Internet service provider(ISP)An organization or firm th.docx

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About This Presentation

Internet service provider
(ISP)

An organization or firm that
provides access to the
Internet.

C H A P T E R 1 2
A Manager’s Guide to the
Internet and
Telecommunications

1. INTRODUCTION
There’s all sorts of hidden magic happening whenever you connect to the Internet. But what really
makes it ...


Slide Content

Internet service provider
(ISP)

An organization or firm that
provides access to the
Internet.

C H A P T E R 1 2
A Manager’s Guide to the
Internet and
Telecommunications

1. INTRODUCTION
There’s all sorts of hidden magic happening whenever you
connect to the Internet. But what really
makes it possible for you to reach servers halfway around the
world in just a fraction of a second?
Knowing this is not only flat-out fascinating stuff; it’s also
critically important for today’s manager to
have at least a working knowledge of how the Internet
functions.

That’s because the Internet is a platform of possibilities and a
business enabler. Understanding
how the Internet and networking works can help you brainstorm
new products and services and un-
derstand roadblocks that might limit turning your ideas into
reality. Marketing professionals who
know how the Internet reaches consumers have a better
understanding of how technologies can be
used to find and target customers. Finance firms that rely on
trading speed to move billions in the blink

of an eye need to master Internet infrastructure to avoid being
swept aside by more nimble market
movers. And knowing how the Internet works helps all
managers understand where their firms are vul-
nerable. In most industries today, if your network goes down
then you might as well shut your doors
and go home; it’s nearly impossible to get anything done if you
can’t get online. Managers who know
the Net are prepared to take the appropriate steps to secure their
firms and keep their organization
constantly connected.

2. INTERNET 101: UNDERSTANDING HOW THE
INTERNET WORKS

L E A R N I N G O B J E C T I V E S

1. Describe how the technologies of the Internet combine to
answer these questions: What are
you looking for? Where is it? And how do we get there?

2. Interpret a URL, understand what hosts and domains are,
describe how domain registration
works, describe cybersquatting, and give examples of conditions
that constitute a valid and
invalid domain-related trademark dispute.

3. Describe certain aspects of the Internet infrastructure that are
fault-tolerant and support load
balancing.

4. Discuss the role of hosts, domains, IP addresses, and the DNS
in making the Internet work.

The Internet is a network of networks—millions of them,
actually. If the network at your university,

your employer, or in your home has Internet access, it connects
to an Internet service provider
(ISP). Many (but not all) ISPs are big telecommunications
companies like Verizon, Comcast, and
AT&T. These providers connect to one another, exchanging
traffic, and ensuring your messages can
get to any other computer that’s online and willing to
communicate with you.

The Internet has no center and no one owns it. That’s a good
thing. The Internet was designed to
be redundant and fault-tolerant—meaning that if one network,
connecting wire, or server stops work-
ing, everything else should keep on running. Rising from
military research and work at educational

© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]



URL (uniform resource
locator)

Often used interchangeably
with “Web address,” URLs
identify resources on the
Internet along with the
application protocol need to
retrieve it.

institutions dating as far back as the 1960s, the Internet really
took off in the 1990s, when graphical
Web browsing was invented, and much of the Internet’s
operating infrastructure was transitioned to be
supported by private firms rather than government grants.

F I G U R E 1 2 . 1

The Internet is a network of networks, and these networks are
connected together. In the diagram above, the
“state.edu” campus network is connected to other networks of
the Internet via two ISPs: Cogent and Verizon.

Enough history—let’s see how it all works! If you want to
communicate with another computer on the
Internet then your computer needs to know the answer to three
questions: What are you looking for?
Where is it? And how do we get there? The computers and
software that make up Internet infrastruc-
ture can help provide the answers. Let’s look at how it all
comes together.

2.1 The URL: “What Are You Looking For?”
When you type an address into a Web browser (sometimes
called a URL for uniform resource locator),
you’re telling your browser what you’re looking for. Figure
12.2 describes how to read a typical URL.

