Telecommunications and Networks

At a Glance

Chapter Overview
Chapter 6 emphasizes the importance of telecommunications and networks to an organizations success. It describes the different types of communication media used for telecommunications. It also discusses communication hardware devices and communication protocols. Different network types are described and client/server systems are explained. Finally, the chapter goes into some of the applications of telecommunications and networks, including linking personal computers to mainframes and networks, voice mail, home and small business networks, electronic document distribution, call centers, telecommuting, videoconferencing, electronic data interchange, public network services, electronic funds transfer, distance learning, and team collaboration systems.

Principles and Objectives

Principles Effective communications are essential to organizational success. Learning Objectives

Define the terms communications and telecommunications and describe the components of a telecommunications system. Identify two broad categories of communications media and their associated characteristics. Identify several communications hardware devices and discuss their function. Name three types of telecommunications carriers and discuss the services they provide. Describe many of the benefits associated with a telecommunications network. Define the term communications protocols and identify several common ones. Name three distributed processing alternatives and discuss their basic features. List and describe several telecommunications applications that

Communications technology lets more people send and receive all forms of information over greater distances at a faster rate than ever before.

organizations benefit from today.

Teaching Tips
Why Learn About Telecommunications and Networks?
Todays decision makers need to access data wherever it resides. They must be able to establish fast, reliable connections to exchange messages, upload and download data and software, route business transactions to processors, connect to databases and network services, and send output to printers. These tasks rely on telecommunications and the use of networks. Regardless of their chosen major or future career field, students will need the communications capabilities provided by telecommunications and networks. This is especially true if their work involves the supply chain because it involves cooperation and communication among workers in all phases and with customers, suppliers, and shippers.

An Overview of Telecommunications
Telecommunications refers to the electronic transmission of signals for communications, including such means as telephone, radio, and television. Figure 6.1 on page 219 (see below) shows a general model of telecommunications. It starts with a sending unit (1), such as a person, a computer system, a terminal, or another device, that originates the message. The sending unit transmits a signal (2) to a telecommunications device (3). The telecommunications device performs a number of functions, which can include converting the signal into a different form or from one type to another. The telecommunications device then sends the signal through a medium (4). A telecommunications medium is anything that carries an electronic signal and interfaces between a sending device and a receiving device. The signal is received by another telecommunications device (5) that is connected to the receiving computer (6). The process can then be reversed and another message can go back from the receiving unit (6) to the original sending unit (1).

Figure 6.1: Elements of a Telecommunications System

Basic Communications Channel Characteristics A transmission medium may be divided into one or more communications channels, each capable of carrying a message. Communication channels can be classified as simplex, halfduplex, or full-duplex. A simplex channel can transmit data in only one direction. A halfduplex channel can transmit data in either direction, but not simultaneously. A full-duplex channel permits data transmission in both directions at the same time. Channel Bandwidth Telecommunications channel bandwidth refers to the rate at which data is exchanged, usually measured in bits per second (bps). Communications Media Each type of communications media exhibits its own characteristics, including transmission capacity and speed. In developing a telecommunications system, the selection of media depends on the purpose of the overall information and organizational systems, the purpose of the telecommunications subsystems, and the characteristics of the media. As with other system components, the media should be chosen to support the goals of the information and organizational systems at the least cost. It should also allow for possible modification of system goals over time. Transmission media can be divided into two broad categories: guided transmission media and wireless media. In guided media, the communications signals are guided along a solid medium. In wireless media, the communications signal is sent over airwaves. Guided Transmission Media Types Twisted-pair wire contains two or more twisted pairs of wire, usually copper. Twisted-pair wires are classified by category (Category 1, 2, 3, 4, 5, 5E, and 6). The lower categories are used primarily in homes. Higher categories are sometimes used in smaller networks. Coaxial cable is the kind of cable that is used by cable TV companies to provide their services to our homes. The cable is more expensive than twisted-pair wire but less so than fiber-optic cable. However, the cost of installation and other necessary communications equipment makes it difficult to compare the total costs of each media. Coaxial cable offers a higher transmission rate and has less noise compared with twisted-pair wire. Fiber-optic cable, which consists of many extremely thin strands of glass or plastic bound together in a sheathing (a jacket), transmits signals with light beams. Fiber-optic cable and associated telecommunications devices are more expensive to purchase and install than their twisted-pair wire counterparts, although the cost is decreasing. Another type of guided transmission is broadband over power lines (BPL), which provides network connections over standard high-voltage power lines. BPL can provide Internet service in rural areas where broadband access has lagged because electricity is more prevalent in homes than cable or even telephone lines.

