Chapter 6

Telecommunications
& Networks
 Concept of Network
• When computers are networked, two industries –
computing and communication – converge
• The internet, intranet, extranet are networking
business processes and employees together and
connecting them to their customers, suppliers
and other stakeholders
• Companies and workgroups can collaborate more
creatively, manage business operations and
resources effectively and compete in today’s fast-
changing economy successfully
• Cisco Telepresence
 Concept of Network
• Network is an interconnected or interlinked
chain, group of systems
• The number of possible connections on a
network is N(N–1) or N2 –N
• Metcalfe’s law states that the usefulness, or
utility, of a network equals the square of the
number of users
Telecommunication Trends
Telecommunications-Based Services
 Digital Network Technologies
• Telecommunications are being revolutionized
by switch from analog to digital
– Analog: voice-oriented transmission
– Digital: discrete pulse transmission
• Benefits
– Higher transmission speeds
– Moves larger amounts of information
– Greater economy and much lower error rates
– Transmits multiple types of communications (data,
voice, video) on the same circuits
• Wireless Technologies
 Business Application
• Telecommunications networks now play a vital
and pervasive role in Web-enabled…
– E-business processes
– Electronic commerce
– Enterprise collaboration
– Other applications that support operations,
management, and strategic objectives
 Business Value
• Use of telecommunication network can
– Cut costs
– Shorten business lead time
– Reduces response time
– Support eCommerce
– Improve collaboration
– Develop online operation processes
– Share resources
– Lock in customers and suppliers
– Develop new products and services
 Strategic Value of Telecommunications Networks
Strategic Capabilities
Overcome Geographical
barriers:
Capture information about
business transaction from
remote locations
Overcome time barriers:
Provide information to
remote locations immediately
after it is requested
Overcome cost barriers:
Reduce the cost of more
traditional means of
communication
Overcome structural
barriers:
Support linkages for
competitive advantage
e-Business Example
Use internet and extranets to
transmit customer orders from
traveling salespeople to a
corporate data center for order
processing and inventory control
Credit authorization at the point
of sale using online POS
networks
Desktop videoconferencing with
business partners using internet,
intranet and extranets
B2B eCommerce websites for
transactions with suppliers and
customers using Internet &
extranets
Business Value
Provides better customer
service by reducing delay in
filing orders and improves
cash flow by speeding up the
billing of customers
Credit inquiries can be made
and answered in seconds.
Checking Credit History SSN
score assessment.
Reduces expensive business
trips.
Collaboration improves the
quality of decisions reached.
Fast, convenient services lock
in customers and suppliers
IaaS, PaaS, Saas
 Internet Applications
• The Internet is the global system of interconnected
computer networks that uses the Internet protocol suite
(TCP/IP) to link devices worldwide.
• Most popular Internet applications and uses
– E-mail
– Instant messaging
– Browsing the Web
– Newsgroups
– Chat rooms
– Publish opinions, subject matter, creative work
– Buy and sell
– Downloading (data, software, reports, pictures, music,
videos)
 Business Use of the Internet
Internet websites enable
interactive marketing
and electronic commerce
and collaboration with
customers, prospects
and business partners
Business partners can use the
internet for e-mail, file transfer,
discussion forums, and
extranet access to intranet
resources.
Extranets for electronic
commerce enable suppliers to
assess inventory, replenish
stock, and send documents over
secure internet links.
Customers can shop at Intranet links with remote
e-commerce websites for employee sites connect virtual
products and services with teams for interactive
interactive service and support. communications, collaboration,
and computing.
