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Prentice Hall
The Essential Guide to Telecommunications / Edition 5

The Essential Guide to Telecommunications / Edition 5

by Annabel Z. Dodd
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“Annabel Dodd is a maestro when it comes to demystifying even the most complex telecommunications policies. She takes on the range of issues in the telecom world that shape how we learn, share information, conduct business, and enjoy entertainment. It’s an illuminating, accessible account that provides a much-needed primer for anyone interested in communications policy.”

—Congressman Edward J. Markey, Ranking Member Subcommittee on Telecommunications, Trade and Consumer Protection

“Annabel Dodd’s book is a clear guide and big picture view of technologies and industries. It is an up-to-date guide for anyone who wants to be familiar with important innovations and key technologies. This is truly an industry bible for mobile, Internet, and networking services.”

—Hiawatha Bray, technology reporter, Boston Globe

A Completely Revised Bestseller with an Updated Industry Overview and New Coverage of Mobile Networks, LTE, Spectrum, Cloud Computing, and More!

The #1 Telecom Guide for Businesspeople and Nontechnical Professionals, Fully Updated for Cloud Services, Social Media, and Advanced Mobile Networks

Completely updated for the newest trends and technologies, The Essential Guide to Telecommunications, Fifth Edition, is the world’s top-selling nontechnical guide to today’s fast-changing telecommunications industry. More than 170,000 copies of previous editions are in print, and this indispensible resource has been translated into nine languages.

Writing in plain language, Dodd demystifies today’s most significant technologies, standards, and architectures. She introduces the industry-leading providers worldwide, explains where they fit in a fast-changing marketplace, and presents their key strategies. Coverage includes

  • Assessing the massive business and technical implications of the cloud computing revolution
  • How traffic from ubiquitous tools like Skype, Facebook, and smartphones are transforming networks
  • Understanding recent radical changes in data centers
  • How mobile carriers are balancing performance and cost in timing 4G upgrades
  • How new concerns about regulation, security, and privacy are reshaping the industry

This indispensable guide provides everything you need to know about telecommunications now—whether you’re a salesperson, marketer, investor, or customer.

Product Details

ISBN-13: 9780137058914
Publisher: Prentice Hall
Publication date: 07/05/2012
Pages: 600
Sales rank: 937,141
Product dimensions: 8.90(w) x 7.00(h) x 1.10(d)

About the Author

Annabel Z. Dodd is an adjunct faculty member at Northeastern University’s School of Professional Studies where she teaches courses on wireless mobile services and data communications in the master’s degree program in informatics. She was previously an adjunct professor in the master of science program in technology management at the State University of New York at Stony Brook, where she taught in a joint program with The Institute of Industrial Policy Studies, Seoul, South Korea. In addition, the Fundación de la Innovación Bankinter selected her to participate in their Future Trends Forum in Madrid in 2004, 2005, and 2007. Formerly in marketing at New England Telephone (now Verizon) and then communications and telecommunications manager at Dennison Manufacturing Company (now Avery Dennison), she consults with major corporations and institutions and gives seminars to organizations worldwide. The Massachusetts Network Communications Council honored her as the Professor of the Year 2000. Since its first edition in 1997, The Essential Guide to Telecommunications has been translated into nine languages worldwide. More information can be found at her website,

Read an Excerpt

8: The Internet

The Internet is a medium that has fundamentally changed the pace of business processes and the way organizations exchange information with each other. Businesses sell, place orders, receive orders, collaborate, train employees, provide customer service and bid for products over the Internet. Consumers commonly use the Internet to exchange electronic mail with family members, pay bills, conduct online stock transactions, calculate income tax returns, make travel reservations, shop and conduct research. They also spend time on the Internet playing games, listening to music and viewing entertainment.

The Internet is a connection of multiple networks. The networks communicate with each other over a suite of standardized protocols, Transmit Control Protocol/Internet Protocol (TCP/IP), in which data is broken up into "envelopes" called packets. For the most part, network operators use high-speed routers to transmit these packets. Internet traffic is sent at gigabit speeds. The high-speed lines are the backbone of the Internet. They carry the greatest amount of Internet traffic. The Internet backbone transmits requests for information, entertainment, audio and video broadcasts, email and business-to-business transactions. The different carriers that operate Internet backbone exchange traffic with each other at metropolitan area exchanges (MAEs) and network access points (NAPs).

The Web is a vehicle for multimedia presentation of information in the form of music, audio, video and text. The World Wide Web is not separate from the Internet. It is a way to navigate from resource to resource on the Internet by clicking on high-lighted text or graphics from within browsers. As long as they use World Wide Web browsers, all PCs are compatible with the Web. Users point and click their way from computer to computer on the Internet. Before the World Wide Web was developed, documents on the Internet were available only as text. There were no pictures, no "buttons" to click on to issue commands and no advertising banners. There was also no color; everything was black and white.

