Telecommunications and network technologies are inter-networking and

revolutionizing business and society. Businesses have become networked

enterprises. The Internet, the Web, and intranets and extranets are networking
business processes and employees together and connecting them to their
customers, suppliers, and other business stakeholders.

Companies and workgroups can thus collaborate more creatively, manage their
business operations and resources more effectively, and compete successfully in
today’s fast-changing global economy. This chapter presents the
telecommunications and network foundations for these developments.
The Concept of Network
a network typically consists of multiple devices such as
computers, servers, routers, switches, and other
networking equipment. These devices are connected
together using wired or wireless connections, forming a
communication infrastructure that allows them to
exchange data and information.
The primary purpose of a network is to enable
communication and resource sharing. Through networks,
users can share files, access shared resources such as
printers or storage devices, communicate via email or
instant messaging, and access the Internet.
Networks are designed using protocols and standards
that govern how data is transmitted, received, and
processed.
Internet
The Internet is a global network of interconnected
computer networks that allows communication and
information exchange between billions of devices
worldwide. It is a vast infrastructure that spans the globe,
connecting computers, servers, routers, switches, and
other networking devices using a variety of wired and
wireless technologies.
Telecommunication
Telecommunications is the exchange of information in any form (voice, data, text,
images, audio, video) over networks. The Internet is the most widely visible form of
telecommunications in your daily lives.
Types of Telecommunication Networks:
Local area networks (LANs) connect computers and other information processing
devices within a limited physical area, such as an office, classroom, building,
manufacturing plant, or other worksite. LANs have become commonplace in many
organizations for providing telecommunications network capabilities that link end
users in offices, departments, and other workgroups.
metropolitan area network (MAN). Such networks can range from
several blocks of buildings to entire cities. MANs can also depend on
communications channels of moderate-to-high data rates. A MAN might
be owned and operated by a single organization, but it usually will be
used by many individuals and organizations.

Your local cable provider or a local telephone company is probably

operating on a MAN. MANs will often provide means for inter-
networking of local area networks.
Telecommunications networks covering a large geographic area are called wide area
networks (WANs) . Networks that cover a large city or metropolitan area
( metropolitan
area networks ) can also be included in this category. Such large networks have
become a necessity for carrying out the day-to-day activities of many business and
government
organizations and their end users. For example, WANs are used by many
multinational companies to transmit and receive information among their
employees, customers, suppliers, and other organizations across cities, regions,
countries, and the world.
Telecommunication Media
Telecommunication media refer to the various means or
channels through which information, data, or signals are
transmitted from one location to another in the field of
telecommunications. These media can be physical or
wireless and are used to facilitate communication
between individuals, devices, or networks.
1.Twisted Pair Copper Cable: This is a type of cable commonly used
for traditional telephone lines. It consists of pairs of copper wires
twisted together, which helps reduce interference and signal
degradation.
2.Coaxial Cable: Coaxial cables are widely used for cable television
(CATV) and high-speed Internet connections. They consist of a
central conductor wire surrounded by insulation, a metallic shield,
and an outer protective layer.
3.Fiber Optic Cable: Fiber optic cables use thin strands of glass or
plastic fibers to transmit data as pulses of light. They offer high-
speed, long-distance, and secure transmission of data, making
them ideal for high-bandwidth applications like broadband
internet, long-haul telecommunications, and networking.
Wireless Transmission: Wireless media use
electromagnetic waves to transmit signals without the
need for physical cables. This includes various wireless
technologies such as radio frequency (RF), microwave,
infrared (IR), and satellite communication.
1. Microwave Links: Microwave links use high-frequency
radio waves to transmit signals over short to medium
distances. They are commonly used for point-to-point
communication between two fixed locations,
2. Satellite Communication: Satellite communication
involves the use of artificial satellites orbiting the Earth
to relay signals over long distances. Satellites receive
signals from one location, amplify them, and transmit
them back to another location on Earth. This technology
enables global communication coverage, including
television broadcasting, telephony, and internet
connectivity
3. Cellular Networks: Cellular networks provide wireless
communication over large geographical areas using a
network of interconnected cell towers. They use various
telecommunication media, including radio waves and
fiber optic cables, to enable voice and data transmission
for mobile devices
Telecommunication protocols
Protocols refer to a set of rules, guidelines, or standards
that govern the communication and interaction between
devices, systems, or entities in a networked environment.
1.Internet Protocol (IP): IP is responsible for addressing and
routing packets of data across networks. It provides a logical
addressing scheme, allowing devices to send and receive data
packets. IPv4 (Internet Protocol version 4) and IPv6 (Internet
Protocol version 6) are the two most widely used versions of IP.
2.Transmission Control Protocol (TCP): TCP is a connection-
oriented protocol that operates at the transport layer. It
provides reliable, ordered, and error-checked delivery of data
by establishing a connection between devices, dividing data
into segments, numbering them, and reassembling them at
the receiving end. TCP includes features such as flow control,
congestion control, and error detection.
Trends In Telecommunication
Early telecommunications networks did not use computers to route traffic and, as such, were much
slower than today’s computer based networks. Major trends occurring in the field of
telecommunications have a significant impact on management decisions in this area. You should
thus be aware of major trends in telecommunications industries, technologies, and applications that
significantly increase the decision alternatives confronting business managers and professionals.
Industry trends Toward more competitive vendors, carriers, alliances, and
network services, accelerated by deregulation and the growth
of the Internet and the World Wide Web.
Technology Trends:
Toward extensive use of Internet, digital fiber-optic, and wireless technologies to create high-speed
local and global internetworks for voice, data, images, audio, and Video communications.

