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.
2. Apply Metcalfe’s law in understanding the value of a network.
3. Identify several major developments and trends in the industries, technologies, and business applications of
telecommunications and Internet technologies.
8. Understand the two forms of peer-to-peer networking.
9. Explain the difference between digital and analog signals.
10. Identify the various transmission media and topologies used in telecommunications networks.
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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
• 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
Chapter 06 – Telecommunications and Networks
• Telecommunications software, such as network operating systems and telecommunications monitors, controls and
manages the communications activity in a telecommunications network.
KEY TERMS AND CONCEPTS
1. Analog (244):
An analog signal is one in which a base carrier‘s alternating current frequency is modified in some way, such as
2. Bandwidth (260):
Bandwidth describes the transmission speed and capacity of a telecommunications media or network.
4. Client/Server Networks (241):
A client/server network is a computing environment where workstations (clients) connect to servers.
5. Coaxial Cable (246):
6. Communications satellites (247):
Earth satellites serving as relay stations for microwave communications signals.
7. Digital (244):
8. Extranets (232):
9. Fiber optics (246):
10. Internet Service Providers (225):
An ISP is a company that provides access to the Internet to individuals and organizations.
11. Internet Networking Technologies (222):
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12. Inter-network Processors (252):
Internetwork processors such as bridges, routers, hubs, or gateways to other networks.
13. Intranets (229):
An intranet is a network inside an organization that uses Internet technologies (such as Web browsers and
14. Legacy systems (242):
Legacy systems refer to an organization’s outdated business information systems.
15. Local Area Networks – LANs (239):
16. Metcalfe’s Law (218):
Metcalfe’s Law expresses the value of a network as the square of the number of its users.
17. Middleware (222):
18. Modems (251):
19. Multiplexer (252):
20. Network (218):
The term network means an interconnected or interrelated chain, group, or system.
21. Network Architectures (255)
An organization’s telecommunications environment including computers, software, communications standards,
and transmission media.
22. Network computing (242):
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24. Network topologies (254):
A network topology describes the relationship between network nodes and telecommunications media.
25. Open Systems (222):
26. Peer-to-Peer Networking (243):
P2P networks enable computers to connect and communicate directly with each other.
27. Protocol (255):
Protocols consist of a set of rules and procedures for the control of communications in a network.
28. Telecommunications (221):
29. Telecommunications media (245):
30. Telecommunications network (235):
31. Telecommunications processors (251):
Multiplexers, concentrators, communications controllers, and cluster controllers that allow a communications
32. Telecommunications software (253):
34. VoIP (258):
VoIP (voice over IP) is a system through which voice communications transmit over the internet in a manner
similar to a telephone call.
35. Wide Area Network – WAN (238):
A WAN is a data communications network covering a large geographic area.
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37. Wireless technologies (223):
The hardware, software, and protocols used to connect devices without the use of cables by means of radio,
microwave (high frequency radio), or infrared transmissions.
ANSWERS TO REVIEW QUIZ
Q.
A.
Key Term
Q.
A.
Key Term
1
34
VoIP
21
2
Bandwidth
2
23
Network interoperability
22
33
Virtual Private Network
8
10
Internet service provider
28
12
Internetwork processors
9
35
WAN
29
11
Internet networking technologies
10
15
Local area networks
30
4
Client/server networks
11
7
Digital
31
22
Network computing
12
29
Telecommunications media
32
26
Peer-to-peer networks
13
9
Fiber optics
33
6
Communications satellites
14
3
Bluetooth
34
14
Legacy systems
15
31
Telecommunications processors
35
28
Telecommunications
16
32
Telecommunications software
36
36
Wireless LAN
17
18
Modems
37
21
Network architectures
18
19
Multiplexer
38
30
Telecommunications network
20
1
Analog
3
20
Network
23
5
Coaxial cable
4
17
Middleware
24
27
Protocol
5
16
25
OSI
6
13
Intranets
26
TCP/IP
7
8
Extranets
27
25
Open systems
Chapter 06 – Telecommunications and Networks
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
flexibility and long-term support – both important management issues.
