Title: Chapter 6 Business Networks and Telecommunications
 1Chapter 6 Business Networks andTelecommunications
  2Telecommunications and Networks
- Telecommunications concerns the movement of 
 information between two devices over a distance
- Information includes data, audio, or video 
- Networks are collections of devices (nodes) that 
 can engage in telecommunications
3The Value of Telecommunications in Business
- Telecommunications has improved business 
 efficiency and effectiveness to the point that
 business cannot be conducted without
 telecommunications
- Advantages 
- Better business communication 
- Geographical distance irrelevant 
- Faster communication/instant transaction 
- Information becomes immediately available 
- Better distribution of data 
- Flexible and mobile workforce 
- Alternative channels
4Dominant Telecommunications Applications
- Cell phones (local and long distance calls, GPS, 
 email, digital cameras)
- Video conferencing 
- Fax 
- Banking (ATMs and online) 
- RFID in warehouse and wireless payments (gas 
 pump)
- Peer-to-peer file sharing (Napster) 
- Web-empowered commerce 
- Buying and selling 
- Training and education 
- Research 
- Marketing 
5The Current Business Environment for Large Firms 
- The network infrastructure for a large 
 corporation consists of three separate
 telecommunications systems
- Data (text, numbers, etc.) 
- voice, 
- video images. 
- The environment is moving towards a common 
 Internet foundation for all three (converged
 networks)
6Corporate Networks
Voice
Data 
 7Pieces in the Corporate Network
- Center piece is a collection of linked LANS that 
 support a firm wide corporate network
- A series of servers supporting a corporate web 
 site linked to enterprise and legacy systems
 (data)
- Support for a mobile sales force) (voice) 
- Separate telephone network (cell and landline) 
 (voice)
- Separate video conferencing system (not shown) 
 (video)
- Currently no one vendor can supply all of the 
 services required
- How does a manager navigate through this complex 
 environment and make the right decisions?
8Digital and Analog Signals
- Digital signals (1s and 0s) are represented by 
 a discrete non-continuous wave form.
- Analog signals are represented by a sine curve . 
 The human voice, music, and noise are examples of
 analog signals
- From a physical point of view, signals can be 
 converted to an electric (carried over a wire)
 or electromagnetic (radio) signal
- In telecommunications there is a need to convert 
 digital signals to analog signals and vice versa.
 
- Computers emit digital signals but parts of the 
 telephone system only transmit analog signals, so
 digital signals must be converted into an analog
 signal and vice versa (need for your modem)
-  
9More on Signals
- All signals can be represented as a sine wave 
 (curve).
- The amplitude of a sine wave is the maximum 
 height of the sine wave from the x-axis
- The frequency of a sine wave is the number of 
 times a sine wave makes a complete cycle within a
 given time frame.
- Cycles per second is referred to as Hertz (Hz) 
- Digital data can be converted to a digital signal 
 by using two different voltages.
- Digital data can be converted to an analog signal 
 by using either two different frequencies or two
 different amplitudes.
- The greater the frequency of a signal, the higher 
 the possible data transfer rate the higher the
 desired data transfer rate, the greater the need
 signal frequency.
- Broadband (multiple signals) versus baseband (one 
 signal)
10Representation of Signals 
 11Electromagnetic Frequency Spectrum(Radio Waves)
TV 54M - 216 MHz
TV 220M - 500 MHz
AM 550K - 1650 KHz
FM 88M - 108 MHz
Navy/submarines
ELF
VLF
LF
MF
HF
VHF
UHF
Microwave
Optical
Hertz
100
1K
100K
1M1M
10M
100M
1G
10G
- All waves behave similarly 
- Frequency differences 
- Amount of data 
- Distance 
- Interference / Noise
Public Safety 150M - 160 MHz
Public Safety 460M - 500 MHz
Cellular phones 800 MHz
Cordless phones (some) 900 MHz
 PCS ET 2 GHz
Pers. Com. Sys (PCS) 1.85 G - 2.2 GHz 
 12Electromagnetic Signals
- The electromagnetic spectrum can be expressed in 
 terms of energy, wavelength, or frequency. Each
 way of thinking about the EM spectrum is related
 to the others in a precise mathematical way.