 Business Value of the Internet
• Online discount eTrading
• Bank’s Online Bill payment Develop new web-based Products
• Worldwide Online Class
• Online Telephone top up Develop new Markets & channels
• Targeted Marketing
• Mass customization and Personalized
Attract new Customers
product recommendation
• ISP Application development & data
warehouse, AWS Generate new Revenue sources
• Online Payment System with eCommerce
website Reduce Costs of doing business
• Online booking of flight costs 90% less
• Brick-and-Mortar Banking transactions Increase customer Loyalty & Retention
incur upto 95% more, however they charge
fees for
• App & Social Networking site based customer
support
 Role of Intranets
• A network inside an organization that uses internet
technologies to provide an internet-like environment
• Many companies have sophisticated and widespread
intranets, offering…
– Detailed data retrieval & information sharing
– Collaboration & communication
– Personalized customer profiles
– Support to business processes
– Links to the Internet
• Intranets are protected by password, encryption,
firewall
• Customers, suppliers, and other business partners
can access an intranet via extranet links
 Business Value of Intranets
• Communication and Collaboration
– Intranet browser can send and receive e-mail, voice mail,
pages and faxes within organization
– Use groupware to improve team & project collaboration
with services like MS Sharepoint, OneNote, Telepresence
• Discussion group, chat rooms, audio/video conference
• Web Publishing
– Easy and low cost of designing, publishing and accessing
multimedia business information internally via enterprise
intranet portal
– Company newsletter, product catalog, web pages
– Intranet web search to locate business information
 Business Value of Intranets
• Business Operations and Management
– Platform for developing and deploying critical business
applications to support business operations and
managerial decision making across the inter-networked
enterprise
– order processing, inventory control, Database & EAI
• Intranet Portal management
– Managing the functions of intranet
– Maintaining access control of various hardware and
software components
– Protection against unauthorized access, computer viruses,
directory management
Intranet
 Extranet
• Network links that use Internet technologies to
connect the intranet of a business with the intranets
of another partners and customers through
– Direct private network links,
– Private secure Internet links (VPN)
– Unsecured Extranet Link between a company and others
via the Internet, relying on encryption of sensitive data and
firewall security systems
• Extranet enables customers, suppliers, consultants,
subcontractors, business prospects and others to
access selected intranet Website and other company
databases
 Extranet
• Customer and supplier access of intranet resources made
easier and faster
• Enabling to offer new kinds of interactive web-enabled
services to business partners
• Build & strengthen strategic relationships
• Consultants : facilitate design of new products
• Contractors : provide outsourcing services
• Suppliers : ensure optimum stock level
delivery in timely fashion
• Customers : self-service functions
• Online Ordering, Delivery Status, Payments
Extranet
 Types of Telecommunication Networks

• On the basis of geographical region/ Coverage

– LAN
– MAN
– WAN
• On the basis of Architecture
– P2P
– Client/Server
– VAN
 On the basis of Geographical region
• Local Area Network (LAN)
– Connects information-processing devices within a
limited physical area of the organization – 1 km
• Classroom, floor, offices, buildings, compound, plant
– Characteristics of LAN
• Uses twisted pair, coaxial cable, wireless radio systems
to interconnect workstations & peripherals
• Bus, Ring,Star topologies are used
• Allows end users in a workgroup to communicate
• Simple and economical networks
• Links & equipment of LANs are owned by the firm
• Faster than WANs
 On the basis of Geographical region
• Metropolitan Area Network (MAN)
– Telecommunication network that interconnects
various LANs within a metropolitan area – 80 kms
• Cable TV network, banks in a city
– Characteristics of MAN
• Purpose is to interconnect various LANs in a
metropolitan area
• Mostly coaxial cable is used
• Speed is equal to that of LANs
• LANs and MANs use similar technology
• Generally Bus and Star topologies are used
• Privately owned by the firm/Inter-organizational IS
 On the basis of Geographical region
• Wide Area Network (WAN)
– Telecommunication network that covers a large
geographical area – more than 80 miles
• Connect large city, whole country, countries, continents
– Characteristics of WAN
• Hierarchical Information System of an organization
• Connects all divisional minicomputers to headquarters