Individuals and organizations connect their locations to the Internet via many types of telecommunications services including T-1, T-3, analog lines, digital subscriber line (DSL) services, integrated services digital network (ISDN) and cable TV facilities. Internet service providers (ISPs) aggregate traffic from many users and send it over high-speed lines to the Internet backbone. ISPs maintain routers and servers at their sites. The servers, powerful PCs that can be accessed by many users, perform various functions. They contain customer email, businesses' e-commerce applications and home pages for consumers as well as specialized content such as sports information and online games. Servers are located at hosting sites as well as ISP data centers. Hosting sites, where Web content such as corporate, ecommerce and entertainment sites are kept, have servers with information from, for example, search companies such as AltaVista and online retailers.

The popularity of the Web has made the creation and implementation of technologies that enable sites to handle spikes in traffic and large amounts of traffic imperative. One of these techniques is caching, which spreads content among servers at the "edge" of the Internet, closer to end users. In addition to lowering traffic at each server, caching lowers the cost of bandwidth. It lowers the amount of distance packets travel to access Web pages.

Innovations also have occurred in search engine techniques and formatting email for marketing. Search engines are an important tool for organizing sources of online information. They have become faster and the results are more accurate. Corporations use them in their own Web pages to help employees, potential customers and trading partners find information on the corporate Web. Email is now used as a way to disseminate spam, marketing announcements and newsletters that look similar to Web pages. These email messages use the same method, Hypertext Markup Language (HTML), as used to apply formatting and insert graphics on Web sites.

Despite the technological improvements in the Internet, Internet companies are struggling to find profits. Scores of businesses that operated Web sites have gone out of business. Moreover, it has been generally agreed that advertising as a primary vehicle for underwriting the Internet is not viable. To date, gambling (which is illegal in most states), auctions, pornography, music and games are popular and often profitable on the Internet. While commercial organizations depend on the Internet for contact with customers and vendors, e-commerce where businesses exchange purchase orders and pay bills directly to one another's order entry and accounting systems are in their infancy.

Because the World Wide Web is new, legal, privacy and security questions are being raised that previously have not been addressed in this context. For example, freedom of speech for adults sometimes conflicts with protecting children from unsuitable online material. Online sharing of music and copyrighted articles may interfere with authors' and musicians' rights to earn royalties. In other instances, Microsoft's control of PC operating systems and browsers and AOL Time Warner's market share in instant messaging (IM) may give both companies unfair advantages on the Internet. All of these issues raise interesting questions about privacy, free enterprise and free speech.

World Wide Web technology is used by commercial organizations to create extranets and intranets. Extranets use Web technology to create platforms from which trading partners and customers can communicate. Intranets use the technology for internal portals and browser access to corporate data. The adoption of Internet technologies and protocols for internal use by commercial organizations represents a major impact of the Internet. It has led to faster, more convenient access by employees to corporate information.

The History of the Internet

The Department of Defense's Advanced Research Projects Agency (DARPA) started the Internet in 1969, in a computer room at the University of California, Los Angeles. It wanted to enable scientists at multiple universities to share research information. Advanced Research Projects Agency NETwork (ARPANET), the predecessor to the Internet, was created 12 years after Sputnik, during the Cold War. DARPA's original goal was to develop a network secure enough to withstand a nuclear attack.

The first communications switch that routed messages on the ARPANET was developed at Bolt Beranek and Newman (BBN) in Cambridge, Massachusetts. (BBN was bought by GTE. Bell Atlantic acquired GTE, changed its name to Verizon and spun off BBN as Genuity.) ARPANET's network used packet switching developed by Rand Corporation in 1962. Data was broken up into "envelopes" of information that contain addressing, error checking and user data. One advantage of packet switching is that packets from multiple computers can share the same circuit. A separate connection is not needed for each transmission. Moreover, in the case of an attack, if one computer goes down, data can be rerouted to other computers in the packet network. TCP/IP, the protocol still used on the Internet, was developed in 1974 by Vint Cerf and Robert Kahn. It supports a suite of services such as email, file transfer and logging onto remote computers.

In 1984, as more sites were added to ARPANET, the term Internet started to be used. The ARPANET was shut down in 1984, but the Internet was left intact. In 1987, oversight of the Internet was transferred from the Department of Defense to the National Science Foundation.