Applications Trends:
• Toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets
to support electronic business and commerce, enterprise collaboration, and strategic advantage
in local and global markets.
Technology Trends
• Open systems are information systems that use common standards for hardware,
software, applications, and networking. Open systems, like the Internet and
corporate intranets and extranets, create a computing environment that is open
to easy access by end users and their networked computer systems.
• Open systems provide greater connectivity, that is, the ability of networked
computers and other devices to access and communicate with one another easily
and share information.
Business Applications Trends:

The changes in telecommunications industries and technologies just mentioned are causing a
significant change in the business use of telecommunications. The trend toward more vendors,
services, Internet technologies, and open systems, and the rapid growth of the Internet, the World
Wide Web, and corporate intranets and extranets, dramatically increases the number of feasible
telecommunications applications.
Thus, telecommunications networks are now playing vital and pervasive roles in Web-enabled e-
business processes, e-commerce, enterprise collaboration, and other business applications that
support the operations, management, and strategic objectives of both large and small business
enterprises.
Business Value of
Telecommunication and Network
Use of the Internet, intranets, extranets, and other telecommunications networks can dramatically cut costs,
shorten business lead times and response times, support e-commerce, improve the collaboration of
workgroups, develop online operational processes, share resources, lock in customers and suppliers, and
develop new products and services.

These benefits make applications of telecommunications more strategic and vital for businesses that must
increasingly find new ways to compete in both domestic and global markets.
The Business Value
Strategic Capabilities e-Business Examples Business Value
Overcome geographic barriers: Use the Internet and extranets to Provide better customer service
Capture information about transmit customer orders from by reducing delay in filling orders
business transactions from traveling salespeople to a and improves cash flow by
remote locations. corporate data center for order speeding up the billing of
processing and inventory control. customers.

