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 Chapter

6
Telecommunications
and Networks

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

• Understand the concept of a network

• Apply Metcalfe’s law in understanding the
value of a network
• Identify major developments and trends in
the industries, technologies, and business
applications of telecommunications and
Internet technologies
• Provide examples of the business value of
Internet, intranet, and extranet applications

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 Learning Objectives

• Identify the basic components, functions, and

types of telecommunications networks used in
business
• Explain the functions of major components
of telecommunications network hardware,
software, media, and services
• Explain the concept of client/server networking

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 Learning Objectives

• Understand the two forms of peer-to-peer

networking
• Explain the difference between digital and
analog signals

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 Case 1: Wireless Mobile Applications

• Best Buy’s Geek Squad remains connected

via a Pocket PC phone
• It connects wirelessly to Best Buy’s IT and
ordering system
• It also have Web browsing capabilities, for
access to Google and Yahoo maps
• Handwriting recognition software bypasses
small keyboard problem
• Voice recognition is being tested

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 Case 1: Wireless Mobile Applications

• Biggest problems
• Lack of application software
• Reduced functionality of software that exists
• Requires middleware to synchronize data
between back-end systems and the devices
• Applications don’t always meet worker’s needs

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 Case Study Questions

• What are the business advantages and limitations

of the Best Buy Geek Squad’s use of their
wireless Pocket PC mobile devices?
• How have they overcome the limitations?
• What are the software development challenges of
wireless mobile devices?
• How are MedStar Health and Unifi meeting
those challenges?

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 Case Study Questions

• Why don’t the companies in this case use some

of the thousands of software packages available
for their wireless mobile devices?
• What are the advantages and limitations of this
approach?

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 Network Concepts

• A network is an interconnected or interrelated

chain, group, or system
• The number of possible connections on a
network is N(N–1) or N2 –N
• N = number of nodes (points of connection)
• Example: 10 computers on a network = 10(10–1)
= 10x9 = 90 possible connections

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 Metcalfe’s Law

• The usefulness, or utility, of a network equals the

square of the number of users
• The more users on a network, the more useful
it becomes
• Until critical mass is reached, a change in
technology only affects the technology
• Once critical mass is attained, social, political,
and economic systems change
• Example: The Internet is growing exponentially.
We can expect more value, for less cost, virtually
every time we log on.
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Telecommunication Trends

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Telecommunications-Based Services

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 Internet Networking Technologies

• Internet networking technologies are being

used as technology platform
• Web browser suites
• HTML Web page editors
• Network management software
• Firewalls
• Being applied in Internet, intranet, and
extranet applications
• Reinforces previous move toward client/server
networks based on open-systems architecture

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 Open Systems

• Open systems use common standards for

hardware, software, applications, and networks
• Internet networking technologies are a common
standard for open systems
• Connectivity
• Open systems provide greater connectivity
and network interoperability
• Middleware may be needed to help diverse
systems work together

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 Middleware

• Middleware
• A general term for any programming that
mediates between two separate programs
• Allows a particular database to access other
databases without custom programming
• Commonly known as the “plumbing” of an
information system
• It routes data and information between back-end
data sources and end user applications
• An essential component of any IT infrastructure

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 Digital Network Technologies

• Telecommunications are being revolutionized

by switch from analog to digital
• Analog: voice-oriented transmission
• Digital: discrete pulse transmission
• Benefits
• Higher transmission speeds
• Moves larger amounts of information
• Greater economy and much lower error rates
• Transmits multiple types of communications
(data, voice, video) on the same circuits

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 Wireless Technologies

• Fiber-optic
• Uses pulses of laser-generated light
• Reduced size and installation effort
• Vastly greater communication capacity
• Faster transmission speeds
• Freedom from electrical interference
• Satellite Transmission
• Can move massive quantities of data, audio,
and video over global networks
• Especially useful in isolated areas

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 Business Application Trends

• Telecommunications networks now play a vital

and pervasive role in Web-enabled…
• E-business processes
• Electronic commerce
• Enterprise collaboration
• Other applications that support operations,
management, and strategic objectives

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 Internet2

• Next generation of the Internet

• High-performance
• Different infrastructure than the current Internet
• Will not replace the current Internet
• In use at over 200 universities, scientific
institutions, communications corporations
• May never become totally open
• Users are connected via Abilene, a backbone
that supports throughput of 10 Gbps
• Infinite bandwidth

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Value of Telecommunications Networks