mainframe with a variety of local microcomputers
• WAN provide backbone through which all other nodes
communicate
• Uses telecommunication links & equipment
 On the basis of Geographical region
• Wide Area Network (WAN)
– Characteristics of WAN
• Serves to interconnect multiple LANs and MANs
• Different topologies are used
• Wireless and wired media and technologies are used
• Internet is the a WAN
• Different protocols are used
• Slower as compared to the LAN and MAN
• No individual ownership of this type of network
 Virtual Private Networks (VPN)
• Used to establish secure intranets and
extranets
– The Internet is the main backbone network
– Relies on network firewalls, encryption, and
other security features to build a “pipe”
through the Internet
– Creates a private network without the high
cost of a separate proprietary connection
 On the basis of Architecture
• Peer to Peer Network (P2P)
– Peer is connected to another peer via network
– Files can be shared directly between systems on the
network without the need of a central server
– Each peer can be a server and a client both
– Simple network
– P2P software
– No privacy and security of the data in this network
• Central Server Architecture
• Pure P2P Architecture
 On the basis of Architecture
• Client/Server
– Computer network with at least one of them being used
to “serve” other computers
– Clients make requests to server to process, to
download, to upload, even to share files & information
– Files and resources are centralized
– Server is always ON
– However, clients might have its own local resources and
files
– Network might use two or more servers to maintain
availability of a server at least
 On the basis of Architecture
• Client/Server
– Advantages
• All files are stored in a central location
• Network terminal & peripheral are controlled centrally
• Highly secured centralized network
• Centralized back up
• Easy sharing from central server
• Resources are available all the time
• Full intranet capability
• Internet monitoring is easier
 On the basis of Architecture
• Client/Server
– Disadvantages
• A special Network OS is needed
• Servers are expensive
• Complex networking system
• IS staffs like network managers are needed
• Network maintenance and repair is complex and time
consuming
 On the basis of Architecture
• Network Computing
– Networks are the central computing resource of the
organization
– Thin clients provide a browser-based user interface
for processing applets
– Thin clients include
• Network computers
• Net PCs
• Other low-cost network devices or
information appliances
 On the basis of Architecture
• Network Computing
– Application and database servers provide
• The operating system
• Application software
• Applets
• Databases
• Database management software
– Sometimes called a three-tier client/server
model because it consists of
• Thin clients
• Application servers
• Database servers
Network Computing
 On the basis of Architecture
• Value Added Network (VAN)
– A private network provided by a third party that a
company uses for electronic data interchange (EDI)
and other network services
– VANs are deployed to help trading and supply chain
partners automate many business-to-business
communications
• Reduces paper transfers
• Cut costs
• Speeds up the tasks
– VAN is an intermediary between business partners
that share standard or proprietary data
 On the basis of Architecture
• Value Added Network (VAN)
– Contemporary VAN providers offer EDI translation,
encryption, secure e-mail, management reporting, and
other extra services for their customers.
 Telecommunication Media
• Media is the channel for delivering and
receiving data or information
• Media technologies can be wired or wireless
• Channel capacity is the potential transmission
speed of any media expressed in ‘bps’
• Different media:
Wired Media Wireless Media
• Twisted pair • Terrestrial Microwave
• Coaxial cable • Satellite Transmission
• Fiber Optics • Radio Transmission
 Telecommunication Media
Wired Media
• Considered guided media or bounded media
• Transmission of signal occurs in an enclosed
path using a physical media
• Provides direction to signal for travelling
– Twisted pair
– Coaxial cable
– Fiber optic
 Telecommunication Media
Twisted pair wired media (TPWM)
• Consists of two wires twisted together
• Twisting cancels out electromagnetic
interference from external sources
• TPWM is the leading standard for Ethernet
– 10Mbps to 10Gbps
• Upto 4 pairs of twisted wires
– Unshielded TPWM
– Shielded TPWM
• Can run upto 100 meters in length
 Telecommunication Media
Coaxial Cable Wired Media (CCWM)
• Consists of a relatively thick central conductor
shielded by several layers of insulation and
– the second conductor just under protective cable’s
shell
• Used in Ethernet LAN connection
