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HANDBOOK
OF
COMPUTER
NETWORKS
HANDBOOK
OF
COMPUTER
NETWORKS
Key Concepts, Data Transmission, and
Digital and Optical Networks

Volume 1

Hossein Bidgoli
Editor-in-Chief
California State University
Bakersfield, California

John Wiley & Sons, Inc.

This book is printed on acid-free paper. ∞

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system, or

transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, scanning, or otherwise, except as permitted under Section 107 or 108 of
the 1976 United States Copyright Act, without either the prior written permission
of the Publisher, or authorization through payment of the appropriate per-copy fee to
the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978)
750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the
Publisher for permission should be addressed to the Permissions Department, John
Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201)
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used
their best efforts in preparing this book, they make no representations or warranties
with respect to the accuracy or completeness of the contents of this book and specifi-
cally disclaim any implied warranties of merchantability or fitness for a particular pur-
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For general information on our other products and services or for technical support,
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Library of Congress Cataloging-in-Publication Data:

Handbook of computer networks / edited by Hossein Bidgoli.

3 v. cm.
ISBN 978-0-471-78458-6 (cloth vol 1 : alk. paper)
ISBN 978-0-471-78459-3 (cloth vol 2 : alk. paper)
ISBN 978-0-471-78460-9 (cloth vol 3 : alk. paper)
ISBN 978-0-471-78461-6 (cloth set : alk. paper)
1. Computer networks Handbooks, manuals, etc. I. Bidgoli, Hossein.
TK5105.5.H32 2008
004.6–dc22
2007012619
Printed in the United States of America

10 9 8 7 6 5 4 3 2 1
 To so many fine memories of my mother Ashraf, my father
Mohammad, and my brother Mohsen, for their uncompromising
belief in the power of education.
 About the Editor-in-Chief

Hossein Bidgoli, Ph.D., is professor of Management Encyclopedia, The Handbook of Information Security, and
Information Systems at California State University. The Encyclopedia of Information Systems.
Dr. Bidgoli helped set up the first PC lab in the United The Encyclopedia of Information Systems was the
States. He is the author of 43 textbooks, 27 manuals, and recipient of one of the Library Journal’s Best Reference
over five dozen technical articles and papers on various Sources for 2002 and The Internet Encyclopedia was recip-
aspects of computer applications, information systems ient of one of the PSP Awards (Professional and Scholarly
and network security, e-commerce, and decision support Publishing), 2004. Dr. Bidgoli was selected as the Califor-
systems published and presented throughout the world. nia State University, Bakersfield’s 2001–2002 Professor of
Dr. Bidgoli also serves as the editor-in-chief of The Internet the Year.
 Editorial Board

Qi Bi E. Eugene Schultz
Bell Laboratories, Alcatel-Lucent Technologies High Tower Software and University of California-
Berkeley Lab
Feng Cao
Cisco Systems, Inc. Hideyuki Sotobayashi
National Institute of Information and Communications
James E. Goldman Technology (NICT), Japan
Purdue University
Ivan Stojmenovic
Ari Juels University of Ottawa, Canada
RSA Laboratories
Tatsuya Suda
Raymond R. Panko University of California, Irvine
University of Hawaii, Manoa

Pierangela Samarati
Università di Milano, Italy
 Contents

Contributors xvii Video Compression 227

Preface xxiii Immanuel Freedman
Guide to The Handbook of Computer Networks xxvi
Speech and Audio Compression 268
Reviewers List 959
Peter Kroon
Index 969
Multimedia Streaming 282
Nabil J. Sarhan
Volume I: Key Concepts, Data
High-Definition Television 293
Transmission, and Digital and
Jim Krause
Optical Networks
Part 1: Key Concepts
Part 2: Hardware, Media, and Data
The Telecommunications Industry 3 Transmission
David G. Loomis
Modems 309
Data Communications Basics 19 Darren B. Nicholson and Jennifer A. Nicholson
Hossein Bidgoli
Conducted Communications Media 320
Data-Link Layer Protocols 30 Thomas L. Pigg
Stefan Joe-Yen and Chadwick Sessions
Wireless Channels 334
Network Layer Protocols 40 Okechukwu C. Ugweje
Muhannad Harrim, Mohamed El-Wakil, and Ala Al-Fuqaha
Sources of Errors, Prevention, Detection,
Transport Layer Protocols 63
and Correction 352
Vassilis Tsaoussidis
Syed H. Murshid and Azhar M. Khayrattee
Session, Presentation, and Application Layer
Routers 364
Protocols 76
Min Song
Chadwick Sessions
Switches 375
Digital Transmission 84
Min Song
Marvi Teixeira and Viktor Zaharov

Analog Transmission 102 Bridges 390

Hamidreza Saligheh, Joonhyuk Kang, Zartash Afzal Uzmi and Tariq Mahmood Jadoon
Jaehak Chung, and Vahid Tarokh Pulse Amplitude Modulation 403
Voice Communications Systems: KTS, PBX, Muneo Fukaishi
Centrex, and ACD 115 Frequency and Phase Modulation 414
Hassan Ibrahim Albert Lozano-Nieto
Messaging Systems: Facsimile and Carrierless Amplitude Phase Modulation 426
Voice Processing 127 Tim Collins
Albert K.S. Wong, Nan Zhang, and Xu Yan
Minimum Shift Keying 438
Public Switched Telephone Network 158
Tao Jiang
Jingxuan Liu and Nirwan Ansari
Optical Differential Phase Shift Keying 455
Information Theory 178
Xiang Liu
David Blockus and Mark Stamp
DMT Modulation 473
Data Compression 199
Stephan Pfletschinger
Chang-Su Kim and C.C. Jay Kuo
Pulse Position Modulation 492
Image Compression 212
Jon Hamkins
Alfred Mertins

xi
xii CONTENTS

Digital Phase Modulation and Demodulation 509 Fiber-Optic Filters and Multiplexers 850
Zartash Afzal Uzmi Hamid Hemmati

Line Coding 522 Optical Solitons 861

Asim Loan Natalia M. Litchinitser

Spread Spectrum 538 Synchronous Optical Code Division

Murad Hizlan Multiplexing Systems 885
Hideyuki Sotobayashi
Frequency Division Multiplexing 553
Zhu Liu Free-Space Optics 900
John Liu and Mark Schaefer
Time Division Multiplexing 568
William A. Shay Optical Switching Techniques in WDM
Optical Networks 909
Statistical Time Division Multiplexing 579 Amor Lazzez, Noureddine Boudriga, and
Kavitha Chandra Mohammad S. Obaidat

Orthogonal Frequency Division Multiplexing 591 SONET and SDH Networks 929
Shinsuke Hara M. Farooque Mesiya

Wavelength Division Multiplexing 606 Passive Optical Networks for

Yassine Khlifi, Noureddine Boudriga, and Broadband Access 948
Mohammad S. Obaidat Nirwan Ansari and Yuanqiu Luo

Part 3: Digital and Optical Networks Volume II: LANs, MANs, WANs, The
Digital Communication Basics 629 Internet, and Global, Cellular, and
Robert W. Heath and Atul A. Salvekar Wireless Networks
Digital Radio Broadcasting 642 Part 1: LANs, MANs, and WANs
Zhuojun Joyce Chen
Local Area Networks 3
Spread Spectrum Signals for Digital Wayne C. Summers
Communications 675
Filippo Giannetti and Marco Luise Ethernet LANs 19
William Stallings
Optical Fiber Communications 692
Habib Hamam and Sghaier Guizani Token Ring LANs 27
Norman C. Strole, Werner Bux, and
Optical Transmitters, Receivers, and Noise 708
Robert D. Love
Ken Pedrotti
Optical Fiber LANs 40
Optical Signal Regeneration 729
Mo Adda, Amanda Peart, and Jau Ming Chew
Mingshan Zhao
Windows 2000 Operating System 57
Optical Sources 745
Dario Forte
Tin Win and Serge Demidenko

Lambda and Sub-Lambda Switching 767 Linux Operating System 78

Mario Baldi and Yoram Ofek Mark Shacklette

Optical Cross Connects 783 Metropolitan Area Networks 91

Wen-De Zhong Richard J. Nieporent

Optical Memories 795 Terrestrial Wide Area Networks 116

Paul W. Nutter Gurdeep Singh Hura

Characterization of Optical Fibers 815 Packet Switching 136

Liang Chen, John Cameron, and Xiaoyi Bao Qinqing Zhang and Qi Bi

Optical Couplers and Splitters 828 Circuit Switching 146

Kais Dridi, Mustapha Razzak, and Habib Hamam Farid Farahmand and Qiong (Jo) Zhang
 CONTENTS xiii

Message Switching 159 Voice Over Internet Protocol 468

Farid Farahmand Sherali Zeadally and Farhan Siddiqui

Frame Relay 172 Signaling Approaches 488

Eddie Rabinovitch Edmundo Monteiro, Fernando Boavida,
Marilia Curado, and Luís Cordeiro
Asynchronous Transfer Mode (ATM) 183
Arjan Durresi and Raj Jain Voice over MPLS and VoIP over MPLS 509
Broadband Integrated Services Junaid Ahmed Zubairi
Digital Network 200 Telephone Number Mapping (ENUM) 519
B. Muthukumaran Leslie L. Daigle
DSL (Digital Subscriber Line) 210 Web Hosting 532
Milos Milosevic Thomas C. Bressoud
Cable Modems 221
End-System QoS 545
Shaheed N. Mohammed
Tarek F. Abdelzhaer and Chengdu Huang
Home Networking 230
Web Services 559
Sherali Zeadally
Mei-Ling L. Liu
Multimedia Networking 246
Hans-Peter Dommel

Part 3: Cellular and Wireless Networks

Part 2: The Internet, Global Networks, Cellular Communications Channels 579
and VoIP Aarne Mämmelä and Risto Wichman
The Internet Fundamentals 267 Cellular Telephony 591
Hossein Bidgoli Elyes Ben Ali Bdira
History of the Internet 280 Mobile Radio Communications 616
John Lucas Sherry and Nicholas David Bowman Chi Zhou
Internet2® 294
Evolution of Mobile Cellular Networks 630
Linda Bruenjes and Carolyn Siccama
Jiang Xie and Xiaoyuan Gu
Internet Domain Name System 305
Global System for Mobile Communications 642
Krishna Jayakar
Mohamed A. Haleem and Koduvayur P. Subbalakshmi
Information Retrieval on the Internet 320
General Packet Radio Service 658
Raymond F. Wisman
Allen H. Levesque
Internet Architecture 345
Geoffrey G. Xie Location Management in Personal 675
Communication Systems
TCP/IP Suite 358 Jingyuan Zhang and Ivan Stojmenovic
Prabhaker Mateti
Mobility Management in Heterogeneous
SMTP (Simple Mail Transfer Protocol) 388 Networks 685
Vladimir V. Riabov Guangbin Fan, Xuming Lu, and Song Ci
IP Multicast 407 Universal Mobile Telecommunications
Emilia Rosti System 699
Network QoS 417 Faouzi Zarai, Noureddine Boudriga, and
Ying Lu Mohammad S. Obaidat

Internet Security Standards 428 International Mobile Telecommunications-2000

Raymond R. Panko and 3G Wireless Systems 716
Mustafa M. Matalgah and Omar M. Hammouri
Technology and Standards for Low-Bit-Rate
Vocoding Methods 447 Code Division Multiple Access (CDMA) 751
Miguel Arjona Ramírez and Mário Minami Frank H.P. Fitzek and Marcos Katz
xiv CONTENTS

Time-Division Multiple Access 769 Data Monitoring and Gathering in Sensor

Tom S. Chan Networks 1113
Symeon Papavassiliou, Stella Kafetzoglou, and Jin Zhu
Carrier Sense Multiple Access Protocols 779
Wei Ye In-Network Data Aggregation in Wireless
Sensor Networks 1131
Bluetooth Technology 790
Kemal Akkaya and Ismail Ari
Brent A. Miller
Cognitive and Software Defined Radios for
Satellite Communications Basics 802
Dynamic Spectrum Access 1147
Michele Luglio and Antonio Saitto
Troy Weingart and Douglas C. Sicker
Land-Mobile Satellite Channel 815
Localization in Wireless Networks 1158
Emilio Matricciani
Slim Rekhis, Noureddine Boudriga, and
Geosynchronous Fixed Satellite Mohammad S. Obaidat
Communications 836
Interference Management in Wireless
Michele Luglio and Antonio Saitto
Networks 1178
Satellites in IP Networks 860 Keivan Navaie and Shahrokh Valaee
Fatih Alagöz and Abbas Jamalipour
Wireless Wide Area Networks 1191
Global Navigation Satellite Systems 877 Anthony H. Smith and Raymond A. Hansen
Omar Al-Bayari and Balqies Sadoun
Wireless Broadband Access 1200
Wireless LANs 896 Hsiao-Hwa Chen and Mohsen Guizani
Mohammad S. Obaidat, G. I. Papadimitriou,
Indoor Wireless Infrared Communications 1223
and S. Obeidat
Z. Ghassemlooy
Wireless LAN Standards 917
Prashant Krishnamurthy

Bit-Interleaved Coded Modulation 935

Yuheng Huang and James A. Ritcey
Volume III: Distributed Networks,
The Wireless Application Protocol 955 Network Planning, Control,
Lillian N. Cassel and Arun Srinivasa Murthy Management, and New Trends
Wireless ATM 972
and Applications
Amel Meddeb and Noureddine Boudriga
Part 1: Distributed Networks
Wireless IP Telephony 991
Client/Server Computing Basics 3
Manish Marwah and Shivakant Mishra
Daniel McFarland and Darren B. Nicholson
Wireless Internet 1000
Groupware 16
Abbas Jamalipour
Robert Slagter
Internetworking of Heterogeneous
Network Middleware 33
Wireless Networks 1018
Linda Volonino and Pragati Dalal
Sherali Zeadally and Farhan Siddiqui
Grid Computing Fundamentals 45
Principles and Applications of Ad Hoc and
Mark Baker
Sensor Networks 1040
Marco Conti Grid Computing Implementation 63
Barry Wilkinson and Clayton Ferner
Medium Access in Ad Hoc and Sensor 1057
Networks Cluster Computing Fundamentals 79
Vojislav B. Mišić and Jelena Mišić Hong Ong and Mark Baker

Emerging Trends in Routing Protocols in Mobile Next-Generation Cluster Networks 93

Wireless Ad Hoc and Sensor Networks 1084 Keren Bergman, Benjamin A. Small, and Larry A. Bergman
Jamal N. Al-Karaki
Utility Computing on Global Grids 110
Broadcasting in Ad Hoc and Sensor Networks 1101 Chee Shin Yeo, Rajkumar Buyya, Marcos Dias de
François Ingelrest, David Simplot-Ryl, Hong Guo, and Assunção, Jia Yu, Anthony Sulistio, Srikumar Venugopal,
Ivan Stojmenović and Martin Placek
 CONTENTS xv

Peer-to-Peer Network Architecture 131 Computer Viruses and Worms 440

Jing Wu and Michel Savoie Robert Slade

Peer-to-Peer Network Applications 152 Denial of Service Attacks 454

Stan Kurkovsky Qijun Gu and Peng Liu

Incentive Issues in Peer-to-Peer Systems 168 E-Mail Threats and Vulnerabilities 469
Yu-Kwong Kwok David Harley
Storage Area Network Fundamentals 189 Virtual Private Networks 488
Vladimir V. Riabov G. I. Papadimitriou, M. S. Obaidat, C. Papazoglou, and
Fiber Channel 205 A.S.Pomportsis
Jiying Zhao Cryptography 505
Storage Area Networks: Architectures Ari Juels
and Protocols 217
Access Control 518
Nirwan Ansari and Si Yin
Sabrina De Capitani di Vimercati, Sara Foresti,
Distributed Intelligent Networks 235 Stefano Paraboschi, and Pierangela Samarati
G. N. Prezerakos and I. S. Venieris
Biometrics 539
Smart Cards: Communication Protocols and James L. Wayman
Applications 251
Firewalls 553
Michael Tunstall, Konstantinos Markantonakis,
James E. Goldman
Damien Sauveron, and Keith Mayes

Fault-Tolerant Systems 269 Authentication 570

Amiya Nayak Patrick McDaniel

Distributed Algorithms 286 Password Authentication 581

Valmir C. Barbosa Jeremy L. Rasmussen

Distributed Databases 298 Physical Security Threats and Measures 596

David Coquil and Harald Kosch Mark Michael

Computer Security Incident Response

Teams (CSIRTs) 632
Raymond R. Panko
Part 2: Network Planning, Control, Backup and Recovery System Requirements 639
and Management David R. Reavis
Network Capacity Planning 315
Business Requirements of Backup Systems 650
Priscilla Oppenheimer
Markus Klemen, Thomas Neubauer, and Edgar R. Weippl
Network Traffic Modeling 326
Evaluating Storage Media Requirements 662
Thomas M. Chen
David R. Reavis
Network Traffic Management 340
Business Continuity Planning 671
Thomas M. Chen
Marco Cremonini and Pierangela Samarati
Network Security Risk Assessment and
E-Mail and Internet Use Policies 689
Management 354
Nancy J. King
Dan Port, Rick Kazman, and David Klappholz
Computer Network Management 714
Network Reliability and Fault Tolerance 372
Jian Ren
Matthew Liotine

Social Engineering 384

Benjamin Böck, Markus D. Klemen, and Edgar R. Weippl

Intrusion-Detection Systems 403 Part 3: Computer Network Popular

Peng Ning and Sushil Jajodia Applications and Future Directions
Network Attacks 421 E-mail and Instant Messaging 733
Mohamed Hamdi and Noureddine Boudriga Bhagyavati
xvi CONTENTS

Application Service Providers (ASPs) 742 Mobile Commerce 915

Bandula Jayatilaka Vijay Atluri

Videoconferencing 755 Online News 927

Ketan Mayer-Patel Bruce Garrison and Marcus Messner

Computer Conferencing: Protocols and Travel and Tourism 943

Applications 768 Ulrike Gretzel, Youcheng Wang, and Daniel R. Fesenmaier
William R. Gillis and Colleen Taugher
Web-Based Training 962
Telecommuting and Telework 777 Patrick J. Fahy
Michael Workman
RFID (Radio-Frequency Identification) 974
Online Banking 791 Stephen A. Weis
Ronnie J. Phillips
Active Networking 985
Digital Libraries 801 Stephen F. Bush
Cavan McCarthy
Applications of Biological Concepts to
Computer Conferencing and Distance Learning 831 Designs of Computer Networks and
Liam Rourke and Heather Kanuka Network Applications 1012
Tatsuya Suda, Tadashi Nakano, and Keita Fujii
Electronic Commerce 843
Charles Steinfield Nanotechnology for Communication Systems 1022
Syed H. Murshid and Azhar M. Khayrattee
Electronic Data Interchange (EDI) 860
Matthew K. McGowan Molecular Communication: New Paradigm for
Communication among Nanoscale Biological
Electronic Payment Systems 869
Machines 1034
Indrajit Ray
Michael Moore, Akihiro Enomoto, Tatsuya Suda,
Internet Relay Chat (IRC) 889 Tadashi Nakano, and Yutaka Okaie
James M. Hudson and Paul L. Witt