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 The Internet Revolution

• The Internet has become a global information

superhighway
• Millions of smaller, private networks operating
independent of, or in harmony with, each other
• 10 servers in 1991 to over 46 million today
• Sustained growth in excess of 1 million servers
per month
• No central computer system
• No governing body
• Based on common standards

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 Internet Service Providers

• ISP
• A company that specializes in providing easy
access to the Internet
• For a monthly fee, provides software, user name,
password, and Internet access
• ISPs themselves are connected to one another
through network access points
• One ISP can easily connect to another to obtain
addresses of websites or user nodes

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 Internet Applications

• Most popular Internet applications and uses

• E-mail
• Instant messaging
• Browsing the Web
• Newsgroups
• Chat rooms
• Publish opinions, subject matter, creative work
• Buy and sell
• Downloading (data, software, reports, pictures,
music, videos)

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Business Use of the Internet

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Business Value of the Internet

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 The Role of Intranets

• Many companies have sophisticated and

widespread intranets, offering…
• Detailed data retrieval
• Collaboration
• Personalized customer profiles
• Links to the Internet
• Intranets use Internet technologies
• Web browsers and servers
• TCP/IP network protocols
• HTML publishing and databases

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 Intranets

• Intranets are protected by…

• Passwords
• Encryption
• Firewalls
• Customers, suppliers, and other business partners
can access an intranet via extranet links

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 Business Value of Intranets

• Intranets support
• Communications and collaboration
• Business operations and management
• Web publishing
• Intranet portal management

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Intranets as Information Portals

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 Extranets

• Network links that use Internet technologies to

connect the intranet of a business to the intranets
of another
• Virtual Private Networks
• Direct private network links, or private secure
Internet links between companies
• Unsecured Extranet
• Link between a company and others via the
Internet, relying on encryption of sensitive data
and firewall security systems

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Extranet Connectivity

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 Business Value of Extranets

• Web browser technology makes customer and

supplier access to intranets easier and faster
• Another way to build and strengthen strategic
relationships
• Enables and improves collaboration between a
business, customers, and partners
• Facilitates online, interactive product
development and marketing

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Telecommunications Network Alternatives

• Telecommunications is a highly technical,

rapidly changing field
• Most business professionals don’t need detailed
technical knowledge
• However, understanding basic components and
their characteristics is necessary
• Can help you make informed decisions about
telecommunications alternatives

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 Case 2: Wireless Sensor Networks

• HP experimenting with wireless networked

sensors
• Reinventing how companies manage the flow
of goods
• Wireless sensor devices (motes) combine a circuit
board with networking and application software
• Powered by a pair of AA batteries
• Mesh networking
• Each device wakes for a fraction of a second to
transmit information to its nearest neighbor

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 Case 2: Wireless Sensor Networks

• Other uses
• Ground-sensor networks can detect illegal
crossings of people or vehicles
• Monitoring of industrial plants and ships
• Remotely adjusting lighting and heat
• Testing soil for pollutants
• Detecting chemical storage leaks
• Monitoring vibration levels
• Analyzing traffic patterns

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 Case Study Questions

• What are some of the business benefits

associated with using wireless networks to
collect and transmit data?
• What are some of the challenges being faced
in this use of wireless technologies?
• What solutions can you offer?
• The use of wireless networking as described
in the case is both innovative and functional.
• What other business uses can you envision
for this approach?

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 Telecommunications Network Model

• A telecommunications network is any

arrangement where
• A sender transmits a message
• To a receiver
• Over a channel
• Consisting of some sort of medium

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Telecommunications Network Model

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Telecommunications Network Components

• Terminals
• Any input/output device that uses networks
to transmit or receive data
• Telecommunications processors
• Devices that support data transmission, reception
• Telecommunications channels
• Media over which data are transmitted, received
• Computers
• All sizes and types

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Telecommunications Network Components

• Telecommunications control software

• Controls telecommunications activities
• Manages the functions of telecommunications
networks
• Includes network management programs of
all kinds
• Telecommunications monitors (mainframes)
• Network operating systems (network servers)
• Web browsers (microcomputers)

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Network Component Alternatives

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 Types of Communications Networks

• Primary types of communications networks

• Wide Area
• Local Area
• Virtual Private
• Client/Server
• Peer-to-peer

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 Wide Area Network (WAN)

• Telecommunication network that covers a large

geographic area

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 Local Area Network (LAN)

• Connects computers within a limited physical

area, such as an office, classroom, or building

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 Virtual Private Networks (VPN)

• Used to establish secure intranets and extranets

• The Internet is the main backbone network
• Relies on network firewalls, encryption, and
other security features to build a “pipe” through
the Internet
• Creates a private network without the high
cost of a separate proprietary connection

