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Chapter 7
Telecommunications, the Internet, and Wireless Technology
Learning Objectives
1. What are the principal components of telecommunications networks and key
networking technologies?
2. What are the different types of networks?
Chapter Outline
7.1 Telecommunications and Networking in Today’s Business World
Networking and Communication Trends
What Is a Computer Network?
Key Digital Networking Technologies
7.2 Communications Networks
7.3 The Global Internet
What Is the Internet?
7.4 The Wireless Revolution
Cellular Systems
Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The
page number for each key term is provided.
3G Networks, 307
4G networks, 307
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Bandwidth, 288
Blog, 304
Blogosphere, 304
Bluetooth, 308
Hubs, 281
Hypertext Transfer Protocol (HTTP), 299
Instant messaging, 294
Internet Protocol (IP) address, 288
Internet service provider (ISP), 288
Protocol, 284
Radio frequency identification (RFID), 310
Router, 281
RSS, 304
Search engines, 300
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284
Unified communications, 298
Uniform resource locator (URL), 299
Virtual private network (VPN), 298
Voice over IP (VoIP), 295
Teaching Suggestions
Chapter 7 presents crucial concepts and terminology since telecommunications,
networks, and the Internet are now introducing fundamental changes in businesses. The
opening case, “RFID and Wireless Technology Speed Up Production at Continental
Tires,” illustrates some of the new capabilities and opportunities provided by
contemporary networking technology.
After the new RFID system was installed and workers trained on how to use it, the
manufacturing plant in Sarreguemines, France, increased production from 33,000 to
38,000 tires per day. Using a wi-fi wireless network and RFID tags, the company
installed the tags on each of its carriers. As the carts move about the manufacturing floor,
location information is transmitted to the wireless network. Handheld computers are used
to confirm that the carriers have been loaded with components or have arrived at a
specific workstation.
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Section 7.1, “Telecommunications and Networking in Today’s Business World”
Telecommunications and networks are vital to the majority of businesses today, and this
section explains why. Because telecommunications technology serves as the foundation
for electronic commerce and the digital economy, the concepts and terminology in
Chapter 7 are important for both MIS and business majors. This section explains the
basic configuration of networks, regardless of their size.
Contemporary networks have been shaped by the rise of client/server computing, the use
of packet switching, and the adoption of TCP/IP as a universal communications standard
for linking disparate networks and computers. Client/server networks have distributed
much of the organization’s computing power to the desktop and factory floor. Packet
switching makes more efficient use of network communications capacity by breaking
messages into small packets that are sent independently along different paths in a
network and then reassembled at their destination. Protocols provide a common set of
Section 7.2, “Communications Networks” It may help for you to bring several props to
show the different transmission media explained in this section. For example, bring
twisted wire, coaxial cable, and fiber-optic cable to show to the class and discuss the
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Section 7.3, “The Global Internet” Most students are familiar with the Internet and
motivated to discuss it. You might begin this section by asking students how they spend
their time on the Internet and how their online activities have changed since they started
using the Internet. Also, ask them to identify which client platforms they currently use or
have used. Ask your students to identify several of the many benefits that the Internet
offers to organizations. Ask them to provide specific examples that they have read about
in the text or have personally observed.
Interactive Session: Organizations: The Battle over Net Neutrality
Case Study Questions:
1. What is network neutrality? Why has the Internet operated under net neutrality
up to this point in time?
Network neutrality is the idea that Internet service providers must allow customers
equal access to content and applications regardless of the source or nature of the
2. Who’s in favor of network neutrality? Who’s opposed? Why?
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Those in favor of network neutrality include organizations like MoveOn.org, the
Christian Coalition, the American Library Association, every major consumer group,
many bloggers and small businesses, and some large Internet companies like Google
and Amazon. Verizon and Google proposed a split proposition—enforce net
3. What would be the impact on individual users, businesses, and government if
Internet providers switched to a tiered service model?
Proponents of net neutrality argue that a neutral Internet encourages everyone to
innovate without permission from the phone and cable companies or other authorities.
A more level playing field spawns countless new businesses. Allowing unrestricted
providers stand to increase their profit margins.