Online Communities 898

Lee Sproull and Manuel Arriaga
 Contributors

Tarek F. Abdelzhaer Linda Bruenjes

University of Illinois, Urbana-Champaign Lasell College
Mo Adda Stephen F. Bush
University of Portsmouth, United Kingdom GE Global Research
Kemal Akkaya Werner Bux
Southern Illinois University, Carbondale IBM Corporation, Switzerland
Fatih Alagöz Rajkumar Buyya
Bogazici University, Turkey The University of Melbourne, Australia
Omar Al-Bayari John Cameron
Al-Balqa’ Applied University, Jordan University of Ottawa, Canada
Ala Al-Fuqaha Lillian N. Cassel
Western Michigan University, Kalamazoo Villanova University
Jamal N. Al-Karaki Tom S. Chan
The Hashemite University, Jordan Southern NH University
Nirwan Ansari Kavitha Chandra
New Jersey Institute of Technology University of Massachusetts, Lowell
Ismail Ari Hsiao-Hwa Chen
Hewlett-Packard Laboratories, Palo Alto, CA National Sun Yat-Sen University, Taiwan
Manuel Arriaga Liang Chen
New York University University of Ottawa, Canada
Vijay Atluri Thomas M.Chen
Rutgers University Southern Methodist University
Mark Baker Zhuojun Joyce Chen
University of Reading, United Kingdom University of Northern Iowa
Mario Baldi Jau Ming Chew
Politecnico di Torino, Italy University of Portsmouth, United Kingdom
Xiaoyi Bao Jaehak Chung
University of Ottawa, Canada Inha University, Republic of Korea
Valmir C. Barbosa Song Ci
Universidade Federal do Rio de Janeiro, Brazil University of Nebraska, Lincoln
Elyes Ben Ali Bdira Tim Collins
University of Sharjah, UAE University of Birmingham, United Kingdom
Keren Bergman Marco Conti
Columbia University Institute of Informatics and Telematics (IIT), Italian
Larry A. Bergman National Research Council (CNR), Italy
Jet Propulsion Laboratory (JPL), California Institute David Coquil
of Technology University of Passau, Germany
Bhagyavati Luís Cordeiro
DeSales University University of Coimbra, Portugal
Qi Bi Marco Cremonini
Bell Laboratory, Alcatel-Lucent Technologies Inc. University of Milan, Italy
Hossein Bidgoli Marilia Curado
California State University, Bakersfield University of Coimbra, Portugal
David Blockus Leslie L. Daigle
Independent Consultant Cisco Systems, Herndon, Virginia
Fernando Boavida Pragati Dalal
University of Coimbra, Portugal Canisius College
Benjamin Bock Marcos Dias de Assunção
Secure Business Austria The University of Melbourne, Australia
Noureddine Boudriga Serge Demidenko
University of the 7th of November, Tunisia Massey University, New Zealand, and Monash
Nicholas David Bowman University, Malaysia
Michigan State University Hans-Peter Dommel
Thomas C. Bressoud Santa Clara University
Denison University

xvii
xviii CONTRIBUTORS

Kais Dridi Shinsuke Hara

Université de Moncton, Canada Osaka City University, Japan
Arjan Durresi David Harley
Louisiana State University Small Blue-Green World, United Kingdom
Akihiro Enomoto Muhannad Harrim
University of California, Irvine Western Michigan University, Kalamazoo
Patrick J. Fahy Robert W. Heath
Athabasca University, Canada The University of Texas, Austin
Guangbin Fan Hamid Hemmati
Intel Corporation Jet Propulsion Laboratory, California Institute of
Farid Farahmand Technology
Central Connecticut State University Murad Hizlan
Clayton Ferner Cleveland State University
University of North Carolina at Wilmington Chengdu Haung
Daniel R. Fesenmaier University of Illinois, Urbana-Champaign
Temple University Yuheng Huang
Frank H.P. Fitzek Qualcomm Inc.
Aalborg University, Denmark James M. Hudson
Sara Foresti PayPal, an eBay, Inc. Company
University of Milan, Italy Gurdeep Singh Hura
Dario Forte University of Maryland, Eastern Shore
University of Milano, Crema, Italy Hassan Ibrahim
Immanuel Freedman The University of Maryland, College Park
Independent Consultant, Harleysville, Pennsylvania François Ingelrest
Keita Fujii IRCICA/LIFL University, France
University of California, Irvine Tariq Jadoon
Muneo Fukaishi Lahore University of Management Sciences
NEC Corporation, Japan (LUMS), Pakistan
Bruce Garrison Raj Jain
University of Miami Washington University, St. Louis
Z. Ghassemlooy Sushil Jajodia
Northumbria University, United Kingdom George Mason University
Filippo Giannetti Abbas Jamalipour
University of Pisa, Italy University of Sydney, Australia
William R. Gillis Krishna Jayakar
WSU Center to Bridge the Digital Divide Penn State University
James E. Goldman Bandula Jayatilaka
Purdue University Binghamton University, SUNY
Ulrike Gretzel Tao Jiang
Texas A&M University University of Michigan, Dearborn
Qijun Gu Stefan Joe-Yen
Texas State University Northrup Grumman Corporation
Xiaoyuan Gu Ari Juels
Technical University of Braunschweig, Germany RSA Laboratories
Mohsen Guizani Stella Kafetzoglou
Western Michigan University National Technical University of
Sghaier Guizani Athens, Greece
University of Quebec, Canada Joonhyuk Kang
Hong Guo Information and Communications University (ICU),
LLRC, Ontario Public Service, Canada South Korea
Mohamed A. Haleem Heather Kanuka
Stevens Institute of Technology Athabasca University, Canada
Habib Hamam Katz Marcos
Universite de Moncton, Canada Aalborg University, Denmark
Mohamed Hamdi Rick Kazman
University of 7th of November, Carthage, Tunisia University of Hawaii, Manoa
Jon Hamkins Azhar M. Khayrattee
Jet Propulsion Laboratory, Pasadena, California Florida Institute of Technology
Omar M. Hammouri Yassine Khlifi
University of Mississippi Carthage University, Tunisia
Raymond A. Hansen Chang-Su Kim
Purdue University Korea University, Seoul
 CONTRIBUTORS xix

Nancy J. King Konstantinos Markantonakis

Oregon State University Royal Holloway, University of London, United
David Klappholz Kingdom
Stevens Institute of Technology Manish Marwah
Markus Klemen University of Colorado, Boulder
Vienna University of Technology, Austria Mustafa M. Matalgah
Harald Kosch University of Mississippi
University of Passau, Germany Prabhaker Mateti
Jim Krause Wright State University
Indiana University, Bloomington Emilio Matricciani
Prashant Krishnamurthy Dipartimento di Elettronica e Informazione
University of Pittsburgh Politecnico di Milano, Italy
Peter Kroon Ketan Mayer-Patel
LSI, Pennsylvania The University of North Carolina at Chapel Hill
C.C. Jay Kuo Keith Mayes
University of Southern California Royal Holloway, University of London, United
Stan Kurkovsky Kingdom
Central Connecticut State University Cavan McCarthy
Yu-Kwong Kwok Louisiana State University
The University of Hong Kong, Hong Kong Patrick McDaniel
Amor Lazzez Pennsylvania State University
CN&S Research Lab., University of the 7th of Daniel McFarland
November at Carthage, Tunisia Rowan University
Allen H. Levesque Matthew K. McGowan
Worcester Polytechnic Institute Bradley University
Matthew Liotine Amel Meddeb
University of Illinois, Chicago University of the 7th of November at Carthage, Tunisia
Natalia M. Litchinitser Alfred Mertins
University of Michigan, Ann Arbor University of Lübeck, Germany
Jingxuan Liu M. Farooque Mesiya
Frostburg State University Rensselaer Polytechnic Institute
Mei-Ling L. Liu Marcus Messner
Cal Poly San Luis Obispo Virginia Commonwealth University
Peng Liu Mark Michael
Penn State University Research in Motion Limited, Canada
Qingchong John Liu Brent A. Miller
Oakland University IBM Corporation
Xiang Liu Milos Milosevic
Bell Laboratories, Lucent Technologies Schlumberger Wireline Acquisition and Control
Zhu Liu Systems
AT&T Laboratories, Middletown, NJ Mário Minami
Asim Loan University of São Paulo, Brazil
University of Management and Technology, Lahore, Shivakant Mishra
Pakistan University of Colorado, Boulder
David G. Loomis Jelena Miši ć
Illinois State University, Normal University of Manitoba, Canada
Robert D. Love Vojislav B. Miši ć
LAN Connect Consultants University of Manitoba, Canada
Albert Lozano-Nieto Shaheed N. Mohammed
Pennsylvania State University Marist College
Ying Lu Edmundo Monteiro
University of Nebraska, Lincoln University of Coimbra, Portugal
Xuming Lu Michael Moore
University at Buffalo, SUNY University of California, Irvine
Michele Luglio Syed H. Murshid
University of Rome Tor Vergata, Italy Florida Institute of Technology
Marco Luise Arun Srinivasa Murthy
University of Pisa, Italy Villanova University
Yuanqiu Luo B. Muthukumaran
New Jersey Institute of Technology Gemini Communication Limited, India
Aarne Mämmelä Tadashi Nakano
VTT Technical Research Centre of Finland University of California, Irvine
xx CONTRIBUTORS

Keivan Navaie Indrajit Ray

Tarbiat Modares University, Iran Colorado State University
Amiya Nayak Mustapha Razzak
University of Ottawa, Canada Université de Moncton, Canada
Thomas Neubauer David R. Reavis
Vienna University of Technology, Austria Texas A&M University, Texarkana
Darren B. Nicholson Slim Rekhis
Rowan University CNAS Research Lab., University of
Jennifer Nicholson Carthage, Tunisia
Rowan University Jian Ren
Richard Nieporent Michigan State University, East Lansing
Johns Hopkins University Vladimir V. Riabov
Peng Ning Rivier College
North Carolina State University James A. Ritcey
Paul W. Nutter University of Washington
University of Manchester, United Kingdom Emilia Rosti
Mohammad S. Obaidat Università degli Studi di Milano, Italy
Monmouth University Liam Rourke
S. Obeidat Nanyang Technological University, Singapore
Arizona State University Balqies Sadoun
Yoram Ofek Al-Balqa’ Applied University, Jordan
University of Trento, Italy Antonio Saitto
Yutaka Okaie Telespazio, Italy
University of California, Irvine Hamidreza Saligheh
Hong Ong Harvard University
Oak Ridge National Laboratory, Tennessee Atul A. Salvekar
Priscilla Oppenheimer Intel Corporation
Southern Oregon University Pierangela Samarati
Raymond R. Panko University of Milan, Italy
University of Hawaii, Manoa Nabil J. Sarhan
G.I. Papadimitriou Wayne State University
Aristotle University, Thessaloniki, Greece Damien Sauveron
Symeon Papavassiliou University of Limoges, France
National Technical University of Athens, Greece Michel Savoie
C. Papazoglou Communications Research Center (CRC), Canada
Aristotle University, Thessaloniki, Greece Mark Schaefer
Stefano Paraboschi OnStar Corporation
University of Bergamo, Italy Chadwick Sessions
Amanda Peart Northrup Grumman Corporation
University of Portsmouth, United Kingdom Mark Shacklette
Kenneth Pedrotti The University of Chicago
University of California, Santa Cruz William A. Shay
Stephan Pfletschinger University of Wisconsin, Green Bay
Centre Tecnològic de Telecomunicacions de John Lucas Sherry
Catalunya (CTTC), Barcelona, Spain Michigan State University
Ronnie J. Phillips Carolyn Siccama
Colorado State University University of Massachusetts, Lowell
Thomas L. Pigg Douglas C. Sicker
Jackson State Community College University of Colorado, Boulder
Martin Placek Farhan Siddiqui
The University of Melbourne, Australia Wayne State University
A.S. Pomportsis David Simplot-Ryl
Aristotle University, Greece Université de Lille, France
Dan Port Robert Slade
University of Hawaii, Manoa Independent Consultant, Canada
G.N. Prezerakos Robert Slagter
Technological Education Institute of Piraeus, Greece Telematica Instituut, The Netherlands
Eddie Rabinovitch Benjamin A. Small
ECI Technology Columbia University
Miguel Arjona Ramírez Anthony H. Smith
University of São Paulo, Brazil Purdue University
Jeremy L. Rasmussen Min Song
Sypris Electronics Old Dominion University
 CONTRIBUTORS xxi

Hideyuki Sotobayashi Barry Wilkinson

National Institute of Information and University of North Carolina, at Charlotte
Communications Technology, Japan Tin Win
Lee Sproull Monash University, Malaysia
New York University Raymond F. Wisman
William Stallings Indiana University Southeast
Independent Consultant Paul L. Witt
Mark Stamp Texas Christian University
San Jose State University Albert K.S. Wong
Charles Steinfield Hong Kong University of Science and Technology,
Michigan State University Hong Kong
Ivan Stojmenovic Michael Workman
University of Birmingham, UK and University of Florida Institute of Technology
Ottawa, Canada Jing Wu
Norman C. Strole Communications Research Centre (CRC), Canada
IBM Corporation Geoffrey G. Xie
Koduvayur P. Subbalakshmi Naval Postgraduate School
Stevens Institute of Technology Jiang Xie
Tatsuya Suda University of North Carolina, Charlotte
University of California, Irvine Xu Yan
Anthony Sulistio Hong Kong University of Science and Technology,
The University of Melbourne, Australia Hong Kong
Wayne C. Summers Wei Ye
Columbus State University University of Southern California
Vahid Tarokh Chee Shin Yeo
Harvard University The University of Melbourne, Australia
Colleen Taugher Si Yin
WSU Center to Bridge the Digital Divide New Jersey Institute of Technology
Marvi Teixeira Jia Yu
Polytechnic University of Puerto Rico The University of Melbourne, Australia
Vassilis Tsaoussidis Viktor Zaharov
Democritos University of Thrace, Xanthi, Greece Polytechnic University of Puerto Rico
Michael Tunstall Faouzi Zarai
University College Cork, Ireland University of the 7th of November, Tunisia
Okechukwu C. Ugweje S. Zeadally
University of Akron University of the District of Columbia
Zartash Afzal Uzmi Jingyuan Zhang
Lahore University of Management Sciences (LUMS), University of Alabama
Pakistan Nan Zhang
Shahrokh Valaee Hong Kong University of Science and Technology,
University of Toronto, Canada Hong Kong
I.S. Venieris Qinqing Zhang
National Technical University of Athens, Greece Bell Laboratory, Alcatel-Lucent Technologies Inc.
Srikumar Venugopal Qiong (Jo) Zhang
The University of Melbourne, Australia Arizona State University, West Campus
Sabrina De Capitani di Vimercati Jiying Zhao
University of Milan, Italy University of Ottawa, Canada
Linda Volonino Mingshan Zhao
Canisius College Dalian University of Technology, People’s Republic of
Mohamed El-Wakil China
Western Michigan University, Kalamazoo Wen-De Zhong
Youcheng Wang Nanyang Technological University, Singapore
University of Central Florida Chi Zhou
James. L. Wayman Illinois Institute of Technology
San Jose State University Jin Zhu
Troy Weingart University of Northern Iowa
University of Colorado, Boulder Junaid Ahmed Zubairi
Edgar R. Weippl State University of New York, Fredonia
Vienna University of Technology, Austria
Stephen A. Weis
Google
Risto Wichman
Helsinki University of Technology, Finland
 Preface

The Handbook of Computer Networks is the first compre- 4. Each chapter provides extensive online and off-line
hensive examination of the core topics in the computer references for additional reading. This will enable
network field. The Handbook of Computer Networks, a the readers to go further with their understanding of
3-volume reference work, with 202 chapters, 3400+ pages, a given topic.
is a comprehensive coverage of the computer network 5. More than 1000 illustrations and tables throughout
field with coverage of the core topics. the series highlight complex topics and assist further
The primary audience is the libraries of 2-year and understanding.
4-year colleges and universities with Computer Science, 6. Each chapter provides extensive cross-references.
Computer Engineering, Network Engineering, Telecom- This helps the readers to read other chapters related
munications, Data Communications, MIS, CIS, IT, IS, to a particular topic, providing a one-stop knowledge
Data Processing, and Business departments, public and base for a given topic.
private libraries and corporate libraries throughout the
7. More than 2500 glossary items define new terms and
world, and educators and practitioners in the networking
buzzwords throughout the series, assisting in under-
and telecommunications fields.
standing of concepts and applications.
The secondary audience is a variety of professionals
and a diverse group of academic and professional courses 8. The Handbook includes a complete table of contents
for the individual volumes. and index sections for easy access to various parts of
Among industries expected to become increasingly the series.
dependent upon the computer networks and telecommu- 9. The series emphasizes both technical as well as man-
nications and active in understanding the many issues agerial issues. This approach provides researchers,
surrounding this important and fast-growing field are: educators, students, and practitioners with a bal-
government agencies, military, education, libraries, anced understanding and the necessary background
health, medical, law enforcement, accounting firms, law to deal with problems related to understanding com-
firms, justice, manufacturing, financial services, insur- puter networks and telecommunications issues and
ance, communications, transportation, aerospace, energy, to be able to design a sound computer and telecom-
biotechnology, retail, and utilities. munications system.
Each volume incorporates state-of-the-art core infor- 10. The series has been developed based on the current
mation and computer networks and telecommunications core course materials in several leading universi-
topics, practical applications, and coverage of the emerg- ties around the world and current practices in lead-
ing issues in the computer networks field. ing computer, telecommunications, and networking
This definitive 3-volume Handbook offers coverage of corporations. This format should appeal to a diverse
both established and cutting-edge theories and develop- group of educators and researchers in the network-
ments in the computer networks and telecommunica- ing and telecommunications fields.
tions fields. The Handbook contains chapters from global
experts in academia and industry. The Handbook offers We chose to concentrate on fields and supporting tech-
the following unique features: nologies that have widespread applications in academic
and business worlds. To develop this Handbook, we care-
fully reviewed current academic research in the network-
1. Each chapter follows a unique format including Title ing field in leading universities and research institutions
and Author, Outline, Introduction, Body, Conclusion, around the world.
Glossary, Cross-References, and References. This Computer networks and telecommunications, net-
unique format assists the readers to pick and choose work security, management information systems,
various sections of a chapter. It also creates consis- network design and management, computer informa-
tency throughout the entire series. tion systems (CIS), and electronic commerce curricu-
2. The Handbook has been written by more than lums, recommended by the Association of Information
270 experts and reviewed by more than 1000 aca- Technology Professionals (AITP) and the Association for
demics and practitioners chosen from around the Computing Management (ACM) were carefully inves-
world. These diverse collections of expertise have tigated. We also researched the current practices in
created the most definitive coverage of established the networking field carried out by leading network-
and cutting-edge theories and applications of this ing and telecommunications corporations. Our work
fast-growing field. assisted us in defining the boundaries and contents of
3. Each chapter has been rigorously peer reviewed. this project. Its chapters address technical as well as
This review process assures the accuracy and com- managerial issues in the networking and telecommuni-
pleteness of each topic. cations fields.

