MP3 / MD740 Strategy & Information Systems Dec. 8, 2004 Telecom Technology, Value Chain, & Strategic Alignment.

MP3 / MD740Strategy & Information Systems

Dec. 8, 2004

Telecom

Technology, Value Chain, & Strategic Alignment

Issues Covered

• Telecommunications– How the Internet Works– Telecom markets– RBOCs, Cable, CLECs, VoIP, and more

• Technology, Value Chain, and Strategic Alignment– Case Study: Inditex / Zara

Network Interconnectionsdial-in

users (56.6 Kbps)dormusers

class/officeusers

dorm LAN office LANmodem pool

web serverwww2.bc.edu

BC Campus Network Backbone (10 Mbps)(IP #s 136.167.xxx.xxx domain)

Internet Leased Line through our ISPs (45 Mbps / T3)

The Internet

local ISPmicrosoft.comwhitehouse.gov

wireless

RR

TCP/IP

• TCP/IP - the Internet’s common language

• TCP - Transmission Control Protocol. Breaks up transmissions (e-mail messages, web pages, etc.) into packets of no more than about 1500 characters each, checks the integrity of incoming packets, and reassembles packets on the other end

• IP - Internet Protocol. Routes packets.

Packet Traffic

• What’s in a packet?– source address– destination address– error checking (checksum)– time to live– options (timestamp, record route, etc.)– your data!

A Packet Switched Network at Work

E-mail message:

Prof. Gallaugher,I just wanted to let you know that I got a job based on the stuff I learned in your class...

packet1

packet2

packet3

E-mail message:

Prof. Gallaugher,I just wanted to let you know ...

packet2

packet1

packet3

packet1

packet2

packet3

packet2

packet3

R

R

R R

R

R = router

US Internet Infrastructure

Circuit vs. IP TelephonyCircuit Switching

Internet VoIP (e.g. Vonage, AT&T CallVantage, Skype)

Private Network VoIP (e.g. corporate VoIP, Qwest)

Guaranteed QoS (quality of service)

packets over the Internet, variable QoS

packets over private network, improved QoS

The Internet

Private IP Network

Words from the PowerfulVoIP is the most significant paradigm shift in the entire history of modern communications since the invention of the telephone.

Employees ask me what I’m most excited about and I tell them Voice over the Internet. It is going to be a really big deal for us.

FCC Chair Michael Powell Time Warner CEO Richard Parsons

Zara Design Group

Zara Warehouse