-  
13Transmission Speeds
- Digital signal speeds are usually expressed in 
 bits per second (Kbps, Mbps, and Gbps).
- Analog signal speeds are usually expressed in 
 frequency per second or Hertz (KHz, MHz, or GHz).
- A simple relationship between bps and frequency 
 is found in Nyquists theorem
- C2f(log2)L where f is the frequency, L is the 
 number of signal levels (often 2) and C is the
 capacity of the medium in bps
- The range of frequencies accommodated on a 
 particular medium is called its bandwidth. For
 example, current cell phones operate in a
 bandwidth between 1.85 GHz and 2.2 GHz
14Measures of Transmission Speeds 
 15Multiplexing Concept
- A channel is a path followed by a flow of 
 information (stream of bits). The information is
 carried by a digital or analog signal.
- Channels and bandwidth  cell phone example 
- Multiplexing uses a single channel to carry 
 simultaneous transmissions from multiple sources.
- Examples 
- Frequency division multiplexing divides a high 
 speed channel into multiple channels of slower
 speeds (FDMA  code division multiple access)
- Time division multiplexing assigns the sender 
 transmitter a small slice of time to use the high
 speed channel (TDMA)
- Code division multiplexing assigns each user a 
 special code enabling multiple users on a single
 channel (CDMA)
16Transmission Media
- Wire mediums 
- twisted pair 
- coaxial cable 
- fiber optic (each strand carries one signal) 
- Next generation optical networks (multiple data 
 streams over a single strand)
- Wireless transmissions are based on various types 
 of electromagnetic waves (radio frequencies)
- terrestrial microwave 
- satellite microwave (GEO) 
- low-orbit satellites (LEO) 
- Electrical power line (broadband over power lines 
 BPL)  Duke Energy will be doing this soon
17Media Comparisons 
 18Transmission Speeds of Typical Mediums 
 19A Simple Network 
 20Basic Network Components
- A network consists of two or more connected 
 computers.
- A network interface card (NIC) is the connection 
 point between one computer and the network
- A network operating system (NOS) routes and 
 manages communications on the network and
 coordinates network resources (saving or
 retrieving files on your hard drive versus a
 network drive)
21Basic Network Components (continued)
- Hubs connect network components, sending a packet 
 of data to all other connected devices
- A switch has more intelligence than a hub and can 
 forward data to a specified device. The switch is
 used within a given network to move information.
- Unlike a switch, a router (or bridge) is a 
 special communications processor used to route
 packets of data through different networks,
 ensuring that the message sent gets to the
 correct address. A router connects a LAN to the
 Internet.
- Modems are used to convert digital signals to 
 analog signals and vice versa
22Types of Networks
- Geographic scope 
- LANs (wired and wireless) 
- MANs 
- WANs and VANs 
- PANs (special type of LAN) 
- VPN (virtual private networks) 
- Role of server 
- Client-server networks 
- Peer-to-peer networks
23Local Networks LANs
- Local area network - a network that requires its 
 own cabling and encompasses a limited distance
 (one or two buildings) nodes are usually PCs
 and peripherals
- Advantages 
- handle high volumes of data 
- sharing of hardware, software, files, and data 
- unique application (email, video conferencing, 
 on-line applications)
- Disadvantages 
- expandability 
- vendor support or internal expertise
24Wireless LANS
- Benefits 
- Easier installation 
- Lower initial cost lower operational costs 
- Easily expanded (scalability) 
- Main drawback is security 
- Compared to wired networks wireless networks are 
 less secure
- Security measures exist but are not as easy to 
 set up as in wired tend to slow down
 transmission
25Large Networks WAN
- Wide area networks nodes 
- Corporations can build their own using 
 communications service providers
- Switched and dedicated lines 
- Individual firm assumes significant role in 
 telecommunications management
26Large Networks VANs
- Value-added networks are private data-only 
 networks that provide economies in service cost
 and network management because they are used by
 many firms. Many also provide Internet access.