254 INFORMATION SYSTEMS VERSION 1.4


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]



hypertext transfer protocol
(http)

Application transfer protocol
that allows Web browsers

and Web servers to
communicate with each
other.

protocol

Enables communication by
defining the format of data
and rules for exchange.

file transfer protocol (FTP)

Application transfer protocol
that is used to copy files from
one computer to another.

load balancing

Distributing a computing or
networking workload across
multiple systems to avoid
congestion and slow
performance.

fault tolerance

The ability of a system to
continue operation even if a
component fails.

F I G U R E 1 2 . 2 Anatomy of a Web Address

The URL displayed really says, “Use the Web (http://) to find a
host server named ‘www’ in the ‘nytimes.com’
network, look in the ‘tech’ directory, and access the
‘index.html’ file.”

The http:// you see at the start of most Web addresses stands for
hypertext transfer protocol. A
protocol is a set of rules for communication—sort of like
grammar and vocabulary in a language like
English. The http protocol defines how Web browser and Web
servers communicate and is designed to
be independent from the computer’s hardware and operating
system. It doesn’t matter if messages
come from a PC, a Mac, a huge mainframe, or a pocket-sized
smartphone; if a device speaks to another
using a common protocol, then it will be heard and understood.

The Internet supports lots of different applications, and many of
these applications use their own
application transfer protocol to communicate with each other.
The server that holds your e-mail uses
something called SMTP, or simple mail transfer protocol, to
exchange mail with other e-mail servers
throughout the world. FTP, or file transfer protocol, is used
for—you guessed it—file transfer. FTP is
how most Web developers upload the Web pages, graphics, and
other files for their Web sites. Even the
Web uses different protocols. When you surf to an online bank
or when you’re ready to enter your pay-
ment information at the Web site of an Internet retailer, the http
at the beginning of your URL will
probably change to https (the “s” is for secure). That means that
communications between your
browser and server will be encrypted for safe transmission. The
beauty of the Internet infrastructure is
that any savvy entrepreneur can create a new application that
rides on top of the Internet.

Hosts and Domain Names

The next part of the URL in our diagram holds the host and
domain name. Think of the domain name
as the name of the network you’re trying to connect to, and
think of the host as the computer you’re
looking for on that network.

Many domains have lots of different hosts. For example,
Yahoo!’s main Web site is served from the
host named “www” (at the address http://www.yahoo.com), but
Yahoo! also runs other hosts including
those named “finance” (finance.yahoo.com), “sports”
(sports.yahoo.com), and “games”
(games.yahoo.com).

Host and Domain Names: A Bit More Complex Than That

While it’s useful to think of a host as a single computer,
popular Web sites often have several computers that
work together to share the load for incoming requests.
Assigning several computers to a host name offers
load balancing and fault tolerance, helping ensure that all visits
to a popular site like
http://www.google.com won’t overload a single computer, or
that Google doesn’t go down if one computer
fails.

It’s also possible for a single computer to have several host
names. This might be the case if a firm were host-
ing several Web sites on a single piece of computing hardware.

Some domains are also further broken down into subdomains—
many times to represent smaller networks or
subgroups within a larger organization. For example, the
address http://www.rhsmith.umd.edu is a University
of Maryland address with a host “www” located in the
subdomain “rhsmith” for the Robert H. Smith School of

Business. International URLs might also include a second-level
domain classification scheme. British URLs use

CHAPTER 12 A MANAGER’S GUIDE TO THE INTERNET
AND TELECOMMUNICATIONS 255


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]

http://www.yahoo.com
http://www.google.com
http://www.rhsmith.umd.edu


Web hosting service

A firm that provides hardware
and services to run the Web
sites of others.

ICANN (Internet
Corporation for Assigned
Names and Numbers)

Nonprofit organization
responsible for managing the
Internet’s domain and
numbering systems.

cybersquatting

Acquiring a domain name
that refers to a firm,
individual, product, or
trademark, with the goal of

exploiting it for financial gain.
The practice is illegal in many
nations, and ICANN has a
dispute resolution
mechanism that in some
circumstances can strip
cybersquatters of registered
domains.

this scheme, for example, with the BBC carrying the
commercial (.co) designa-
tion—http://www.bbc.co.uk—and the University of Oxford
carrying the academic (.ac) designa-
tion—http://www.ox.ac.uk. You can actually go 127 levels deep
in assigning subdomains, but that wouldn’t
make it easy on those who have to type in a URL that long.

