What is telecom

The increasing efficiency of IP networks, short latency periods and jitter values coupled with high bandwidths make data networks suitable for time-critical real-time applications such as telephony.

Thanks to voice-over IP technology, phone networks have now almost fully merged with data networks. This has the advantage for the provider that only one single infrastructure needs to be operated for data and speech transmission. The user benefits from a multitude of new applications providing flexible communication options.

This means phone systems can be entirely cloud-based. Users do not need their own system software and can use all the telephone services available from any location with internet access. The Voice over Internet Protocol, also called IP telephony, is a method of communication for making calls over a broadband Internet connection as an alternative to regular calls made….

We could talk until we're blue in the face about this quiz on words for the color "blue," but we think you should take the quiz and find out if you're a whiz at these colorful terms. Origin of telecom First recorded in —55; by shortening. Words nearby telecom Teleboides , telecamera , telecanthus , telecast , telecine , telecom , telecommunicate , telecommunication , telecommunications , telecommute , telecommuting.

Aaron Pressman January 6, Fortune. Users can select a protocol for any layer of the model, as long as the protocol performs the necessary services and provides the same interface to the adjacent layers. If a layer has to be changed, only the hardware or software implementing that layer need be modified. A protocol layer in one node interacts with the corresponding layer in another one. Table 7.

Layer and its Function. Physical Provides access to the telecommunications medium and ensures transmission of the bit stream over it. Data Link Ensures error-free transmission of frames blocks of data over a network link.

Network Routes messages or packets from source to destination by selecting connecting links. Transport Provides reliable end-to-end connection between two communicating nodes. When packet switching is used this layer breaks a message into packets. Session Establishes, maintains, and terminates a connection session between two applications running on communicating nodes. A session lasts, for example, from a long-on to a specific application to a log-off.

Issue requests for establishing and terminating a session to the session layer. Application Provides services to communicating application programs; examples include file transfer, running a remote program, allocating a remote peripheral, and ensuring integrity of remote databases. Two protocol sets have gained importance:. TCP provides the higher-level services in connecting the communicating applications, while IP ensures the lower-level functions of routing and addressing, guiding the packets over the Internet.

Interconnections among Networks. As communication needs increase, network connectivity becomes a major issue as users want to access a remote computer. Gateways such as routers and bridges help solve the problem. Interconnection between two networks of the same type is accomplished by a relatively simple bridge , implemented in hardware and software.

A router is a device that accepts messages in the format produced by one of the networks and translates them into the format used by the other. Organizations small and large use fast local area networks LANs to interconnect personal computers, and thus make a basic workgroup tool. Local Area Network: Workplace for a Workgroup. A LAN interconnects computers within a single site, such as an office building, a manufacturing plan, or a corporate or university campus.

Characteristics of a LAN include:. Its scope is commonly measured in feet. Communication speeds are very high. Used as a local means of computing and communication among users in larger firms. Are owned by the organization. Afford a sense of control and the flexibility to meet the demands of the end users. A LAN gives its users the following capabilities:.

Users can share resources, such as a fast printer or a database. Users can collaborate by communicating over their LAN. This collaboration may be facilitated by groupware that runs on a LAN. Users can access other networks within a firm or outside of it via bridges and routers.

There are two principal LAN designs :. Peer-to-peer - peripherals are located at terminals and system administration is largely left up to the users. Server-based networks - shared resources are placed a dedicated server that manage a given resource on behalf of user workstations sharing the resource file server, printer server, gateway, optical disk server.

Most of the servers are dedicated to their task; using them as workstations degrades the performance of the net. A company with a large number of telephones from 50 to over 10, often elects to own a computer-based private branch exchange PBX , an electronic switchboard that interconnects its telephones and provides connections to the public network. Characteristics of a PBX:. Gives a company control over the usage of its telephone system and offers a variety of features, such as call forwarding or voice messaging.

Maybe employed as a switch for data communications. Many newer PBXs use digital technology, eliminating the need for modems, and perform conversions needed to ensure connectivity between various equipment and telecommunications links. Easy to connect a new workstation to the net. Speeds of PBX-based networks are limited. An important current development in organizational computing is downsizing - moving from platforms based on mainframes and minicomputers to a microcomputing environment.

The processing of a given application is split up among a number of clients - serving individual users - and one or more servers - providing access to databases and doing most of the computing. Main objective of a client is to provide a graphical user interface to a user.

Main objective of a server is to provide shared services to clients. Two-Tier Architecture. Three-Tier Architecture. Characteristics of Two-Tier Architecture: [Figure 7. Client performs presentation services. It displays the GUI and runs the program that determines what happens when the user selects a menu option.

Server manages the accesses to the database. Clients send remote procedure calls to activate specific applications logic on a server. Characteristics of Three-Tier Architecture: [Figure 7.