- Value-added means customers do not have to invest 
 in network equipment and management
- Disadvantage 
- loss of control/expertise 
- Security 
- Tymnet, SprintNet, and General Electric provide 
 VAN services
- An example of a Web based EDI product
27Other Networks
- Metropolitan area network (MAN) links multiple 
 LANs within a large city
- Personal area network (PAN) wireless network 
 designed for handheld and portable devices
- Used by one or two people 
- Transmission speed slower 
- Maximum distance 10 meters 
- A virtual private network (VPN) enables companies 
 to link their LANS to the Internet and protect
 the LAN from unwanted intruders. Used in the
 construction of intranets and extranets
28Client/Server and Peer-to-Peer Networks
- The hardware side 
- The client 
- The server 
- The software side 
- Client/server software splits the processing of 
 applications between the client and server to
 take advantage of strengths of each machine
- E-mail and browsers are examples 
- Client/server computing has largely replaced 
 centralized mainframe computing
- Peer-to-peer networks there is no central device 
 that controls communication (Napster)
29Switching Techniques
- In packet-switched networks, messages are first 
 broken down into small bundles of data called
 packets that are sent along different
 communication paths and reassembled once they
 reach their destinations.
- More efficient use of the networks capacity 
- Packets include addressing information and ways 
 to check transmission errors along with the data.
 
- Always done on the Internet, but restricted to 
 data now being used for voice (VoIP)
- Circuit switching creates a dedicated path 
 between points in a network. For the duration of
 the communication no other transmissions may use
 this circuit and all transmissions follow a
 dedicated path.
- The telephone system links together media 
 segments to create a single unbroken circuit for
 each telephone call.
- Not very efficient for large volumes of data 
30Protocols
- Protocols are rules and procedures (virtually 
 languages) that govern the transmissions between
 components (devices) in a single network or
 between two networks
- Important protocols 
- TCP/IP (Internet protocols) 
- HTTP (Internet protocol) 
- Ethernet is the most popular protocol for wired 
 LANs
- Important wireless protocols 
- Wi-Fi 
- Bluetooth 
- WiMax
31TCP/IP 
- TCP/IP is the communications protocol used by the 
 Internet and all Internet devices.
- TCP part 
- Handles the movement of data between computers 
- Establishes a connection between the computers, 
 sequences the transfer of packets, and
 acknowledges the packets sent
- IP part 
- Responsible for the delivery of packets 
- Includes the disassembling and reassembling of 
 packets during transmission
- Defines the numeric addressing scheme 4 bytes in 
 length 232 potential addresses
32More on TCP/IP
- Adoption by the world of TCP/IP as a standard 
 protocol is a major factor in the success of the
 Internet
- Other terms associated with the Internet and 
 TCP/IP
- Host and backbone 
- IP number (static and dynamic) 
- Domain Name System (DNS) 
33Internet Protocol Numbers (IPv4)
- Each device attached to the Internet has an IP 
 number (some static/some dynamic)
- Each IP number consists of four parts separated 
 by periods. Each part contains a number between
 0 and 255 therefore each part can be represented
 by 8 bits or 32 bits for the entire IP number
 (e.g., 146.186.87.220).
- Approximate number of devices able to be on the 
 Internet is 232 or
- 210 210 21022103103103221094 (4 billion) 
- The process of associating an IP number with a 
 character based name is called domain name
 resolution. The domain name system (DNS) is the
 software that associates character based names
 with the IP number. Internet Service Providers
 (ISPs) usually dedicate a server to perform
 domain name resolution (i.e., a DNS server).
