the pros and cons to these products?
Pros:
ANSWERS TO REAL WORLD CHALLENGE/SOLUTION
Real World Challenge
1. What are some of the different ways in which the needed services could be provided? What are the
advantages and disadvantages of each? Which resources will be required in each case?
Service options:
Do without local medical expertise
Advantages
Chapter 06 – Telecommunications and Networks
Hire the necessary medical expertise to travel a circuit and work part-time in each location
Advantages
• access to non-urgent medical care
• less expensive or wasteful as full-time access to expertise
Hire the necessary medical expertise to serve local communities
Advantages
Use technology to make medical expertise locally accessible
Advantages
• 24/7 local access to expertise
2. What will be the key issues that will define the success of any solution that is implemented? Are those
technological or organizational in nature?
Key issues
• cultural change
• training
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3. What are the shared characteristics of the problems that both organizations face? That is, how are the
challenges that they face structurally similar?
Shared problem characteristics
• need for access to expertise
Real World Solution
1. Although the technologies used in both cases were quite sophisticated, these technologies do not seem to
have been a major issue in the implementation. What were the main roadblocks to the rollout of the
projects? What are the lessons that can be applied to videoconferencing efforts in other organizations or
industries?
Main roadblocks
• getting insurance companies to pay for consultations
2. Which other problems or scenarios would benefit from the technologies discussed in this case? What are
the characteristics of situations that could benefit from videoconferencing technologies?
Additional scenarios
• polar exploration
ANSWERS TO REAL WORLD CASES
RWC 1: DLA Piper, MetLife, PepsiCo, and Others
Case Study Questions
1. Implementing telepresence seems to have other, less tangible, advantages beyond travel cost savings.
What are some of those? How do you quantify them to make the case for investing in the technology?
Provide at least two fully developed examples.
Intangible benefits
• Helps “green” initiatives
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2. DLA Piper, MetLife, and the other companies featured in the case are very optimistic about the
technology. However, other than its cost, what are some potential disadvantages of implementing
telepresence in organizations?
Disadvantages
The case does not specifically discuss disadvantages other than cost.
3. Do you think meetings conducted through telepresence technology will be similar to face–to-face ones as
the technology becomes more pervasive? How would the rules of etiquette change for telepresence
meetings? Which type of meeting would you like best?
Similarities
• Real-time communication
Real World Activities
1. Telepresence is described in the case as a green technology because it replaces air travel with a more
environmentally friendly alternative. Recently, many organizations are looking to IT to help them cut
their carbon footprint. What other technologies can be helpful in this regard?
Sample “Green” IT Technologies
• Google’s containerized server rooms
• Google’s server motherboards with built in UPS
Chapter 06 – Telecommunications and Networks
2. Go online and research different ways in which the “green IT” movement is catching on. Prepare a
report to share your findings.
3. The organizations featured in the case are not too keen on the future of business travel. Despite the high
quality of current and future telepresence systems, do you believe these companies are missing something
by not having people meet face to face? Why or why not? Break into small groups with your classmates
to discuss this issue.
The case does not state that organizations have banned travel – just that they have reduced travel. These
RWC 2: Brain Saving Technologies, Inc. and the T-Health Institute
Case Study Questions
1. 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 from you? What kind of expectations or concerns would you have
about that kind of experience?
Feelings:
I wouldn’t care about the source of a diagnosis so long as I had confidence in the source’s competence.
2. What other professions, aside from health care and education could benefit from application of some of
the technologies discussed in the case? How would they derive business value from these projects?
Develop two proposals.
Other professions:
• Engineering projects
Proposals:
1) Implementing high quality video conferencing can be an expensive project and a distraction from core
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3. The deployment of IT in the health professions is still very much in its infancy. What other uses of
technology could potentially improve the quality of health care? Brainstorm several alternatives.
A few suggestions:
• Integrated billing
Real World Activities
1. Technology enhances the ability of educational institutes to reach students across geographic boundaries.
One recent development in this area is YouTube EDU. Go online to check out the site and prepare a
report summarizing its objectives, the kind of content available there, and how it could be used to
support traditional modes of education delivery, such as lectures.
2. If widely adopted, these technologies could conceivably lead to a concentration of specialists in a small
number of “hub” institutions, essentially creating a two-tier health care system. Do you believe this would
lead to an increase or decrease in the availability of these professionals for patients? What could be the
positive and negative consequences of this development? Break into small groups with your classmates to
discuss these issues.
Availability:
The main point is to make experts more available to the people who need them. Its secondary objective,