The major wireless technologies include microwave, satellite, radio, and infrared. The wireless media types are microwave transmission, cellular transmission, and infrared transmission. Microwave is a high-frequency (300 MHz300 GHz) signal sent through the air. Terrestrial (Earth-bound) microwaves are transmitted by line-of-sight devices; that is, the line of sight between the transmitter and receiver must be unobstructed. A communications satellite also operates in the microwave frequency range. Radio transmission operates in the 30 Hz300 MHz frequency range. Radio waves can travel through many obstructions such as walls. In addition to providing a means to listen to music and talk shows, this form of transmission can be used to send and receive data. Many new wireless technologies such as RFID chips, Bluetooth, and Wi-Fi wireless networks are based on radio transmission. Cellular phones also operate using radio waves to provide two-way communications. Infrared transmission sends signals through the air via light waves at a frequency of 300 GHz and above. Infrared transmission requires line-of-sight transmission and short distances under a few hundred yards. Telecommunications Hardware Telecommunications hardware devices include modems, multiplexers, and front-end processors. A computer generates a digital signal representing bits. A typical telephone line can only accommodate an analog signal (a continuous, curving signal). To transfer the signals generated by a computer over a typical telephone line, a special device called a modem is required. A modem converts the digital signal to an analog signal, and vice versa. A multiplexer is a device that encodes data from two or more data sources onto a single communications channel, thus reducing the number of communications channels needed and lowering telecommunications costs. Front-end processors are special-purpose computers that manage communications to and from a computer system serving hundreds or even thousands of users. Services Telecommunications carriers organize communications channels, networks, hardware, software, people, and business procedures to provide valuable communications services. Digital Subscriber Line (DSL) A digital subscriber line (DSL) is a telecommunications technology that delivers highbandwidth information to homes and small businesses over the existing phone lines of the local telephone network. A DSL line can carry both data and voice signals. The data part of the line is continuously connected.

All the major long-distance carriers also offer wireless telecommunications services that enable you to place phone calls or access the Internet. The market growth of landline phones is declining as wireless telephone service plans offer long-distance service at the same perminute rate as local service.

Networks and Distributed Processing

A computer network consists of communications media, devices, and software needed to connect two or more computer systems or devices. The computers and devices on the networks are called network nodes. Network Types Depending on the physical distance between nodes on a network and the communications and services provided by the network, networks can be classified as personal area, local area, metropolitan area, wide area, or international networks. A personal area network (PAN) is a wireless network that supports the interconnection of information technology devices within a range of 33 feet or so. A local area network (LAN) connects computer systems and devices within the same geographic area. A metropolitan area network (MAN) is a telecommunications network that connects users and their computers in a geographical area larger than that covered by a LAN but smaller than the area covered by a WAN. A wide area network (WAN) ties together large geographic regions. Networks that link systems between countries are called international networks. Mesh networking is a way to route communications among network nodes by allowing for continuous connections and reconfiguration around blocked paths by hopping from node to node until a connection can be established. Mesh networks are robust. If one node fails, all the other nodes can still communicate with each other, directly or through one or more intermediate nodes. Distributed Processing In centralized processing, all computer operations occur in a single location. With decentralized processing, devices are placed at various remote locations. The individual computer systems are isolated and do not communicate with each other. In distributed processing, computers are placed at remote locations but are connected to each other via telecommunications devices. An advantage of this is that the processing activity can be allocated to the location(s) where it can most efficiently occur. Client/Server Systems In the client/server architecture, multiple computer platforms are dedicated to special functions such as database management, printing, communications, and program execution. These platforms are called servers. Each server is accessible by all the computers on the network. A computer that sends messages requesting services from the servers on the network is called a client.