xxiii
xxiv PREFACE

TOPIC CATEGORIES Key Concepts

Based on our research, we identified nine major topic Chapters in this group examine a broad range of top-
areas for the Handbook: ics. Fundamental theories, concepts, technologies, and
applications related to computer networks, data commu-
• Key Concepts nications, and telecommunications are discussed. These
• Hardware, Media, and Data Transmission chapters explain the OSI reference model and then dis-
• Digital and Optical Networks cuss various types of compression techniques including
• LANs, MANs, and WANs data, image, video, speech, and audio compression. This
part concludes with a discussion of multimedia stream-
• The Internet, Global Networks, and VoIP
ing and high definition television (HDTV) as their appli-
• Cellular and Wireless Networks cations are on the rise. The chapters in this part provide a
• Distributed Networks solid foundation for the rest of the Handbook.
• Network Planning, Control, and Management
• Computer Network Popular Applications and Future Hardware, Media, and Data Transmission
Directions
Chapters in this group concentrate on the important
Although these nine categories are interrelated, each types of hardware used in network and telecommuni-
addresses one major dimension of the computer networks cations environments and then examine popular media
and telecommunications fields. The chapters in each cat- used in data communications including wired and wire-
egory are also interrelated and complementary, enabling less media. The chapters in this part explain different
readers to compare, contrast, and draw conclusions that types of modulation techniques for both digital and opti-
might not otherwise be possible. cal networks and conclude with coverage of various types
Though the entries have been arranged logically, the of multiplexing techniques that are being used to improve
light they shed knows no bounds. The Handbook provides the efficiency and effectiveness of commutations media.
unmatched coverage of fundamental topics and issues for
successful design and implementation of a computer net- Digital and Optical Networks
work and telecommunications systems. Its chapters can
Chapters in this group discuss important digital and
serve as material for a wide spectrum of courses such as:
optical technologies that are being used in modern com-
Grid Computing munication and computer networks. Different optical
Distributed Intelligent Networks switching techniques, optical devices, optical memories,
SONET, and SDH networks are explained.
Multimedia Networking
Peer-to-Peer Networks
Cluster Computing LANs, MANs, and WANs
Voice over IP This group of chapters examines major types of com-
puter reworks including local, metropolitan, and wide
Storage Area Networks
area networks. Popular types of operating systems used
Network Backup and Recovery Systems in a LAN environment are discussed, including Windows
Digital Networks and Linux. The chapters also examine various types of
Optical Networks switching techniques including packet, circuit, and mes-
Cellular Networks sage switching. The chapters discuss broadband network
Wireless Networks applications and technologies and conclude with a dis-
cussion of multimedia networking.
Telecommunications Systems
Computer Network Management
The Internet, Global Networks, and VoIP
Successful design and implementation of a sound com- Chapters in this group explore a broad range of topics.
puter network and telecommunications systems requires They review the Internet fundamentals, history, domain
a thorough knowledge of several technologies, theories, name systems, and Internet2. The architecture and func-
and supporting disciplines. Networking researchers and tions of the Internet and important protocols includ-
practitioners have had to consult many resources to find ing TCP/IP, SMPT, and IP multicast are discussed. The
answers. Some of these sources concentrate on technolo- chapters in this group also explain the network and end-
gies and infrastructures, some on applications and imple- system quality of service and then discuss VoIP and its
mentation issues, and some on managerial concerns. This various components, protocols, and applications.
Handbook provides all of this relevant information in a
comprehensive three-volume set with a lively format.
Each volume incorporates core networking and tele- Cellular and Wireless Networks
communications topics, practical applications, and cov- Chapters in this group explain cellular and wireless net-
erage of the emerging issues in the networking and works. Major standards, protocols, and applications in the
telecommunications fields. Written by scholars and prac- cellar environment are discussed. This includes a detailed
titioners from around the world, the chapters fall into coverage of GSM, GPRS, UMTS, CDMA, and TDMA. The
nine major subject areas: chapters in this group explore satellite communications
 TOPIC CATEGORIES xxv
XXV

principles, technologies, protocols, and applications in into a fascinating and enlightening one-stop knowledge
detail. The chapters conclude with coverage of wireless base in computer networks and telecommunications that
wide area networks and wireless broadband access. “talks” to readers. This has been a massive effort, but one
of the most rewarding experiences I have ever had. So
many people have played a role that it is difficult to know
Distributed Networks where to begin.
The chapters in this group investigate distributed net- I should like to thank the members of the editorial
works, their fundamentals, architectures, and applica- board for participating in the project and for their expert
tions. Grid computing, cluster computing, and peer-to-peer advice on help with the selection of topics, recommen-
networks are discussed in detailed. These chapters also dations for authors, and reviewing the materials. Many
explore storage area networks, fiber channels, and fault thanks to more than 1000 reviewers who devoted their
tolerant systems. This part concludes with a discussion of time by providing advice to me and the authors for
distributed algorithms and distributed databases. improving the coverage, accuracy, and comprehensive-
ness of these materials.
Network Planning, Control, and I thank my senior editor Matt Holt, who initiated the
idea of the Handbook. Through a dozen drafts and many
Management reviews, the project got off the ground and then was man-
The chapters in this group discuss theories, methodolo- aged flawlessly by Matt and his professional team. Matt
gies, and technologies that enhance successful network and his team made many recommendations for keeping
planning, control, and management. After discussion of the project focused and maintaining its lively coverage.
network capacity planning and network modeling, the Jessica Campilango, our editorial coordinator, assisted
chapters concentrate on the identification of threats and our authors and me during the many phases of its devel-
vulnerabilities in a network environment. The chapters opment. I am grateful for all her support. When it came
then present a number of tools and technologies that if to the production phase, the superb Wiley production
properly utilized could significantly improve the integrity team took over. Particularly I want to thank Deborah
of data resources and computer networks by keeping hack- Schindlar and Miriam Palmer-Sherman, our production
ers and crackers at bay. This part concludes with a discus- editors. I am grateful for all their hard work. I also want
sion of business continuity planning, e-mail, and Internet to thank Lynn Lustberg, our project manager from ICC
use policies, and computer network management. Macmillan Inc. Her thoroughness made it easier to com-
plete the project. I am grateful to all her efforts. I thank
Computer Network Popular Applications Kim Dayman and Christine Kim, our marketing team, for
their impressive marketing campaign launched on behalf
and Future Directions of the Handbook.
Chapters in this group present several popular applications Last, but not least, I want to thank my wonderful wife,
of computer networks and telecommunications systems. Nooshin, and my two children, Mohsen and Morvareed,
These applications could not have been successfully uti- for being so patient during this venture. They provided
lized without a sound computer network and telecom- a pleasant environment that expedited the completion
munications system. Some of these applications include of this project. Mohsen and Morvareed assisted me in
conferencing, banking, electronic commerce, travel and sending out thousands of e-mail messages to our authors
tourism, and Web-based training and education. This part and reviewers. Nooshin was a great help in designing and
concludes with a discussion of future trends in computer maintaining the authors’ and reviewers’ databases. Their
networking including biologically inspired networking, efforts are greatly appreciated. Also, my two sisters, Azam
active networks, and molecular communication. and Akram, provided moral support throughout my life.
Specialists have written the Handbook for experienced To this family, any expression of thanks is insufficient.
and not so experienced readers. It is to these contributors
that I am especially grateful. This remarkable collection of Hossein Bidgoli
scholars and practitioners have distilled their knowledge California State University, Bakersfield
 Guide to The Handbook of Computer Networks

The Handbook of Computer Networks is a comprehensive Outline

coverage of the relatively new and very important field
Each chapter begins with an outline indicating the
of computer networks and telecommunications systems.
content of the chapter to come. This outline provides a
This reference work consists of three separate volumes
brief overview of the chapter, so that the reader can get
and 202 different chapters on various aspects of this field.
a sense of what is contained there without having to
Each chapter in the Handbook provides a comprehensive
leaf through the pages. It also serves to highlight impor-
overview of the selected topic, intended to inform a broad
tant subtopics that will be discussed within the chapter.
spectrum of readers, ranging from computer network
For example, the chapter “The Internet Fundamentals”
professionals and academicians to students to the gen-
includes sections for Information Superhighway and the
eral business community.
World Wide Web, Domain Name Systems, Navigational
In order that you, the reader, will derive the greatest
Tools, Search Engines, and Directories.
possible benefit from The Handbook of Computer Net-
The Outline is intended as an overview and thus it
works, we have provided this Guide. It explains how the
lists only the major headings of the chapter. In addition,
information within it can be located.
second-level and third-level headings will be found within
the chapter.
Organization
The Handbook of Computer Networks is organized to pro- Introduction
vide the maximum ease of use for its readers. All of the
The text of each chapter begins with an introductory sec-
chapters are arranged logically in these three volumes.
tion that defines the topic under discussion and summa-
Individual volumes could be used independently. How-
rizes the content of the chapter. By reading this section the
ever, the greatest benefit is derived if all three volumes
readers get a general idea regarding a specific chapter.
are investigated.

Table of Contents Body

The body of each chapter discusses the items that were
A complete table of contents of the entire Handbook
listed in the outline section of each chapter.
appears at the front of each volume. This list of chapter
titles represents topics that have been carefully selected
by the editor-in-chief, Dr. Hossein Bidgoli, and his col- Conclusion
leagues on the Editorial Board.
The conclusion section provides a summary of the mate-
rials discussed in a particular chapter. This section leaves
Index the readers with the most important issues and concepts
A Subject Index for each individual volume is located at discussed in a particular chapter.
the end of each volume. This index is the most convenient
way to locate a desired topic within the Handbook. The Glossary
subjects in the index are listed alphabetically and indi-
The glossary contains terms that are important to an
cate the page number where information on this topic
understanding of the chapter and that may be unfamil-
can be found.
iar to the reader. Each term is defined in the context of
the particular chapter in which it is used. Thus, the same
Chapters term may be defined in two or more chapters with the
detail of the definition varying slightly from one chapter
The author’s name and affiliation are displayed at the to another. The Handbook includes approximately 2700
beginning of the chapter. All chapters in the Handbook glossary terms. For example, the chapter “The Internet
are organized according to a standard format as follow: Fundamentals” includes the following glossary entries:
Title and Author Extranet A secure network that uses the Internet and
Outline Web technology to connect two or more intranets of
Introduction trusted business partners, enabling business-to-business,
Body business-to-consumer, consumer-to-consumer, and
consumer-to-business communications.
Conclusion
Intranet A network within the organization that uses Web
Glossary technologies (TCP/IP, HTTP, FTP, SMTP, HTML, XML, and
Cross References its variations) for collecting, storing, and disseminating
References useful information throughout the organization.
xxvi
 GUIDE TO THE HANDBOOK OF COMPUTER NETWORKS xxvii

Cross References References

All the chapters in the Handbook have cross references The References appears as the last element in a chapter.
to other chapters. These appear at the end of the chapter, It lists recent secondary sources to aid the reader in
following the chapter text and preceding the References. locating more detailed or technical information. Review
The cross references indicate related chapters that can be articles and research papers that are important to an
consulted for further information on the same topic. The understanding of the topic are also listed. The Refer-
Handbook contains more than 2000 cross references in ences in this Handbook are for the benefit of the reader,
all. For example, the chapter “The Internet Fundamentals” to provide references for further research on the given
has the following cross references: topic. Thus, they typically consist of a dozen to two dozen
Electronic Commerce, Electronic Data Interchange entries. They are not intended to represent a complete
(EDI), Electronic Payment Systems, History of the Inter- listing of all materials consulted by the author in prepar-
net, Internet2, Internet Domain Name System, Informa- ing the chapter.
tion Retrieval on the Internet.
 Handbook of Computer Networks: Key Concepts, Data
Transmission, and Digital and Optical Networks
by Hossein Bidgoli
Copyright © 2008 John Wiley & Sons, Inc.

PART 1

Key Concepts
 Handbook of Computer Networks: Key Concepts, Data
Transmission, and Digital and Optical Networks
by Hossein Bidgoli
Copyright © 2008 John Wiley & Sons, Inc.

The Telecommunications Industry

David G. Loomis, Illinois State University, Normal

Introduction 3 Data and Internet Access 14

Landline Voice Market 4 International Telecommunications 15
Long-Distance Voice Market 4 Conclusion 16
Local Voice Market 6 Glossary 16
Long-Distance and Local Voice Market 7 Cross References 17
Wireless Voice Market 9 References 17
Video and Cable Television 12 Further Reading 17

INTRODUCTION specifically the Internet. Internet protocol was once lim-

ited to data traffic such as e-mail and Web pages, but now
What exactly is the telecommunications industry? The
it is being used to provide voice services such as voice
industry, in fact, is hard to define because technological
over IP (VoIP) and video (e.g., Internet protocol television,
advances cause the industry to continually redefine itself.
or IPTV). Voice and video (television), which were once
Indeed, the only constant in the telecommunications in-
analog, have become digitized and delivered over an IP
dustry is that it is always changing. So it is a somewhat
network. This transition has not always been smooth or
dubious task to write a chapter on such a dynamic mar-
easy. Two problems have plagued the transport of voice
ket. Nevertheless, this chapter will attempt to provide an
and video over IP networks: latency and prioritization.
overview that segments the industry into different mar-
Voice and video communications require the informa-
kets and shows where these markets are converging or
tion to arrive in the same order in which it was sent and
overlapping.
without more than a split-second delay. Without this
This chapter will look at the industry through the eyes
requirement, a packet of a conversation might arrive out
of an economist and policy maker rather than through
of order and result in a jumbled and garbled mess. Like-
the eyes of a technologist. Many of the other chapters in
wise, delays of a second or more are especially noticeable
this book will focus on various technologies used in the
in voice and video communication but are mere incon-
industry, but this chapter will concentrate on the supply
veniences to traditional data traffic such as e-mail. IP net-
and demand of telecommunications services to the mass
works initially had problems transporting real-time voice
market: the consumer and small business marketplace.
and video, but the problems of latency and prioritization
Although it may seem easier to write about economics
have largely been overcome.
because technologies change rapidly, the economics of
But how and why did this technological change take
supply and demand change rapidly, too, as the techno-
place? In the United States, much of the freedom to allow
logical possibilities expand.
this technological change came from the Telecommuni-
The telecommunications industry has been and will
cations Act of 1996 (TA96) and associated rulings by the
continue to be in the midst of convergence for some time.
Federal Communications Commission (FCC). The FCC
Convergence means that industry segments that were once
chose not to regulate nascent technologies out of existence
separate and distinct are now overlapping and merging
and allowed them time to develop and mature. The intent
to provide similar competing services. Because of con-
of TA96 was “to provide for a pro-competitive, deregu-
vergence, it is hard to draw lines of separation within the
latory national policy framework designed to accelerate
industry that are clear and meaningful. For the purposes
rapidly private sector deployment of advanced telecom-
of this chapter, we will define the three industry segments
munications and information technologies and services
as voice, video, and data. From a purely technological
to all Americans by opening all telecommunications mar-
standpoint, one could define voice and video as just dif-
kets to competition” (Duesterberg and Gordon 1997, 2).
ferent types of data; from the consumer perspective, how-
Thus, the second cause of convergence is the legislative
ever, these products are different in use and access, at
and regulatory restructuring that allowed the technolo-
least currently. Within each industry segment, there are
gies to adapt and change.
wireline and wireless technologies that deliver these prod-
Underlying both the first two reasons of technology
ucts. For voice communications, we have the choice of
and restructuring is the basic economic incentive to re-
traditional landline phones or wireless phones. Cable tel-
duce costs, increase revenues, and, ultimately, maximize
evision (wireline or coaxial cable), broadcast, and satellite
profits. If VoIP can provide landline voice to customers at
(wireless) can deliver video. Data delivery can be done by
a much cheaper price than traditional landline networks,
dialup, broadband technologies such as direct subscriber
then there is a great economic incentive to develop it.
line (DSL) and cable modem (wireline), and wireless fidel-
If IPTV can enhance the revenue stream and leverage
ity (WiFi) as well as by satellite and data services pro-
the investment for “fiber to the premises” (FTTP) and
vided by cell phone companies (wireless).
“fiber to the curb” (FTTC) projects, then the economic
What is causing this convergence? There are sev-
incentives will drive development and allocate resources
eral drivers. The first and primary driver is technology,

3
4 THE TELECOMMUNICATIONS INDUSTRY

to overcome technological challenges. Ultimately, it is compared to telecommunications markets in other devel-

consumer demand and willingness to pay coupled with oped countries.
cost-effective technological innovation that is driving
convergence.
Customers seem to be driven to purchase four prod-
ucts: (1) landline voice, (2) high-speed Internet access, (3) LANDLINE VOICE MARKET
TV and entertainment, and (4) wireless voice and data. Landline voice is the oldest of the telecommunications
These four products have become known as the “quad- markets discussed here; historically, it was the entire tele-
ruple play” by companies that seek to provide all of these communications industry. Before 1970, the landline voice
services to customers, sometimes as bundles. Many tele- market was mostly served by AT&T with its affiliated
communications companies have merged in recent years local Bell operating companies. During the 1970s and
either to increase their market share or market reach 1980s, the FCC allowed increased competition for long-
within one or more of these product areas or to provide a distance and customer-premises equipment that culmi-
new product that they had not already offered to custom- nated in the divestiture of AT&T in 1984. The divestiture
ers. For example, SBC merged with AT&T, and Cingular required the creation of a precise definition for local and
(owned by SBC and BellSouth) bought out AT&T Wire- long-distance calls. This somewhat arbitrary distinction
less. Verizon then merged with MCI, and the new AT&T between long-distance and local telecommunications had
(SBC–AT&T) plans to merge with BellSouth. These merg- no real foundation in cost or demand considerations.
ers and others have resulted in an industry that is domi- Because the distinction was a creation of regulation,
nated by large multimarket oligopolies. market forces have caused the two markets to merge.
After completing these mergers, the resulting com- Convergence and corporate mergers are blurring any re-
panies have become the market leaders in each of the maining distinctions between this historical separation.
quadruple play markets except for TV and entertainment. SBC, the largest local company, has recently merged with
The new AT&T is the second-largest local landline com- AT&T, the largest long-distance company; and Verizon,
pany (it will be the largest after its proposed merger with the second-largest local company, has merged with
BellSouth), the largest long-distance company, the larg- MCI, the second-largest long-distance company.
est wireless provider (Cingular–AT&T Wireless), and the
largest provider of DSL (and a nationwide IP network
from the old AT&T). Verizon is the largest local landline Long-Distance Voice Market
company, the second-largest long-distance company, the Historically, long-distance voice service was provided as a
second-largest wireless provider (Verizon Wireless with monopoly service by AT&T. During the 1960s and 1970s,
45 percent owned by Vodafone), and the second-largest the FCC allowed other companies—namely, Microwave
provider of DSL (and a nationwide IP network from MCI’s Communications Inc. (MCI) and others—to provide long-
uunet). Both companies have plans to aggressively build distance services in direct competition with AT&T. This
their fiber networks to provide TV and entertainment policy eventually led to the divestiture of AT&T from its
services. local telephone subsidiaries and full-fledged competi-
The rest of this chapter is organized as follows. First, tion in the long-distance industry. This movement from
we will explore the landline voice market with its his- a regulated monopoly provision of services to competi-
torical segments of local and long distance. Second, the tive services from many companies would be repeated
wireless voice market will be examined along with its throughout different industry segments.
interactions with the landline market. Third, the video Long-distance rates have declined significantly since
and data markets will be explained along with the wire- the divestiture of AT&T in 1984. Figure 1 shows the
line and wireless technologies used to supply these mar- decline in rates from 1984 to 2003. In 1984, the average
kets. Finally, the U.S. telecommunications market will be price of a long-distance call was almost sixty cents per