Most Web sites are configured to load a default host, so you can
often eliminate the host name if you
want to go to the most popular host on a site (the default host is
almost always named “www”). Anoth-
er tip: most browsers will automatically add the “http://” for
you, too.

Host and domain names are not case sensitive, so you can use a
combination of upper and lower
case letters and you’ll still get to your destination.

I Want My Own Domain

You can stake your domain name claim in cyberspace by going
through a firm called a domain name registrar.
You don’t really buy a domain name; you simply pay a registrar
for the right to use that name, with the right
renewable over time. While some registrars simply register
domain names, others act as Web hosting ser-

vices that are able to run your Web site on their Internet-
connected servers for a fee.

Registrars throughout the world are accredited by ICANN
(Internet Corporation for Assigning Names
and Numbers), a nonprofit governance and standards-setting
body. Each registrar may be granted the abil-
ity to register domain names in one or more of the Net’s generic
top-level domains (gTLDs), such as “.com,”
“.net,” or “.org.” There are dozens of registrars that can register
“.com” domain names, the most popular gTLD.

Some generic top-level domain names, like “.com,” have no
restrictions on use, while others limit registration.
For example, “.edu” is restricted to U.S.-accredited,
postsecondary institutions. ICANN has also announced
plans to allow organizations to sponsor their own top-level
domains (e.g., “.berlin,” or “.coke”).

There are also separate agencies that handle over 250 different
two-character country code top-level domains,
or ccTLDs (e.g., “.uk” for the United Kingdom and “.jp” for
Japan). Servers or organizations generally don’t need
to be housed within a country to use a country code as part of
their domain names, leading to a number of
creatively named Web sites. The URL-shortening site “bit.ly”
uses Libya’s “.ly” top-level domain; many physi-
cians are partial to Moldova’s code (“.md”); and the tiny Pacific
island nation of Tuvulu might not have a single
broadcast television station, but that doesn’t stop it from
licensing its country code to firms that want a “.tv”
domain name.[1] Recent standards also allow domain names in
languages that use non-Latin alphabets such
as Arabic and Russian.

Domain name registration is handled on a first-come, first-

served basis and all registrars share registration data
to ensure that no two firms gain rights to the same name. Start-
ups often sport wacky names, partly because
so many domains with common words and phrases are already
registered to others. While some domain
names are held by legitimate businesses, others are registered
by investors hoping to resell a name’s rights.

Trade in domain names can be lucrative. For example, the
“Insure.com” domain was sold to QuinStreet for $16
million in fall 2009.[2] But knowingly registering a domain
name to profit from someone else’s firm name or
trademark is known as cybersquatting and that’s illegal. The
United States has passed the Anticybersquat-
ting Consumer Protection Act (ACPA), and ICANN has the
Domain Name Dispute Resolution Policy that can
reach across boarders. Try to extort money by holding a domain
name that’s identical to (or in some cases,
even similar to) a well-known trademark holder and you could
be stripped of your domain name and even
fined.

Courts and dispute resolution authorities will sometimes allow a
domain that uses the trademark of another
organization if it is perceived to have legitimate, nonexploitive
reasons for doing so. For example, the now de-
funct site Verizonreallysucks.com was registered as a protest
against the networking giant and was considered
fair use since owners didn’t try to extort money from the
telecom giant.[3] However, the courts allowed the
owner of the PETA trademark (the organization People for the
Ethical Treatment of Animals) to claim the do-
main name peta.org from original registrant, who had been
using that domain to host a site called “People
Eating Tasty Animals.”[4]

Trying to predict how authorities will rule can be difficult. The
musician Sting’s name was thought to be too
generic to deserve the rights to Sting.com, but Madonna was
able to take back her domain name (for the re-
cord, Sting now owns Sting.com).[5] Apple executive Jonathan
Ive was denied the right to reclaim domain
names incorporating his own name, but that had been registered
by another party and without his consent.
The publicity-shy design guru wasn’t considered enough of a
public figure to warrant protection.[6] And

256 INFORMATION SYSTEMS VERSION 1.4


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]

http://www.bbc.co.uk
http://www.ox.ac.uk


hypertext markup
language (HTML)

Language used to compose
Web pages.

