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Module 6
Data Communication: Delivering Information
Anywhere and Anytime
LEARNING OBJECTIVES

After studying this module, you should be able to:

6-1 Describe the major applications of a data communication system.

6-2 Explain the three major components of a data communication system.

6-3 Describe the three major types of processing configurations.

6-4 Explain the three types of networks.

6-5 Describe the five main network topologies.

6-6 Explain important networking concepts, including protocols, TCP/IP, routing, routers, and
the client/server model.

6-7 Examine wireless and mobile technologies and networks in a business setting.

6-8 Describe networking trends such as Wi-Fi, WiMAX, and Bluetooth.

6-9 Discuss the importance of wireless security and the five techniques used.

6-10 Summarize the convergence phenomenon and its applications for business and personal
use.

Detailed Module Outline

I. Defining Data Communication

Data communication is the electronic transfer of data from one location to another. An
information system’s effectiveness is measured in part by how efficiently it delivers information,
and a data communication system is what enables an information system to carry out this
function. By using the capabilities of a data communication system, organizations are not limited
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by physical boundaries. They can collaborate with other organizations, outsource certain
functions to reduce costs, and provide customer services via data communication systems. E-
collaboration is another main application of data communication.

A. Why Managers Need to Know About Data Communication

Data communication applications can enhance decision makers’ efficiency and effectiveness
in many ways. For example, data communication applications support just-in-time delivery of
goods, which reduces inventory costs and improves the competitive edge. Data
communication systems also make virtual organizations possible, and these can cross
geographic boundaries to develop products more quickly and effectively. It also enables
organizations to use e-mail and electronic file transfer to improve efficiency and productivity.
Following are some of the ways data communication technologies affect the workplace:
 Online training for employees can be provided via virtual classrooms.
 Internet searches for information on products, services, and innovation keep employees
up to date.
 The Internet and data communication systems facilitate lifelong learning, which will be
an asset for knowledge workers of the future.
 Boundaries between work and personal life are less clear-cut as data communication is
more available in both homes and businesses.
 Web and video conferencing are easier, which can reduce the costs of business travel.

Managers need a clear understanding of the following areas of data communication:

 The basics of data communication and networking
 The Internet, intranets, and extranets
 Wired and wireless networks
 Network security issues and measures
 Organizational and social effects of data communication
 Globalization issues
 Applications of data communication systems

E-collaborations and virtual meetings are other important applications of data communication
systems for managers. These applications are cost effective and improve customer service.
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II. Basic Components of a Data Communication System

A typical data communication system includes the following components:

 Sender and receiver devices
 Modems or routers

Discussion Question

Why is an efficient data communication system critical to an organization? List some of the
ways data communication technologies affect the workplace.

 Communication medium (channel)

Basic concepts in data communication include:

 Bandwidth is the amount of data that can be transferred from one point to another in a
certain time period, usually one second.
 Attenuation is the loss of power in a signal as it travels from the sending device to the
receiving device.

Data transmission channels are generally divided into two types: broadband and narrowband. In
broadband data transmission, multiple pieces of data are sent simultaneously to increase the
transmission rate. Narrowband is a voice-grade transmission channel capable of transmitting a
maximum of 56,000 bps, so only a limited amount of information can be transferred in a specific
period of time.

Before a communication link can be established between two devices, they must be
synchronized, meaning that both devices must start and stop communicating at the same point.
Synchronization is handled with protocols, rules that govern data communication, including
error detection, message length, and transmission speed.

A. Sender and Receiver Devices

A sender and receiver device can take various forms:

 Input/output device, or “thin client”—used only for sending or receiving information; it
has no processing power.
 Smart terminal—an input/output device that can perform certain processing tasks but is
not a full-featured computer.
 Intelligent terminal, workstation, or personal computer—these serve as input/output
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devices or as stand-alone systems.

 Netbook computer—a low-cost, diskless computer used to connect to the Internet or a
LAN.
 Minicomputers, mainframes, and supercomputers—these process data and send it to
other devices or receive data that has been processed elsewhere, process it, then transmit
it to other devices.
 Smartphones, mobile phones, MP3 players, PDAs, and game consoles—smartphones
are mobile phones with advanced capabilities, such as e-mail and Web-browsing, and
most have a built-in keyboard or an external USB keyboard. A video game console is an
electronic device for playing video games.

B. Modems

A modem (short for “modulator-demodulator”) is a device that connects a user to the Internet.
Dial-up, digital subscriber line (DSL), and cable access require modems to connect to the
Internet. In today’s broadband world, DSL or cable modems are common. Digital subscriber
line (DSL), a common carrier service, is a high-speed service that uses ordinary phone lines.
With DSL connections, users can receive data at up to 7.1 Mbps and send data at around 1
Mbps, although the actual speed is determined by proximity to the provider’s location. Cable
modems, on the other hand, use the same cable that connects to TVs for Internet connections;
they can usually reach transmission speeds of about 16 Mbps.

C. Communication Media

Communication media, or channels, connect sender and receiver devices. They can be
conducted (wired or guided) or radiated (wireless). They can be conducted (wired or guided)
or radiated (wireless).