0.60
Average Revenue per Minute ($)

0.50

0.40

0.30

0.20

0.10

0.00
Figure 1: Average revenue per minute for inter-
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03

state and international calls (in 2003 dollars),

19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20

Year 1984–2003
 LANDLINE VOICE MARKET 5

Share of Total Long-Distance Service Revenues

100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01
Figure 2: AT&T’s share of total long-distance 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20
revenues, 1984–2001 Year

minute (in 2003 dollars), but the average price was less Table 1: Percentage Shares of Total Toll Service Revenues
than ten cents per minute by 2003. Much of the decline for Long-Distance Carriers, 1984–2001
resulted from lower costs to connect calls to local tele-
phone networks (Taylor and Taylor 1993). AT&T’s market
share declined from more than 90 percent in 1984 to less All Other Long
than 40 percent in 2001 (see Figure 2). MCI and Sprint Year AT&T MCU Sprint Distance Carriers
were the second- and third-largest providers of long dis- 1984 90.1 4.5 2.7 2.6
tance during this time, and their market shares grew as
AT&T’s declined. Table 1 shows the annual market share 1985 86.3 5.5 2.6 5.6
for the long-distance market between 1984 and 2001 (the 1986 81.9 7.6 4.3 6.3
most recent year the FCC produced these statistics). By
2001, MCI’s market share had grown to 23.4 percent, and 1987 78.6 8.8 5.8 6.8
Sprint’s had grown to 9.3 percent.
1988 74.6 10.3 7.2 8.0
Overall, the traditional long-distance landline voice
market is in serious decline for two reasons. First, the 1989 67.5 12.3 8.4 11.8
“death of distance” (Cairncross 2001) has been caused
1990 65.0 14.5 9.7 10.8
by a shift in long-distance traffic away from the public
switched telephone network (PSTN) onto private data 1991 63.2 15.6 9.9 11.3
networks and the public Internet. This shift was first led
by international traffic that could avoid voice call termi- 1992 60.8 18.1 9.7 11.5
nation charges and high regulated prices by carrying the 1993 58.1 19.7 10.0 12.3
voice traffic over data lines. Even within the United States,
regulatory policies caused prices for domestic long- 1994 55.2 20.7 10.1 14.0
distance calls to be high above their marginal cost. These 1995 51.8 24.6 9.8 13.8
high margins eroded as competitive alternatives became
available. The second reason for the decline of the long- 1996 47.9 25.6 9.7 26.8
distance landline voice was the high market penetration 1997 43.8 25.6 9.5 21.0
of wireless phones with significantly different pricing.
In 1998, AT&T Wireless’s Digital One Rate incorporated 1998 43.1 23.5 8.5 24.9
long distance into the company’s wireless plan at no ad-
1999 40.5 23.7 9.8 26.0
ditional charge above that for airtime. This pricing plan
was quickly adopted by other wireless firms. Under this 2000 37.9 22.4 9.0 30.7
plan, customers had monthly bundles of minutes on their
2001 37.4 23.4 9.3 23.8
wireless phone contracts that they would lose if they were
not used. Thus, the effective marginal price of a long- Source: Federal Communications Commission (2003), Table 7.
distance call on a wireless phone was zero as long as
users did not exceed their allotted minutes. Not long after
this, wireless plans included free calls during nights and
weekends (e.g., airtime during night and weekends did
not count against customers’ monthly allotments of min- 1996). Even after divestiture, AT&T was regulated under
utes). Thus, customers shifted much of their usage away rate-of-return regulation by the FCC; it is one of the heavi-
from landline long distance and onto wireless phones. est forms of regulation because it limits both profits and
Regulation of the long-distance market also changed prices. Because MCI and Sprint had much lower market
substantially during this time (Sappington and Weisman shares, they were not regulated but still filed their rates
6 THE TELECOMMUNICATIONS INDUSTRY

with the FCC. This asymmetric regulation allowed MCI costs. The upstart companies became known as competi-
and Sprint to know AT&T’s rates with certainty and tive access providers (CAPs) or alternative local transport
respond in a competitive manner. The FCC changed from companies (known as ALTs). These companies continued
rate-of-return regulation to price-cap regulation in 1989, to expand the local telecommunications services they of-
but not until 1995 was AT&T declared nondominant and fered until full-fledged local competition was introduced
effectively deregulated. by TA96. These upstart companies became known as
competitive local exchange carriers (CLECs) after this leg-
islation. The traditional local telephone companies then
Local Voice Market became known as incumbent local exchange carriers (IL-
The path taken by the local voice market has been similar ECs). Several rules from TA96 sought to put CLECs on
to that of the long-distance market. Each local market an equal footing with ILECs. One rule was local number
was historically served by a monopoly local telephone portability. For many business and individuals, changing
company that was rate-of-return regulated by the state phone numbers when changing phone service presented
regulatory board. Most cities and heavily populated areas a great barrier to switch carriers. Because the ILECs
were served by subsidiaries of AT&T until divestiture in started with all the customers, this gave them an unfair
1984. At divestiture, local telephone subsidiaries were sep- advantage in a fully competitive marketplace. To combat
arated from AT&T’s long-distance and equipment pieces. that advantage, local number portability required that
The local telephone pieces of AT&T were broken into seven all phone companies allow their customers to take their
different companies called regional Bell operating compa- phone number with them when they changed local com-
nies (RBOCs): NYNEX, Bell Atlantic, BellSouth, Amer- panies (Black 2002, 99).
itech, Southwestern Bell, US West, and Pacific Telesis. Rates for local telephone service did not decline as
These companies corresponded to different geographic they did in the long-distance market. In fact, the recurring
regions of the country (see Figure 3). The companies did monthly charge for basic telephone service has increased
not serve all customers in their regions but only major pop- from 1986 to 2004 as shown in Figure 4: The average
ulation centers. Other local telephone companies known monthly residential charge rose from $17.70 in 1986 to
as independents (because they were independent of the $24.31 in 2004 (in nominal dollars). Part of the increase in
Bell system), served customers in the other areas. local residential rates has been a shift in recovering costs
Local telephone companies did not face competition away from per-minute charges (access charges) charged to
until much later than their long-distance counterparts. In long-distance companies and toward per-line subscriber
fact, competition in the local market came about because line charges (SLCs) charged to end users.
of competition in long distance. Competition in local mar- The total number of switched access lines has de-
kets started in large urban areas where new start-up com- creased from a high of approximately 192.5 million lines
panies provided direct connections from the customer in December 2000 to approximately 175.5 million in
to the long-distance network and thereby bypassed the December 2005 (FCC 2006, 5). Much of the decline has
local telephone network. This competition arose because been caused by people disconnecting second lines that
of artificially high regulated rates that the local tele- were used for Internet connections or teenagers. These
phone companies charged to long-distance companies to individuals have switched to broadband connections for
connect their networks to customers. Much of this by- Internet use and substituted wireless phones for teenag-
pass was uneconomic in the sense that it was caused by ers. ILECs have suffered not only from the overall decline
regulatory rules rather than underlying differences in in the size of the market but also from competition with

Figure 3: RBOC regions at AT&T’s

divestiture, 1984
 LANDLINE VOICE MARKET 7

26.00
25.00
24.00

Total Monthly Charges ($)

23.00
22.00
21.00
20.00
19.00
18.00
17.00
16.00
15.00

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04
19

19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

20

20
Figure 4: Total monthly charges for local Year
services in urban areas, 1986–2004 Total Monthly Charges

25.0

20.0
Market Share (%)

15.0

10.0

5.0

0.0
9

5
00

01

02

03

04

05
-9

-0

-0

-0

-0

-0

-0
n-

n-

n-

n-

n-

n-
ec

ec

ec

ec

ec

ec

ec
Ju

Ju

Ju

Ju

Ju

Ju
Figure 5: Growth in CLEC market share,
D

D
1999–2005 Date

CLECs. CLEC market share has increased steadily from Telesis in 1997, SNET in 1998, and Ameritech in 1999. SBC
4.3 percent in December 1999 to 17.8 percent in June merged with AT&T in late 2005 and took on the AT&T name
2004 (see Figure 5). for the company. On March 5, 2006, the new AT&T an-
In addition to suffering from the decline in second nounced plans to purchase BellSouth. US West was ac-
lines, the local wireline market faces competitive threats quired by Qwest, a long-distance company in 2000. Thus,
from so-called intermodal forms of competition for only AT&T, Verizon, and Qwest will remain from the eight
primary lines to a household. Loomis and Swann (2005) companies formed from the 1984 divestiture of AT&T.
have shown clear links among wireless, wireline, and
broadband telecommunications. In the future, more
and more households will go “wireless-only” and discon- Long-Distance and Local Voice Market
nect their wireline services. Others will shift their voice Markets that are in decline often see industry consolida-
usage toward voice over IP (VoIP), using their broadband tion through mergers as a means to decrease costs in or-
connections and disconnecting their traditional landline der to survive in a shrinking market. The local and long-
phones. distance markets have seen much industry consolidation
The local landline market has changed considerably be- with the top local provider (SBC) merging with the top
cause of mergers since AT&T’s 1984 divestiture. Figure 3 long-distance company (AT&T) and the second-largest lo-
(RBOCs at divestiture) has changed to Figure 6 (RBOCs cal company (Verizon) merging with the second-largest
today). In 1997, Bell Atlantic merged with NYNEX to be- long-distance company (MCI). With these mergers, the
come the new Bell Atlantic. In 2000, the new Bell Atlan- distinction between local and long distance is difficult to
tic merged with GTE, the largest independent telephone discern except as a regulatory artifact.
company, to become Verizon. Verizon merged with MCI In spite of blurring lines between long distance and
in 2006. Southwestern Bell Corporation changed its name local services, two important regulatory and public pol-
to SBC Communications in 1995 and acquired Pacific icy decisions concern the interaction between these two
8 THE TELECOMMUNICATIONS INDUSTRY

Figure 6: RBOC regions, 2006

industry segments. These decisions include universal areas that are less densely populated, more rural, and there-
service and intercarrier compensation. fore of higher cost. Because of the policy of geographic
Universal service is the public policy of having a rate averaging, the high-cost rural telephone companies
telephone network that is available, integrated, and have needed subsidies to continue to maintain low rates.
affordable to all Americans (Mueller 1997). Historically, These funds have come from high access charges for long-
long-distance calls were priced above their marginal distance calls as well as surcharges on bills of all telecom-
costs in order to price local telephone service below its munications service providers.
marginal cost. This cross-subsidization was approved by Access charges are a large part of the second public
both federal and state regulators to ensure that local policy decision concerning local and long distance serv-
telephone service would be affordable to most people. ices: intercarrier compensation. Intercarrier compensa-
The divestiture of AT&T broke the linkage between long- tion started with access-charge plans around the time
distance and local rates. As AT&T long distance faced of divestiture. Because AT&T was split between its long-
more competition, policy makers feared that local rates distance and local pieces, a mechanism of prices had to
would increase and that households would disconnect be developed to charge long-distance companies for their
their local phone service. Local rates did increase follow- use of the local telephone network in order to connect
ing divestiture, but households did not disconnect their a long distance call. Economists had argued that these
phones. Instead, households responded to their total bill charges should only include variable traffic-sensitive
in which local rates increased but long-distance rates costs of completing the long-distance calls; the fixed non–
decreased even more rapidly. As a result, the market traffic-sensitive costs should be paid for by end users in the
penetration rate rose from 91.4 percent in 1984 to 93.3 form of a per-line charge (later called the subscriber line
percent in 1990 (Hausman and Belinfante 1993). charge, or SLC). Because of rate shock and concerns about
In addition to the cross-subsidy issue from long dis- universal service, the SLC was not set high enough to pay
tance to local, TA96 added the e-rate program under the for all of the non–traffic-sensitive costs; the remainder
category of universal service. The e-rate program pro- was collected through increases in access charges above
vides subsidies ranging from 20 percent to 90 percent the traffic-sensitive cost level. This decision ultimately led
for Internet access to schools and libraries, depending to bypassing of local networks and the rise of CAPs and
on how disadvantaged they are. The fund was capped CLECs as discussed earlier.
at $2.25 billion, and the amount of requests for funding TA96 recognized that the system of access charges was
quickly exceeded the funds available. This program fun- flawed and needed to be overhauled. The law charged the
damentally changed the understanding of universal serv- FCC with developing a solution, and the FCC devoted
ice. Previously, only landline voice service was treated as the third of its trilogy of orders from TA96 to access-
needing support under universal service; the e-rate pro- charge reform. The FCC reform plan, however, has a large
gram now extends this same type of support to Internet failure. Instead of raising the SLC, the FCC created a brand
access. new charge—a presubscribed interexchange carrier charge
Another area of universal service is support for high- (PICC)—that the local companies charged to the long-
cost rural telephone companies. The RBOCs generally distance companies based on the number of customers who
serve only densely populated areas of their states. These had that company as their default long-distance carrier.
areas are generally cheaper to serve because of economies Revenue raised from this new charge was used to lower
of scale and geographical considerations. Each area of a access charges. The FCC also distinguished between pri-
state that is not served by an RBOC is served by an in- mary and other lines coming into a residence and allowed
dependent telephone company. The independents serve the SLC and PICC to be higher for nonprimary lines. The
 WIRELESS VOICE MARKET 9

FCC wanted the long-distance companies to absorb the BellSouth, and Cingular, as well as by approximately one-
PICC charges as their per-minute access charges declined. quarter of the small rural companies. Qwest, Verizon,
Instead, the companies passed on the new PICC charges and most wireless providers have reserved judgment on
to consumers as a new fee and, in some cases, charged the plan.
more than the PICC charge. The end result was worse
than if the FCC had simply raised the SLC directly. After
two years, the FCC admitted its mistake and eliminated WIRELESS VOICE MARKET
the PICC charge and began raising the SLC. The wireless voice segment of the telecommunications
Intercarrier compensation includes more than just ac- industry has been one of its fastest-growing segments.
cess charges for long-distance service. Because TA96 for- This segment started in 1985 when two cellular provid-
malized rules for full-blown local competition between ers were awarded licenses in each geographic territory by
ILECs and CLECs, intercarrier compensation has also the FCC. One license was given to the landline company,
included payments, called reciprocal compensation, and the other was awarded by a combination of merit
between ILECs and CLECs for terminating local traf- hearings and lottery. This duopoly structure did not make
fic between subscribers. Reciprocal compensation rates for a competitive environment, but the industry grew at
were set at a fraction of the price of access charges even a rapid clip because of the high demand for mobility in
though the physical act of terminating a phone call is the communications. This robust demand led to calls for the
same whether it originates across the country or across FCC to allocate more radio spectrum to wireless teleph-
the street. Charging different prices for the same service is ony. As a result, an additional 120 megahertz (MHz) of
referred to as price discrimination by economists and in- radio spectrum was sold by the FCC in its broadband
vites arbitrage (buying in the low market and selling in the personal communication system (PCS) auctions from
high market) unless there is an easy way to prevent it. In December 1994 to January 1997 (compared to 50 MHz for
the case of reciprocal compensation, CLECs could accept cellular at that time). In all, 2074 licenses were awarded,
long-distance traffic from the long-distance company and and more than $20 billion was bid.
pass it on to the ILEC as local traffic. The CLEC would To ensure more competition than under the former
only pay the low per-minute reciprocal compensation duopoly structure, the FCC imposed a spectrum cap such
rate, and the long-distance company would avoid the much that no single company could have a license for more than
higher access-charge rate. This act would be even easier 45 MHz in any single market. In November 2001, the FCC
if the CLEC and the long-distance company were part raised that limit to 55 MHz; in January 2003, the commis-
of the same holding company. Thus, there was pressure sion eliminated the spectrum cap altogether. The elimi-
to lower access charges and make reciprocal compensa- nation has led to mergers and industry consolidation. In
tion rates higher than their marginal cost. 2004, Cingular bought AT&T Wireless (at that time, a com-
One byproduct of having reciprocal compensation pany independent of AT&T Long Distance); in 2005, Alltel
rates higher than their marginal costs was that CLECs bought Western Wireless and Sprint merged with Nex-
could make a profit from terminating local traffic. One tel. These mergers helped solidify the dominance of four
type of customer with the highest amount of terminat- nationwide wireless carriers—Cingular, Verizon Wire-
ing traffic is the Internet service provider (ISP). ISPs with less, Sprint-Nextel, and T-Mobile—with several smaller
dialup access have large modem banks that allow indi- regional carriers. The firms’ market shares are shown in
viduals to connect to the Internet by placing local calls. Table 2.
If the ISP is a customer of the CLEC and the individual In August 2006, the FCC began an auction of an ad-
connecting to the Internet is a customer of the ILEC, then ditional 90 MHz of wireless spectrum. The bidders with
the ILEC must pay the CLEC per-minute reciprocal com- the largest upfront deposit include a consortium of satel-
pensation for the duration of the Internet connection. In lite TV providers, including DirecTV and EchoStar; and
this way, some CLECs received 40 percent to 70 percent a group of cable TV companies, including Comcast, Time
of their total revenue from reciprocal compensation from Warner Cable, and Cox Communications. Wireless pro-
the ILECs. The FCC eventually ruled that a call to an ISP viders T-Mobile, Cingular, and Verizon Wireless have also
was not a local call and therefore should not be subject to registered at the auction to acquire additional spectrum.
reciprocal compensation rules. This ruling placed some
CLECs into bankruptcy.
The rules for intercarrier compensation get even more
Table 2: Market Share by Subscriber for the Top Four Mobile
difficult when VoIP providers and wireless carriers are
Telephone Operators
added to the mix. Efforts to reform intercarrier compen-
sation and the universal service fund in order to provide
a consistent plan that addresses many of the concerns Mobile Telephone Operator Market Share (%)
already raised have been led by coalitions of industry
players and regulators. One plan, known as the Missoula Cingular Wireless 27.1
Plan (named for the town in which the group met at one Verizon Wireless 24.2
point), was filed with the FCC in August 2006 and will
be the subject of comments and debate in the coming Sprint PCS 11.9
years. The Missoula Plan task force has worked under the T-Mobile 9.6
auspices of the National Association of Regulatory Util-
ity Commissioners (NARUC) and is sponsored by AT&T, Source: Federal Communications Commission. 2005. Tables 2 and 4.
10 THE TELECOMMUNICATIONS INDUSTRY

In 2008, the FCC will auction off additional spectrum declined greatly with the slight increase in recent years
that is now occupied by local television stations. because of increased usage.
Before the creation of these nationwide carriers, the The wireless industry has experienced several pricing
wireless industry was served by smaller regional carriers. innovations that have spurred its growth. The first in-
Because customers wanted to use their wireless phones novation was AT&T’s Digital One Rate, which was intro-
outside of their carriers’ regions, each company devel- duced in May 1998. This plan combined wireless airtime
oped roaming agreements so its customers could utilize and long-distance charges into a single rate, effectively
another company’s network while in its territory. The absorbing the long-distance surcharge for long-distance
charges for using this roaming feature were passed along calls made on wireless phones. This pricing plan was
to the customer. Because roaming charges were much quickly copied by the other wireless companies. As men-
higher than the standard home rate for calls, customers tioned earlier, this type of pricing plan cut landline long-
complained frequently and loudly to their carriers. The distance usage significantly. On the flip side, it spurred
development of nationwide carriers allowed consumers wireless growth because of the “savings” in long distance
to use their own companies’ networks and choose pricing that was introduced in this plan. In January 2004, AT&T
plans that would avoid all roaming charges. Wireless also introduced mobile-to-mobile calling where-
Wireless subscribers and revenues have increased rap- by calls to another AT&T Wireless subscriber would be
idly over time. Figure 7 shows the rapid increase in the free. These free calls did not count against a customer’s
number of wireless subscribers, and Figure 8 shows monthly allotment of minutes; the plan helped spur cus-
the increase in minutes of use over wireless networks. As tomers to get their friends and family to switch to the
of December 2003, nationwide wireless penetration was same carrier. Similar “in-network” plans were introduced
54 percent. The average minutes used per month in- later by many other wireless companies.
creased from 255 minutes in 2000 to 599 minutes in 2003. Wireless companies have also provided customers with
Figure 9 shows that the average total bill for wireless has discounted or sometimes even free phones with a one- or

200
Mobile Wireless Subscribers (Millions)

180

160

140

120

100

80

60

40

20

0
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
84 86 88 90 92 94 96 98 00 02 04 Figure 7: Number of mobile wireless sub-
Date scribers, 1984–2004

700

600
Average MOU per Month

500

400

300

200

100

0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Figure 8: Average minutes of mobile wireless
Year telephone use (MOU) per month, 1993–2003
 WIRELESS VOICE MARKET 11

100.00

80.00

Average Monthly Bill ($)