IP address

A value used to identify a
device that is connected to
the Internet. IP addresses are
usually expressed as four
numbers (from 0 to 255),
separated by periods.

NAT (network address
translation)

A technique often used to
conserve IP addresses by
maps devices on a private
network to single
Internet-connected device
that acts on their behalf.

sometimes disputing parties can come to an agreement outside
of court or ICANN’s dispute resolution mech-
anisms. When Canadian teenager Michael Rowe registered a site
for his part-time Web design business, a firm
south of the border took notice of his domain name—
Mikerowesoft.com. The two parties eventually settled in
a deal that swapped the domain for an Xbox and a trip to the
Microsoft Research Tech Fest.[7]

Path Name and File Name

Look to the right of the top-level domain and you might see a
slash followed by either a path name, a
file name, or both. If a Web address has a path and file name,
the path maps to a folder location where
the file is stored on the server; the file is the name of the file
you’re looking for.

Most Web pages end in “.html,” indicating they are in hypertext
markup language. While http
helps browsers and servers communicate, html is the language
used to create and format (render) Web
pages. A file, however, doesn’t need to be .html; Web servers
can deliver just about any type of file:
Acrobat documents (.pdf), PowerPoint documents (.ppt or
.pptx), Word docs (.doc or .docx), JPEG

graphic images (.jpg), and—as we’ll see in Chapter 13—even
malware programs that attack your PC. At
some Web addresses, the file displays content for every visitor,
and at others (like amazon.com), a file
will contain programs that run on the Web server to generate
custom content just for you.

You don’t always type a path or file name as part of a Web
address, but there’s always a file lurking
behind the scenes. A Web address without a file name will load
content from a default page. For ex-
ample, when you visit “google.com,” Google automatically
pulls up a page called “index.html,” a file
that contains the Web page that displays the Google logo, the
text entry field, the “Google Search” but-
ton, and so on. You might not see it, but it’s there.

Butterfingers, beware! Path and file names are case sensitive—
amazon.com/books is considered to
be different from amazon.com/BOOKS. Mistype your capital
letters after the domain name and you
might get a 404 error (the very unfriendly Web server error
code that means the document was not
found).

2.2 IP Addresses and the Domain Name System: “Where Is It?
And How
Do We Get There?”

The IP Address

If you want to communicate, then you need to have a way for
people to find and reach you. Houses and
businesses have street addresses, and telephones have phone
numbers. Every device connected to the
Internet has an identifying address, too—it’s called an IP

(Internet protocol) address.

A device gets its IP address from whichever organization is
currently connecting it to the Inter-
net. Connect using a laptop at your university and your school
will assign the laptop’s IP address. Con-
nect at a hotel, and the hotel’s Internet service provider lends
your laptop an IP address. Laptops and
other end-user machines might get a different IP address each
time they connect, but the IP addresses
of servers rarely change. It’s OK if you use different IP
addresses during different online sessions be-
cause services like e-mail and Facebook identify you by your
username and password. The IP address
simply tells the computers that you’re communicating with
where they can find you right now. IP ad-
dresses can also be used to identify a user’s physical location,
to tailor search results, and to customize
advertising. See Chapter 14 to learn more.

The original and still widely used format for IP addresses is
known as IPv4. Under IPv4, IP ad-
dresses are expressed as a string of four numbers between 0 and
255, separated by three periods. Want
to know which IP address your smartphone or computer is
using? Visit a Web site like ip-adress.com
(one “d”), whatismyipaddress.com, or ipchicken.com.

