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Chapter 7
Telecommunications, the Internet, and Wireless Technology
Student Learning Objectives
1. What are the principal components of telecommunications networks and key
networking technologies?
2. What are the different types of networks?
3. How do the Internet and Internet technology work and how do they support
communication and e-business?
4. What are the principal technologies and standards for wireless networking,
communication, and Internet access?
Learning Catalytics is a “bring your own device” student engagement, assessment, and
classroom intelligence system. It allows instructors to engage students in class with real-
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, 287
Predictive search, 281
4G networks, 287
Protocol, 262
Bandwidth, 265
Radio frequency identification (RFID), 290
Blog, 283
Router, 258
Blogosphere, 284
RSS, 284
Bluetooth, 287
Search engine marketing , 280
Broadband, 258
Search engine optimization (SEO), 281
Chat, 272
Semantic Web, 285
Digital subscriber line (DSL), 266
Shopping bots, 283
Domain name, 267
Smart phones, 286
Domain name systems (DNS), 267
Social networking, 284
E-mail, 272
Social search, 282
File Transfer Protocol (FTP), 272
Software-defined networking, 259
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Hotspots, 289
T1 lines, 267
Hubs, 258
Telnet, 272
Hypertext Transfer Protocol (HTTP), 278
Transmission Control Protocol/Internet Protocol
(TCP/IP), 262
Instant messaging, 272
Unified communications, 276
Internet of Things, 292
Uniform resource locator (URL), 278
Internet Protocol (IP) address, 267
Virtual private network (VPN), 277
Internet service provider (ISP), 267
Visual Web, 286
Internet2, 272
Voice over IP (VoIP), 274
IPv6, 272
Web 2.0, 283
Metropolitan area network (MAN), 265
Web site, 277
Microblogging, 283
Wide area networks (WAN), 265
Modem, 263
Network operating system (NOS), 258
Wiki, 284
Packet switching, 261
WiMax, 290
Wireless sensor networks (WSNs), 291
Personal area networks (PANs), 287
Teaching Suggestions
Chapter 7 presents crucial concepts and terminology because telecommunications,
networks, and the Internet are now introducing fundamental changes in businesses. The
opening case, “Wireless Technology Makes Dundee Precious Metals Good as Gold,”
illustrates some of the new capabilities and opportunities provided by contemporary
networking technology.
Dundee has decreased equipment downtime and utilizes its resources more efficiently. It
uses data from the underground wireless network in its mine management software and
mobile planning software. Now the company can more closely account for its mine
workers making them more safe and the workers can communicate more closely with the
mine’s control room. Control room staff can actually see the location of machinery and
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Section 7.1, “What are the principal components of telecommunications networks and
key networking technologies?” 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.
You may want to contrast the origin and history of telephone networks and computer
networks. Then diagram how the two are converging into one pipeline for all types of
communication transmissions. Convergence is leading to more efficient transmission
traffic and ubiquitous communications thanks to the Internet.
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
Section 7.2, “What are the different types of networks?” Students should note the
different ranges (frequencies) of wireless media. Table 7.1 compares the range of four
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Section 7.3, “How do the Internet and Internet technology work and how do they
support communication and e-business?” 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.
The principal Internet services and communication tools are e-mail, chatting, instant
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 such as MoveOn.org, the
Christian Coalition, the American Library Association, every major consumer group,
many bloggers and small businesses, and some large Internet companies such as
3. What would be the impact on individual users, businesses, and government if
Internet providers switched to a tiered service model for transmission over land
lines as well as wireless?
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
4. It has been said that net neutrality is the most important issue facing the Internet
since the advent of the Internet. Discuss the implications of this statement.
No one owns the Internet. However, someone has to pay for the “pipes” that provide
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5. Are you in favor of legislation enforcing network neutrality? Why or why not?
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
those who consume less bandwidth?
• Speed: How much faster would network transmissions be with a tiered service
model?
Interactive Session: Management: Monitoring Employees on Networks: Unethical
or Good Business?
Case Study Questions
1. Should managers monitor employee e-mail and Internet usage? Why or why
not?
Answers will vary on this question. The case study statistics show that corporate
misuse and abuse of e-mail for personal reasons is exploding. Simply stated,
employees who use company resources for personal use not related to the company
are, in essence, engaged in “service theft.” They are being paid to work for the
company, and this does not include abusing corporate resources for personal time.
Companies are in business to generate profits for their shareholders. Managers
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2. Describe an effective e-mail and Web use policy for a company.
Like all policies an effective e-mail and Web use policy must be carefully designed
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
Section 7.4, “What are the principal technologies and standards for wireless
networking, communication, and Internet access?” 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 they like or dislike about the features found on their appliance.
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Review Questions
7-1 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
operating system software, and either a hub or a switch. The networking infra-
structure for a large company relies on both public and private infrastructures to
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
shaped contemporary telecommunications systems.
Client/server computing has extended to networking departments, workgroups,
factory floors, and other parts of the business that could not be served by a centralized
7-2 What are the different types of networks?
Define an analog and a digital signal.
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Analog: a continuous waveform that passes through a communications medium and
Digital: a discrete, binary waveform, rather than a continuous waveform, represented
Distinguish between a LAN, MAN, and WAN.
LAN (Local Area Network): a telecommunications network that is designed to
connect personal computers and other digital devices within a half-mile or 500-meter
MAN (Metropolitan Area Network): a network that spans a metropolitan area,
usually a city and its major suburbs. Its geographic scope falls between a WAN and a
LAN.
WAN (Wide Area Network): spans broad geographical distances—entire regions,
states, continents, or the entire globe. The most universal and powerful WAN is the
7-3 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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The Internet enables employees to gain remote access to the company’s internal
systems through its Web site. They are able to better service customers and suppliers,
improve operational efficiency, increase productivity, lower operational costs, have a
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.
List and describe the principal Internet services.
Table 7.2 lists and describes the major Internet services:
• E-mail—person-to-person messaging; document sharing.
• Newsgroups—discussion groups on electronic bulletin boards.
• Chatting and instant messaging—interactive conversations.
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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
telephone networks. VoIP provides businesses an opportunity to reduce costs
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.
• Blogs are informal yet structured Web sites where subscribing individuals can
publish stories, opinions, and links to other Web sites of interest.