60.00

40.00

20.00

0.00
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Figure 9: Average monthly bill for mobile 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
wireless telephone service, 1987–2004 Date

two-year contract. Providing a discount for the cost of the FCC does hold power over the wireless spectrum
buying a phone in order to use the wireless service less- licenses that the wireless companies use and can impose
ened the upfront financial burden of getting service even rules on how the firms operate; one example is the ruling
if the monthly charge was higher as a result. Wireless on local number portability.
companies have also signed exclusive deals with phone As the cellular industry began, the FCC required all
manufacturers to capture consumer interest in the U.S. providers to use a single analog standard called ad-
latest technology. One example is Cingular’s exclusive vanced mobile phone service (AMPS). In the mid-1990s,
limited-time contract with Motorola to sell its RAZR line the wireless providers began building second-generation
of phones. (2G) networks that used digital technology. These 2G net-
As wireless phones increasingly became a substitute works were better than the AMPS network because they
for landline usage, many customers started to see their had better signal quality and used the radio spectrum
wireless phones as substitutes for their landline phones. more efficiently. The FCC did not mandate a 2G stand-
Surveys have shown that 10 percent to 15 percent of house- ard, and two different types of standards developed. The
holds have “cut the cord” and gone wireless only. This first set of standards takes samples by time and is similar
percentage has been highest among younger people and to time division multiplexing of landline networks. The
new households. One problem that the wireless industry time-slicing techniques include time division multiple
faced in this substitution was that one landline phone access (TDMA), global system for mobile (GSM), and in-
could serve many individuals in the household. If the tegrated digital enhanced network (iDEN). GSM was the
household consisted of a family of four, this would mean standard used in Europe, and most U.S. companies that
four separate wireless plans to substitute for one landline started using TDMA, like Cingular, have since switched
phone. To effectively lower the price of this substitution to GSM. Nextel uses the iDEN standard. The second set
and spur growth elsewhere, the wireless companies in- of standards used complex algorithms to compress dig-
troduced family plans in which family members could ital signals. This standard is called code division multiple
join another family member’s plan for as low as $10 per access (CDMA), and it is used by Verizon Wireless and
month and share their bundled minutes. These family Sprint PCS. TDMA was proven to work on a large scale
plans lowered the price for a household to substitute sooner and enjoyed a “first-mover” advantage. CDMA is
wireless phones for its landline phone. more sophisticated and expensive but ultimately was able
As discussed earlier, local number portability required to use radio spectrum more efficiently than TDMA. How-
local landline companies to allow their customers to keep ever, once a company has chosen a standard, switching
their local telephone numbers when they switched car- technologies becomes expensive. Third-generation wire-
riers. This rule applied only to landline companies, so a less services (3G) have been developed in Europe and
wireless customer who changed carriers would have to Asia. Two competing standards are available: universal
change phone number and notify all of his or her con- mobile telephone service (UMTS) (also called WCDMA),
tacts of the new number. This hassle gave customers a which was mandated in Europe; and CDMA2000, which
great incentive to stay with their current providers and is used in parts of Asia.
hindered free and equal competition in the market. In Of the five nationwide mobile telephone operators, Cin-
November 2003, the FCC required companies in the top gular and T-Mobile use TDMA or GSM as their 2G digital
one hundred markets to implement local number port- technology, Sprint PCS and Verizon Wireless use CDMA,
ability and roll it out nationwide by May 2004. and Nextel uses iDEN. Verizon Wireless has deployed
Unlike landline telecommunications, the FCC and 1  RTT technology throughout its network. Discussion
state regulatory commissions do not regulate and never of the wireless carriers upgrade plans to 3G networks will
have regulated wireless firms’ prices or profits. However, be delayed until the section on data and Internet access.
12 THE TELECOMMUNICATIONS INDUSTRY

VIDEO AND CABLE TELEVISION Table 3: Direct Broadcast Satellite Market Share as
Percentage of Multichannel Video Programming Distribution
Before the advent of cable TV, video programming
was delivered by over-the-air broadcasts. The FCC
licensed television channels to broadcast over very high Date Market Share (%)
frequency (VHF) from channels 2 to 13 and ultrahigh fre-
quency (UHF) for channels above 13. In a typical local June 2000 15.65
market, the FCC would license three to four VHF chan- June 2001 18.67
nels and several more UHF channels. A VHF station is
often affiliated with one of the major commercial televi- June 2002 20.83
sion net-works: ABC, CBS, NBC, and, later, FOX. Some June 2003 22.68
of these stations are owned by the network, and some are
independently owned but have the right to carry the net- June 2004 25.09
work programming in their particular markets. Although June 2005 27.72
a small percentage of homes receive their video program-
ming from over-the-air broadcasts, the local network af- Source: Federal Communications Commission. 2006a. Table B-1.
filiated stations are usually carried to homes over cable
TV and satellite (Nuechterlein and Weiser 2005, 360). Table 4: Number of Subscribers for Top Cable TV
Cable TV started as noncommercial community Firms, 2004
antenna TV and was not originally seen as a competitive
threat to broadcast TV over the airwaves. However,
as more and more cable-only channels became available Company Number of Subscribers
and more and more homes were passed by cable TV, ca- Comcast 21,569,521
ble TV became increasingly popular. As of June 2004, 98.8
percent of homes in the United States are passed by cable Time Warner 10,955,507
TV and 61 percent of homes passed subscribed to
Cox 6,386,867
cable TV (FCC 2005, 14). Cable TV firms use coaxial cable
to deliver cable content, and their networks were tradition- Charter 6,211,505
ally one-way networks that delivered video content from
Adelphia 5,426,991
the cable headend to end users. To provide cable modem
service (discussed in the next section), cable firms had to Cablevision 2,944,235
upgrade their networks to become two-way networks so
that users could send as well as received information. Bright House 2,187,410
Although local broadcast stations were being seen by Mediacom 1,532,110
fewer and fewer people over the airwaves, they were still
seen by many people on their cable systems as cable TV Source: Federal Communications Commission. 2005. Eleventh annual
report on the status of competition in the market for delivery of video
companies retransmitted local over-the-air stations on programming, February 2005, Tables B-1 and B-3.
their cable systems. At first, this seemed to “save” the local
broadcast channels from a slow death as the over-the-air
Table 5: Top Ten Firms by Market Share in the Video Market
market shrank, but station owners soon became jealous
as a Whole, 2005
as other content channels received payment from the
cable firms for their channels while the broadcast chan-
nels were essentially free. To change this situation, the Market Share (% of
Cable Act of 1992 gave broadcasters the right to forbid Rank Company Subscribers)
retransmission without their consent. This property right
gave broadcasters the ability to negotiate a fee from a 1 Comcast 22.99
cable company for retransmission of its station. The 2 DirecTV 15.72
broadcaster could waive this right and require the cable
TV operator to carry its station under “must carry” rules. In 3 EchoStar 12.27
most cases, broadcasters did not receive high monetary 4 Time Warner 11.69
compensation but were able to negotiate additional chan-
nel “slots” on a cable firm’s lineup in exchange for the 5 Cox 6.73
right to use its local network channel.
6 Charter 6.37
In addition to broadcast TV, cable operators faced
competition from another “wireless” provider. By the 7 Adelphia 5.50
mid-1990s, direct broadcast satellite (DBS) providers such
8 Cablevision 3.22
as DirecTV and Dish Network entered the video-delivery
market. The DBS market share of the video market has 9 Bright House 2.34
increased steadily, reaching 25 percent by 2004, as shown
in Table 3. Among cable TV firms, Comcast is the largest 10 Mediacom 1.55
with more than 21 million customers (see Table 4). Tak- Source: Federal Communications Commission. 2006. Twelfth annual
ing the video market as a whole, Comcast has the largest report on the status of competition in the market for delivery of video
market share with 23 percent, and DirecTV has a programming, February 2006, Table B-3.
 VIDEO AND CABLE TELEVISION 13

market share of 16 percent. The top ten firms are shown in However, the Cable Act of 1984 removed cable systems
Table 5. from municipal rate regulation where it existed. Because
Within the cable TV industry, firms are organized as of this deregulation and other causes, cable rates rose
multiple system operators (MSOs). There has been signifi- 43 percent from 1986 to 1989. This sudden rise in rates
cant consolidation in the cable TV industry and across led to calls for federal rate regulation. Thus, the Cable Act
the landline telecommunications industry and cable TV. of 1992 required the FCC to regulate cable TV rates. This
In 1998, AT&T, the largest long-distance company at the lasted until the Telecommunications Act of 1996 removed
time, bought TCI, then the largest cable TV operator. Then, rate regulation for all cable services except basic-tier
in 1999, AT&T bought Media One, the fifth-largest cable cable service.
TV operator. TCI and Media One became AT&T Broad- In addition to high prices and both the regulation and
band, which was sold in 2001 to Comcast, the second- deregulation of prices, the industry has also faced contro-
largest MSO. It seems that the convergence between cable versy surrounding so-called à la carte pricing. À la carte
TV and landline voice communications took longer than pricing refers to a pricing scheme in which consumers
AT&T anticipated, and the cable TV properties were would only pay for channels they wanted and would not be
more valuable to another MSO than they were to a long- required to buy packages or tiers of programming. Cable
distance landline voice company. TV firms have consistently claimed that such a pricing
Prices for cable TV have risen steadily over the past scheme would raise the costs to all consumers because
several years. Figure 10 shows the average price for basic programming and advertising is based on the number
service, while Figure 11 shows the average total cable bill of subscribers and this number would be reduced under
for customers overall. Basic cable service has risen from such a scheme. The FCC originally agreed with the indus-
$11.57 in 1997 to $13.80 in 2004, but the average total try’s analysis but has changed its mind recently. To head
monthly bill has almost doubled from $24.34 in 1995 to off a requirement to offer à la carte pricing, several firms
$45.32 in 2004. have begun to offer “family-friendly” packages to placate
Cable TV has been regulated and deregulated sev- the most vocal advocates of à la carte pricing.
eral times. Before 1984, some municipalities regulated Cable TV providers not only face current competition
cable TV rates in addition to awarding local franchises. from DBS but also now face future competition from

14.00

13.50
Monthly Rate ($)

13.00

12.50

12.00

11.50

11.00
Figure 10: Average monthly rates for basic 1997 1998 1999 2000 2001 2002 2003 2004
services, 1997–2004 Year

50.00

45.00
Average Total Monthly Rates ($)

40.00

35.00

30.00

25.00

20.00

15.00

10.00

5.00

0.00
Figure 11: Average monthly rates, 1995– 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
2004 Years
14 THE TELECOMMUNICATIONS INDUSTRY

the RBOCs that are rolling out fiber networks to provide Despite having these roots in government funding, the
IPTV in addition to high-speed Internet access. IPTV is Internet was privatized on April 30, 1995. There were then
projected to offer several enhancements over traditional five major backbone providers: uunet, ANS, SprintLink,
cable TV, including greater interactivity, easier guides BBN, and MCI. By 2000, uunet and ANS were brought
and channel changing, and even more channels. RBOCs by MCI WorldCom, BBN was part of Genuity, MCI’s old
have been hindered in their efforts to roll out video serv- network was owned by Cable and Wireless, and AT&T
ices because of local franchise agreements. Cable TV had created its own IP network using its own fiber and
companies usually have franchise agreements with local purchasing IBM’s Global Network. These backbone pro-
municipalities, and the RBOCs argue that it would be too viders had peering arrangements to exchange traffic and
expensive and onerous to negotiate city-by-city franchise provide links to regional networks and ISPs.
agreements in order for them to provide service. They The exponential growth of the Internet would not have
have asked Congress to issue a national franchise license occurred without the development of easy-to-use end-user
for them to provide video programming nationwide and applications. The first applications were e-mail systems
have already obtained statewide franchise authority in that could exchange messages between systems. End-
several states. user e-mail interfaces became easier to use with more and
If one takes a larger definition of the relevant market, more features. Netscape and its World Wide Web browser
cable TV also faces competition from videotape and DVDs popularized the use of the Internet beyond simply e-mail,
and Internet video downloads such as iTunes and video and customer demand grew rapidly. The explosive growth
iPod. With convergence comes another emerging distri- of Web sites and extensions of basic browser functions
bution channel for video programming: the Internet. Web drove consumers to demand access to the Internet and,
sites such as YouTube, Google Video, MSN video, and eventually, higher speed access.
Yahoo Video are increasing the amount of free and paid Starting in the mid-1990s, the number of residential
content for viewers. In addition, TV networks are distribut- second lines soared, driven by demand for dialup Internet
ing their content over their own Web sites and partnering access (Cassel 1999). It was not long before the attraction
with others to sell online versions of their TV content. of always-on connectivity, faster speeds, and declining
The video programming and distribution industry is prices spurred a switch from second lines to broadband
also somewhat vertically integrated. Several cable TV sys- technologies. Broadband is defined by the FCC as speeds
tems own parts of many of the programming channels 200k or faster in one direction, which is low by some
that they and others carry on their systems. For exam- standards. The current technologies that offer broadband
ple, Cablevision has a 60 percent ownership of American speeds are cable modems, DSL, satellite, and WiFi. The
Movie Classics, Cox owns 24.6 percent of Discovery Chan- broadband market shows the greatest evidence of conver-
nel, and Time Warner completely owns HBO. TV networks gence, with cable TV firms offering cable modem service
are owned by larger corporations that also own video con- and landline voice companies offering DSL. As shown
tent and programming. CBS is owned by Viacom, NBC is in Figure 12, cable modems have the highest percentage
owned by General Electric and Vivendi, ABC is owned by market share of the broadband market with 59 percent;
Disney, and FOX is owned by News Corporation. Vertical ADSL follows with 37.2 percent. Cable modems were first
integration could make it difficult for new firms to enter in to the marketplace, but ADSL has tried to close the gap in
competition with the cable TV firms. The Cable Act of 1992 recent years with lower pricing that has led to increased
required cable firms to make their own programming market share. Table 6 shows the number of lines served
available on reasonable terms to rivals. This requirement by various companies that provide cable modems, with
was renewed by the FCC in 2002. Comcast being the largest provider. Table 7 shows the
Some cable TV firms are offering voice communica-
tions (local and long distance) over their broadband cable
modem systems in direct competition with the RBOCs Other wireline, 2.04%
and the long-distance companies. Most of the firms are Fiber or powerline, 1.06%
using VoIP to provide these services over their broadband Satellite or wireless, 0.72%
cable-modem networks. Several cable companies have
also partnered with Sprint-Nextel to offer wireless phones.
Convergence is taking place as RBOCs enter the video
market and cable TV firms offer voice services. Both types
of firms are gearing up to provide the quadruple play of
voice, video, data, and wireless.

DATA AND INTERNET ACCESS

Although there was talk of alternative “information super- ADSL, 37.20%
highways” in the 1980s, the Internet has taken over as the
data network for the consumer market. The Internet is a
network of networks that use the TCP/IP protocols. The Coaxial cable,
58.99%
Internet evolved from ARPAnet, which was developed in
the 1960s by the Department of Defense; and NSFNET,
which linked universities and supercomputers in the 1980s. Figure 12: Broadband technologies’ market share
 INTERNATIONAL TELECOMMUNICATIONS 15

Table 6: Major Cable Modem Providers, Ranked by are looking to build broadband networks where private
Subscribership, First Quarter 2005 companies have not deployed any broadband technolo-
gies. Other cities have opted for a landline fiber solution
similar to the Utah Telecommunication Open Infrastruc-
Company Number of Subscribers ture Agency (UTOPIA) project. Municipal broadband has
Comcast 7,410,000 been a politically controversial topic, with private firms
looking to bar municipalities from providing broadband
Time Warner 4,120,000 services out of fear that subsidies from taxpayers will
Cox 2,750,000 provide an unequal playing field and potentially delay or
stop private investment.
Charter 1,980,000 Another politically sensitive issue concerning the In-
Adelphia 1,490,000 ternet has been called “net neutrality.” Net neutrality does
not have a precise definition but usually refers to a policy
Cablevision 1,440,000 that broadband providers cannot charge content provid-
ers to send information over their broadband lines to end
Total North America 21,150,000
users. This policy debate begin when broadband provid-
Source: Leichtman Research Group, cited in The digital fact book. 2005. ers such as Verizon, AT&T, and Comcast proposed charg-
7th ed. ing content providers such as Google and Yahoo to send
data over their lines. The providers would create “fast
lanes” for high-bandwidth applications such as movie
Table 7: Major DSL Providers by Subscribership, First
downloads or streaming video. The providers claim that
Quarter 2005
this would ensure these applications have the bandwidth
available when they need it and would support enhanced
Company DSL Subscribers infrastructure. Critics claim that users will end up paying
twice for access to content.
SBC 5,610,000 Aside from Sprint’s announcement concerning
Verizon 3,940,000 WiMAX, wireless companies are already upgrading their
networks to provide wireless data that surpass minimum
BellSouth 2,350,000 broadband speeds. Until the major carriers upgraded their
Qwest 1,120,000 networks, less than 2 percent of their mobile traffic was
data. Their second-generation networks—using GSM,
Sprint 550,000 CDMA, and TDMA—yielded data speeds of 9.6 to 19.2
Covad 550,000 kilobytes per second (kbps). Recently, however, several
networks have been upgrading to third-generation net-
Total North America 14,700,000 work technologies such as evolution data optimized (or
only) (EvDO) in major cities across the United States.
Source: Leichtman Research Group, cited in The digital fact book. 2005.
7th ed.
These third-generation networks allow broadband speeds
for laptops, personal digital assistants (PDAs), and cell
phones from anywhere the signal reaches. Verizon Wire-
various companies that provide ADSL, with SBC being the less launched its CDMA2000 1  EVDO network in late
largest. 2003 and now offers it in several major U.S. cities. Sprint
Landline broadband faces increasing competition from began to deploy this same technology in July 2005. Cin-
wireless technologies. The wireless technology with gular Wireless is planning to deploy WCDMA with high-
the most users is WiFi, which is used in home wireless speed data packet access (HSDPA) technology in many
networks and coffee shops. WiFi is also used by wireless major U.S. markets. This technology will allow average
Internet service providers (WISPs) to provide Internet download speeds of 400 kbps to 700 kbps with burst rates
services in rural communities. WiMAX is an emerging of up to several megabytes per second (Mbps); CDMA2000
wireless technology that promises wider ranges and faster 1  EV-DO, on the other hand, delivers average user
speeds than WiFi; thus, it may be a better competitor to speeds of 400 kbps to 700 kbps and allows maximum
wireline broadband. Sprint-Nextel recently announced data-throughput speeds of 2.4 Mbps.
its intention to build a “4G” wireless broadband network
using WiMAX technology.
In addition to private companies building wireless INTERNATIONAL
broadband networks, cities and local governments have
taken the initiative to build new networks. WiFi networks TELECOMMUNICATIONS
are being deployed across much larger geographies such Although much of this chapter has focused on the U.S.
as the cities of Philadelphia and San Francisco. In these telecommunications market, similar convergence of
cases, city governments are taking the initiative to have industry markets has occurred elsewhere in the world. In
the technology deployed by partnering with private firms some cases, the United States has been in the forefront
to build and manage the networks. These cities already of these changes; in other cases, notably wireless and
have wireline broadband services available to most city broadband data, the United States has lagged behind.
residents. In other cases, smaller rural municipalities The movement of landline voice services from monopoly
16 THE TELECOMMUNICATIONS INDUSTRY