Overcome time barriers: Provide Credit authorization at the point Credit inquiries can be made and
information to remote locations of sale using online networks. answered in seconds.
immediately after it is requested.
Overcome cost barriers: Reduce Desktop videoconferencing Reduce expensive business trips;
the cost of more traditional between a company and its allow customers, suppliers, and
means of communication. business partners using the employees to collaborate, thus
Internet, improving the quality
of decisions reached.
The Internet Revolution
The Internet has become the largest and most important network of networks today and
has evolved into a global information superhighway. We can think of the Internet as a
network made up of millions of smaller private networks, each with the ability to operate
independent of, or in harmony with, all the other millions of networks connected to the
Internet.
When this network of networks began to grow in December 1991, it had about 10
servers. In January 2004, the Internet was estimated to have more than 46 million
connected servers with a sustained growth rate in excess of 1 million servers per month.
In January 2007, the Internet was estimated to have more than 1 billion users with Web
sites in 34 languages from English to Icelandic.
The Internet is constantly expanding as more and more businesses and other
organizations and their users, computers, and networks join its global Web. Thousands of
business, educational, and research networks now connect millions of computer systems
and users in more than 200 countries.
Internet Service Provider
One of the unique aspects of the Internet is that nobody really owns it. Anyone who can
access the Internet can use it and the services it offers. Because the Internet cannot be
accessed directly by individuals, we need to use the services of a company that
specializes in providing easy access.
An ISP, or Internet service provider , is a company that provides access to the Internet to
individuals and organizations. For a monthly fee, the service provider gives you a
software package, user name, password, and access phone number or access protocol.
With this information (and some specialized hardware), you can then log onto the
Internet, browse the World Wide Web, and send and receive e-mail. In addition
Business Use Of Internet
the Internet has expanded from an electronic information exchange to a broad platform
for strategic business applications. Notice how applications such as collaboration among
business partners, providing customer and vendor support, and e-commerce have
become major business uses of the Internet.
Companies are also using Internet technologies for marketing, sales, and customer
relationship management applications, as well as for cross-functional business
applications, and applications in engineering, manufacturing, human resources, and
accounting.
The Business Value Of Internet
What business value do companies derive from their business applications on the
Internet? how many companies perceive the business value of the Internet for e-
commerce. Substantial cost savings can arise because applications that use the Internet
and Internet-based technologies (like intranets and extranets) are typically less
expensive to develop, operate, and maintain than traditional systems. For example, an
airline saves money every time customers use its Web site instead of its customer
support telephone system.

It is estimated that for certain types of transactions, the transaction cost savings are
significant for online versus more traditional channels. For example, booking a
reservation over the Internet costs about 90 percent less for the airline than booking the
same reservation over the telephone.
The Role Of Intranet
An intranet is a network inside an organization that uses Internet technologies (such as
Web browsers and servers, TCP/IP network protocols, HTML hypermedia document
publishing and databases, and so on) to provide an Internet-like environment within the
enterprise for information sharing, communications, collaboration, and the support of
business processes. An intranet is protected by security measures such as passwords,
encryption, and firewalls, and thus can be accessed by authorized users through the
Internet.
The Business Value of Intranet
Organizations of all kinds are implementing a broad range of intranet uses. One way that
companies organize intranet applications is to group them conceptually into a few
categories of user services that reflect the basic services that intranets offer to their
users. These services are provided by the intranet’s portal, browser, and server software,
as well as by other system and application software and groupware that are part of a
company’s intranet software environment.
Business Operations and Management. Intranets have moved beyond merely
making hypermedia information available on Web servers or pushing it to users via net
broadcasting. Intranets are also being used as the platform for developing and deploying
critical business applications to support business operations and managerial decision
making across the inter-networked enterprise.

For example, many companies are developing custom applications like order processing,
inventory control, sales management, and enterprise information portals that can be
implemented on intranets, extranets, and the Internet. Many of these applications are
designed to interface with and access existing company databases and legacy systems
The Role Of Extranet
xtranets are network links that use Internet technologies to interconnect the intranet of a
business with the intranets of its customers, suppliers, or other business partners.
Companies can establish direct private network links among themselves or create
private, secure Internet links called virtual private networks

(VPNs). (We’ll look more closely at VPNs later in this chapter.) Or a company can use the
unsecured Internet as the extranet link between its intranet and consumers and others
but rely on the encryption of sensitive data and its own firewall systems to provide
adequate security. Thus, extranets enable customers, suppliers, consultants,
subcontractors, business prospects, and others to access selected intranet Web sites and
other company databases