Term Paper On:

Communication Over the

Internet & the Effects It Will
Have On Our Economy.

Submitted To:

Mrs. Jyothi Chittineni

Submitted By:
 10307- Bhargava R

 10308- Ch. Prasanna Kumar

 10309- Deepak Soni

 10310- Dilip Kumar M. N.

 10311- Divya Trivedi R.

 10312- Gangu Siva Kumar

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 INDEX

1. Introduction………………………………………………………………3
2. Objective of the Term Paper……………………………………………..4
3. What is Internet?..........................................................................................5
4. History of the Internet……………………………………………………6
5. Internet: Yesterday, Today & Tomorrow………………………………..7
6. General Internet Concepts………………………………………………10
7. How is Communication over Internet Done (Applications)?...................12
a. E Mail
b. Instant Messaging
c. Internet Relay Chat
d. Telnet
e. File Transfer
f. Voice over Internet Protocol (VoIP).
g. Skype
h. World Wide Web
8. Effect of Communication Over Internet on the following :…………….15
a. IT & ITE’s, Business, Banking & Education Sectors
b. Development in Rural Areas.
c. Effects on Political & Social Environments.
9. Analysis of the internet using the following tool:
a. SWOT……………………………………………………………19
b. PEST……………………………………………………………..20
10.Number of INTERNET users Worldwide……………………………....24
11. Conclusions…………………………………………………………….25
12. Reference………………………………………………………………26

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 INTRODUCTION

Over the past century and a half, important technological developments have created a

global environment that is drawing the people of the world closer and closer together. In the new

Information Age, we are learning to magnify brainpower by putting the power of computation

wherever we need it, and to provide information services on a global basis. Computer resources

are infinitely flexible tools. These, when networked together, they allow us to generate exchange,

share and manipulate information in an uncountable number of ways. The Internet, as an

integrating force, has melded the technology of communications and computing to provide

instant connectivity and global information services to all its users at very low cost.

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 OBJECTIVE

The objective of this term paper is to study the history of internet, types of internet

communication, the general concepts related to its applications & the effect of internet on society

has been studied in this term paper. We have also analyzed the internet using the techniques of

SWOT & PEST.

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 What is Internet?

The Internet is a global system of interconnected computer networks that use the standard

Internet Protocol Suite (TCP/IP) to serve billions of users worldwide. It is a network of networks

that consists of millions of private, public, academic, business, and government networks of local

to global scope that are linked by a broad array of electronic and optical networking

technologies.

A more scientific definition has been given by the Resolution of the U.S. Federal

Networking Council:

"Internet" refers to the global information system that :

i. Is logically linked together by a globally unique address space based on

the Internet Protocol (IP) or its subsequent extensions/follow-ons,

ii. Is able to support communications using the Transmission Control

Protocol/Internet Protocol (TCP/IP) suite or its subsequent

extensions/follow-ons, and/or other IP-compatible protocols&

iii. Provides, uses or makes accessible, either publicly or privately, high level

services layered on the communications and related infrastructure

described herein."

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 History of the INTERNET

The USSR’s launch of Sputnik spurred the United States to create the Advanced

Research Project Agency (ARPA or DARPA) in February 1958 to regain a technological lead.

ARPA created the Information Processing Technology Office (IPTO) for further research. The

IPTO's purpose was to find ways to address the US Military's concern about survivability of their

communications networks.

At the IPTO, Lawrence Roberts started a project to make a network, based the

technology on the work of Paul Baran, who had written an exhaustive study for the United States

Air Force that recommended packet switching to achieve better network robustness and disaster

survivability. UCLA professor Leonard Kleinrock had provided the theoretical foundations for

packet networks in 1962, and later, in the 1970s, for hierarchical routing, concepts which have

been the underpinning of the development towards today's Internet.