While still used largely by universities and technical organizations, applications on the Internet expanded from its original defense work. In particular, newsgroups used by computer hobbyists, college faculty and students, were formed around special interests such as cooking, specialized technology and lifestyles. The lifestyles newsgroups included sexual orientation (gay and lesbian), religion and gender issues. Computer-literate people were also using the Internet to log onto computers at distant universities for research and to send electronic mail.

The Internet was completely text prior to 1990. There were no graphics, pictures or color. All tasks were done without the point-and-click assistance of browsers, such as Netscape and Internet Explorer. Rather, people had to learn, for example, UNIX commands. UNIX is a computer operating system developed in 1972 by Bell Labs. UNIX commands include: m for Get Mail, j for Go to the Next Mail Message, d for Delete Mail and u for Undelete Mail. The Internet was not for the timid or for computer neophytes.

The advent of the World Wide Web in 1989 and browsers in 1993 completely changed the Internet. The World Wide Web is a graphics-based vehicle to link users to sources of information. It is based on a method whereby users "click" on graphics or text to be transferred to a site where information can be accessed. In 1993, the Mosaic browser was developed at the University of Illinois as a point-and-click way to access the World Wide Web. This opened up the Internet to users without computer skills. It is no longer necessary to learn arcane commands to open mail, to navigate from site to site for research or to join chat or newsgroups.

In 1995, the National Science Foundation turned the management of the Internet backbone over to commercial organizations. Commercial networks such as Sprint, UU-NET (now part of WorldCom) and Cable & Wireless carry a large portion of the back-bone Internet traffic. Backbones are analogous to highways that carry high-speed traffic.

Bulletin Board Systems (BBSs)

Bulletin boards were used independently from the Internet. They allowed people with modems connected to their computers to read information and post information on a PC.

Users throughout the 1980s used modems, personal computers, communications software and telephone lines to dial into information on other computers. Many bulletin boards were used for "chats" and to exchange ideas around specific hobbies. For example, callers would dial in and type ideas or experiences they had with new software or computer equipment. The World Wide Web has largely replaced bulletin boards.

Who Runs the Internet?

The Internet is run informally by a number of organizations. Following is an overview of the key ones...