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Virtual Private Network

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 Client/Server Networks

• Clients
• End user personal computers or networked
computers
• Servers
• Used to manage the networks
• Processing
• Shared between the clients and servers
• Sometimes called a two-tier architecture
• Larger computer systems are being replaced
with multiple client/server networks

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Client/Server Network

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 Network Computing

• Networks are the central computing resource

of the organization
• Thin clients provide a browser-based user
interface for processing applets
• Thin clients include
• Network computers
• Net PCs
• Other low-cost network devices or
information appliances

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 Network Computing

• Application and database servers provide

• The operating system
• Application software
• Applets
• Databases
• Database management software
• Sometimes called a three-tier client/server
model because it consists of
• Thin clients
• Application servers
• Database servers
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Network Computing

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 Peer-to-Peer Networks

• Central Server Architecture

• P2P file-sharing software connects all PCs
to a central server
• When a PC requests a file, the server searches
all active peers on the network
• The server sends the requesting PC a list of
links to all active peers who have the file
• Clicking a link connects the two PCs and
automatically transfers the file to the
requesting PC

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 Peer-to-Peer Networks

• Pure Peer-to-Peer Architecture

• No central directory or server
• File-sharing software connects one PC to
another online user
• When you request a file, the software searches
every online user and sends you a list of active
file names
• Clicking a link automatically transfers the file
from that user’s hard drive to yours

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 Central Server Peer-to-Peer Networks

• Advantages
• Can better protect the integrity and security
of the content and users of the network
• Disadvantages
• Directory server can be slowed or overwhelmed
by too many users or technical problems

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Peer-to-Peer Network Diagrams

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 Digital and Analog Signals

• Analog or digital refers to the method used to

convert information into an electrical signal
• Analog: an electrical current is generated that
is proportional to the quantity being observed
• Digital: the quantity being observed is expressed
as a number
• Analog: if the temperature is 83 degrees, a measuring
device would generate 8.3 volts
• Digital: a measurement of 83 degrees would be
displayed as the number 83

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 Telecommunications Media

• Twisted-Pair Wire
• Ordinary telephone wire
• Copper wire is twisted
into pairs

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 Telecommunications Media

• Coaxial Cable
• Sturdy copper or
aluminum wire wrapped
with spacers to insulate
and protect it

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 Telecommunications Media

• Fiber-Optic Cable
• One or more hair-thin
filaments of glass
fiber wrapped in a
protective jacket

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 The Problem of “The Last Mile”

• Network providers use fiber optic cable as a

communications backbone
• Houses connected to the backbone are wired
with twisted pair
• Users don’t benefit from the faster, better
technology

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 Wireless Technologies

• Terrestrial Microwave
• Earthbound microwave systems transmit
high-speed radio signals
• Follows a line-of-sight path between relay
systems spaced about 30 miles apart
• Communications Satellites
• Serve as relay stations
• Use microwave radio signals
• Earth stations beam signals to the satellites
• Not suitable for interactive, real-time processing

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 Wireless Technologies

• Cellular and PCS Telephone and Pager Systems

• Geographic areas are divided into cells
• Each cell has a low-power transmitter or radio
relay antenna
• Computers and other communications processors
coordinate and control the transmissions to and
from mobile users

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 Wireless Technologies

• Wireless LANS
• Uses wireless radio-wave technology to
connect PCs within an office or a building
• Can be high-frequency, similar to digital
cellular, or low frequency (spread spectrum)
• Bluetooth
• Short-range wireless technology
• Connects PCs to devices, such as a printer
• Fairly low cost to implement

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 Wireless Technologies

• Other Wireless Systems

• Cellular phones
• Mobile radio
• PDAs
• Telecommunications networks now play vital
and pervasive roles in
• Web-enabled e-business processes
• Electronic commerce
• Enterprise collaboration
• Other applications that support business
operations, management, and strategic objectives
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 The Wireless Web

• Wireless Internet access is growing as Web-

enabled information appliances proliferate
• Smart telephones, pagers, PDAs
• All are very thin clients in wireless networks

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 Telecommunications Processors

• Modems
• The most common type of communications
processor
• Converts a digital signal to an analog frequency
that can be transmitted over phone lines, then
back into a digital signal
• Modulation and demodulation

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Comparing Technologies

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 Inter-Network Processors

• Switch… makes connections between

telecommunications circuits in a network
• Router… intelligent communications processor
that interconnects networks based on different
protocols
• Hub… a port-switching communications
processor
• Gateway… connects networks with different
communications architectures