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 INTERNET: Yesterday, Today & Tomorrow:

INTERNET Yesterday:

Planning for the Internet precursor ARPANET began in the .The Federal Government

required reliable communication channels between the nodes of the proposed network because

dedicated telephone lines were undependable, and so the net was designed to create alternative

communications pathways between source and destination nodes. Message data to be transmitted

would be disassembled into packets of fixed size, and the individual packets could arbitrarily

follow any one of several pathways to be reassembled coherently at the desired destination node.

ARPANET was a technology in search of a major application. E-mail, became

available in 1981 at colleges and universities via BITNET (Because It's Time Network). The

TCP/IP protocol suite was adopted in 1983, and ARPANET was eventually supplanted by

Internet in 1992. The hypertext-based World Wide Web became available in the early 1990s.

The Mosaic browser, precursor to Netscape, was released a year earlier. By allowing Web pages

to be displayed graphically, the browser brought the Web to life.

The Internet expanded exponentially through each of the last years of the century,

spinning off Intranets and Extranets as it grew. These are enterprise-wide networks that use

TCP/IP and hypertext transfer protocol (http), but remain private either wholly within a given

company in the case of Intranets, or including the company's vendors in the case of Extranets. By

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then, the U.S. online population had reached 101 million.

INTERNET Today:

The 21st century’s race for ever more bandwidth to satisfy the multi-media appetite

spurred development of broadband technology, including high capacity cable, fiber optics and

wireless services. Improvements in the traditional technologies have permitted faster

communication over copper wire. Copper lines with dedicated channels to the Internet such as

T1 or T3 carrier lines provide even higher bandwidth, but expense prohibits their widespread

use.

Internet access today is more easily available than ever before. Most libraries provide

free Internet access, and for home users, it is not even necessary to own a computer. Wireless

Web service is available on some of the newest hand-held devices. Such convenience makes the

Internet an attractive tool for remote learning, and may even spark a sort of revolution in higher

education. Adults who cannot afford the time or money to live on campus full-time in pursuit of

a college degree may be able to achieve the desired result by earning course credits online. The

fully accredited University of Phoenix, for example, now has a student body among the largest in

the country. University of Phoenix Online students can matriculate, takes courses and graduate

without ever seeing Arizona.

INTERNET Tomorrow:
It is easy to predict that the Web of tomorrow will support billions of users worldwide,

and that new technologies will enable ever more sophisticated applications that will include

higher quality audio and video. Assuming that the World Wide Web Consortium

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recommendation is followed, media-rich Web sites will be created using a combination of

HTML and XML (extensible markup language). The Napster case outcome suggests that

information, if it is to continue to flow freely, will not continue to be free to use. Even libraries,

traditional champions of free access to information, may not be able to sustain the costs of

digitizing documents and maintaining Web sites without sometimes charging for use of their

materials. The net will also be more widely used for other applications; Telephony or Voice over

Internet (VoIP), for example, should flourish once industry standards are set, because long

distance call savings are potentially substantial.

The Internet is still a frontier. Among those involved in extending its boundaries are the

federal government in the Next Generation Internet (NGI) Initiative. Internet2 activities are in

the three main areas of developing a faster backbone, creating a more stable networking

environment, and developing practical applications. Research is helped by members' access to

the very high-speed Backbone Network Service (vBNS).

Internet2 projects encompass many reaches of human endeavor. For instance, in the

medical domain a fast network can transmit high resolution images such as x-rays, or allow the

use of sophisticated microscopes or surgical instruments remotely. However, the Web site points

out that many medical applications, even when feasible in terms of bandwidth, cannot be called

upon for use in urgent patient care until the network is 100% reliable. The most exquisitely

futuristic if not the most practical projects are in tele-immersion, defined as the creation of a

virtual space in which individuals may collaborate as if they were in the same actual space. This

3-D environment requires high bandwidth and reliable networking, and is considered by

Internet2 to be "an ideal driver" for Internet2 community research agendas.