Conducted media provide a physical path along which signals are transmitted, including
twisted pair copper cable, coaxial cable, and fiber optics. Twisted pair copper cable consists
of two copper lines twisted around each other and either shielded or unshielded. Coaxial
cables are thick cables that can be used for both data and voice transmissions. Fiber-optic
cables are glass tubes (half the diameter of a human hair) surrounded by concentric layers of
glass, called “cladding,” to form a light path through wire cables. Fiber-optic cables have a
higher capacity, smaller size, lighter weight, lower attenuation, and higher security than other
cable types; they also have the highest bandwidth of any communication medium.

Radiated media use an antenna for transmitting data through air or water. Some of these
media are based on “line of sight” (an open path between sending and receiving devices or
antennas), including broadcast radio, terrestrial microwave, and satellite. Satellites link
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ground-based microwave transmitters/receivers, known as Earth stations, and are commonly

used in long-distance telephone transmissions and TV signals. Terrestrial microwave systems
use Earth-based transmitters and receivers and are often used for point-to-point links between
buildings.

A communication medium can be a point-to-point or a multipoint system. In a point-to-point,

only one device at a time uses the medium. In a multipoint system, several devices share the
same medium, and a transmission from one device can be sent to all other devices sharing the
link.

III. Processing Configurations

Data communication systems can be used in several different configurations, depending on

users’ needs, types of applications, and responsiveness of the system. During the past 60 years,
three types of processing configurations have emerged: centralized, decentralized, and

Discussion Question

Discuss the different types of communication media.

distributed.

A. Centralized Processing

In a centralized processing system, all processing is done at one central computer. The main
advantage of this configuration is being able to exercise tight control over system operations
and applications. The main disadvantage is lack of responsiveness to users’ needs, because the
system and its users could be located far apart from each other. This configuration is not used
much now.

B. Decentralized Processing

In decentralized processing, each user, department, or division has its own computer
(sometimes called an “organizational unit”) for performing processing tasks. A decentralized
processing system is certainly more responsive to users than a centralized processing system.
Decentralized systems have some drawbacks, including lack of coordination among
organizational units, the high cost of having many systems, and duplication of efforts.

C. Distributed Processing
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Distributed processing solves two main problems—the lack of responsiveness in centralized

processing and the lack of coordination in decentralized processing—by maintaining
centralized control and decentralizing operations.

Some of the advantages of distributed processing include:

 Accessing unused processing power is possible
 Distance and location are not limiting
 Fault tolerance is improved because of the availability of redundant resources.
 Reliability is improved because system failures can be limited to only one site.
 The system is more responsive to user needs.

The disadvantages of distributed processing include:

 There may be more security and privacy challenges.
 There may be incompatibility between the various pieces of equipment.
 Managing the network can be challenging.

D. Open Systems Interconnection Model

The Open Systems Interconnection (OSI) model is a seven-layer architecture for defining
how data is transmitted from computer to computer in a network. Each layer in the
architecture performs a specific task:
 Application layer—serves as the window through which applications access network
services. It performs different tasks, depending on the application, and provides services
that support users’ tasks, such as file transfers, database access, and e-mail.
 Presentation layer—formats message packets.
 Session layer—establishes a communication session between computers.
 Transport layer—generates the receiver’s address and ensures the integrity of messages
by making sure packets are delivered without error, in sequence, and with no loss or
duplication.
 Network layer—routes messages.
 Data Link layer—oversees the establishment and control of the communication link.
 Physical layer—specifies the electrical connections between computers and the
transmission medium; defines the physical medium used for communication.
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Discussion Question

Describe the task performed by each layer in the Open Systems Interconnection (OSI)
model.

IV. Types of Networks

There are three major types of networks: local area networks, wide area networks, and
metropolitan area networks. In all these networks, computers are usually connected to the
network via a network interface card (NIC), a hardware component that enables computers to
communicate over a network. A NIC, also called an “adapter card,” is the physical link between
a network and a workstation, so it operates at the OSI model’s Physical and Data Link layers.

A. Local Area Networks

A local area network (LAN) connects workstations and peripheral devices that are in close
proximity. Usually, a LAN covers a limited geographical area, such as a building or campus,
and one company owns it. Its data transfer speed varies from 100 Mbps to 10 Gbps.

LANs are used most often to share resources, such as peripherals, files, and software. They
are also used to integrate services, such as e-mail and file sharing. In a LAN environment,
there are two basic terms to remember: Ethernet and Ethernet cable. Ethernet is a standard
communication protocol embedded in software and hardware devices used for building a
LAN. An Ethernet cable is used to connect computers, hubs, switches, and routers to a
network.

B. Wide Area Networks

A wide area network (WAN) can span several cities, states, or even countries, and it is
usually owned by several different parties. The data transfer speed depends on the speed of its
interconnections (called “links”) and can vary from 28.8 Kbps to 155 Mbps. A WAN can use
many different communication media (coaxial cables, satellite, and fiber optics) and terminals
of different sizes and sophistication (PCs, workstations, and mainframes); it can also be
connected to other networks.