4. Are you in favor of legislation enforcing network neutrality? Why or why not?
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Student answers will vary. Some components and principles to consider in answering
this question include:
• Price differentials: How much more would heavy bandwidth users pay than
Interactive Session: Management: Monitoring Employees on Networks: Unethical
or Good Business?
Case Study Questions
1. Should managers monitor employee email and Internet usage? Why or why not?
Answers will vary on this question. The case study statistics show that corporate
misuse and abuse of email for personal reasons is exploding. Simply stated,
employees who use company resources for personal use not related to the company
2. Describe an effective email and Web use policy for a company.
Like all policies an effective email and Web use policy must be carefully designed
and clearly communicated to all persons who use these corporate resources. There are
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3. Should managers inform employees that their Web behavior is being monitored?
Or should managers monitor secretly? Why or why not?
Opinions will vary according to personal values and workplace experiences.
However, most students will probably answer that managers should inform
monitored and explain why.
Section 7.4, “The Wireless Revolution” Ask your students how many of them use
cellular phones, smartphones, wireless laptops, tablet computers, or wireless e-book
readers. Most students are excited to demonstrate their “latest devices,” and you may
wish to ask one of them to discuss the capabilities of theirs. Ask them to discuss what
Review Questions
1. What are the principal components of telecommunications networks and key
networking technologies?
Describe the features of a simple network and the network infrastructure for a
large company.
A simple network consists of two or more connected computers. Basic network
components include computers, network interfaces, a connection medium, network
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Name and describe the principal technologies and trends that have shaped
contemporary telecommunications systems.
Client/Server computing, the use of packet switching, and the development of widely
used communications standards such as TCP/IP are the three technologies that have
2. What are the main telecommunications transmission media and types of
networks?
Name the different types of physical transmission media and compare them in
terms of speed and cost.
Typical speeds and costs for several of the transmission media are provided below.
Medium Speed Cost
Define a LAN, and describe its components and the functions of each
component?
A LAN is a telecommunications network that is designed to connect personal
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Components of a typical LAN consists of: computers (dedicated server and clients), a
network operating system (NOS) residing on a dedicated server computer, cable
(wiring) connecting the devices, network interface cards (NIC), switches or a hub,
and a router.
• NIC each computer on the network contains a network interface device.
• Connection medium—for linking network components; can be a telephone
Name and describe the principal network topologies.
The principal network topologies include:
• Star topology: All devices on the network connect to a single hub and all
network traffic flows through the hub.
3. How do the Internet and Internet technology work and how do they support
communication and e-business?
Define the Internet, describe how it works and explain how it provides business
value.
The Internet is a vast network of computers that connects millions of people all over
the world. The Internet uses the client/server model of computing and the TCP/IP
network reference model. Every computer on the Internet is assigned a unique
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numeric IP address. No one owns the Internet, and it has no formal management
organization. However, worldwide Internet policies are established by organizations
Explain how the Domain Name System (DNS) and IP addressing system work.
The Internet is based on the TCP/IP networking protocol suite. Every computer on the
Internet is assigned a unique Internet Protocol (IP) address, which currently is a 32-bit
number represented by four strings of numbers ranging from 0 to 255 separated by
periods.
A domain name is the English-like name that corresponds to the unique 32-bit
numeric IP address for each computer connected to the Internet. The Domain Name
List and describe the principal Internet services.
Table 7-2 lists and describes the major Internet services:
• Email—person-to-person messaging; document sharing.
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Define and describe VoIP and virtual private networks and explain how they
provide value to businesses.
• Voice over Internet Protocol (VoIP) enables Internet technology to be used for
telephone voice transmission over the Internet or private networks. VoIP
offers the advantage of avoiding tolls charged by local and long-distance
List and describe alternative ways of locating information on the Web.
• Search engines are a facility on the Web that helps you find sites with the
information and/or services you want. Examples: Google, Yahoo!, and MSN.
• Intelligent agent shopping bots use intelligent agent software for searching the
Internet for shopping information. Examples: MySimon and Froogle.
Compare Web 2.0 and Web 3.0.