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 General INTERNET Concepts:

 WAN: A computer network that spans a relatively large geographical area. Typically,

a WAN consists of two or more local-area networks (LANs).Computers connected to a

wide-area network are often connected through public networks, such as the telephone

system. They can also be connected through leased lines or satellites. The largest WAN

in existence is the Internet.

 Internet Protocol (IP): It is a protocol used for communicating data across a packet-

switched internetwork using the Internet Protocol Suite, also referred to as TCP/IP.

Different protocols for different network services;

 Simple Mail Transfer Protocol (SMTP) to send and receive electronic mail

 File Transfer Protocol (FTP) to transfer files between computers

 Hypertext Transfer Protocol (HTTP) to transmit information on the World Wide Web

 Network News Transfer Protocol (NNTP) to transmit discussion forum messages

 Domain Name: A domain name is an identification label that defines a realm of

administrative autonomy, authority, or control on the Internet, based on the Domain

Name System (DNS).

Domain names are used in various networking contexts and application-specific naming and

addressing purposes.

Internet Domain Names:

 COM -Commercial sites

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 EDU -U.S. Colleges

 NET -Network providers

 ORG -Non-profit, miscellaneous groups

 GOV -U.S. government

 MIL -U.S. military

 INT -International organisation.

 FTP -- (File Transfer Protocol)

A very common method of moving files between two Internet sites

 Client: A client is an application or system that accesses a remote service on

another computer system, known as a server, by way of a network.

 Server: A server is either a software, or one or series of computers that link other

computers or electronic devices together. They often provide essential services across a

network, either to private users inside a large organization or to public users via

the Internet. For example, when you enter a query in a search engine, the query is sent

from your computer over the internet to the servers that store all the relevant web pages.

The results are sent back by the server to your computer.

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 How is Communication over Internet Done (Applications)?

 Email: Electronic mail, is a method of exchanging digital messages across

the Internet or other computer networks. Originally, email was transmitted directly from

one user to another computer. This required both computers to be online at the same time,

a la instant messenger. Today's email systems are based on a store-and-forward model.

Email servers accept, forward, deliver and store messages. Users no longer need be

online simultaneously and need only to connect briefly, typically to an email server, for

as long as it takes to send or receive messages.

 Instant Messaging:

Instant messaging (IM) is a collection of technologies used for real-time text-based

communication between two or more participants over the Internet, or other types

of networks. Of importance is that online chat and instant messaging differs from other

technologies such as e-mail due to the perceived synchronicity of the communications by the

users –chat happens in real-time

 Internet Relay Chat (IRC): It is a form of real-time Internet text messaging (chat)

or synchronous conferencing. It is mainly designed for group communication in

discussion forums, called channels, but also allows one-to-one communication via private

message as well as chat and data transfers via Direct Client-to-Client.

As of May 2009, the top 100 IRC networks served more than half a million users

at a time, with hundreds of thousands of channels.

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  TELNET: It is a network protocol used on the Internet or local area networks to

provide a bidirectional interactive text-oriented communications facility via a

virtual terminal connection. User data is interspersed in-band with TELNET control

information in an 8-bit byte oriented data connection over the Transmission Control

Protocol (TCP).

 File Transfer: It is a generic term for the act of transmitting files over a computer

network or the Internet. There are numerous ways and protocols to transfer files over a
network. Computers which provide a file transfer service are often called file servers.
Depending on the client's perspective the data transfer is called uploading or
downloading.

There are 2 types of file transfers:

 Pull-based file transfers where the receiver initiates a file transmission request

 Push-based file transfers where the sender initiates a file transmission request

 Voice over Internet Protocol (VoIP, Voice over IP): It is a general term for a

family of methodologies, communication protocols, and transmission technologies for
delivery of voice communications and multimedia sessions over Internet Protocol (IP)
networks, such as the Internet. Other terms frequently encountered and synonymous with
VoIP are IP telephony, Internet telephony, voice over
broadband (VoBB), broadband telephony, and broadband phone.