Communications Software and Protocols

A communications protocol is a standard set of rules that control a telecommunications connection. Communications protocols are needed for connecting devices from different manufacturers or separate networks. Common telecommunications protocols include Frame Relay, ATM, IEEE 802.3 (Ethernet), and T-carrier system. Wireless Communications Protocols The Institute for Electrical and Electronics Engineers (IEEE) 802 series of network standards is important for wireless communication devices. These standards are summarized in Table 6.5 on page 237. Wi-Fi has evolved and improved over time in terms of its ability to transmit data at higher speeds and over increasing distances. A number of cities and business organizations are using Wi-Fi technology to provide hot spots that allow people to connect to the Internet from places such as airports, coffee shops, college campuses, libraries, and restaurants. WiMAX offers faster data speeds and broader coverage than Wi-Fi. It also offers a higher quality of service than Wi-Fi by supporting applications such as digital life-size videoconferencing. Conventional wireless communications employs a single antenna at the source and another single antenna at the destination. However, with this system, a signal can suffer from multipath effects when it encounters obstructions (e.g., buildings, hills). Using two or more antennas or MIMO (multiple input, multiple output), along with the transmission of multiple signals (one for each antenna) at the source and the destination, eliminates these multipath problems. Ultra Wideband (UWB) transmissions consist of a stream of pulses only picoseconds wide. These extremely short impulses result in high frequencies spread over a wide band. The International Telecommunications Union (ITU) established a single standard for cellular networks in 1999. This standard was called IMT-2000 at that time and is now referred to as 3G. 3G provides for faster transmission speeds in the range of 24 Mbps that will enable applications such as VoIP, video telephony, mobile multimedia, and interactive gaming. 4G stands for fourth-generation broadband mobile wireless. 4G is expected to deliver more advanced versions of enhanced multimedia, smooth streaming video, universal access, portability across all types of devices, and hopefully, worldwide roaming capability. A number of hardware devices enable the high-speed switching of messages from one network to another. The most common of these devices are bridges, switches, routers, and gateways. Communications Software Communications software provides a number of important functions in a network, such as error checking and data security. A network operating system (NOS) is systems software that

controls the computer systems and devices on a network and allows them to communicate with each other. A NOS performs the same types of functions for the network as operating system software does for a computer. Network-management software enables a manager on a networked desktop to monitor the use of individual computers and shared hardware, scan for viruses, and ensure compliance with software licenses.

Telecommunications and Network Applications

Telecommunications networks are extremely important in todays world of information technology and global business, and without them, most companies would not survive. Appropriate telecommunications applications can result in an agile, powerful, and creative organization. Linking Personal Computers to Mainframes and Networks One of the most basic ways that this telecommunications can connect an individual to an information system is by linking a personal computer to a mainframe. Voice Mail Voice mail technology allows users to leave, receive, and store verbal messages. This technology is increasingly becoming more important and prevalent in both the workplace and homes. Home and Small Business Networks Many small businesses and families set up simple networks that allow them to share printers or an Internet connection; access files on different machines; play games that support multiple concurrent players; and send the output of network-connected devices such as a security camera or DVD player to a computer. Electronic Document Distribution Electronic document distribution lets you send and receive documents in a digital form without printing them. It is much faster to distribute electronic documents via networks than to mail printed forms. Viewing documents on screen instead of printing them also saves paper and document storage space. Call Centers A call center is a physical location where an organization handles customer and other telephone calls, usually with some amount of computer automation. Call centers are used by customer service organizations, telemarketing companies, computer product help desks, charitable and political campaign organizations, and any organization that uses the telephone to sell or support products and services. Telecommuting and Virtual Workers and Workgroups

Many enterprises have adopted policies for telecommuting that enable employees to work away from the office using personal computers and networks. This is known as telecommuting. Telecommuting allows companies to save money not only on office equipment, but also on parking and office space for workers. Videoconferencing Videoconferencing is another method used to reduce time and travel expenses. It also improves managerial effectiveness through faster response to problems, access to more people, and less duplication of effort by geographically dispersed sites. Electronic Data Interchange Electronic data interchange (EDI) is a way to communicate data from one company to another and from one application to another in a standard format, permitting the recipient to perform a standard business transaction, such as processing purchase orders. Public Network Services Public network services give personal computer users access to vast databases, the Internet, and other services, usually for an initial fee plus usage fees.

Electronic Funds Transfer Electronic funds transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands. This technology offers reduced administrative costs, increased efficiency, simplified bookkeeping, and greater security. Distance Learning Distance learning is the use of telecommunications to extend the classroom. With distance learning software and systems, instructors can easily create course home pages on the Internet. Students can access the course syllabus and instructor notes on the Web page, e-mail other students or the instructor to discuss the class material, and form a virtual team that meets electronically to complete a group project. Team Collaboration Systems Microsoft Office Groove is an example of software designed to enable collaboration and communication within small teams. Groove can be used to set up shared workspaces among employees and others outside the organization. Specialized Systems and Services With millions of personal computers in businesses across the country, interest in specialized and regional information services is increasing. Specialized services include professional legal, patent, and technical information. Regional services include local electronic bulletin boards and electronic mail facilities that offer information regarding local club, school, and government activities. An electronic bulletin board is a message center that displays messages in electronic form.