3. Refer to the Real World Case on telemedicine and videoconferencing in the chapter. Not mentioned in
the case are implications for both privacy and data security arising from the use of these technologies. Which
specific ones could arise as a result, and to what extent do you believe those would inhibit the deployment of
these advances?
Privacy and security concerns exist for any networked health-care solution, and teleconferencing would be no
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.
Examples
• Marketing can now reach customers right at the point of purchase.
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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.
6. What is the business value driving so many companies to install and extend intranets rapidly throughout
their organizations?
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 Case on telepresence in the chapter. What seems to be the difference between
videoconferencing and telepresence? Given the discussion on the latter in the case, does videoconferencing
have a future? Why or why not?
Differences: Telepresence is a high-end version of videoconferencing. Video conferencing involves sharing
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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
access. The most recent improvements stem directly from internet related technologies. The direction these
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
1
Starcraft II’s installer defaults to peer–to-peer for its game download scheme.
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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.
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.
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.
The WHO conducted a ten years study from 2000 to 2010. The study consisted of 13,000 people in 13
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:
• Fear of cancer or other illness
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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.
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}
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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
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
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
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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
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:
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Concerns:
I would be concerned that the remote expert wasn’t getting all the information necessary to make an accurate
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
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.
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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,
RWC 3: Metric & Multistandard Components Corp.: The Business Value of a Security Self-Managed
Network for a Small-to-Medium Business
Case Study Questions
1. What were the most important factors contributing to MMCC’s success with its new, secure, self–
managed network? Explain the reasons for your choices.
• increased bandwidth (eliminated congestion)
2. What are some of the business benefits and challenges of self-managed and externally managed
networks?
Self-managed benefits:
• Greater accountability
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Externally managed challenges:
3. Which type of network management would you advise small–to-medium business firms to use? Explain
the reasons for your recommendation.
Case Study Questions
1. Use the Internet to discover more about the telecommunications products and services and current
business performance and prospects of Cisco Systems and Hi- Link and some of their many competitors in
the telecom industry. Which telecom hardware and software company and IT consulting firm would you
recommend to a small-to-medium business with which you are familiar? Explain your reasons to the class.
Cisco Systems:
Cisco is a publicly held company that makes IP based networking hardware and software and provides related
products and services. Cisco is the industry leader.
2. In telecommunications network installation and management, as in many other business situations, the
choice between “do it yourself” and “let the experts handle it” is a crucial business decision for many
companies. Break into small groups with your classmates to debate this choice for small–to-medium
businesses. See if you can agree on several key criteria that should be considered in making this decision, and
report your conclusions to the class.
Key criteria:
• product maturity, stability, and reputation
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RWC 4: Starbucks and Others
Case Study Questions
1. 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 would
be enough to instill that kind of loyalty? Based on the experiences of the other coffee houses reported above,
do you think free access was a critical factor in developing a loyal customer base?
Agree:
If I were a Starbucks stockholder, the only question I would have is “is this making us money?” Starbucks has
enough stores to run controlled tests to determine optimal pricing and deals. Regardless, Starbucks has not
2. Part of the reason for Starbucks’s 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? Why or why not?
Note 1: this question appears to pre-suppose that Starbucks and McDonalds do not compete for the same
customers but then asks for the student’s opinion. The question essentially reduces to whether or not the student
believes enough food & beverage customers seeking a place to use Wi-Fi would choose McDonalds over
3. The case notes some companies that 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?
Personal use answers will vary.
Chapter 06 – Telecommunications and Networks
Real World Activities
1. Johan Bergendahl of Ericsson believes the demise of Wi-Fi is rather imminent and that mobile
broadband will replace hot spots for wireless access. Search the Internet for current commercial offerings of
mobile broadband and compare their features with Wi-Fi hotspots. Which one would you choose? Which
factors would affect your decision? Prepare a report to share your findings and opinions.
Broadband Features:
Greater coverage area than Wi-Fi
Wi-Fi Features:
2. Go online and look at different companies in one of the industries mentioned in the case, noting which
companies offer free wireless access and which ones do not. Break into small groups and brainstorm
potential explanations for these differences. Do you see any patterns in the type of companies that charge for
access versus those that offer it for free?
Industries mentioned:
• Hospitality