 Internet Telephony: This refers to communications services: voice, facsimile, and/or

voice-messaging applications — that are transported via the Internet, rather than
the public switched telephone network (PSTN). The basic steps involved in originating
an Internet telephone call are conversion of the analog voice signal to digital format and
compression/translation of the signal into Internet protocol (IP) packets for transmission
over the Internet; the process is reversed at the receiving end.

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 Skype: Skype is a software application that allows users to make voice calls over the
Internet. Calls to other users within the Skype service are free, while calls to both
traditional landline telephones and mobile phones can be made for a fee using a debit-
based user account system. Skype has also become popular for its additional features
which include instant messaging, file transfer, and video conferencing. The network is
operated by a company called Skype Limited, and is partly owned by eBay.

 WWW: The World Wide Web is a system of interlinked hypertext documents

accessed via the Internet. With a web browser, one can view web pages that may

contain text, images, videos, and other multimedia and navigate between them by

using hyperlinks

Effect of Communication Over Internet

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Role of Internet In E-commerce, Marketing & Business:

Internet helps in connecting today's online savvy shopper with any retail or wholesale

merchant that you can think of, an easy task. Online shopping is very popular, it is now possible

to compare prices on various items, do research on new items that just hit the market, get the best

possible.

From a Business perspective it offers unlimited shelf space, it isn't bound by operational

timings and geographical boundaries and an opportunity to cater to country wide city markets

(for consumers and suppliers alike) at a comparative miniscule cost. The demand of VoIP (Voice

over internet protocol) is continuously increasing in the BPO firms and the business concerns as

well. Traditional phone calls cost more than the calls on VoIP. Thus businesses utilize this

service to save on the expenses involved in telephone calls using internet. The volume of

outgoing calls is quite huge in the case of the business houses and call centers. The entire

business of the BPO industry involves a huge volume of incoming and outgoing calls, thus

cheaper calls are greatly beneficial for them. VoIP has remarkably improved in the recent past,

which has resulted in its application in business. The VoIP providers are offering quality service

that can be distinguished from the conventional telephone calls. International calls made over the

conventional telephones cost very high as compared to those made on VoIP. The VoIP

technology is an effective solution to the execution of business operations with efficiency. With

the help of Skype, it is possible to make calls over the Internet via Voice over Internet Protocol

(VoIP). Using a Skype VoIP phone, you can make a call to another Skype user for free. Skype

offers facilities like instant messaging, file transfer, and video-conferencing. An Internet

Marketing program has two sides. One is the part devoted to individual customers.

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 The other is the business to business component. E-commerce programs as well as

advertising, sales support, customer service and public relations are all elements of an internet

marketing program. Now days, the incredible growth of the Internet is changing the way

corporations conduct business with consumers who are increasingly expecting higher services,

becoming time saved and wanting more convenience.

 Over 25 percent of all business-to-business purchases are placed through some type of

internet connection.

 The five top business-to-business e-commerce products are computers and electronics,

motor vehicles, petrochemicals, utilities, papers and office products.

 Internet retail sales account for almost 2.5 percent of all retail sales.

 The most common products consumers' research online and purchase off-line (at the store

or outlet) are: automobiles, computer, hardware, travel, electronics, books, appliances,

music, sporting goods and clothing.

Business-to-business marketers were among the first companies actually to make profits

using the internet.

Internet has an important and positive effect on customer perceived Banking services and

the service quality has improved since the Internet has been used in banking sector. Banking

managers can allocate their resources on the dimensions of reliability, responsiveness, security,

communication and access to improve service quality according to its relative importance.

Application of INTERNET in Rural Development:

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 Advancement in scientific research has given rise to the most sophisticated new

technology in information and communication fields that are now drastically changing the

concept of a large size, diversified world to a Global village. Internet plays a vital role in

exchanging the information through e-mail, chat, etc.