C. Metropolitan Area Networks

The Institute of Electrical and Electronics Engineers (IEEE) developed specifications for a
public, independent, high-speed network that connects a variety of data communication
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systems, including LANs and WANs in the metropolitan areas. This network, called a
metropolitan area network (MAN), is designed to handle data communication for multiple
organizations in a city and sometimes nearby cities as well. The data transfer speed varies
from 34 Mbps to 155 Mbps.

V. Network Topologies

A network topology represents a network’s physical layout, including the arrangement of

Discussion Question

Why does the data transfer speed of different networks vary? What are the factors affecting the
data transfer speed?

computers and cables. Five common topologies include: star, ring, bus, hierarchical, and mesh.

A. Star Topology

The star topology usually consists of a central computer (host computer, often a server) and a
series of nodes (typically, workstations or peripheral devices). The host computer supplies the
main processing power. If a node fails, it does not affect the network’s operation, but if the
host computer fails, the entire network goes down.

Advantages of the star topology include:

 Cable layouts are easy to modify.
 Centralized control makes detecting problems easier.
 Nodes can be added to the network easily.
 It is more effective at handling heavy but short bursts of traffic.

Disadvantages of the star topology include:

 If the central host fails, the entire network becomes inoperable.
 Many cables are required, which increases cost.

B. Ring Topology

In a ring topology, no host computer is required because each computer manages its own
connectivity. Computers and devices are arranged in a circle, so each node is connected to
two other nodes: its upstream neighbor and its downstream neighbor. Transmission is in one
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direction, and nodes repeat a signal before passing it to the downstream neighbor. If any link
between nodes is severed, the entire network is affected, and failure of a single node disrupts
the entire network. A ring topology needs less cable than a star topology, but it is similar to a
star topology in that it is better for handling heavy but short bursts of traffic.

C. Bus Topology

The bus topology (also called “linear bus”) connects nodes along a network segment, but the
ends of the cable are not connected, as they are in a ring topology. A hardware device called a
terminator is used at each end of the cable to absorb the signal. Without a terminator, the
signal would bounce back and forth along the length of the cable and prevent network
communication.

Advantages of the bus topology include:

 It is easy to extend.
 It is very reliable.
 The wiring layout is simple and uses the least amount of cable of any topology, which
keeps costs down.
 It handles steady (even) traffic well.

Disadvantages of the bus topology include:

 Fault diagnosis is difficult.
 The bus cable can be a bottleneck when network traffic is heavy.

D. Hierarchical Topology

A hierarchical topology (also called a “tree”) combines computers with different processing
strengths in different organizational levels. Traditional mainframe networks also use a
hierarchical topology. The mainframe computer is at the top, front-end processors (FEPs) are
at the next level, controllers and multiplexers are at the next level, and terminals and
workstations are at the bottom level. A controller is a hardware and software device that
controls data transfer from a computer to a peripheral device (examples are a monitor, a
printer, or a keyboard) and vice versa. A multiplexer is a hardware device that allows several
nodes to share one communication channel.

The hierarchical topology offers a great deal of network control and lower cost, compared to a
star topology. Its disadvantages include that network expansion may pose a problem, and
there could be traffic congestion at the root and higher-level nodes.

E. Mesh Topology
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In a mesh topology (also called “plex” or “interconnected”), every node (which can differ in
size and configuration from the others) is connected to every other node. This topology is
highly reliable. Failure of one or a few nodes does not usually cause a major problem in
network operation, because many other nodes are available.

VI. Major Networking Concepts

A. Protocols

Discussion Question

What are the factors that affect the selection of a type of network topology?

Protocols are agreed-on methods and rules that electronic devices use to exchange
information. Some protocols deal with hardware connections, and others control data
transmission and file transfers. Protocols also specify the format of message packets sent
between computers.

B. Transmission Control Protocol/ Internet Protocol

Transmission Control Protocol/Internet Protocol (TCP/IP) is an industry-standard suite of

communication protocols. TCP/IP’s main advantage is that it enables interoperability—in
other words, it allows the linking of devices running on many different platforms. Two of the
major protocols in the TCP/IP suite are Transmission Control Protocol (TCP), which operates
at the OSI model’s Transport layer, and Internet Protocol (IP), which operates at the OSI
model’s Network layer. TCP’s primary functions are establishing a link between hosts,
ensuring message integrity, sequencing and acknowledging packet delivery, and regulating
data flow between source and destination nodes.

IP is responsible for packet forwarding. An IP address consists of 4 bytes in IPv4 or 16 bytes

in IPv6 (32 bits or 128 bits) and is divided into two parts: a network address and a node
address. Computers on the same network must use the same network address, but each
computer must have a unique node address.

C. Routing
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Packet switching is a network communication method that divides data into small packets and
transmits them to an address, where they are reassembled. A packet is a collection of binary
digits—including message data and control characters for formatting and transmitting—sent
from computer to computer over a network.