to competition in both local and long distance has fol- Competitive access provider (CAP): Smaller local
lowed the U.S. pattern with some delay. In many cases, landline company that provided bypass of the ILEC
countries first had to transition from state-owned tel- network. These companies later became known as
ecommunications monopolies to private, regulated firms. CLECs.
In Canada, several telephone companies were owned by Competitive local exchange carrier (CLEC): Smaller,
provincial governments. In the United Kingdom, British upstart company that competes with ILECs for local
Telecom was privatized in 1985. In other parts of Europe, landline voice customers.
France Telecom and Deutsche Telecom moved from state- Digital subscriber line (DSL): A broadband Internet
owned telephone and telegraph monopolies to private access service provided by LECs.
companies. In Japan, Nippon Telephone and Telegraph Direct broadcast satellite (DBS): Wireless video pro-
Corporation started the process in 1985, but in 1996 it viders such as DirecTV and Dish Network that com-
was restructured into a holding company with a separate pete with cable TV companies.
long-distance division and two local telephone companies, Evolution data optimized (or only) (EvDO): A third-
NTT East and NTT West. generation wireless standard that enables broadband
After privatization, all of these countries opened their data speeds on wireless networks.
landline markets to competition. In 1985, the United Federal Communications Commission (FCC): The
Kingdom opened entry into telecom services and Japan federal agency created by the Communication Act of
allowed long distance and international calling compe- 1934, which regulates interstate telecommunications.
tition. Canada allowed competition in long distance in Fiber to the curb (FTTC): The use of fiber optic cable
1992 and local competition in 1997. The European Union to the pedestal or neighborhood and copper or coaxial
opened all telecommunications markets to competition cable from that point to the home.
in 1998 (Crandall 2005). Fiber to the premises (FTTP): The use of fiber optic
On the wireless telecommunications front, the move cable directly to the home that replaces copper or co-
toward competition took a similar but delayed path in axial cable.
mimicking the U.S. experience. Most of the developed Global system for mobile (GSM): A 2G wireless net-
countries only had one or two wireless carriers as late as work standard that uses time-slicing techniques.
1991. Even today, many countries only have two to four High-speed data packet access (HSDPA): A 3G wire-
wireless carriers competing. In spite of being in the fore- less data standard.
front in wireline and wireless competition, the United Incumbent local exchange carrier (ILEC): Tradi-
State has lagged behind in its auction of 3G radio spectra tionally regulated monopoly providers of local voice
and deployment of 3G services. In addition, the United landline services.
States ranked tenth in broadband penetration at the end Integrated digital enhanced network (iDEN): A
of 2003 (Organisation for Economic Co-operation and 2G wireless network standard that uses time-slicing
Development 2005, 129). techniques.
Internet protocol television (IPTV): Delivers video
(television) programming to homes using Internet
CONCLUSION protocols.
Internet service provider (ISP): Company that pro-
Having looked at each of the telecommunications indus-
vides Internet access to end users.
try segments separately, we clearly see that each segment
Multiple system operators (MSO): Cable TV compa-
faces competitive inroads by other industry segments.
nies that provide video programming via many differ-
The landline voice market (both local and long-distance)
ent local systems.
faces competition from wireless voice and cable TV com-
National Association of Regulatory Utility Commis-
panies. Cable TV firms are facing increasing competition
sioners (NARUC): Umbrella organization represent-
from DBS firms and local telephone companies using
ing state and federal regulatory commissions.
IPTV. Local voice companies, cable TV firms, and wire-
Presubscribed interexchange carrier charge (PICC):
less firms are competing for the broadband data market.
New charge as a result of TA96 instituted by the FCC
Large multimarket firms will continue to increase their
to lower switched access fees. Charged by local com-
market shares or market reach in each of the quadruple
panies to long-distance companies.
play markets of landline voice, high-speed Internet ac-
Public switched telephone network (PSTN): The tra-
cess, TV and entertainment, and wireless voice and data.
ditional voice network operated by ILECs and long-
distance voice companies.
Regional Bell operating company (RBOC): Any of
GLOSSARY seven local telephone companies created from the di-
Advanced mobile phone service (AMPS): Wireless vestiture of AT&T in 1984.
analog standard used in the United States. Second generation (2G): Wireless network stand-
Alternative local transport carrier (ALT): Smaller ards that use digital technology, including TDMA and
local landline company that provided bypass of the CDMA.
ILEC network. These companies later became known Subscriber line charge (SLC): Per-line prices charged to
as CLECs. end users that started around the time of divestiture.
Code division multiple access (CDMA): A 2G wireless Telecommunications Act of 1996 (TA96): The most
standard that uses complex algorithms to compress recent, wide-ranging telecommunication law; techni-
the digital signal. cally, a rewrite of the Communications Act of 1934.
 FURTHER READING 17

Third generation (3G): Wireless network standards Mueller, M. L., Jr. 1997. Universal service: Competition,
that provide faster data transmission and include interconnection, and monopoly in the making of the
UMTS and WCDMA. American telephone system. Cambridge: MIT Press.
Time division multiple access (TDMA): A 2G wireless Nuechterlein, J. E., and P. J. Weiser. 2005. Digital cross-
network standard that uses time-slicing techniques. roads: American telecommunications policy in the
Universal mobile telephone service (UMTS): A 3G Internet age. Cambridge: MIT Press.
wireless standard also known as WCDMA. Organisation for Economic Co-operation and Develop-
Voice over Internet protocol (VoIP): Using Internet ment. 2005. OECD communications outlook 2005.
protocols to transmit voice conversations over data Paris: Author.
networks. Sappington, D. E. M., and D. L. Weisman. 1996. Design-
Wireless fidelity (WiFi): The popular name given to ing incentive regulation for the telecommunications in-
802.11 standards for transmitting data wirelessly. dustry. Cambridge: MIT Press.
Wireless Internet service provider (WISP): Company Taylor, W. E., and L. D. Taylor. 1993. Postdivestiture long-
that provides Internet access to end users using wire- distance competition in the United States. American
less technology, usually over an unlicensed spectrum. Economic Review (May): 185–90.
Worldwide interoperability for microwave access
(WiMAX): A newer wireless standard that allows
higher speed and longer ranges than WiFi.
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 Handbook of Computer Networks: Key Concepts, Data
Transmission, and Digital and Optical Networks
by Hossein Bidgoli
Copyright © 2008 John Wiley & Sons, Inc.

Data Communications Basics

Hossein Bidgoli, California State University, Bakersfield

Introduction 19 Layer 5: The Session Layer 24

Defining Data Communications 19 Layer 4: The Transport Layer 24
Basic Components of a Data Communications Layer 3: The Network Layer 24
System 20 Layer 2: The Data-Link Layer 25
Sender and Receiver Devices 20 Layer 1: The Physical Layer 25
Modems 20 Network Types 25
Communications Media 20 Applications of Data Communications 26
Important Events in the Growth of Data Electronic Data Interchange 26
Communications in North America 20 Electronic Commerce 27
Data-Processing Configurations 21 Convergence of Voice, Data, and Video 27
Centralized Data Processing 21 Why Do Managers Need to know about Data
Decentralized Data Processing 21 Communications? 28
Distributed Data Processing 21 Conclusion 29
Important Concepts in Data Communications 22 Glossary 29
Data Codes 22 Cross References 29
Serial versus Parallel Transmission 22 References 29
Transmission Modes 22 Further Reading 29
Data Flow 23
Open System Interconnection (OSI) Reference Model 23
Layer 7: The Application Layer 24
Layer 6: The Presentation Layer 24

INTRODUCTION In today’s national and international organizations,

data may be collected in different cities, states, and even
This chapter reviews principles of data communications
countries. If an effective data communications system
and looks at data communications components and vari-
is in place, then geographic organizational distribution
ous types of networking systems. It discusses the role of
does not impose any problems in the collection and dis-
data communications in delivering timely and relevant
tribution of relevant information. Data can be collected
multimedia information for decision-making purposes.
anywhere, processed, and delivered to any location
Important concepts in the data communications envi-
throughout the world. An effective data communications
ronment will be reviewed, including data codes, analog
system can significantly improve the efficiency and ef-
and digital transmission, serial and parallel transmission,
fectiveness of a CBIS by improving the flexibility of data
transmission modes, elementary data flow, protocols, and
collection and transmission. By using a portable com-
the open system interconnection reference model. The
puter, a personal digital assistant (PDA), or a palmtop
chapter also reviews data communications applications,
computer and a communications system, an executive
including electronic data interchange and electronic
can communicate with his or her office at any time and
commerce. The chapter concludes with a discussion on
from any location.
the growing convergence of voice, video, and data, and
Data communications is the fundamental basis of the
it highlights the importance of data communications
growing concept of the “virtual organization.” This new
field in the business world. The materials presented in
trend indicates that an organization is not limited to its
this chapter will be further discussed in following chap-
physical boundary. Various functions can be outsourced,
ters and should provide a background for the rest of the
and the results can be delivered to the organization in a
Handbook.
timely manner by using a data communications system.
A typical virtual organization requires minimal office
DEFINING DATA COMMUNICATIONS space. Employees telecommute, and services to custom-
ers are provided through communications systems. Data
The electronic transfer of data from one location to an-
communications systems are the backbone of the grow-
other is called data communications. The efficiency and
ing phenomena of the information superhighway and the
effectiveness of any computer-based information system
Internet.
(CBIS) is measured in terms of the timely delivery of rel-
As Box 1 shows, the applications of data communica-
evant and accurate information. Data communications
tion systems can be seen anywhere.
enable a CBIS to deliver information where and when it
is needed.
19
20 DATA COMMUNICATIONS BASICS

floors and assembly lines for data collection and trans-

Box 1: Applications of data communication mission to a main computer system.
systems An intelligent terminal, workstation, or microcomputer
• airline reservation systems serves as both an input/output device and stand-alone
system. Using this type of device, the remote site is able
• audio conferencing
to perform processing tasks without the support of
• automated credit card services the main computer system.
• automated teller machines (ATMs) A network computer (NC) is a diskless computer that
• computer conferencing runs software from and saves all data to a server, which is
• data, voice, video, image, and fax transmissions a computer that provides a particular service to the client
• distance learning and virtual learning systems computers on the network. NCs may become more popu-
lar in the near future and should be used extensively in
• e-government
place of intelligent terminals. These low-priced computers
• electronic data interchange (EDI) can connect a user to the Internet and other networks.
• electronic commerce (EC) Other types of computers used as input/output de-
• electronic file transfer vice include minicomputers, mainframe computers, and
• electronic funds transfer supercomputers.
• electronic mail (e-mail) and instant messaging
• electronic shopping Modems
• groupware and group support systems A modem (modulator-demodulator) converts digital
• insurance applications signals to analog signals that can be transferred over
• Internet and global networks an analog telephone line. Analog signals are continuous
• law-enforcement applications wave patterns and are produced naturally, such as by the
human voice. They are related to a continuously variable
• online banking
physical property, such as voltage, pressure, or rotation.
• online tax returns Digital signals, on the other hand, are distinct on or off,
• stock market applications 0 or 1, binary electrical signals. Digital signals are en-
• telecommuting coded information in a binary system, such as 0 or 1. All
• time-sharing applications computers process data in digital format. Once analog
signals arrive at their destination, a second modem con-
• video conferencing
verts them back into digital format before they enter the
receiving computer.
To establish a communications link, the two devices
BASIC COMPONENTS OF A DATA must be synchronized. This means that both devices must
COMMUNICATIONS SYSTEM start and stop at the same point. Synchronization is
A typical data communications system may include the achieved through protocols. Protocols are conventions
following components: and rules that govern a data communications system.
They cover error detection, message length, speed of
• sender and receiver devices, transmission, and so forth.
Protocols also help to ensure compatibility among dif-
• modems, and
ferent manufacturers’ devices.
• communications media (channels).

Sender and Receiver Devices Communications Media

A sender or receiver device may include one of the follow- Communications media, or channels, connect the sender
ing components: and receiver devices. Communications media can be ei-
ther conducted (wired or guided), such as coaxial cable,
• input/output device; or they can be radiated (that is, transmitted wirelessly)
to receiving devices such as satellite. A communica-
• smart terminal;
tions medium can be either a point-to-point or a multi-
• intelligent terminal, workstation, or microcomputer; point medium. In a point-to-point system, only one device
• network computer; or uses the medium. In a multipoint system, several
• other type of computer. devices share the same medium.

The input/output (I/O) device, also known as a dumb ter-

minal, is used only to send or receive information; it has IMPORTANT EVENTS IN THE GROWTH
no processing power. OF DATA COMMUNICATIONS IN
A smart terminal, on the other hand, is an input/output
device with a limited degree of processing capability. It NORTH AMERICA
can perform certain processing tasks, but it is not a full- Modern communications started in 1837 when Samuel
featured computer. This type of device is used on factory Morse constructed a working telegraph system. Table 1
 DATA-PROCESSING CONFIGURATIONS 21

Table 1: Major Data Communications Event in North America processing was justified because data-processing per-
sonnel were in short supply; economy of scale, both in
hardware and software, could be realized; and only large
Event Year
organizations could afford computers.
Telegraph invented 1837
Western Union founded 1856
Telephone invented 1876 Decentralized Data Processing
Bell Company founded 1877 In a decentralized data-processing system, each user, office,
AT&T created 1885 department, or division has its own computer. All data-
Telephone system regulation begins in processing tasks can be implemented within each sepa-
Canada 1892 rate organizational unit. This system is certainly more
Telephone system regulation begins in responsive to the user than centralized processing. Nev-
United States 1910 ertheless, decentralized systems have certain problems,
Direct-dial long-distance service begins 1951 including lack of coordination among organizational
IBM introduces remote job entry 1954 units, the excessive cost of having many systems, and du-
First U.S. communications satellite sent plication of efforts.
into orbit 1958
FCC approves private microwave
communication networks 1959 Distributed Data Processing
Satellites begin to transmit international
telephone calls 1962 Distributed data processing (DDP) solves two of the ma-
Packet-switching network concept proposed jor problems associated with the first two types of data-
by the Rand Corporation 1964 processing configurations: (1) lack of responsiveness
Carterfone court decision permits non-Bell in centralized processing, and (2) lack of coordination in
telephone equipment to be used 1968 decentralized processing. Distributed data processing
ARPAnet (the foundation of the Internet) has overcome these problems by maintaining centralized
begins operation 1969 control while decentralizing operations.
Court permits MCI to provide long-distance In DDP, processing power is distributed among several
services 1970 locations. Databases, processing units, or input/output de-
Ethernet LAN specifications formulated 1972 vices may be distributed. A good example is a newspaper
IBM announces its systems network publishing business in which reporters and editors are
architecture (SNA) 1974 scattered around the world. Reporters gather news stories,
Microcomputer LANs introduced 1982 enter them into their personal computers (PCs), edit them,
Breakup of AT&T into seven regional Bell and use a communications medium to forward them to
operating companies 1984 the editor in charge. The reporter and the editor can be
Cellular phones begin service 1984 thousands of miles apart. Since the mid-1970s, with ad-
Telecommunications Act of 1996 deregulates vancements in networking and microcomputers, this type
U.S. telephone system 1996 of data-processing configuration has gained popularity.
More than 50 percent of American households Some of the unique advantages of a DDP system include:
own a personal computer 1998
SBC and AT&T merge 2005 • access to unused processing power by an overused
Lucent and Alcatel merge 2006 location;
• design modularity (i.e., computer power can be added
or removed based on need);
• distance and location independence;
• increased compatibility with organizational growth by
highlights important events in North America that have the addition of workstations;
led to today’s modern communications systems. • fault tolerance because of the availability of redundant
resources as a security measure (i.e., if one component
fails, a redundant component will take over);
DATA-PROCESSING CONFIGURATIONS • resource sharing (e.g., of expensive high quality laser
printers);
Over the past sixty years as the computer field has ad-
vanced, three types of data-processing configurations have • system reliability (i.e., system failure can be limited to
emerged: centralized, decentralized, and distributed. only one site); and
• user orientation (i.e., the system is more responsive to
user needs).
Centralized Data Processing
In a centralized data-processing system, one central loca- Some of the disadvantages of DDP include dependence
tion performs all data-processing tasks. In the early days on communications technology, incompatibility among
of computer technology (1950s and 1960s), this type of equipment, and more challenging network management.
22 DATA COMMUNICATIONS BASICS

IMPORTANT CONCEPTS IN DATA alphabetic and numeric characters that IBM developed
for its mainframe operating systems. It is the code for text
COMMUNICATIONS files used in IBM’s OS/390 operating system that many
To better understand a data communications system and corporations run on IBM’s S/390 servers. In an EBCDIC
its operations, several keywords and concepts should be file, each alphabetic, numeric, and special character is
defined. These keywords and concepts will be further represented with an eight-bit binary number (a string
explained throughout the Handbook. of eight 0’s or 1’s). As many as 256 characters (letters of
the alphabet, numerals, and special characters) can be
Data Codes represented (28 ⫽ 256). Conversion programs allow dif-
ferent operating systems to change a file from one code
Computers and communications systems use data codes to another. Table 2 illustrates selected examples of ASCII
to represent and transfer data among various comput- and EBCDIC.
ers and network systems. Three popular types of data
codes are:
Serial versus Parallel Transmission
• Baudot code, In serial transmission, data travels in a single-file bit
• ASCII (American standard code for information inter- stream, one bit following after another. In other words,
change), and the network cable is like a one-lane road along which
• EBCDIC (extended binary coded decimal interchange computers either send or receive information at any given
code). time. In parallel transmission, an entire byte is transmit-
ted at one time. Telephone lines are serial; PC printer
The Baudot code was named after French engineer Jean- cables are usually parallel. A network interface card takes
Maurice-Emile Baudot. It was first used to measure the data traveling in parallel as a group and restructures it
speed of telegraph transmissions. It uses five-bit patterns so that it will flow through the one-bit wide path on the
to represent the characters A to Z, the numbers 0 to 9, network cable. A network interface card is an expansion
and several special characters. Using Baudot code up to card that is required to connect a computer to a local area
thirty-two characters can be represented mathematically network (LAN).
as 25 ⫽ 32. This is not enough, however, to represent all
the letters of most alphabets (uppercase and lowercase) Transmission Modes
and special characters.
Transmission modes include synchronous, asynchronous,
To overcome this limitation, Baudot code uses down-
and isochronous. In synchronous transmission, several
shift (11111) and upshift (11011) character code. By do-
characters are blocked together in parallel for transmis-
ing this, as many as sixty-four different characters can
sion. At the beginning and end of each block there are
be defined, doubling the code’s original size. This process
empty bits, but these make up a small percentage of the
is similar to typing using the keyboard. If the caps lock
total number of messages. Synchronous transmission is
key on the keyboard is pressed, then all of the characters
used to reduce overall communications costs.
typed after this will be transmitted as uppercase; as soon
In asynchronous transmission, each character is sent
as it is pressed again, all the characters will be transmit-
serially through a medium as an independent message.
ted as lowercase. Therefore, using Baudot, every charac-
Each message is one character long, and the character
ter except for a space is either an upshift character or a
is preceded by a start bit and ended with a stop bit. This
downshift character. For example, 10001 represents both
type of transmission is more expensive than synchronous
the letter Z and ⫹ (the plus sign). The letter Z is a down-
shift character, and the plus sign is an upshift character.
Although Baudot code is no longer used, it illustrates
how information is transmitted by a small number of bit Table 2: Selected Keyboard Symbols in ASCII and EBCDIC
combinations.
In the early 1960s, the American National Standards
Institute developed the American Standard Code for In- Symbol ASCII EBCDIC
formation Interchange, or ASCII (pronounced ask-ee). It Space 0100000 01000000
is the most common format for text files, is used exten- A 1000001 11000001
sively in PC applications, and is ubiquitous on the Inter- B 1000010 11000010
net. In an ASCII file, each alphabetic, numeric, or special Z 1011010 11101001
character is represented with a seven-bit binary number a 1100001 10000001
(a string of seven 0’s or 1’s). As many as 128 characters b 1100010 10000010
can be represented (27 ⫽ 128). UNIX and DOS-based op- z 1111101 10101001
erating systems and the majority of PC applications use * 0101010 01011100
ASCII for text files. Windows NT and 2000 use a newer % 0100101 01101100
code called unicode. The extended ASCII is an eight- ( 0101000 01001101
bit code used by IBM mainframe computers that allows 0 0110000 11110000
256 (28 ⫽ 256) characters to be represented. 1 0110001 11110001
Extended binary coded decimal interchange code, or 9 0111001 11111001
EBCDIC (pronounced “ehb-suh-dik”) is a binary code for
 OPEN SYSTEM INTERCONNECTION (OSI) REFERENCE MODEL 23

