MANAGING TELECOMMUNICATIONS

1. MANAGING TELECOMMUNICATIONS PREPARED BY: JANINE RABE PHOEBIE ANDALLO SHIELA MAE COLLADO JAYSON SANTIAGO

2. Introduction We emphasized the need for networking through various forms of distributed computing, and indicated that distributed systems require a reliable telecommunications infrastructure. For most business, they use outside service providers (a phone company, an Internet Service Provider (ISP)) for their telecommnunications needs. As the business environment is becoming more Internet-centric with VoIO, WAN, and wireless networks,it is important for managers to understand the basic concepts undewrlining telecommunications technologies that are needed to support the network-centric strategy of the organizations.

3. Once built, the network, with its nodes and links, provides the infrastructure for the flow of dta, information, and messages. This flow is managed not by IS proffesiomals, but by users, just as users manage the flow of vehicles on physical highways. Telecommunications are the basis for the way people and companies work today. It provides the infrastructure for moving information, just as a transportation system, such as shipping lanes , railroad right-of-ways, and the airspace, provides the infrastructure for the movement of people and goods.

4. This analogy presents telecommunications as a linking mechanism, which it is. However, the Internet has also opened up a different view of telecommuncations, that of providing a cyberspace, a place where people can “exist” in virtual world, where organizations can conduct business and in fact, a place where organizational processes exist. It is an online world, a sort of cybercity. Yhis view, too, is providing the foundation for the online economy. However, even more is happening. Just about everything in telecommuncations is shifting, from the industry itself to the ptotocols (the languages networks use to communicate with each other).

5. THE EVOLVING TELECOMMUNICATIONS SCENE • 125 YEARS OF TECHNOLOGICAL INNOVATION AND INDUSTRIAL REVOLUTION the history of telecommunications began with smoke signal and drums in early generations. however, it was not until 1844, when Morse’s electric telegraph was first shown to the public from Baltimore Washington, that the era of global telecommuncations actually began. Less than 20 years afterward, telegraph communcation was completed coast-to-coast in the United States (1861), and for the United States to Europe (1866). The innovation continued with the creation of telephone by Bell and Watson in 1875. these were the first technological inventions that changed the world and triggered the inventiom of the telephone, telewriter, coaxial cable, broadband carrier for simultaneous calls over a single pair of wires, magnetic tape machine with transmission capacity of 1,000 words per minute, communication satellites, fiber optics, cable modems, DSL Internet services, and cellular wireless technologies.

6. From a business perspective, the oldest part of the telecommunications infrastructure is the telephone network, commonly called the public switched telephone network (PSTN), or affectionately called POSTS (plain old telephone srvice). This global network was built on twisted-pair copper wires and was intended for voice communications. It uses analog technology (signals sent as sine waves)and circuit switching, which means a virtual (temporary) circuit is created between caller and receiver and that circuit is theirs alone to use; no other parties can share it during the duration of their telephone call. Although appropriate for delivering high-quality voice communications, circuit switching is inefficient because of all the unused space in the circuits when no sound is being transmitted.

7. the new telecommunications infrastructure being built around the world is aimed at transmitting data. The wired portion consists of fiber-optic links (glass fiber rather than copper wire) sending digital signals (ones and zeros instead of sine waves). The wireless portion consists of radio signals both use packet switching; messages are divided into packets, each with an address header, and each packet is sent separately. Packets from any number of senders and of any type, whether e-mails, music downloads, voice conversations, or video clips can be intermixed on a network segment. These networks ate able to handle much more and a greater variety of traffic. Packet nets also can handle voice. The analog voice signals are translated into oes and zeros, compressed and packetized.

8. Unlike voice-centric networks, data-centric networks assume intelligent user devices that provide the addressing information; therefore, the network only needs store-and forward routers to route the packets. This architecture allows new kinds of services to be deployed much more rapidly,because the basic functions of network need not be changed. Thus, for example, it was easy to add the World Wide Web as a new kind of layer on the Internet infrastructure. Other such layers are multiplayer gaming, e-mail, and file transfer. This infrastructure would not have been been possible with PTSN.

9. The internet can handle new kinds of intelligent user devices, including Voice over-IP (VoIP) phones, personal digital assistant (PDAs), gaming consoles, and all manner of wireless devices. It can allow these devices to handle different kinds of services, such as voice, e-mail, graphics, gaming, and so forth. Thus, the global communications infrastructure is changing from a focus on voice to a focus on data-both from technical perspective and a revenue generation point of view.