The path or route that data takes on a network is determined by the type of network and the
software used to transmit data. The process of deciding which path that data takes is called
routing. Routing is similar to the path one takes from home to work. A packet’s route can
change each time a connection is made, based on the amount of traffic and the availability of
the circuit. The decision about which route to follow is done in one of two ways: at a central
location (centralized routing) or at each node along the route (distributed routing). In most
cases, a routing table, generated automatically by software, is used to determine the best
possible route for the packet. The routing table lists nodes on a network and the path to each
node, along with alternate routes and the speed of existing routes

In centralized routing, one node is in charge of selecting the path for all packets. This node,
considered the network routing manager, stores the routing table, and any changes to a route
must be made at this node. All network nodes periodically forward status information on the
number of inbound, outbound, and processed messages to the network routing manager. The
network routing manager, therefore, has an overview of the network and can determine
whether any part of it is underused or overused.

Distributed routing relies on each node to calculate the best possible route. Each node
contains its own routing table with current information on the status of adjacent nodes so
packets can follow the best possible route. Each node also sends status messages periodically
so adjacent nodes can update their tables. Distributed routing eliminates the problems caused
by having the routing table at a centralized site. If one node is not operational, routing tables
at other nodes are updated, and the packet is sent along a different path.

D. Routers

A router is a network connection device containing software that connects network systems
and controls traffic flow between them. Routers operate at the Network layer of the OSI
model and handle routing packets on a network. Cisco Systems and Juniper Networks are two
major router vendors.

A router performs the same functions as a bridge but is a more sophisticated device. A bridge
connects two LANs using the same protocol, and the communication medium does not have
to be the same on both LANs. Routers can also choose the best possible path for packets
based on distance or cost. A router can also be used to isolate a portion of the LAN from the
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rest of the network; this process is called “segmenting.”

There are two types of routers: static and dynamic. A static router requires the network
routing manager to give it information about which addresses are on which network. A
dynamic router can build tables that identify addresses on each network. Dynamic routers
are used more often now, particularly on the Internet.

E. Client/Server Model

In the client/server model, software runs on the local computer (the client) and
communicates with the remote server to request information or services. A server is a remote
computer on the network that provides information or services in response to client requests.

In the most basic client/server configuration, the following events usually take place:
 The user runs client software to create a query.
 The client accepts the request and formats it so the server can understand it.
 The client sends the request to the server over the network.
 The server receives and processes the query.
 The results are sent to the client.
 The results are formatted and displayed to the user in an understandable format.

The main advantage of the client/server architecture is its scalability, meaning its ability to
grow. Client/server architectures can be scaled horizontally or vertically. Horizontal scaling
means adding more workstations (clients), and vertical scaling means migrating the network
to larger, faster servers.

To understand client/server architecture better, one can think of it in terms of these three
levels of logic:
 Presentation logic: This is the top level, which is concerned with how data is returned to
the client.
 Application logic: This is concerned with the software processing requests for users.
 Data management logic: This is concerned with data management and storage
operations.

The real challenge in a client/server architecture is how to divide these three logics
between the client and server.

Two-Tier Architecture

In the two-tier architecture, a client (tier one) communicates directly with the server (tier
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two). The presentation logic is always on the client, and the data management logic is on
the server. The application logic can be on the client, on the server, or split between them,
although it is usually on the client side. This architecture is effective in small workgroups.
Because application logic is usually on the client side, a two-tier architecture has the
advantages of application development speed, simplicity, and power. On the downside, any
changes in application logic, such as stored procedures and validation rules for databases,
require major modifications of clients, resulting in upgrade and modification costs.

N-Tier Architectures

In a two-tier architecture, if the application logic is modified, it can affect the processing
workload. An n-tier architecture attempts to balance the workload between client and
server by removing application processing from both the client and server and placing it on
a middle-tier server. The most common n-tier architecture is the three-tier architecture.
Improving network performance is a major advantage of n-tier architecture.

VII. Wireless and Mobile Networks

Discussion Question

In the context of networking, what do you understand by protocols? Discuss the functions
of Transmission Control Protocol and Internet Protocol.

A wireless network is a network that uses wireless instead of wired technology. A mobile
network (also called a “cellular network”) is a network operating on a radio frequency (RF),
consisting of radio cells, each served by a fixed transmitter, known as a “cell site” or “base
station.”

Wireless and mobile networks have the advantages of mobility, flexibility, ease of installation,
and low cost. These systems are particularly effective when no infrastructure (such as
communication lines or established wired networks) is in place. Drawbacks of mobile and
wireless networks include the following:
 Limited throughput—throughput is similar to bandwidth. It is the amount of data
transferred or processed in a specified time, usually one second.
 Limited range—the distance a signal can travel without losing strength is more limited in
mobile and wireless networks.
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 In-building penetration problems—wireless signals might not be able to pass through

certain building materials or might have difficulty passing through walls.
 Vulnerability to frequency noise—interference from other signals, usually called “noise,”
can cause transmission problems.
 Security—wireless network traffic can be captured with sniffers.

There are various definitions of mobile and wireless computing. Mobile computing might simply
mean using a laptop away from the office or using a modem to access the corporate network
from a client’s office. Neither activity requires wireless technology. Wireless LANs usually refer
to proprietary LANs, meaning they use a certain vendor’s specifications.