Table of Contents

Preface xxi

Acknowledgments xxv

About the Author xxvii

Part I: Enabling Technologies, Data Centers, and VoIP PBXs 1

Chapter 1: Computing and Enabling Technologies 3

Key Underlying Technologies 5

Sending Data in Packets 8

Deep Packet Inspection: Traffic Management and Monitoring 10

Compression 14

Increasing Network Capabilities via Multiplexing 18

Wide Area Network Acceleration and Optimization 20

Using Protocols to Establish a Common Set of Rules 22

Protocols and Layers 24

Cloud Computing 25

Single Servers Functioning as Multiple Servers via Virtualization 35

Network Cabling 38

Summary 44

Appendix 46

Chapter 2: Data Centers and IP Private Branch Exchanges 51

Introduction 52

Next-Generation Data Centers: Virtualization and Gigabit Speeds 53

Managing Virtualization 65

Backbone and Individual Local Area Network Structures 69

IP Private Branch Exchange Systems for Internal Use 72

The Technology behind IP Telephony 75

IP Private Branch Exchange Architecture 77

Value-Added Applications for Telephone Systems 87

Summary 100

Appendix 100

Part II: Industry Overview 105

Chapter 3: Competition, Industry Structures, and Regulations 107

Introduction 108

The 1984 Breakup of AT&T 110

Regulatory Issues 117

The State of the Industry 133

Nontraditional Competitors: Amazon, Apple, Google, Microsoft, and Netflix 150

Appendix 161

Part III: Wide Area Networks and the Internet 163

Chapter 4: Carrier Networks 165

The Public Network 167

Long-Haul Networks: The Core 168

Technologies Used in Carrier Networks 171

Convergence in Core and Metropolitan Networks 174

Transporting Movies and TV in the Core 186

Middle-Mile Networks 187

Last-Mile Access Networks 191

Access Networks in Cable Operators’ Networks 201

Telecommunications Services in National Emergencies 205

Signaling 207

Summary 211

Appendix 213

Chapter 5: Broadband and Wide Area Network Services 215

Introduction 216

A Definition of Broadband 218

VoIP Calling Services over Broadband 219

Multi-Protocol Label Switching for Interoffice Connections 223

Internet Protocol Virtual Private Networks over the Internet 229

Securing Transmissions Sent via the Internet 230

Managed Services 235

Using Digital Subscriber Line for Internet Access 239

High-Speed Access via Carrier Gigabit Ethernet 243

T1 and T3: The First Broadband Services for Businesses 246

Private Lines, Network Topology, and Frame Relay 250

Appendix 257

Chapter 6: The Internet 261

Introduction 262

The Growth of the Internet 264

The Structure of the Internet 267

Security Threats from Internal, External, and International Sources 274

Privacy 278

Video Streamed from the Internet to the Front Room 280

Electronic Commerce 286

Online Community Forums 290

Network Neutrality 292

The Digital Divide: Bandwidth, Skills, and Computers 297

Intranets and Extranets 298

Summary 301

Part IV: Mobile Networks and Mobile Carriers Worldwide 303

Chapter 7: Mobile and Wi-Fi Networks 305

Introduction 306

First-Generation Analog Technologies 308

Finite Spectrum for Wireless Networks 309

Second-, Third-, and Fourth-Generation Digital Networks 321

Fourth-Generation Advanced Mobile Services 332

The Streamlined Infrastructure of Long-Term Evolution Architecture 341

The Microcell Technology of Picocells and Femtocells 350

Handheld Devices and Tablet Computers 353

Applications and Services 360

Wi-Fi Standards, Architecture, and Use in Cellular Networks 365

Satellites 376

Summary 378

Appendix 379

Chapter 8: Mobile Carriers Worldwide 387

Introduction 388

The Largest Mobile Carriers Worldwide 390

The Asian Market 392

Latin America 401

Sub-Saharan Africa 405

Europe 412

Summary 421

Glossary 423

Index 449



Enormous changes in telecommunications occurred in the two years between the second and third editions of The Essential Guide to Telecommunications. The Essential Guide to Telecommunications is intended as a road map clarifying technologies, history and trends in telecommunications. Technological innovations in fiber optics and attendant lower costs has led to the construction of vast networks. The book contrasts the glut of these fiber optic networks in long distance routes and some urban areas with their scarcity in developing countries, rural and most suburban regions.

The Essential Guide to Telecommunications explains how technology and regulatory factors impact each other. Deregulation and the presence of competition have resulted in the development of technological innovations. These innovations, particularly those in gigabit Ethernet and optical switching, are examined.

Cellular service has grown tremendously in the last decade. It is a key technology for providing basic voice service in large parts of the world. The book examines technologies used to provide greater capacity for basic voice service in fast growing urban areas, rural communities and tall skyscrapers. It also explains the advanced cellular technologies for transmitting higher speed data and accessing the Internet over wireless networks. It also addresses the concerns about safety. It is not known what impact fears about cancer and driving safety will have on the cellular market.

The Essential Guide to Telecommunications, third edition reviews telecommunications in Europe, Asia and Latin America, as well as in developing countries, and thewide-reaching impact of wireless technology in these areas. Deregulation of local long distance and international services, as well as industry structure and major carriers, are covered. The structure of the telecommunications industry and steps in deregulation are examined in key areas of the world. The pace of adoption of technologies, such as high-speed Internet access, also is highlighted. The significance of a strong telecommunications infrastructure on the economy and on international trade is widely recognized and has prompted governments' attention worldwide.

The Essential Guide to Telecommunications, third edition presents profiles of industry segments and vendor types to provide readers an understanding of the industry. The roles of Internet service providers, backbone Internet providers, competitive local exchange carriers, utilities and cable TV companies are explained. The number of network providers and resellers and the fast pace of mergers has created new layers of complexity. In addition, regulatory rulings and the Telecommunications Act of 1996 are examined in light of their impact on consumers, commercial organizations and carriers.

The language and significance of important telecommunications technologies are explored. The Essential Guide to Telecommunications, third edition is not intended to be a deeply technical book. Rather, it is an overview of technologies and an explanation of the structure of the telecommunications industry. Technologies important in competition for local calling, high-capacity communications, third generation wireless services and Internet access are clarified. Intertwined with high-level technical explanations are examples of how the various vendors interconnect their networks. The book explains key technologies and options available for small and large organizations and consumers. It further explores significant trends, applications and the impact of the Internet.

This book is intended for non-technical people working in the field of telecommunications, laymen interested in learning more about the field and people responsible for the administration of telecommunications services for their organizations. They include regulatory staff, salespeople, law firms, research organizations, marketing personnel, human resources professionals, project managers, telecommunications managers and high-level administrators.

The Essential Guide to Telecommunications, third edition starts out with interpretations of fundamental concepts so that readers will have a basis for understanding more complex, new telecommunications services. It examines the structure of the industry, local competition, regulatory proceedings, the Internet, convergence and wireless services.

Along with explanations of technology are examples of applications and historical highlights. How the industry evolved and how the technology changed is explained. The stories and descriptions that accompany the technical details are key to the book.

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