10. With the increasing demand for high-speed multimedia mobile communications services to users, there are a number of ongoing initiatives to replace the current low-speed voice and data wireless networks by stratospheric communications systems or High Altitude Platform Stations (HAPS). The technologies are still evolving. However, they become proven, they would tremendously improve the performance of current telecommunications infrastructure.

11. THE FUTURE OF TELECOMMUNICATIONS The early 2000s could be seen as a correction of the investment excesses of the late 1990s and the misreading of the market ability to adapt to technological changes. Despite the significant financial downturn of the telecommunications industry,broadband subscription continues to increase steadily. According to OECD, the number of broadband subscribers in the OECD country members increased 26 percent from 157 million in 2005 to 197 million in 2006. innovation expected to accelerate

12. EMERGING TRENDS Steady growth in telecommuncation usage Quick and global adoption of new telecommunications-based technologies Competition in broadband markets is expected to accelerate Mass-individualization of real-time progrmming The new economic model for financing the telecommunications industry has yet to be defined

13. TELECOMMUNICATIONS FOR BUSINESS In 1990s, the Regional Bell Operating Company RBOC) began encountering competition for this last mile. So the jargon expanded . RBOCs became known as incumbent local exchange carriers (ILECs) and the new competitors became competitive LECs (CLECs). The importance of CLEs is the new kinds of connection option they have brought to businesses and homes, such as cable modems, optical fiber, wireless satellite and faster wire lines.

14. In the mid-1990s the Internet caught most IS department by surprise not mention the hardware and software vendors that serves the corporate IS community. The Internet actually began in 1960s; it was funded by the U.S department of Defense’s Advanced Research Project Agency and was called ARPANET. In 1994 when the World Wide Web was invented by Tim Berners-Lee at CERN in Geneva. The Internet has done for telecommunication what the IBM PC did for computing: it brought to masses. In 1981, when in IBM PC was introduced. The norms is now end-to-end IP networks.

15. Ubiquity Reliability Scalability

16. Various forms of media: • Voice data • Video IP Telephony • Enterprises have been investigating the use of the Internet to transmit voice to replace their telephone systems. This new Internet use is called, voice over IP ,Internet Telephony or IP Telephony • IP telephony became the hot telecommunications technology in 2004. • Voice has become another digital medium that can be managed electronically from ones PC

17. Video telephony- which is not video conferencing via a PBX, but rather video over IP Skype.com is a prime example of successful use of IP for telephony and beyond. Digital Convergence is setting up a collision among three massive industries, state Srephen Baker and Heather Green.

18. The worldwide telephone system has been so effective in connecting people because is based on common standards, todays packet-switching networks also following some standards. The underpinning of these standards is the OSI Reference Model. Closed Versus Open Networks- to understand is the difference between closed and open networks. A closed network is one of that is offered by one supplier and to which only the products of that supplier can be attached. Why is it called a reference model?- the International standard organizations (ISO) and other standards bodies have adopted the seven level OSI References Model to guide the development of international standards for networks of computers. It is called a references model because it only recommends the functions to be performed in each of the seven layers; it does not specify detailed standards for each layers.

19. An analogy: mailing a letter-control information is used to route messages to their destination. SEVEN MODELS- described the types of control data produced by each layer. LAYER 7 THE APPLICATION LAYER contains the protocol embedded in the applications we use. LAYER 6 THE PRESENTATION LAYER telecommunication protocol in this layer translate data and from of language and format used in LAYER 7 LAYER 5 THE SESSION LAYER control the dialog for a session and acts as a moderator, sent as directed and interrupted if necessary. LAYER 4 THE TRANSPORT LAYER ensures reliable packet delivery. LAYER 3 THE NETWORK address and route packets to their destination LAYER 2 LOGICAL LINK making sure that no data is lost or garbled LAYER 1 PHYSICAL responsible for defining the physical connections of devices to a network.

20. The rate of change is accelerating although no one seems to know for sure, many people speculate that data traffic surpassed voice traffic either in 1999 or 2000 Gilder notes that the technologies of sand, glass and air are governed by exponential rules. Bandwidth Abundance? notes that an economic era is defined by the plummeting price of the key factor of production. it will expand 10 times as fast as computer power and completely transform the economy predicts Gilder.

21. The Wireless Century Has Begun The goal of wireless is to do everything we can do on wired networks, but without the wire, says Craig Mathias of Farpoint Group, an expert on telecommunications. Frank Dzubeck, a long-time telecommunications consultant, agrees, stating that whereas the twentieth century was the Wireline Century, the twenty-first century will be the wireless century.