Wireless networks have many advantages. For example, healthcare workers who use handheld,
notebook computers or tablets (such as the iPad) with wireless capabilities are able to get patient
information quickly. Because the information can be sent to and saved on a centralized database,
it is available to other workers instantly.

A Wireless Technologies

In a wireless environment, portable computers use small antennas to communicate with radio
towers in the surrounding area. Satellites in near-Earth orbit pick up low-powered signals
from mobile and portable network devices. Wireless technologies generally fall into two
groups:
 Wireless LANs (WLANs)—like their wired counterparts, WLANs are characterized by
having one owner and covering a limited area.
 Wireless WANs (WWANs)—these networks cover a broader area than WLANs and
include the following devices: cellular networks, cellular digital packet data (CDPD),
paging networks, personal communication systems (PCS), packet radio networks,
broadband personal communications systems (BPCS), microwave networks, and
satellite networks.

Wireless Fidelity (Wi-Fi) is a broadband wireless technology that allows computers and other
devices to communicate over a wireless signal. Information can be transmitted over short
distances, typically 120 feet indoors and 300 feet outdoors in the form of radio waves. You can
connect computers, mobile devices, smartphones, and game consoles to the Internet with Wi-Fi.
Some restaurants, coffee shops, and university campuses provide Wi-Fi access; these are called
“hotspots.” Wi-Fi connections are easy to set up, they have fast data transfer rates, and they offer
mobility and flexibility. However, they are susceptible to interference from other devices and to
being intercepted, which raises security concerns. In addition, there is a lack of support for high-
quality media streaming.
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Worldwide Interoperability for Microwave Access (WiMAX) is a broadband wireless

technology based on the IEEE 802.16 standards. It is designed for wireless metropolitan area
networks and usually has a range of about 30 miles for fixed stations and 3–10 miles for mobile
stations. Compared with Wi-Fi, WiMAX theoretically has faster data transfer rates and a longer
range. In addition, it is fast and easy to install and enables devices using the same frequency to
communicate. A single station can serve hundreds of users.

Bluetooth is a wireless technology that allows fixed and mobile devices to transfer data over
short distances (usually within 30 feet). Bluetooth 5 will offer a range of up to 120 meters, which
is four times that of Bluetooth 4.2, and will be two times faster, with data transfer rates of
[Link] can also be used to create a personal area network (PAN) for communication among
computerized devices, including smartphones and game consoles. (PANs can be used for
communication among the devices themselves or for connecting to the Internet.)

B. Mobile Networks

Mobile networks have a three-part architecture:

 Base stations send and receive transmissions to and from subscribers.
 Mobile telephone switching offices (MTSOs) transfer calls between national or global
phone networks and base stations.
 Subscribers (users) connect to base stations by using mobile communication devices.

Mobile devices register by subscribing to a carrier service (provider) licensed for certain
geographic areas. When a mobile unit is outside its provider’s coverage area, roaming occurs.
To improve the efficiency and quality of digital communications, two technologies have been
developed: Time Division Multiple Access and Code Division Multiple Access. Time
Division Multiple Access (TDMA) divides each channel into six time slots. Each user is
allocated two slots: one for transmission and one for reception. Code Division Multiple
Access (CDMA) transmits multiple encoded messages over a wide frequency and then
decodes them at the receiving end.

Advanced Mobile Phone System (AMPS) is the analog mobile phone standard developed by
Bell Labs and introduced in 1983. Digital technologies, however, are more widely used
because of higher data capacities, improved voice quality, encryption capabilities, and
integration with other digital networks. Many businesses use wireless and mobile networks to
improve customer service and reduce operational costs.
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VIII. Wireless Security

Security is important in any type of network, but it is especially important in a wireless network,
because anyone walking or driving within the range of an access point (AP), even if outside the
home or office, can use the network. An AP is the part of a WLAN that connects it to other
networks. There are several techniques for improving the security of a wireless network:
Discussion Question

What are the benefits and limitations of using wireless and mobile networks over wired
technology?

 SSID (Service Set Identifier)—all client computers that try to access the AP are required to
include an SSID in all their packets. A packet without an SSID is not processed by the AP.
 WEP (Wired Equivalent Privacy)—a key must be manually entered into the AP and the
client computer. The key encrypts the message before transmission.
 EAP (Extensible Authentication Protocol)—EAP keys are dynamically generated based on
the user’s ID and password. When the user logs out of the system, the key is discarded.
 WPA (Wi-Fi Protected Access)—this technique combines the strongest features of WEP
and EAP. Keys are fixed, as in WEP, or dynamically changed, as in EAP. However, the
WPA key is longer than the WEP key; therefore, it is more difficult to break.
 WPA2 or 802.11i—this technique uses EAP to obtain a master key. With this master key, a
user’s computer and the AP negotiate for a key that will be used for a session. After the
session is terminated, the key is discarded.