- To determine speed of your connection 
 http//www.ip-adress.com/speedtest/
- To determine your IP number http//www.What 
 ismyIpaddress.com
34Wireless Network Protocols
- Wireless technologies are of interest to business 
 because they eliminate the need for expensive
 cables and enable mobility
- Wireless protocols (or Wi-Fi) apply to mobile 
 devices (e.g., laptops or PDA)
- Family of standards IEEE 802.11 (the 11 stands 
 for the max bit rate supported, 11 Mpbs)
- Most popular is 802.11g which operates in the 
 2.4-2.5 GHz range
- Transmission range is about 300 ft (distance is 
 likely to increase)
- To make a device wireless requires the device to 
 contain a wireless card
35Access Points and Hot Spots
- In order to communicate with a network using a 
 wireless device, you must be close enough to an
 access point (AP). The access point is a device
 that is connected to a wired network.
- If a household has a wired connection to the 
 Internet (cable or DSL) then wireless devices can
 access the Internet by acquiring a wireless
 router (an AP) that is connected to your cable or
 DSL modem. This enables all your wireless
 devices to link to the Internet.
- Public access points are often called hotspots. 
 Winthrop has several hotspots on campus
- Cell phones with dual circuitry can communicate 
 with hot spots
36Wireless Issues
- Plus side 
- Mobility and low installation cost 
- Can be extended by adding access points 
- Newer protocols in the 802.11 family offer 
 security protocols (WEP, WPA, and WPA2)
- Down side 
- Interference from other devices 
- The Wi-Fi standard (802.11g is replacing 802.11b) 
 is easily penetrated by outsiders with
 appropriate hardware and software
- Competing standards (protocols) Bluetooth is 
 another wireless networking standard for creating
 small private networks (range of 30 meters)
37Wireless Applications
- Use of wireless devices in warehouses 
- Airlines are equipping their planes with Wi-Fi 
 circuitry so passengers can connect to the
 Internet in flight
- Utility companies have installed meters that can 
 send signals to the utility company indicating
 customer usage
- Equipping electronic devices such as cell phones, 
 digital cameras, game consoles, digital
 camcorders with Wi-Fi circuitry eliminates need
 for a physical connection.
38WiMAX Protocol
- WiMAX (IEEE 802.16) 
- Increases range and speed of Wi-Fi to 8-10 miles 
 and 100 Mbps
- Enables an entire city to become a hotspot 
- Provide low-cost Internet service to masses 
- No need for telephone companies 
- A nationwide network could be built for less than 
 3 billion
39How Wi-MAX Works 
 40Mobile Broadband Wireless Access (MBWA or IEEE 
802.20)
- This protocol will enable cell phones to use cell 
 phone towers to get VoIP and access Internet
 resources
- Similarly a laptop with a special MBWA card will 
 be able to act as a cell phone
-  A device that employs this protocol will be able 
 to do everything you currently do with a
 telephone through the Internet (Web browsing,
 file transfer, e-mail, VoIP video telephony,
 videoconferencing, audio streaming, Web based
 gaming, and file sharing).