Agricultural issues are being covered by national media like Radio, TV and Newspapers

only at macro level due to time constraint. But internet can go an extra mile by providing the

information round the clock in local language, too. In a developed country like U.S.A., most of

the big farmers are using the internet to get information, to communicate and for buying inputs

or selling outputs. By providing information through rural portal, farmer can get answers about

croping strategies appropriate to their fields, based on integrated information on soil, weather,

fertilizer and management of pests. They can also be informed where to get the proper seeds or

nursery plants. There are some of the Agri portals, which are providing information about these

free of cost. But some portals have redefined the business of agriculture through e-commerce

that would be useful for trading community.

Effects on Political & Social Environments:

Politics & Internet:

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 Politicians are using internet based technologies like: Blogs, Twitters etc to stay

connected with the general public. There has also been a sea change in fact-checking, with

citizens using the Internet, to find past speeches that prove a politician wrong and then using the

Web to alert their fellow citizens.

Society & the Internet:

The influence of the Internet has caused a change in the way we communicate, learn and

shop. The Internet is probably most famous for the ability to spread information, fact or fiction.

There is no question that easy access to the Internet, like the introduction of mail service and the

invention of the telephone, has changed the nature of people's connection to others in their social

world. Mail made possible connections among people without physical proximity, and the

telephone facilitated communication among distant people, making rapid connections possible

across long distances.

SWOT of the INTERNET:

Strengths:

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  Up to date, recent information

 Additional information, which is not available

 Fast means of communication: the wiki-society (quick correction of mistakes through

peers)

 Easy way to get in contact with people/

 Contact is often

 Easy way to get information on a particular subject (discussion lists, chat boxes)

 Links provide easy access to other sites

 Democratic: no major barriers to entry

 Environmentally-friendly

Weaknesses:

 Overdose/overkill of information (especially when using search engines)

 chaotic and unsystematic

 Finding relevant information may be complicated

 Information may not be up to date (no regular organizations updating of information;

links out of order)

 informal Availability (information can be removed from a site or payment may suddenly

be required)

 Relevance is often unclear

 Reliability can be doubtful: it depends on the source (who provides the

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  information and why); in the wiki-formula it is increasingly difficult to

 exclude vandals and manipulation

 Wiki volunteers may be biased in their interest and ideas

 English dominance of search engines and main users.

 No clear rules about copyright

Opportunities:

 The rural areas in developing countries provide opportunities for the internet.

 The E-Commerce sector provides a sea of opportunities for the internet.

 The internet itself opportunities for:

 Open dialogue: Low cost networking facilitates knowledge sharing, awareness of

o alternative perspectives, more open exchange

 Improve governance: Raising efficiency, transparency, participatory systems

 Improve social and human rights conditions: Expands access to better quality

o education, healthcare, disaster relief capacity and other services

 Reduce poverty: Opens new opportunities for bypassed groups (women, the poor, rural

populations, children)

 Introduce economic opportunities. E-commerce, ICT-sector development, etc.

 Improve environmental management. GIS, food security early warning systems

 Support indigenous knowledge. Communities document their knowledge

Threats:

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 Warrantless Government Monitoring: The practice of wiretapping all internet

traffic began in the United States with the Bush administration, and is now being

defended in court by the Obama administration. All of the nation’s major internet service

providers are accused of funneling Americans’ online traffic to the National Security

Agency without warrants.

 Government Censorship: 12 nations — China, Burma, North Korea, Vietnam,

Egypt,

Iran, Syria, Saudi Arabia, Turkmenistan, Uzbekistan, Cuba and Tunisia restrict internet

access and often prosecute users for what they post online. Even in democratic countries,

censorship rears its ugly head. The Australian government is planning to filter from the

internet.

 Deep Packet Inspection: Several internet service providers, including giants like

Comcast and Cox Communications, are inspecting the contents of internet packets, a

practice allowing them to monitor, filter and ultimately control the traffic that passes

through their pipes. In addition, online advertising services like NebuAd are paying ISPs

to let it eavesdrop on web users via DPI.