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Communications Processors

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 Communications Processors

• Multiplexer… allows a single communications

channel to carry simultaneous data transmissions
from many terminals
• In time division multiplexing (TDM), the
multiplexer divides the time each terminal can
use the high-speed into short time slots
• Multiplexers increase the number of
transmissions possible
• Does not increase the number of physical data
channels
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 Telecommunications Software

• May reside in PCs, servers, mainframes, and

communications processors
• Vital part of all telecommunications networks
• Used to manage network performance
• WANs often use telecommunications monitors
or teleprocessing monitors
• Other networks use operating system software
• Middleware helps diverse networks
communicate with each other

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 Network Management Functions

• Traffic Management
• Manage network resources and traffic to
avoid congestion and optimize service levels
• Security
• Provide authentication, encryption, firewall,
auditing, and enforcement
• Network Monitoring
• Troubleshoot and watch over the network,
alerting administrators of potential problems

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 Network Management Functions

• Capacity Planning
• Survey network resources, traffic patterns, and
users’ needs
• Determine the best way to accommodate the
needs of the network as it grows and changes

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 Network Topologies

• Topology
• The structure of a network
• Star Network
• Ties end user computers to a central computer
• Ring Network
• Ties local computer processors together in a ring
on a relatively equal basis
• Bus Network
• Local processors share the same communications
channel

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 Network Topologies

• Mesh Network
• Uses direct communications lines to connect
some or all of the computers in the ring to
each other
• Switch
• A message-switching computer that handles
data communication between autonomous
local computers

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Network Topologies

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 Network Architectures and Protocols

• Protocol
• A standard set of rules and procedures for the
control of communications in a network
• Handshaking
• The process of exchanging predetermined
signals and characters
• Establishes a telecommunications session
between terminals and computers

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 Network Architectures and Protocols

• Network Architecture
• Master plan of standard protocols, hardware,
software, and interfaces between end users
and computer systems
• Goal is to promote an open, simple, flexible,
and efficient telecommunications environment

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 OSI and TCP/IP Models

• Open Systems Interconnection (OSI) Model

• A seven-layer model that serves as a standard
model for network architectures
• Model for how messages should be transmitted
between two points in a network
• Each layer adds functions
• Transmission Control Protocol/Internet Protocol
(TCP/IP)
• A five-layer telecommunications protocol used
by the Internet

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OSI and TCP/IP Models

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 Voice Over IP

• Internet Telephony
• Using an Internet connection to pass voice
data using IP instead of a telephone network
• Often referred to as voice over IP or VoIP
• Works like a regular phone, but skips long-
distance charges
• Runs over standard network infrastructure
• Requires a well-configured network to work
smoothly

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 Bandwidth

• Bandwidth
• The frequency range of a telecommunications
channel that determines the maximum
transmission rate
• Speed and capacity typically measured in bits
per second (bps)
• Sometimes call baud rate
• Transmission Rates
• Narrow-band = low speed
• Broadband = high speed

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Transmission Speeds

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 Switching Alternatives

• Circuit Switching
• Switch opens a circuit to establish a link
between a sender and a receiver
• It remains open until the communication
session is completed
• Packet Switching
• Breaks messages into groups called packets
• Transmits packets separately

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 Network Interoperability

• Ensures that anyone anywhere on one network

can communicate with anyone anywhere on
another network
• From a telecommunications perspective, no
need to speak a common language
• Telecommunications would be possible without
• Complete accessibility
• Transparency
• Seamless interoperability across all networks

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 Case 3: Leading the Way for VoIP

• VoIP works by
• Digitizing a voice signal
• Chopping it into packets
• Sending them over a network or the Internet
• Reassembling them at the destination
• VoIP allowed the Minnesota Dept. of Labor
to cut its phone bill in half

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 Case Study Questions

• What are the main benefits that can be gained

by companies that switch to VoIP systems?
• What are some of the major cost factors that
may limit a positive rate of return from
investments in VoIP projects?
• Should more companies switch to VoIP systems?

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Case 4: Serving Citizens with Wireless

• Earth Alert Emergency Management System

in Maryland provides
• Devices to communicate warnings to individuals
before a disaster
• Tools to collect timely information after a disaster
• Aurora, Colorado
• Connects police and fire department vehicles
via wireless connections

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 Case Study Questions

• What is the business value of advanced mobile

technologies in Maryland’s emergency
management services?
• In what other government services could GPS
serve to provide business value?
• As there disadvantages or risks associated with
the deployment of GPS systems to monitor the
location of people?

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