transmission but may be more accurate. The parity bit between the physical connection to the network and the
is used for an error-checking procedure in which the end-user application. The seven layers are as follow:
number of 1’s must always be the same—either odd or
even—for each group of bits transmitted without error. layer 7, or application layer;
There are two types of parity: even and odd. In even layer 6, or presentation layer;
parity, the bits are counted before they are transferred; layer 5, or session layer;
if the total number of 1 bits is even, then the parity bit is
layer 4, or transport layer;
set to 0 (the sum of the bits must be even). If the number
of 1 bits is odd, then the parity bit is set to 1, making the layer 3, or network layer;
result even. An odd parity bit is set to 1 if the number of layer 2, or data-link layer; and
1’s in a given set of bits is even (making the total number layer 1, or physical layer.
of 1’s odd).
In isochronous transmission, the elements of both syn- Each layer in the architecture performs a specific task.
chronous and asynchronous forms of transmission are It only communicates with the layers directly above
combined. Each character is required to have both a start and below it; no communications are allowed directly be-
bit and a stop bit; however, as in synchronous data trans- tween layers that are not directly adjacent to one another.
mission, the sender and receiver are synchronized. For example, the session layer (layer 5) can only commu-
nicate with the presentation and transport layers (6 and 4,
respectively).
Data Flow The lowest layers—1 and 2—define the network’s phys-
The three elementary types of data flow are simplex, full ical media such as network adapter cards and the cable.
duplex, and half-duplex. In a simplex transmission, com- They also define how data bits will be transmitted over
munication can take place in only one direction: A ware- the medium. The highest layers define how user applica-
house sends its daily transactions to the main office, for tions will access communication services. The higher the
example. Radio and television signal transmissions are layer, the more complex its function.
examples of simplex transmission. Each layer provides a specific service or action that
In a half-duplex transmission, communication takes prepares the data to be transmitted over the network to
place in both directions, but not at the same time. This another computer. The layers are separated from each
is similar to a walkie-talkie radio; only one person can other by boundaries called interfaces. Requests are passed
talk at a time. The amount of time required for half- from one layer, through the interface, to the next layer,
duplex data flow to switch between sending and receiving and each layer builds on the services or actions provided
is called turnaround time. The turnaround time for differ- by the layer below it.
ent circuits varies and can be obtained from their techni- Although the OSI model is the best known and most
cal specification manual. widely used model for describing network communica-
In a full-duplex transmission, communication can take tions, it has been criticized for being difficult to under-
place in both directions at the same time. stand and for the long time spent to have it finalized.
Table 3 provides a description and the purpose of each
layer in the open systems interconnection model.
The basic purpose of each layer is to provide services
OPEN SYSTEM INTERCONNECTION to the next layer. Virtual communication occurs between
peer layers of the sending and receiving computers. For
(OSI) REFERENCE MODEL example, the transport layer adds information to the
In 1979, the International Organization for Standardi- packet that only the transport layer on the receiving com-
zation (ISO) developed the open system interconnection puter can interpret.
(OSI) reference model. The OSI reference model is a seven- To send a packet from a source computer to a destina-
layer architecture that defines the method of transmission tion computer, information is sent down through each of
of data from one computer to another over a network. the seven layers, picking up formatting or addressing in-
The model is used to control and describe the flow of data formation from each layer as it proceeds. The completed

Table 3: The Open Systems Interconnection (OSI) Model

OSI Layer Layer Name Focus

7 Application Program-to-program transfer of information
6 Presentation Text formatting and display code conversion
5 Session Establishing, maintaining, and coordinating communication
4 Transport Accurate delivery, service quality
3 Network Transport routes, message handling and transfer
2 Data-link Coding, addressing, and transmitting information
1 Physical Hardware connections
24 DATA COMMUNICATIONS BASICS

packet, having passed through all seven layers, is then understand. It might perform data compression, protocol
transmitted out of the network interface card, over the conversion, and data translation.
network cable, to the destination computer. At the des- Data encryption and character set translation such as
tination computer, the packet is sent up through each of ASCII to 4 EBCDIC and vice versa are also performed
the seven layers in the reverse order. Each layer reads and by protocols at this layer. The redirector utility operates
strips away the information sent to it by its peer layer on here and literally redirects requests for input/output op-
the sending computer, then passes the packet up to the erations to resources on a network server. Examples of
next layer. When the packet finally arrives at the applica- presentation layer protocols are hypertext transfer proto-
tion layer on the destination computer, all of the format- col (HTTP) and AppleShare file protocol (AFP).
ting and addressing information has been stripped away
and the information is back in its original form.
On the sending computer, information must be passed Layer 5: The Session Layer
through all of the lower layers before being transmitted The session layer provides services to and receives serv-
over the network cable. On the receiving end, the infor- ices from layers 6 and 4 (presentation and transport). The
mation is passed up from the lowest to the highest layer. layer is responsible for establishing a dialogue between
This means that only the physical layer is capable of com- computers and establishes, maintains, and breaks con-
municating directly with its counterpart layer on another nections or “conversations” between computers over the
computer. No other layer can pass information directly to network. It is responsible for dialogue control by regulat-
its counterpart layer on another computer. ing which side transmits, when, and for how long. Session
The following sections describe the purpose of each of initiation must arrange for all of the desired and required
the seven layers of the OSI model and identify the serv- services between session participants such as logging onto
ices they provide to adjacent layers. the network, transferring files, and checking security.
The session layer also provides synchronization
Layer 7: The Application Layer by placing checkpoints at specific intervals in the data
stream to help prevent large data losses. With the use of
The top (seventh) layer of the OSI model is the applica-
checkpoints, if the network fails, only the data after the
tion layer. It provides services to and receives services
last checkpoint has to be retransmitted.
from layer 6, the presentation layer. The application layer
Examples of session layer protocols are transmission
serves as the window that application programs use to
control protocol (TCP) and network basic input/output
access network services. This layer provides the services
system (NetBIOS).
that directly support user applications such as software
for file transfer, database access, and e-mail. It is applica-
tion dependent and performs different tasks in different
applications.
Layer 4: The Transport Layer
Programs, which use services of the network, reside The transport layer provides services to and receives serv-
in this layer. These programs are the ultimate consum- ices from layers 5 (the session layer) and 3 (the network
ers of network services of the lower layers. The transmis- layer). The transport layer (sometimes called the host-to-
sion of messages used by these programs is the primary host or end-to-end layer) is responsible for providing flow
goal of the lower protocols. This is the end user’s access to control and error handling. This layer generates the re-
the network system. The application layer handles general ceiver’s address and ensures the integrity of the transmit-
network access, flow control, and error recovery. Its main ted messages. The transport layer ensures that packets
objective is to provide a set of utilities for application are delivered error-free, in sequence, and with no losses
programs. Examples of application layer programs are: or duplications. This layer also provides various methods
of flow control, ordering of received data, and acknowl-
• AppleShare (Apple); edgment of correctly received data. It is responsible for
• file transfer protocol (FTP); breaking large blocks of data into smaller packets, if
• hypertext transfer protocol (HTTP), the protocol used needed, and eliminating duplicate packets.
to access World Wide Web documents written in hyper- At the destination computer, the transport layer un-
text markup language (HTML); and packs messages, reassembles the original messages, and
sends an acknowledgment of receipt. Examples of trans-
• X.400.
port layer protocols include TCP and sequenced packet
exchange (SPX) (Novell).
Layer 6: The Presentation Layer
The presentation layer provides services to and receives
services from layers 7 and 5 (application and session, re- Layer 3: The Network Layer
spectively). The layer formats the message and is known The network layer provides services to and receives serv-
as the network’s translator. It translates data from a ices from the transport and data-link layers (4 and 2). The
format provided to it by the application layer from the layer is responsible for message addressing and routing
sending computer into a commonly recognized format. as well as addressing messages and translating logical ad-
At the destination computer, the presentation layer trans- dresses and names into physical addresses. It also deter-
lates the commonly recognized format back into a for- mines which path a packet should take based on network
mat that the receiving computer’s application layer can conditions and priority of service. The network layer also
 NETWORK TYPES 25

handles tasks such as packet switching, routing, and con- responsible for data encoding and bit synchroniza-
trolling data congestion. Software at this layer accepts tion, ensuring that when a bit is transmitted as a 1, it is
messages from the transport layer and ensures that the received as a 1 (not as a 0) at the destination computer.
packets are directed to their proper destination. Exam- The physical media can be coaxial, fiber-optic, or
ples of network layer protocols include TCP, the Internet twisted-pair cable. The layer defines the specifics of im-
protocol (IP), and internetwork packet exchange (IPX) plementing a particular transmission medium. It defines
(Novell). the type of cable, frequency, terminations, and so forth.
The physical layer can be changed to other new technolo-
gies as they are developed without affecting the operation
Layer 2: The Data-Link Layer of upper layers, assuming that the interlayer interfaces
The data-link layer provides services to and receives serv- are implemented properly.
ices from layers 3 and 1 (network and physical, respec- Examples of physical layer implementation include:
tively). The layer oversees the establishment and control
of the communications link; its primary task is to resolve • token ring;
the problems caused by damaged, lost, or duplicate mes- • ArcNet;
sages so that succeeding layers are protected against
transmission errors and can assume that no errors take
• Ethernet:
place. The layer also is responsible for the detection of • 10Base-2, for thin Ethernet (coaxial) cable, com-
physical errors, notification of such errors, and estab- monly known as “thinnet”;
lishing and terminating logical links. It performs error • 10Base-5, for thick Ethernet (coaxial) cable, com-
detection, correction, and retransmission of packets if monly known as “thicknet”;
necessary. • 10Base-T, for unshielded twisted-pair cable,
Generally, the source computer’s data-link layer waits commonly known as “twisted pair”;
for an acknowledgment from the destination computer’s • 10Base-F, for fiber-optic cable, commonly known as
data-link layer. The destination data-link layer detects “fiber”; and
any problems with the transmission. If an acknowledg-
• other higher speed Ethernets now available, including
ment is not received, then the source data-link layer initi-
100BASE-FX, 100BASE-SX, and 100BASE-BX; and
ates a retransmission.
When the 802 standards committee (an industry • wireless:
standards-setting group) decided that more detail was • broadcast radio;
necessary at the data-link layer, the layer was divided into • infrared light;
two sublayers: the logical link control (LLC) and the media • microwave radio; and
access control (MAC) sublayers. The LLC is the higher of
• spread-spectrum radio.
the two sublayers, and it manages data-link communica-
tion and defines the use of logical interface points called
service access points (SAPs). The MAC sublayer provides NETWORK TYPES
shared access for the computers’ network adapter cards to There are three major types of network systems: local
the physical layer. The MAC sublayer communicates di- area network (LAN), wide area network (WAN), and met-
rectly with the network adapter card and is responsible ropolitan area network (MAN).
for delivering error-free data between two computers on A LAN system connects peripheral equipment that is
the network. It performs most of the data-link layer func- in close proximity. Usually, this kind of system is limited
tions such as error detection and retransmission. to a certain geographical area such as a building, and one
Examples of data-link layer implementation are Eth- company owns it. The geographical scope of a LAN can
ernet, token bus, and token ring. be from a single office to a building or an entire campus.
The speed of LANs varies from 10 Mbps (million bits per
second) to 10 Gbps (trillion bits per second). A LAN is
Layer 1: The Physical Layer usually a prerequisite for an automated office in which
The physical layer provides services to and receives serv- word processing, e-mail, and electronic message distri-
ices only from layer 2, the data-link layer. The physical bution are integrated in one system. To establish a LAN
layer is the lowest layer of the OSI model. It specifies system, careful planning and a thorough assessment of a
the electrical connections between the computer and the particular organization’s information needs are required.
transmission medium (such as the network cable). This A WAN system does not limit itself to a certain geo-
layer defines the physical media through which the host graphical area. It may span several cities, states, or even
communicates over the network. For example, it defines countries. Usually, several different parties own the
the number and function of each pin on a connector. system. The geographical scope of a WAN can be from
The layer is primarily concerned with transmitting between two or more cities to crossing international bor-
binary data (0’s and 1’s), or bits, over a communication ders. The speed of a WAN depends on the speed of its
network and defines the rules by which binary data are individual interconnections (called links), and it can vary
transmitted, including the appropriate electrical or opti- from 28,800 bps to 155 Mbps. As an example, consider a
cal impulse, electrical voltages, and full duplex or half- company that has its headquarters in Washington, D.C.,
duplex data flow and connector cable standards such and an office in each of thirty states. With a WAN sys-
as RS232, RS449, or radio frequency. This layer is also tem, all of these offices can be in continuous contact with
26 DATA COMMUNICATIONS BASICS

Table 4: LAN, WAN, and MAN Comparison

LAN WAN MAN

Ownership Usually one party More than one party One to several parties
Speed 100 Mbps to 10 Gbps 28.8 Kbps to 155 Mbps 34 Mbps to 155 Mbps
Scope A building to a campus Intercity to international One city to several contiguous cities

the headquarters and send and receive information. An As this definition indicates, standard formats play a
airline reservation system is another good example of critical role in an EDI environment. Sending e-mail or
a WAN. A customer can reserve an airline ticket in the faxes or posting through bulletin boards does not require
United States and pick it up in Asia or Africa. a specific data format and standard.
A WAN system may use many different technologies. Electronic data interchange was initially developed to
For example, it may use different communication media improve response time, reduce paperwork, and eliminate
(coaxial cables, satellites, and fiber optics) and terminals potential transcription errors. EDI represents the ap-
of different sizes and sophistication (PCs, workstations, plication of computer and communications technology,
and mainframes) and be connected to other networks. supporting innovative changes in business processes.
A committee of the Institute of Electrical and Elec- It uses a comprehensive set of standards and protocols
tronic Engineers has developed specifications for a pub- for the exchange of business transactions in a computer-
lic, independent, high-speed network that connects a compatible format. This may cover the following applica-
variety of data communications systems, including LANs tions:
and WANs in metropolitan areas. This new set of stand-
ards is called a metropolitan area network (MAN). A MAN • acknowledgments of business transactions,
is designed to deliver data, video, and digital voice to all • financial reporting,
organizations within a metropolitan area. Its geographi- • inquiries,
cal scope usually covers a city and contiguous neighbor- • invoices,
ing cities. The speed of MANs varies from 34 Mbps to 155 • order status,
bps. Table 4 compares these three types of networks.
• payments,
• pricing,
APPLICATIONS OF DATA • purchasing,
COMMUNICATIONS • receiving,
Early in this chapter we saw several applications of data • scheduling, and
communications. Volume 3 of the Handbook explores • student information.
several applications of data communications and net-
working. For now, we would like to introduce two popu- EDI is the closest option to implementing a paperless
lar applications of data communications: electronic data business-transaction processing system. Many businesses
interchange and electronic commerce. With the rapidly use EDI as a substitute for their usual method of com-
increasing popularity of the Internet, these applications munication where paper documents such as purchase or-
are gaining more users. ders, invoices, or shipping notices were physically carried
from department to department, mailed or faxed from
one organization to another, or manually re-entered into
Electronic Data Interchange the computer of the recipient. Also, organizations use EDI
Data communications can help companies transmit data to electronically communicate, having documents and
electronically over telephone lines and other communi- other types of information transmitted immediately
cations media. These data can be directly entered into and accurately in a computer-compatible format.
a trading partner’s business application. However, data EDI is different from sending e-mail or sharing files
communications can only solve a part of the problem. through a network (LANs, WANs, or MANs) or through
The data are captured first and then electronically trans- an electronic bulletin board. Using these communica-
mitted. Some manual intervention must take place here. tions systems, the format of the transmitted data must be
This is where electronic data interchange (EDI) plays such the same for the sender and receiver or successful com-
an important role. For the purpose of this chapter, we munication will not result. When EDI is used, the format
define EDI as follows: of the data does not need to be completely the same.
When documents are transmitted, the translation soft-
A computer-to-computer exchange of data in a ware of EDI converts the document into an agreed-upon
public or industry standard format using pub- standard format. Once the data are received, translation
lic or private networks among trading partners. software changes them into the appropriate format.
Such an exchange may include requests for An EDI message is held within two parts known
quotation, purchase orders, student information, as envelopes. The outside envelope contains the inter-
invoices, or transaction balances. change control information to address the message being
 CONVERGENCE OF VOICE, DATA, AND VIDEO 27

Table 5: Advantages and Disadvantages of EDI • gaining additional knowledge about potential
customers;
• improved customer service;
Advantages Disadvantages
• improved relationships with the financial community;
Improved competitiveness Different standards • improved relationships with suppliers;
Improved convenience May incur additional
• increased return of capital because no or minimal in-
Increased control in costs
ventory is needed;
payments Security issues
Increased customer service Supplier dependence • increased flexibility and ease of shopping;
Increased response and • increased return on investment; and
access to vital information • increased number of potential customers.
Reduced errors in ordering,
shipping and receiving Possible capacity and throughput problems, initial in-
Reduced labor costs vestment, and security issues are among the important
Reduced order lead time, disadvantages of electronic commerce. However, all indi-
resulting in reduced cations point to the elimination of these problems thereby
inventory paving the way for EC to become a common took among
all types of businesses.