Discussion Question

List the different techniques for improving the security of a wireless network.
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IX. Convergence of Voice, Video, and Data

In data communication, convergence refers to integrating voice, video, and data so that
multimedia information can be used for decision making. Convergence requires major network
upgrades, because video requires much more bandwidth. This has changed, however, with the
availability of high-speed technologies, such as Asynchronous Transfer Mode (ATM), Gigabit
Ethernet, 3G and 4G networks, and more demand for applications using these technologies.
Gigabit Ethernet is a LAN transmission standard capable of 1 Gbps and 10 Gbps data transfer
speeds. The ATM is a packet-switching service that operates at 25 Mbps and 622 Mbps, with
maximum speed of up to 10 Gbps. The 3G network is the third generation of mobile networking
and telecommunications. It has increased the rate of information transfer, its quality, video and
broadband wireless data transfers, and the quality of Internet telephony or Voice over Internet
Protocol (VoIP).

More content providers, network operators, telecommunication companies, and broadcasting

networks, among others, have moved toward convergence. Convergence is possible now because
of a combination of technological innovation, changes in market structure, and regulatory
reform. Common applications of convergence include the following:
 E-commerce
 More entertainment options as the number of TV channels substantially increases and
movies and videos on demand become more available
 Increased availability and affordability of video and computer conferencing
 Consumer products and services, such as virtual classrooms, telecommuting, and virtual
reality

As a tool for delivering services, the Internet is an important contributor to the convergence
phenomenon.

Key Terms

Data communication is the electronic transfer of data from one location to another.

Bandwidth is the amount of data that can be transferred from one point to another in a certain
time period, usually one second.
Discussion Question

How can an organization benefit from convergence? What are the applications of
convergence? Discuss the 5G and its business applications.
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Attenuation is the loss of power in a signal as it travels from the sending device to the receiving
device.

In broadband data transmission, multiple pieces of data are sent simultaneously to increase the
transmission rate.

Narrowband is a voice-grade transmission channel capable of transmitting a maximum of

56,000 bps, so only a limited amount of information can be transferred in a specific period of
time.

Protocols are rules that govern data communication, including error detection, message length,
and transmission speed.

A modem (short for “modulator-demodulator”) is a device that connects a user to the Internet.

Digital subscriber line (DSL), a common carrier service, is a high-speed service that uses
ordinary phone lines.

Communication media, or channels, connect sender and receiver devices. They can be
conducted or radiated.

Conducted media provide a physical path along which signals are transmitted, including twisted
pair copper cable, coaxial cable, and fiber optics.

Radiated media use an antenna for transmitting data through air or water.

In a centralized processing system, all processing is done at one central computer.

In decentralized processing, each user, department, or division has its own computer
(sometimes called an “organizational unit”) for performing processing tasks.

Distributed processing maintains centralized control and decentralized operations. Processing

power is distributed among several locations.

The Open Systems Interconnection (OSI) model is a seven-layer architecture for defining how
data is transmitted from computer to computer in a network, from the physical connection to the
network to the applications that users run. It also standardizes interactions between network
computers exchanging information.

A network interface card (NIC) is a hardware component that enables computers to

 19

communicate over a network.

A local area network (LAN) connects workstations and peripheral devices that are in close
proximity.

A wide area network (WAN) can span several cities, states, or even countries, and it is usually
owned by several different parties.

A metropolitan area network (MAN) is designed to handle data communication for multiple
organizations in a city and sometimes nearby cities as well.

A network topology represents a network’s physical layout, including the arrangement of

computers and cables.

The star topology usually consists of a central computer (host computer, often a server) and a
series of nodes (typically, workstations or peripheral devices).

In a ring topology, no host computer is required because each computer manages its own
connectivity.

The bus topology (also called “linear bus”) connects nodes along a network segment, but the
ends of the cable are not connected, as they are in a ring topology.

A hierarchical topology (also called a “tree”) combines computers with different processing
strengths in different organizational levels.

A controller is a hardware and software device that controls data transfer from a computer to a
peripheral device (examples are a monitor, a printer, or a keyboard) and vice versa.

A multiplexer is a hardware device that allows several nodes to share one communication
channel.

In a mesh topology (also called “plex” or “interconnected”), every node (which can differ in size
and configuration from the others) is connected to every other node.

Transmission Control Protocol/Internet Protocol (TCP/IP) is an industry-standard suite of

communication protocols that enables interoperability.

A packet is a collection of binary digits—including message data and control characters for
formatting and transmitting—sent from computer to computer over a network.
 20

Routing is the process of deciding which path to take on a network. This is determined by the
type of network and the software used to transmit data.

A routing table, generated automatically by software, is used to determine the best possible
route for a packet.

In centralized routing, one node is in charge of selecting the path for all packets. This node,
considered the network routing manager, stores the routing table, and any changes to a route
must be made at this node.

Distributed routing relies on each node to calculate its own best possible route. Each node
contains its own routing table with current information on the status of adjacent nodes so packets
can follow the best possible route

A router is a network connection device containing software that connects network systems and
controls traffic flow between them.

A static router requires the network routing manager to give it information about which
addresses are on which network.

A dynamic router can build tables that identify addresses on each network.

In the client/server model, software runs on the local computer (the client) and communicates
with the remote server to request information or services. A server is a remote computer on the
network that provides information or services in response to client requests.

In the two-tier architecture (the most common type), a client (tier one) communicates directly
with the server (tier two).