- Protocol will be compatible with Wi-fi and 
 Bluetooth protocols
- Protocol will have high levels of security 
- An example from Sprint (http//www.sprint.com/busi
 ness/products/phones/usbU720_allPcsPhones.html )
41Protocol Summary 
 42Generations of Mobile Communication (cell phones)
- First generation (1 G) 
- Analog signals with circuit switching 
- Second generation (2 G) 
- Use of multiplexing 
- Converted voice to digital signals 
- Faster than 1 G 
- Third generation (2.5 G) 
- Speeds up to 144Kbps 
- Limited Internet access 
- Packet switching 
- Fourth generation (3G) 
- Speeds up to 1 Mbps 
- Support for video conferencing 
- Full Internet access 
- Similar to Wi-Fi but more expensive Wi-Fi inside 
 3G outside
- Fifth generation (4G) 
- Speeds up to 100 Mbps 
- Multitasking (listen to music access Internet 
 and make calls)
43Internet Networking Services
- Variety of options to choose from when 
 subscribing to network services
- Downstream speed of receiving from network 
- Upstream speed of transmitting to network
44Internet Networking Services (continued)
Figure 6.6 Wireless networking protocols 
 45Internet Networking Services Cable and Digital 
Subscriber Lines (DSL)
- Cable 
- Internet links provided by television cable firms 
- At residence, cable split into TV set and 
 computer cable modem
- Cable line into a neighborhood is shared by all 
 subscribers
- DSL 
- Data remains digital through entire transmission 
- Uses telephone lines connected to DSL bridge 
- Asymmetric versus symmetric DSL 
- Transmission rates related to distance from 
 telephone company
46Internet Networking Services T1 and T3 Lines and 
Satellite
- T1 and T3 lines 
- Point-to-point dedicated digital circuits 
- T3 lines made of 24 channels of 64 Kbps 
- T1 line made of 672 channels of 64 Kbps 
- Expensive not for individual consumers 
- Satellite (useful in areas that lack DSL or 
 cable)
- Service use microwaves 
- Service provider installs dish antenna, used as 
 communications satellite
- Speeds up to 45 Mbps 
- GPS free satellite service 
- Uses fixed or mobile antennas 
47Internet Networking Services Fixed Wireless and 
Optical Carrier
- Fixed wireless 
- Point-to-point transmission between two 
 stationary devices requires microwave
 transceivers on rooftop
- Wireless Internet service provider (WISP) 
- Highly modular and scalable 
- Optical Carrier (OC) 
- Expensive but high connection speeds 
- Uses basic unit of 51.84 Mbps 
- Used by ISPs, search engines, and content-rich 
 Web sites
- Broadband over Power Lines (BPL) 
-  Uses electric power lines to carry digital 
 signals
- Even if subscriber revenue is low there are 
 advantages to utility companies monitor power
 consumption, detect power failure, track power
 outages
48Future of Networking Technologies
- Broadband telephoning 
- Radio Frequency Identification 
- Convergence of technologies
49Voice over Internet Protocol (VoIP)
- Uses Internet connection to conduct telephone 
 conversations
- Can be done with special software or pay firms 
 that specialize in the service (Vonnage)
- Possible ways to VoIP (PC to PC, PC-to-telephone, 
 or telephone-to-telephone)
- For business users there are significant savings 
- For individual consumer 
- Often you dont have 911 
- No phone when power is out since VoIP requires an 
 electric modem
- Future is with advanced cell phones that support 
 VoIP big reduction in cell phone costs
50Radio Frequency ID (RFID)
- RFID tags consist of a microprocessor and an 
 antenna. Some tags can transmit on their own
 others transmit through activation by a reader
 sending a signal to the chip
- History 
- Technology was invented in 1934 
- Many different kinds of tags with many different 
 capabilities such as range, storage capacity,
 alterability of data
- RFID tag of primary interest are the EPC 
 (electronic product code) chips
- Designed to replace UPC codes 
- 96-bit storage capacity potential to give 
 individual items a unique identifier operate in
 868-965 MHz
- Signals can only be read if within a few feet of 
 reader
- Cost of tags is still high 5-10 cents per tag 
 limited to large ticket items
51RFID Tags (Continued)
- Major applications of EPC chips (current and 
 future)
- Track and locate inventory 
- Track items as they move through a firms supply 
 chain
- Smart shelves 
- Privacy issues (EPC tags) 
- Notification of the presence of a tag 
- Killing the tag before you leave the store 
- Restrictions on the use of tag generated data
52Current Uses of RFID 
 53Future Uses of RFID 
 54Convergence of Technologies
- Convergence implies one device or one network 
 doing multiple tasks
- Cell phones will double as Internet phones using 
 VoIP
- Television sets will be able to function as 
 regular TV and connect to the Internet
 concurrently
- PDAs soon will function as a TV and phone 
 concurrently
- Portable music players (e.g., IPods) can use 
 Wi-Fi to communicate with other Wi-Fi devices
- Local radio stations can use WiMax for digital 
 radio you will be able to download songs you
 have listened to and play them back