Key Terms

Analog signal - a variable signal continuous in both time and amplitude so that any small fluctuations in the signal are meaningful. Asynchronous communications - communication in which the receiver gets the message after some delay. Automated clearing house (ACH) - a secure, private network that connects all U.S. financial institutions to one another by way of the Federal Reserve Board or other ACH operators. Bridge - a telecommunications device that connects one LAN to another LAN that uses the same telecommunications protocol. Broadband communications - a telecommunications system in which a very high rate of data exchange is possible. Centralized processing - processing alternative in which all processing occurs at a single location or facility. Channel bandwidth - the rate at which data is exchanged over a communications channel, usually measured in bits per second (bps).

Client/Server - an architecture in which multiple computer platforms are dedicated to special functions such as database management and printing. Communications protocol - a set of rules that governs the exchange of information over a communications channel. Computer network - the communications media, devices, and software needed to connect two or more computer systems and/or devices. Decentralized processing - processing alternative in which processing devices are placed at various remote locations. Digital signal - a signal represented by bits. Digital subscriber line (DSL) - a telecommunications service that delivers high-speed Internet access to homes and small businesses over the existing phone lines of the local telephone network. Distance learning - the use of telecommunications to extend the classroom. Distributed processing - processing alternative in which computers are placed at remote locations but are connected to each other via a network. Electronic data interchange (EDI) - an intercompany, application-to-application communication of data in a standard format, permitting the recipient to perform a standard business transaction, such as processing purchase orders. Electronic document distribution - a process that enables the sending and receiving of documents in a digital form, without being printed (although printing is possible). Electronic funds transfer (EFT) - a system of transferring money from one bank account directly to another without any paper money changing hands. Front-end processor - a special-purpose computer that manages communications to and from a computer system serving hundreds or even thousands of users. Full-duplex channel - a communications channel that permits data transmission in both directions at the same time; a full-duplex channel is like two simplex channels. Gateway - a telecommunications device that serves as an entrance to another network. Half-duplex channel - a communications channel that can transmit data in either direction, but not simultaneously. International network - a network that links users and systems in more than one country. Local area network (LAN) - a network that connects computer systems and devices within a small area, such as an office, home, or several floors in a building. Mesh networking - a way to route communications between network nodes (computers or other device) by allowing for continuous connections and reconfiguration around blocked paths by hopping from node to node until a connection can be established. Metropolitan area network (MAN) - a telecommunications network that connects users and their devices in a geographical area that spans a campus or city. Modem - a telecommunications hardware device that converts (modulates and demodulates) communications signals so they can be transmitted over the communication media. Multiplexer - a device that encodes data from two or more data sources onto a single communications channel, thus reducing the number of communications channels needed and lowering telecommunications costs. Narrowband communications - a telecommunications system that supports a much lower rate of data exchange than broadband. Network operating system (NOS) - systems software that controls the computer systems and devices on a network and allows them to communicate with each other. Network-management software - software that enables a manager on a networked desktop to monitor the use of individual computers and shared hardware (such as printers), scan for viruses, and ensure compliance with software licenses.

Personal area network (PAN) - a network that supports the interconnection of information technology within a range of 33 feet or so. Public network services - systems that give personal computer users access to vast databases and other services, usually for an initial fee plus usage fees. Router - a telecommunications device that forwards data packets across two or more distinct networks toward their destinations, through a process known as routing. Simplex channel - a communications channel that can transmit data in only one direction. Switch - a telecommunications device that uses the physical device address in each incoming message on the network to determine to which output port it should forward the message to reach another device on the same network. Synchronous communications - communications in which the receiver gets the message instantaneously. Telecommunications medium - any material substance that carries an electronic signal and serves as an interface between a sending device and a receiving device. Telecommuting - a work arrangement whereby employees work away from the office using personal computers and networks to communicate via e-mail with other workers and to pick up and deliver results. Videoconferencing - a telecommunication system that combines video and phone call capabilities with data or document conferencing. Voice mail - technology that enables users to leave, receive, and store verbal messages. Wide area network - a network that ties together large geographic regions. Wire transfer - an extremely fast, reliable means to move funds from one account to another.