PEST Analysis of the Internet:

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Political:

Legal regulations of Internet laws differ globally. Internet operators hope to harmonize

global laws on Internet however, countries are consistent with implementing their Internet legal

framework that is consistent with national policy priorities.

Online businesses, like Yahoo, face tough challenges of the legal policies of every

country in which they operate. Even Internet jurisdiction has compromise businesses most tough

challenges which are intensified with the struggle of conflicting regulations between different

countries.

With regulation in Internet privacy, the state may cut entire the opportunity of its people

to access to an internet. Conflicting state laws only add to user confusion and make nationwide

education efforts (by private organizations or government agencies like the Federal Trade

Commission) more difficult. 

Economic

Economic trends, such as inflationary factors that may hinder the economy or consumer

purchasing power, can have a strong influence in the Internet industry. In addition, the global

market would be another lucrative market for the ISP industry because there may be cheap

technologies provided by some foreign markets such as Europe and Japan. Higher tariffs or a

devaluation of the dollar may reduce the consumer purchasing power, causing a shift in

consumer buying habit that, in turn, causes revenue loss for ISP domestic companies and

partners. 

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Socio-Cultural:

                 Rapid increased of Internet usage affected the family values. It has been noted that

kids are engaging more of their free time with the Internet which in turn reduces the

communication among the family members. Internet can be addicting, to the point that it disturbs

one's life and the lives of those around him.

In addition, Internet has caused great change in the way people in a society

communicate.  The online medium holds inherent agency that puts the creation of Internet

content into the hands of the masses. People now are more creative with the presence of this

technology. However, Internet has also bad effects on the mind of the people. It may have made

the people lives faster but it also it entails negative effects on people behavior. 

Technological:

The backbone of the development of Internet is technology. Technology can be beneficial

but at the same time can be a source of creative destruction. Therefore, technology can create

many threats and opportunities that must be considered in formulating strategies. Advancements

in technology can affect an organization’s products, services, markets, and competitive position.

It can also create new markets which can change the relative competitive cost positions in an

industry and render existing products and services obsolete.

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 Number of Internet Users Worldwide:

Given below are some standout facts and observations that give perspective to the Internet usage

of the top countries on the Internet.

 There are a total of 1.8 billion Internet users in the world.

 The top 10 countries on the Internet together have 1.17 billion Internet users. That’s

65% of all Internet users in the world.

 The top 20 countries on the Internet together have 1.47 billion Internet users. India is
the fourth largest country in terms of Internet users in spite of having an Internet
penetration of a measly 6.9%.

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 CONCLUSION:

We have traced the journey of the internet right from its introductory stage in this term

paper. We have inferred that rapid expansion of the Internet holds substantial promise for

developing nations, which can benefit greatly from the Internet's communication and information

delivery capabilities. The effect of internet on a wide variety of areas as explained in the paper

makes it an indispensible product of technology. The accelerating transition of information to

electronic media is making information resources of the world available to an increasingly global

audience through the Internet. Developing countries have much to gain from that revolution in

communication and information access. In contrast to the situation in the developed world,

where transport and communications infrastructures for delivery of both physical goods and

information services are well established, the alternatives available within developing countries

are generally slow, expensive, or nonexistent. Internet should be used as a boon as it has helped

the commerce, banking, marketing & educational sectors positively.

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 References:

http://royal.pingdom.com/2010/07/27/top-20-countries-on-the-internet/

www.wikipidia.com

VoIP: An effective device of the BPO by Ivana Lewis

http://www.articlealley.com/article_1408408_80.html

http://www.estatsindia.com/India%20Internet%20Statistics%20Compendium%202009.pdf

http://www.articlesbase.com/computers-articles/the-skype-revolution-170.html#ixzz0yNfw4w6f

http://www.helium.com

http://www.fao.org

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