transmitted. It can be compared to a common paper en-

velope that will send a letter. The inside envelope (the con- CONVERGENCE OF VOICE, DATA,
tent) consists of header information, or control informa-
tion such as source and destination addresses and other AND VIDEO
protocol information; and signature authentication. This In the data communications field, the term conver-
inside envelope can be compared to the content of the let- gence refers to the integration of voice, video, and data
ter that is sent in the regular paper envelope. to provide timely and relevant multimedia information
Table 5 summarizes EDI’s advantages and for decision-making purposes. Convergence is not just
disadvantages. about technology. It is about services and new ways of
doing business and interacting with society. In the past,
Electronic Commerce separate networks were used to transmit data, voice, and
video. This is changing as the technology supports such
Electronic commerce (EC) encompasses all the activities
integration and as the demand for integrated services is
that a firm performs when selling and buying services
on the rise. The integration of voice and data is almost
and products when using computers and communica-
complete in WANs.
tions technologies. In broad terms, EC includes a host of
Major carriers offer services that seamlessly integrate
related activities such as online shopping, sales-force au-
voice and data on the same network. The integration
tomation, supply-chain management, electronic payment
of voice and data has been slower in LANs mainly be-
systems, and order management. In the last section, EDI
cause of the lack of capacity and bandwidth. The inte-
was discussed; EC is the next step in this evolutionary
gration of video with voice and data requires substantial
progression. Technologies and applications used by EC
network upgrades required by the significant bandwidth
may include (Blinch 1998; Chakravarty 1998):
needed to carry video on the same network. However, this
is changing with the increased availability of high-speed
• direct connectivity using LANs, MANs, and WANs;
technologies such as asynchronous transfer mode (ATM)
• electronic data interchange; and Gigabit Ethernet (GbE) and an increased demand for
• electronic mail; new applications that require the integrated technology.
• the Internet, intranets, and extranets; and Gigabit Ethernet is a LAN transmission standard that
• value-added networks. features a data-transmission rate of one billion bits per
second (1 Gbps). ATM is a packet-switching service that
Among the products and services that customers pur- operates at speeds of 25 to 622 Mbps.
chase online are: In packet switching, small units of information known
as packets are transmitted along the best route available
• airline tickets and travels, between the sender and receiver. The service handles
multimedia data such as text, graphics, audio, and video.
• apparel and footwear,
The end points of the convergence market are distribu-
• books and music, tion (e.g., bandwidth on demand by any medium) and
• computer hardware and software, and content (e.g., video, audio, and data).
• flowers and gifts. More and more content providers, network operators,
and telecommunications and broadcasting giants, among
The advantages of electronic commerce include: many others, are being swept into a convergence of tech-
nologies. All the old rules about who delivers what and
• doing business around the globe seven days a week, to whom are breaking as once-separate technologies are
twenty-four hours a day; merging on the information superhighway. Convergence
28 DATA COMMUNICATIONS BASICS

has an impact not only on technology development and Data communications applications can enhance the
products, but also on companies and individuals. Con- efficiency and effectiveness of decision makers by ensur-
vergence is even affecting national boundaries, with in- ing the timely delivery of relevant information. For ex-
creasing numbers of companies having global access to ample, data communications supports just-in-time de-
information and even beginning to undertake worldwide livery of goods, resulting in reduced inventory costs and
project development using the Internet. Convergence increased competitive advantage for organizations that
is just starting; as it increases, the boundaries between effectively use this technology. Large corporations such
products and national borders will blur even further. as Wal-Mart, Home Depot, J.C. Penney, Dow Chemical,
Convergence is possible because of a unique combination UPS, and FedEx are examples of companies that have
of factors that has just only begun to exist, including been successfully using data communications technolo-
technological innovation, changes in market structure, gies in order to stay ahead of their competitors. Compa-
and regulatory reform. Common applications of conver- nies such as Ford and Intel are using virtual teams to cut
gence include: across boundaries of geography, time, and organization
to put together powerful teams that develop products
• e-commerce, quickly and effectively.
• entertainment (the number of television channels avail- Data communication systems have generated oppor-
able will increase substantially, and movies and video tunities for companies to use e-mail instead of the postal
on demand will become a reality), system and to transfer files online rather than by ship-
• increased availability and affordability of video and ping magnetic tapes and disks. An integrated network
computer conferencing, and enhances managerial control, shortens product- and
service-development life cycles, and provides better in-
• consumer applications (virtual classrooms, telecom-
formation to those who need it most. Most important, an
muting, virtual teams, and so forth).
integrated network is a crucial part of an organization’s
international information systems infrastructure. Data
The Internet is probably the most important driving force
communications applications directly or indirectly affect
behind the growth and popularity of the convergence phe-
all types of organizations. The following are some of the
nomenon. It is a vehicle for the delivery of both existing
highlights of this growing technology.
services (for example, e-mail, video, sound, and voice te-
lephony) and completely new services. The Internet is dis-
• More employees will get their education online through
placing traditional computer networks and showing signs
virtual classrooms that use data communications
of how it may provide a platform that, over time, replaces
technologies. This will bring the latest in technology
traditional methods of trading. For example, traditional
and product information right to an employee’s work-
business-to-business trading on closed corporate networks
station.
is giving way to commerce on global open networks.
The Internet is also providing an alternative means of • Online searches over the Internet and other networks
offering core telecommunications business activity (even bring the latest information on products, services, and
if differences in quality still distinguish the two services) innovation right to the employee.
through the delivery of telephony. The Internet is also a • The Internet and data communications will facilitate
significant platform for broadcasting services. Advances and enable lifelong learning, and knowledge will be-
in digital technologies are helping to move the conver- come an asset of even further importance for individu-
gence of technologies forward, and when standards be- als in the future.
come available and accepted, the rate of change may • Boundaries between work life and personal life will
speed up even further. become ever more diffuse as data communications be-
The lack of bandwidth is probably the most significant come widely available both in homes and businesses.
obstacle for the widespread applications of the conver- • Improved data communications technologies will re-
gence technologies. As new users come online, bandwidth duce the cost and complexity of staying in touch with
demands increase exponentially. In addition, corporate people.
and consumer securities and privacy are other issues that • Customers will be able to use their televisions and PCs
must be resolved before convergence can really take off.
to access the Internet, shop, make phone calls, and con-
Security measures such as firewalls and sophisticated en-
duct video and computer conferencing.
cryption routines are parts of the solution (Akers 1998;
Bidgoli 2002; Caldwell and Foley 1998).
There are at least seven critical areas within the data
communications field that managers should clearly un-
WHY DO MANAGERS NEED TO KNOW derstand:

ABOUT DATA COMMUNICATIONS? 1. the basics of data communications and networking;

Data communications have become a vital and integral
2. the Internet, intranets, and extranets;
part of the corporate infrastructure. In fact, they have be-
come so interwoven into the fabric of corporate activity 3. proper deployment of wired and wireless networks;
that it has become difficult to separate the core functions 4. network security issues and measures;
of the enterprise from the data communications that en- 5. organizational and social effects of data com-
able and support that very activity. munications;
 FURTHER READING 29

6. globalization issues; and geographical scope of a MAN usually covers a city and
7. applications of data communications. contiguous neighboring cities.
Modem: Abbreviation of modulator-demodulator; this
The Handbook will explain these various areas in several device converts digital signals to analog signals and vice
chapters in detail. versa for transference over analog telephone lines.
Open system interconnection (OSI) reference
model: A seven-layer architecture that defines the
CONCLUSION method of transmission of data from one computer to
another over a network.
This chapter discussed data communications and net-
Wide area network (WAN): A type of network that is
working principles. It introduced basic components of a
not limited to a certain geographical area. It may span
data communications system, types of networks, and im-
several cities, states, or even countries. Usually, several
portant events in data communications growth in North
different parties own it. The geographical scope of a
America. The chapter introduced some of the important
WAN can be from intercity to international borders.
keywords and concepts in the data communications
field, including data codes, serial and parallel transmis-
sion, transmission modes, data flow, and the open system CROSS REFERENCES
interconnection reference model. The chapter discussed
See Local Area Networks; Metropolitan Area Networks;
electronic data interchange and electronic commerce as
Terrestrial Wide Area Networks.
two of the fastest-growing applications of data commu-
nications. We concluded with a brief discussion on the
convergence of data, voice, and video and a brief discus- REFERENCES
sion on why managers need to know about data commu-
Akers, J. 1998. Ten ways to prepare for convergence. Busi-
nications.
ness Communications Review, 28(2): S9.
Bidgoli, H. 2002. Electronic commerce: Principles and
practice. San Diego: Academic Press.
GLOSSARY Blinch, R. 1998. Convergence coming: Voice, data and
Communications media: Channels that connect video convergence prompts mergers in the telecom-
sender and receiver devices. Communications media munications industry. Computer Dealer News, 13 July,
can be either conducted (wired or guided), such as co- p. 34.
axial cable; or radiated (wireless) such as satellite. Caldwell, B., and J. Foley. 1998. IBM means e-business.
Data codes: Formats used to represent and transfer http://www.informationweek.com/668/68iuebz.htm
data among various computers and network systems. (accessed April 30, 2007).
Popular types include Baudot, ASCII, and EBCDIC. Chakravarty, S. N. 1998. The convergence factor. Forbes,
Data communications: The electronic transfer of data July 27, p. 46.
from one location to another.
Electronic commerce (EC): All of the activities a firm
performs to sell and buy services and products using FURTHER READING
computers and communications technologies. Bidgoli, H. 2000. Handbook of business data communica-
Electronic data interchange (EDI): A computer-to- tions: A managerial perspective. San Diego: Academic
computer exchange of data in a public or industry Press.
standard format using public or private networks Kogan, A., E. F. Sudit, and M. A. Vasarhely. 1997. The
among trading partners. era of electronic commerce. Management Accounting,
Local area network (LAN): A network that connects September, pp. 26–30.
peripheral equipment that is in close physical proxim- Margolin, B. 1997. Chip makers keeping pace with chang-
ity. Usually this kind of system is limited to a certain ing modem technologies. Computer Design, August,
geographical area such as a building, and one com- pp. 101–102.
pany usually owns it. Romei, L. K. 1997. Networking connectivity gains
Metropolitan area network (MAN): A network that momentum. Managing Office Technology, May, pp.
is designed to deliver data, video, and digital voice 16–18.
to all organizations within a metropolitan area. The
Exploring the Variety of Random
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Whirlybirds Call
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Title: When Whirlybirds Call

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*** START OF THE PROJECT GUTENBERG EBOOK WHEN

WHIRLYBIRDS CALL ***
WHEN WHIRLYBIRDS CALL
 by Frank Banta

Five-Gun DeCrabbe was the terror of

every planet—especially to his friends!

[Transcriber's Note: This etext was produced from

Worlds of If Science Fiction, January 1963.
Extensive research did not uncover any evidence that
the U.S. copyright on this publication was renewed.]
Those of the city of Featherton, on Grimes Planet, were with him to
a man. Feathertonians cheered and waved from their windows that
morning, not daring to come out for fear of the whirlybirds, and
admiring Five-gun Charles DeCrabbe all the more for riding down the
main stem of the town with the bubble of his convertible space
coupe slid back—ignoring the menace from the skies.
Five-gun Charles DeCrabbe rode down the exact center of the street,
looking neither to right or left, not acknowledging the screams of
adulation that poured from the windows. His bare head was up, his
mouth was pressed into firm, haughty lines of self-confidence and
even his battle dress of dark green seemed to exude the aura of a
competent killer.
Five-gun Charles DeCrabbe had come to clean up the town. Of
whirlybirds.
He stopped his space convertible in front of the white stone building
titled City Hall on its facade. The two men waiting to greet him
stayed safely under the bullet-shaped marquee as he alighted. He
jumped over the side, checked his two holstered needle pistols,
slung his explosive pellet rifle over one shoulder, his N-ray flashburn
gun over the other shoulder and picked up his rocket-powered stun-
gas spray gun in his hands. He strode over to the waiting men.
"I'm Alson Prince, Mayor of Featherton," said the older man shaking
hands with the one DeCrabbe stuck out from under the spray gun.
"And you are Five-gun Charles DeCrabbe?"
"Yes yes yes!" exclaimed DeCrabbe impatiently in his clipped speech.
"I'm the mayor's son," introduced the younger man with admiration
shining in his eyes. "You sure look like you're ready to whip those
whirlybirds."
"Yes yes yes!" exclaimed DeCrabbe haughtily. "Always dislike long
conversations you know. Supposing you tell me what you know so
can exterminate them without further delay. No doubt solution
before dusk."
"Before dusk?" asked the mayor, dumfounded. "Oh, no, not today,
I'm afraid. They've been around too many years to whip in one day."
"Perhaps shall require two days then," said Five-gun Charles
DeCrabbe graciously. "But doubt it. Tell me what you know of them."

"Very well," assented the older man. "Perhaps the best place to
begin is with their name. When we first occupied this planet, a bare
twenty years ago, we called them wolfhawk-whirlybirds and
tigerhawk-whirlybirds because they preyed on vicious animals. The
whirlybirds were our best friends in those days. The only trouble is
that they ran out of tigers and wolves to eat."
"Presumed they are now called peoplehawk-whirlybirds?" DeCrabbe
frowningly asked in his clipped speech.
"Exactly!" answered the older man. "Although that isn't their full
name. From the way they attack—"
"Most important," interrupted Five-gun. "Give to me in detail."
"They prefer to attack strollers, although they have attacked on city
streets when there is little traffic. They fly with amazing speed,
considering they are an untidy ball forty feet in diameter, and they
are on top of their victims before the unlucky ones are aware of the
menace. Blowing their victims down with a rush of air from their
feathers, they grab them up by the heels, carry them high aloft and
drop them on piles of rock outside of town."
"They are downdraft-peoplehawk-whirlybirds then?" asked
DeCrabbe.
"That's almost it," agreed the mayor. "I have not yet told you of their
cries. As they rise in the air with the victim dangling from their
talons by his heels, they utter a pleased 'Coo! Coo!' like a gentle
dove. That is why they are called Coocoo-downdraft-peoplehawk-
whirlybirds."
"Approve of adequate names," nodded Five-gun, unbending a trifle.
"First step toward efficiency. Only one thing haven't made clear.
Presumably have shotguns and rifles. Why unable drive off these
predators yourselves?"
The mayor laughed bitterly. "It would be easy to tell you'd just
arrived on this planet—although the birds are not well known in the
other cities either; they are all concentrated in this area. Yes, our
sportsmen tried to shoot down the whirlybirds. No luck, of course.
Imagine the problems you have when one of these forty-foot balls of
commotion comes at you: You try to aim but you can't hold your
arm still because of the swirling wind they raise; and then the dust
clouds thicken and you're firing wildly, and you can't begin to tell
which is body and which is feathers anyway."
"Very well," accepted Charles DeCrabbe mercifully. "You've made
attempt. My first step therefore the attachment of high explosives to
boobytrapped mannequins. Brought these with me."

"Great winds of catastrophe. I'm glad you mentioned it before you

did it!" exclaimed the mayor. "We tried that once. The city was six
weeks digging out from under the feathers—and it didn't kill the
whirlybird!"
"Aren't you exaggerating difficulties encountered in picking up few
feathers?" loftily inquired DeCrabbe.
"How do you think we got the name of Featherton? Before the
deluge we were called West Applebury!"
"Then why haven't you attempted lure them into boobytraps outside
town? Could detonate them there without even slight inconvenience
of picking up feathers."
"Believe me, if there were only a few feathers," insisted Mayor
Prince, "few enough for you to pick up by yourself, we wouldn't mind
you blowing up a whirlybird."
"Wasn't considering picking up any feathers," replied Five-gun with
dignity. "Had supposed a menial or two could be supplied for that."
The mayor shook his head. "It would take everybody in town to
clean up. And as for blowing one up outside the city, one of our
orchardists tried it. He blew it to bits all right, but eighty acres of his
apple trees were smothered under the debris!"
"Now anticipate that the extermination of the whirlybirds will almost
certainly take me up to two days," conceded Five-gun DeCrabbe
calmly. "However will be all the more interesting to defeat them
without recourse large explosives."
"Gee, what a man!" admired the mayor's son. "Only two days!"
"If you will now lead me to your city park will begin campaign of
extermination at once."
"It's down that way," said the mayor, pointing. Plainly he had no
intention of leaving the shelter of the marquee. "You can't miss it."
As Five-gun Charles DeCrabbe leaped back into his craft and started
off, the mayor's son called after him, "Aren't you scared, going out
exposed like that?"
DeCrabbe turned. "Am armed, young man," he retorted severely.
"Yeah, but those whirlybirds don't pay any attention to guns."
"Soon will," DeCrabbe replied, unruffled.
Slowly he drove down the center of the empty street, receiving more
cheers from heads thrust out of windows. He arrived at the city park
and turned in. He unloaded most of his equipment under the roof of
the bandstand.
A few minutes later one of his robot mannequins moved slowly
around the clearing before the bandstand, its control set for slow
walking to conserve its atomic battery. The predator hunter
unlimbered all his guns as he sat under the bandstand roof waiting.
It was an hour before the first whirlybird attacked.
His first warning was the rising wind. His gaze moved around the sky
until he found the rapidly growing black spot. A few seconds later it
became a universe-engulfing blackness as it spotted the mannequin
and came down for it. As soon as the wind-screaming blackness
reached the mannequin, the needle guns in his hands emptied their
hundreds of anesthetizing needles into the turbulence. But it was as
the mayor had said. Where did the bird's body end and the feathers
begin? When the needle pistols were empty he dropped them and
snatched up the rocket powered stun-gas weapon; its immense flare
poured into the blackness without visible result. He dropped it and
grabbed the N-ray flashburn gun. The forty-foot ball of fury was
beginning to rise high with its prey now, as the gun stuttered fifty
bolts of burning lethal radiation into it. He smelled feathers that
time. Finally as the giant bird, without faltering, rose above the
range of the N-ray gun, he took to the explosive pellet rifle. It had
only ten shots; all of these went into the center of the blackness well
before the whirlybird had flown beyond range. And as it neared the
horizon with its mannequin prey, he heard its sweet song:
"Coo! Coo!"
"How dare it coo after all I did to it?" muttered DeCrabbe grimly.
"Shall not coo next time!"

Half an hour later a new mannequin stood out in front of the

bandstand. Its arms waved ceaselessly but it stood still. Nestled
against its back was a ten gallon drum of gas, which would be
exploded—blanketing most of the park in fumes—as soon as the
mannequin was moved. Charles DeCrabbe waited, his mask ready,
his potent weapons all reloaded.
Ninety minutes later the huge black menace arrived—either the first
whirlybird or another forty-foot wind-screaming fury. Slipping his gas
mask on, the man waited for the right moment to begin firing. The
whirlybird swooped down, the tank exploded in a fog, and the giant
wobbled!
DeCrabbe emptied all his weapons again. The bird arose, wobbling,
its speed greatly impaired, but making its getaway despite all he
could do.
"Damn well didn't coo that time," he said when the monster had
reached the horizon. "Next time won't fly either."
But just then the monstrous bird mocked him in the distance with a
loud, sweet, "Coo! Coo!"
Shortly after lunch he had it all set up. A new mannequin stood out
in front of the bandstand, its arms waving and a pair of slim,
gleaming, ten-gallon drums of stun gas nearby.
It was one o'clock before the third whirlybird struck.
Down it sank until it became a huge, ebony blot in the afternoon
sky. Underneath the bandstand roof DeCrabbe got ready for his
supreme effort. He slipped on his gas mask and made sure his N-ray
flashburn gun was ready for instant action, its safety off. He was
determined that if he got the bird prostrate he would climb aboard
and fire N-ray bolts into it until something gave!
The huge black, wind-screaming monster plummeted the last few
yards down and grabbed the mannequin. Both tanks of stun gas
exploded. The giant whirlybird slumped unconscious—and DeCrabbe
scrambled aboard!
The feverishly hurrying hunter was not long discovering why he had
not—and never would—penetrate the bird's feathers with any of his
weapons: He burrowed down into the feathers the length of his arm
and there were yet more feathers beyond! A feather pillow would
stop a rifle bullet, he knew, and this monster had the probable
equivalent of a thousand feather pillows protecting it, invulnerable as
a battleship.
And just then the maneater awoke, wobbled into the air, and flew
away before DeCrabbe could get off!

The following afternoon, as Five-gun Charles DeCrabbe made his

farewell of the city of Featherton, he once more drove down the
center of the street with the bubble of his space convertible slid
back.
Yet there was a difference this time. The mayor and his son rode
beside him on the seat, and all of the people were now out of doors
standing along the curb, cheering their deliverer wildly as he passed.
"I can't tell you how much I personally appreciate what you've done
for us," said the mayor humbly.
"Quite quite quite!" returned Five-gun haughtily in his clipped
speech, hoping to shut off the man's tendency toward windyness.
With awe in his voice the mayor's son admired, "So instead of being
scared to death you were all ready for action when you and the
whirlybird landed at their rocky, mountain lair?"
"Yes yes yes! Slid off its back, hid between two boulders, waited for
the appropriate moment. After bagging that one, waited for other
monsters as they landed, one by one. Bagged them."
"Just like that!" said the youngster. "You just get up close enough for
those peoplehawks to grab you and then you bagged them."
"Only possible way is my way," clipped DeCrabbe immovably.
"Its eyes couldn't be buried deeply in feathers if they were to be of
use."
"So?"
"So eye is proximate to beak—and brain," said the hunter with
dignity. "Where one of its coo-coos came out, one of my N-ray bolts
went in, and that was that!"
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