An application server runs most of the application logic, with the user workstation responsible for the display at the front end and the database server providing database servers at the back end. Objective is to distribute application so as to reduce the overall hardware costs while minimizing the network traffic.

Is attractive in terms of their acquisition price as related to their performance. Is moving computing control out of the data centers and into the end-user areas.

Software is complex, and is expensive to maintain. Generate significant traffic on the firm's backbone network that connects clients and servers. Wide area networks are the fundamental infrastructure of organizational computing. These long-distance telecommunications networks employ a variety of equipment so that the expensive links may be used effectively.

The offerings of common carriers and of providers of value-added services may be combined with private networks to create an overall organizational network. WANs include equipment that controls message transfer and makes it possible to share the links among a number of transfers.

A WAN has a powerful host computer. The host runs a system program, called a telecommunications monitor, which processes incoming messages, passing them to the appropriate application programs, and accepts outgoing messages from the applications in order to transmit them into the network.

Front-End Processor. Relieves the host computer of most of the tasks involved in network control. Under the control of its own software, the front-end processor accepts messages coming from the network and routes outgoing messages to their destinations. It performs the necessary code conversions, encrypts and decrypts secure messages, and performs error checking so that the host deals with Aclean messages.

Cluster Controller. Manages several terminals, connecting them to a single telecommunications link, and performs communication tasks for them, such as screen formatting, code conversion, and error checking.

A cluster controller may also allow the terminals to share a high-speed printer and may handle electronic mail among the cluster terminals.

Combines the data that terminals send to it over local low-speed links into a single stream. If a firm hits a slump because of shifts in the industry like the growing importance of wireless devices , value investors might snap it up, provided its fundamentals remain strong and it proves adept at adapting to change.

The telecommunications sector's record in paying and regularly raising dividends makes the waiting period for share prices to improve more enjoyable. However, all of the three major telecom sectors present some risk to investors. Investors with heavy exposure to telecom can expect stronger-than-average gains during bull markets. But, when a recession or bear market hits, losses from this sector can be severe. It is hard to avoid the conclusion that size matters in telecom. It is an expensive business; contenders need to be large enough and produce sufficient cash flow to absorb the costs of expanding networks and services that become obsolete seemingly overnight.

Transmission systems need to be replaced as frequently as every two years. Big companies that own extensive networks—especially local networks that stretch directly into customers' homes and businesses—are less reliant on interconnecting with other companies to get calls and data to their final destinations.

By contrast, smaller players must pay for interconnection more often in order to finish the job. For little operators hoping to grow big one day, the financial challenges of keeping up with rapid technological change and depreciation of equipment can be monumental.

Earnings can be a tricky issue when analyzing telecom companies. Many companies have little or no earnings to speak of. To gauge a company's value, telecom industry analysts might turn to the price-to-sales ratio stock price divided by sales. They also look at average revenue per user ARPU , which offers a useful measure of growth performance, and the churn rate , the rate at which customers leave presumably for a competitor.

The Telecommunications Act, signed into law by President Bill Clinton in , was passed to stimulate competition in the U. Current industry leaders worldwide can change from year to year. Determining which are the largest depends on whether one looks in terms of total sales numbers or in terms of market capitalization value as well.

As of January , the top five telecom companies ranked by market capitalization are as follows:. Several exchange-traded funds ETFs serve as alternatives to directly investing in individual telecom firms. Telecom ETFs have varying focuses on geography or industry specialization. Some of the most popular include:. Analysts foresee that product innovation and an increase in mergers and acquisitions will only facilitate the continued growth and success of the telecommunications industry.

There are many opportunities for investors, and an increase in investors will only serve to benefit the sector further. The stability of the sector's growth, even during periods of recession , means that it is considered to be a solid defensive investment while maintaining its appeal to growth investors.

Even during uncertain and volatile economic times, the steady demand for voice and data services, along with extensive subscription plans, assures a stable source of revenues for major telecom firms. Telecommunications has become an increasingly important basic industry, which bodes well for its future prospects and continued growth.

The continuing advances in high-speed mobile services and Internet connectivity between devices keep driving innovation and competition within the sector.

Much of the industry focus is on providing faster data services, especially in the area of high-resolution video. Essentially, the driving forces are toward quicker and clearer services, increased connectivity, and multi-application usage.

Emerging market economies continue to be a boon for the industry, with the growth rate of the cell phone industry in countries such as China and India pushing the abilities of hardware producers to keep up with the level of demand. In the U. There is still a strong demand for wireless spectrum rights, not to mention an increasing trend toward consolidation through mergers and acquisitions. Telecommunication companies, like other forms of utilities, often operate with stable customer bases that are protected from competition by government mandate.