An n-tier architecture attempts to balance the workload between client and server by removing
application processing from both the client and server and placing it on a middle-tier server.

A wireless network is a network that uses wireless instead of wired technology.

A mobile network (also called a cellular network) is a network operating on a radio frequency
(RF), consisting of radio cells, each served by a fixed transmitter, known as a cell site or base
station.

Wireless Fidelity (Wi-Fi) is a broadband wireless technology. Information can be transmitted

 21

over short distances—typically 120 feet indoors and 300 feet outdoors—in the form of radio
waves.

Worldwide Interoperability for Microwave Access (WiMAX) is a broadband wireless

technology based on the IEEE 802.16 standards. It is designed for wireless metropolitan area
networks and usually has a range of about 30 miles for fixed stations and 3–10 miles for mobile
stations.

Bluetooth, which can be used to create a personal area network (PAN), is a wireless technology
for transferring data over short distances (usually within 30 feet) for fixed and mobile devices.

Throughput is similar to bandwidth. It is the amount of data transferred or processed in a

specified time, usually one second.

To improve the efficiency and quality of digital communications, Time Division Multiple
Access (TDMA) divides each channel into six time slots. Each user is allocated two slots: one
for transmission and one for reception. This method increases efficiency by 300 percent, as it
allows carrying three calls on one channel.

To improve the efficiency and quality of digital communications, Code Division Multiple
Access (CDMA) transmits multiple encoded messages over a wide frequency and then decodes
them at the receiving end.

In data communication, convergence refers to integrating voice, video, and data so that
multimedia information can be used for decision making.

End of Module Solutions

Reviews and Discussions
[Link] are three applications of data communication systems?
Answer—

 Online training for employees can be provided via virtual classrooms. In addition,
employees get the latest technology and product information immediately.
 Internet searches for information on products, services, and innovations keep employees
up to date.
 The Internet and data communication systems facilitate lifelong learning, which will be
an asset for knowledge workers of the future.
 22

2. In order to have a data communication system three major components are needed. Explain
these three components.
Answer—

 Sender and receiver devices

 Modems or routers
 Communication medium (channel)

3. What are one advantage and one disadvantage of each processing configuration?
Answer—

Advantage Disadvantage
Centralized exercise tight control over lack of responsiveness to
system operations and users’ needs
applications
Decentralized more responsive to users than lack of coordination among
a centralized processing organizational units
system
Distributed accessing unused processing there may be more security
power is possible and privacy challenges

4. Which of the three types of networks is the fastest? Which one is the slowest?
Answer—
LAN is the fastest and WAN is the slowest.
5. Which network topology is the most reliable type? Discuss.
Answer—
In a mesh topology (also called “plex” or “interconnected”), every node (which can differ in size
and configuration from the others) is connected to every other node. This topology is highly
reliable. Failure of one or a few nodes does not usually cause a major problem in network
operation because many other nodes are available. However, this topology is costly and difficult
to maintain and expand.
6. What is TCP/IP? What does it do?
Answer—
Transmission Control Protocol/Internet Protocol (TCP/IP) is an industry-standard suite of
communication protocols. TCP/IP’s main advantage is that it enables interoperability—in other
words, it allows the linking of devices running on many different platforms.
7. What are three advantages of a wireless network compared to a wired one?
 23

Answer—
Mobility, flexibility, ease of installation, and low cost.
8. What are the five techniques used for wireless security?
Answer—

 SSID (Service Set Identifier)—All client computers that try to access the AP are required
to include an SSID in all their packets. A packet without an SSID is not processed by the
AP. The major weakness of using an SSID is that it can be picked up by other devices
within the range, given the right software.
 WEP (Wired Equivalent Privacy)—A key must be manually entered into the AP and the
client computer. The key encrypts the message before transmission. Because this manual
process is complex and time-consuming, the WEP technique is not suitable for large
networks.
 EAP (Extensible Authentication Protocol)—EAP keys are dynamically generated based
on the user’s ID and password. When the user logs out of the system, the key is
discarded. A new key is generated when the user logs back into the network.
 WPA (Wi-Fi Protected Access)—This technique combines the strongest features of WEP
and EAP. Keys are fixed, as in WEP, or dynamically changed, as in EAP. However, the
WPA key is longer than the WEP key; therefore, it is more difficult to break. Also, the
key is changed for each frame (a distinct and identifiable data set) before transmission.
 WPA2 or 802.11i—This technique uses EAP to obtain a master key. With this master
key, a user’s computer and the AP negotiate for a key that will be used for a session.
After the session is terminated, the key is discarded. This technique uses the Advanced
Encryption Standard, which is more complex than WPA and much harder to break.

Projects

1. A newly established Internet company with 40 employees needs your advice. They are
looking for a collaboration tool and have narrowed their choices to GoToMeeting,
WebEx, and My Web Conferences. After reading the information presented in this
module and other sources, prepare a two-page document that includes two advantages
and two disadvantages of each tool. Which one is your final recommendation? Why did
you choose that tool over the other two?
Answer—
Answers will vary. In addition to GoToMeeting, WebEx, and My Web Conferences, Zoom has
attracted a lot of attentions in recent years as a collaboration tool.