22. Licensed vs. Unlicensed Frequencies Some frequencies of the radio spectrum are licensed by governments for specific purposes; others are not. The licensed portion of spectrum are owned by large companies that can afford government licenses thaty give them a monopolistichold on specific frequencies. The device that tap the unlicensed frequencies are more cheaper than their counterparts because they fo not need to absorb the huge billion-dollar licensing fees.

23. Wireless Technology for Networks Wireless Personal Area Networks (WPANs). Networks that provide high speed connections between devices that are up to 30 feet apart. Wireless Local Area Network (WLANs). Networks that provide access to corporate computers in office buildings, retail stores, and hospitals or access to Internet “hot spot” where people congregate. Wireless Metropolitan Area Networks (WMANs).Networks provide connections in cities and campuses at distance up to 30 miles. Wireless Widw Area Networks (WWANs). Networks that provide broadband wireless connections over thousands of miles.

24. Is Wireless Secure? Security is the major issue today. Security analysts have long assumed that hackers who have been intruding computers would soon attack smart phones, whosw advanced network connections and operating systems continue to become more interopable with computer networks and server. Eavesdroppers need special equipment to pick up radio signals from far away. Users of wireless appliances should only visit Web sites that they know, use the Wi-fi network they trust, try not to open Web links fron e-mails, and, if needed, encrypt the data before they send them out.

25. Is Wireless Secure? A lot of attention is focused on wireless services, a troubling question has not yet been answered: Are these transmissions safe for humans? Thr higher-frequency services are in the microwave range. They use almost the same frequency as microwaves oven. Long-term effects from low-level vibrations that do not raise body temperature are still possible, though. It is probably difficult to directly link exposure to disease; it more likely that exposure will gradually lower’s body immunity. The success of wireless is guaranteed. People will not give up being mobile. There is no substitute technology, but we advice prudent use.

26. Messaging is a Killer App What has proven true with data-communication technologies over and over again is the killer applicationis messaging. Instant Messaging (IM) has become an important mode of communication. importantly, it appears to be the current preferred mode of communication among young people. IM as the killer application of wireless as well, not just for teenagers, but for business. Newer technologies will allow messaging to become even more personal. This one reason why camera phones have become popular: picture is often more personal than a voice description. The key attribute of IM is that it provides presence, present and available to receive an instant message.

27. An Internet of Appliances, Traffic Prioritization, and Network Wireless communications are not just for people. A machine-to-machine Internet is coming, notes Andy Reinhardt and Heather Green. Machines will likely use Wi-fi as one wireless communication protocol. Prootocol that involves communication among things is radio-frequency identification (RFID). Communication systems will use a mix of wired and wireless technologies, as appropriate. That is one challenge. Another challenge is Internet traffic prioritization. When Intrenet traffic loads exceed the routing and transmission capabilities of the networks, network administrators must manage data traffic flows by changing the queuing procedures-likely from a “first come, first served” basis to some prioritization policy. Open architecture concept is based on the priciple of equal priority in transmission or Internet Nuetrality.

28. The Role of Is Department Planning and Creating the telecommunications Architecture- a network architecture needs to contain a set of company policies and rules that, when followed, lead to desired network environment The goal is not a single coherent network but rather finding the means to interface many dissimilar networks. The key challenge in network design is connectivity t impprove productivity and business oppurtunities. The second key concept in architecture design is interoperability, which means the capability for different computers, using different operating systems and on different networks, to work together tasks- exchanging information in standard ways without any changes in functionality and without physical invention.

29. Managing Telecommunication- the second job of IS department is to operate network. • An increasing area of concern for top management is to manage telecommunications expenses. • Major causes of excessive telecommunications costs: • Fragmentation of procurement: many companies allow their business units to independently contract telecommunication services. • Service usage-:service plans do not match actual use. For example, an organization unit leases a high-speed WAN, and the network is consistently uderutilized. • Unauthorized use:excessive or unauthorized use by employees or business partners increase costs. It could also decrease the overall performance of the communications system. • Billing inaccuracies: sotfware bugs have been criticized for many billing errors. Lack of rigor in managing auto-payment lets the organization to continue paying the service providers while the employee-subscribers did cancel the services.

30. Keeping Abreast of Telecommunications Technology policy- the third job of IS is to stay current with the technology, and explore new business models to use new technologies for competitive advantages. Any decision made will ultimately affect the impact of telecommunications on the performance of the organization.