• Shield minimizes electrical and radio frequency
interference
 Telecommunication Media
Coaxial Cable Wired Media (CCWM)
• Coax is often used as a backbone
– A high speed data freeway
• Thin coax carries signal over 185 meters
• Thick coax carries signal over 500 meters
• Broadband coax carries signal over 3600 meters
• More expensive than TPWM
 Telecommunication Media
Fiber Optics
• Media that uses glass thread to transmit data
• Capable of transmitting messages modulated onto
light waves
• Consists of a single thread or bundle of glass threads
– Single mode
– Multi mode
 Telecommunication Media
Wireless Media
• Considered as unguided media or unbounded
media
• Transmission of signal occurs through air
• Does not provides direction to signal for travelling
– Terrestrial Microwave
– Satellite Transmission
– Radio Transmission
 Telecommunication Media
Terrestrial Microwave
• Unguided long distance telecommunication – 30 miles
• Uses beam of microwave frequency travelling on the
surface of the earth
• P2P communication with line of sight antenna
• High frequency & Shorter wave length
• Cannot travel or overcome tall physical structures
• Allows nearby devices to use same frequency
• Can carry very large amount of
information
 Telecommunication Media
Satellite Transmission
• Form of microwave transmission in which signal is
beamed by an earth station to a satellite which
rebroadcasts the signal to the receiving station
• Serve as relay stations
• Use microwave radio signals
• Not suitable for interactive, real-time
processing
 Telecommunication Media
Radio Transmission
• Media that transmit data over the air using a lower
frequency band than microwaves
• Electromagnetic wavelengths with frequencies from
3KHz to 300GHz
• Can travel at the speed of light
• Can travel longer distance
• Can travel 1000 KM
 Network Topologies
• The arrangement of nodes and links in a network
• Computers, switches and terminals that are
interconnected by network links are collectively
called nodes
– Hierarchical or Tree Topology
– Bus Topology
– Star Topology
– Ring Topology
– Mesh Topology
– Hybrid Topology
 Network Topologies
• Hierarchical or Tree Topology
– Nodes are arranged in different levels
– A root node at the top
– Each node at the lower level has a parent and may
have many child nodes
– Very bureaucratic organization structure oriented
– Branching of nodes is symmetric from left to right
– Searching of node is very fast
Hierarchical Topology
 Network Topologies
• Bus Topology
– All nodes are connected to a single cable with
interface connectors
– Single cable is a bus and considered as a backbone
– A terminator is added at each end of the cable to
prevent bouncing of signals
– Barrel Connector extends the connection to different
node or network
– Simple network; suitable for small network
– Length of central cable & number of nodes are limited
– Coaxial or fiber cable is used for bus
Bus Topology
 Network Topologies
• Star Topology
– All nodes are connected to a central device called
HUB
• Hub may be a computer, server, router, switch
– Central hub connects to each node via P2P link
– Each node is connected indirectly to other nodes
– Easy to manage, control and secure a network
– Central device can act as repeater or booster
– Increase/Decrease of nodes does not effect the n/w
– Totally dependent on the central node
Star Topology
 Network Topologies
• Ring Topology
– Nodes are connected to each other in such a way that
they make a closed loop
– Each node is connected to two other nodes
– Token are used to transfer data
– The node with the token is the only one allowed to send
data
• Half duplex or full duplex
– No need of server to control connectivity among the
nodes
– Equal access to the resources
Ring Topology
 Network Topologies
• Mesh Topology
– Devices are connected with many redundant interconnections
C= n(n-1)/2
between nodes
Full mesh topology:
– Every node connects to every other node in a network
– Full mesh is very expensive to implement
– Immense redundancy; Nodes failure doesn’t affect much
– Full mesh is usually reserved for backbone networks
Partial mesh topology: 
– With partial mesh, some nodes are organized in a full mesh scheme
but others are only connected to one or two in the network.
– Partial mesh topology is commonly found in peripheral networks
connected to a full meshed backbone.
Mesh Topology
 Network Topologies
• Hybrid Topology
– Combination of two different topologies
– Harness the benefits of various topologies
• Advantages
– Reliable: Easy fault detection & trouble shooting
– Scalable: Convenient in modifying the network size
– Flexible: Network design can match the requirement
and optimize the available resources
– Effective: Strengths can be maximized and
weaknesses can be neutralized of different topologies
Mesh Topology
OSI and TCP/IP Models