2. Cisco and Poly are two major vendors of telepresence products. After reading the
information presented in this module and other sources, write a one-page paper that
identifies one top-of-the-line product from each company. Which product would you
recommend to the company mentioned in Project 1? What are you basing your
recommendation on? What are two advantages of using a telepresence system compared
to a face-to-face meeting? What are two disadvantages?
 24

Answer—
Answers will vary. Two advantages of using a telepresence system include reduced cost and
availability on any time anywhere bases. Two disadvantages include lack of human touch and it
may not be as effective as a face-to-face meeting.
3. Mobile and wireless devices are being increasingly used in the health care industry. After
reading the information presented in this module and other sources, write a two-page
paper that outlines five applications of these devices in this industry. Also, identify three
mobile apps that could be used by medical personnel to increase their productivity.
Answer—
Answers will vary. Point-of-care coordination, direct patient management, real-time
communication, doctor on demand, and mobile ordering of prescription drugs are a few
examples. Medscape, MedPage Today, and Epocrates are three popular examples of medical
mobile apps.

4. After reading the information presented in this module and other sources, write a two-
page paper that identifies five mobile apps that could be used in the banking industry.
How do these apps increase the productivity of the bankers and their customers? Do you
see any drawbacks involved in using these apps?
Answer—
Answers will vary. USAA Mobile Banking App, BB&T Mobile App, Capital One Mobile App,
Ally Mobile App, and Bank of America Mobile App are five popular examples of mobile
banking apps.

5. After reading the information presented in this module and other sources, write a one-
page paper that includes a six-item bulleted list for improving the privacy and security of
your smartphone. Generally speaking, are iOS devices more or less secure than Android
devices?
Answer—
Answers will vary. Generally speaking, iOS devices are more secure than Android devices.

6. After reading the information presented in this module and other sources, write a two-
page paper that describes five business applications of convergence. Which industries are
expected to gain the most from the convergence trend?
Answer—
Answers will vary. E-commerce, entertainment, videos on demand, video and computer
conferencing, virtual classrooms, telecommuting are just a few examples.

Module Quiz
1. In data communication, convergence refers to integrating voice, video, and data so
that multimedia information can be used for decision making. True or False?
 25

Answer—
True
2. To improve the efficiency and quality of digital communications, Time Division
Multiple Access (TDMA) divides each channel into two time slots. True or False?
Answer—
False
3. In the two-tier architecture of the client/server model, a client (tier one)
communicates directly with the server (tier two). True or False?
Answer—
True
4. Which of the following layer of the OSI model is responsible for formatting message
packets:
a. Presentation
b. Application
c. Session
d. Transport
Answer—
A
5. A typical data communication system includes all of the following components
except:

a. Sender and receiver devices

b. Modems or routers
c. Communication medium (channel)
d. A local area network
Answer—
D
6. One of the following has the highest bandwidth of any communication medium:
a. Coaxial cable
b. Fiber-optic cable
c. Twisted pair copper cable
d. Microwave
Answer—
B

Case Study 6-1

1. How has Walmart improved its data communication systems for suppliers?
Answer—
 26

Answers will vary. Walmart has made several changes in data communication systems to
improve suppliers’ access to sales and inventory data. For example, the company added a
customized Web site for suppliers, such as Mattel, Procter & Gamble, and Warner-Lambert.
2. What are some typical data communication applications in Walmart?
Answer—
With Walmart’s network, suppliers can access sales, inventory, and forecasting data over
extremely fast connections.
3. What are some of the applications of wireless technology at Walmart?
Answer—
Walmart uses the latest in wireless technology in its operations for warehouse management
systems (WMS) to track and manage the flow of goods through its distribution centers. Another
application of wireless technology is for controlling and monitoring forklifts and industrial
vehicles that move merchandise inside its distribution centers.
4. What are some of the features and capabilities of VMS?
Answer—
The Vehicle Management System (VMS) is the latest application of data communication in
Walmart. Among other features, VMS includes a two-way text messaging system that enables
management to effectively divert material handling resources to where they are needed the most.
(VMS works effectively with RFID systems.) According to Walmart, VMS has improved safety
and has also significantly improved the productivity of its operations.

Case Study 6-2

1. What are some examples of security risks associated with a mobile device?
Answer—
Malware, premium SMS billing, e-mail and SMS phishing, spyware, and malicious Web sites.
2. How can these devices automatically track a user’s location?
Answer—
They do this because they have GPS capabilities.
3. What are a couple of recommendations for protecting your mobile device
against these threats?
Answer—
Never leave your mobile device unlocked. Never leave it unattended. Always protect it with a
password.

4. How do you stop the tracking feature of an app on your smartphone? Are you
concerned about this? Why or why not?
Answer—
Follow these steps to stop them: (1) open Settings, (2) tap “Privacy,” and (3) select “Location
Services.” If you want to completely stop all apps from using your location, turn Location
Services off. If you want to manage settings app by app, tap each app and choose “Never” or
 27

“While Using.” Make sure apps that do not need your location, such as most games, are set to
“Never.” Other apps should be set to track your location only while you are using them.