The Internet Is Full—We’ve Run Out of IP Addresses

If you do the math, four combinations of 0 to 255 gives you a
little over four billion possible IP addresses. Four
billion sounds like a lot, but the number of devices connecting
to the Internet is exploding! Internet access is
now baked into smartphones, tablets, televisions, DVD players,
video game consoles, utility meters, thermo-

stats, appliances, picture frames, and more. Another problem is
a big chunk of existing addresses weren’t alloc-
ated efficiently, and these can’t be easily reclaimed from the
corporations, universities, and other organizations
that initially received them. All of this means that we’ve run out
of IP addresses. In February 2011 the last
batches were made available to regional Internet registries.[8]

CHAPTER 12 A MANAGER’S GUIDE TO THE INTERNET
AND TELECOMMUNICATIONS 257


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]



domain name service (DNS)

Internet directory service that
allows devices and services to
be named and discoverable.
The DNS, for example, helps
your browser locate the
appropriate computers when
entering an address like
http://finance.google.com.

There are some schemes to help delay the impact of this IP
address drought. For example, a technique known
as NAT (network address translation) uses a gateway that
allows multiple devices to share a single IP
address. But NAT slows down Internet access and is complex,
cumbersome, and expensive to administer.[9]

The only long-term solution is to shift to a new IP scheme.

Fortunately, one was developed more than a dec-
ade ago. IPv6 increases the possible address space from the 232
(4,294,967,296) addresses used in the current
system (called IPv4) to a new theoretical limit of 2128
addresses, which is a really big number—bigger than 34
with 37 zeros after it. That’s more IPv6 addresses than there are
gains of sand on the earth.[10]

But not all the news is good. Unfortunately, IPv6 isn’t
backward compatible with IPv4, and the transition to the
new standard has been painfully slow. This gives us the
equivalent of many islands of IPv6 in a sea of IPv4, with
translation between the two schemes happening when these
networks come together. Others consider it the
equivalent of two Internets with a translation bridge between
IPv4 and IPv6 (and that bridge introduces a
delay).[11] While most modern hardware and operating systems
providers now support IPv6, converting a net-
work to IPv6 currently involves a lot of cost with little short-
term benefit.[12] Upgrading may take years.[13]

Some organizations have stepped up to try to hasten the
transition. Facebook, Google, Microsoft, Yahoo!, and
some of the Internet’s largest networks have made most of its
services IPv6 accessible, the U.S. government
has mandated IPv6 support for most agencies, China has spurred
conversion within its borders, and Comcast
and Verizon have major IPv6 rollouts under way. While the
transition will be slow, when wide scale deploy-
ment does arrive, IPv6 will offer other benefits, including
potentially improving the speed, reliability, and secur-
ity of the Internet.

The DNS: The Internet’s Phonebook

You can actually type an IP address of a Web site into a Web

browser and that page will show up. But
that doesn’t help users much because four sets of numbers are
really hard to remember.

This is where the domain name service (DNS) comes in. The
domain name service is a distrib-
uted database that looks up the host and domain names that you
enter and returns the actual IP ad-
dress for the computer that you want to communicate with. It’s
like a big, hierarchical set of phone
books capable of finding Web servers, e-mail servers, and more.
These “phone books” are called
nameservers—and when they work together to create the DNS,
they can get you anywhere you need to
go online.

F I G U R E 1 2 . 3

When your computer needs to find the IP address for a host or
domain name, it sends a message to a DNS resolver,
which looks up the IP address starting at the root nameserver.
Once the lookup has taken place, that IP address can
be saved in a holding space called a cache, to speed future
lookups.

To get a sense of how the DNS works, let’s imagine that you
type www.yahoo.com into a Web browser.
Your computer doesn’t know where to find that address, but
when your computer connected to the
network, it learned where to find a service on the network
called a DNS resolver. The DNS resolver can
look up host/domain name combinations to find the matching IP
address using the “phone book” that
is the DNS. The resolver doesn’t know everything, but it does
know where to start a lookup that will
eventually give you the address you’re looking for. If this is the

first time anyone on that network has
tried to find “www.yahoo.com,” the resolver will contact one of
thirteen identical root nameservers.
The root acts as a lookup starting place. It doesn’t have one big
list, but it can point you to a

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cache

A temporary storage space
used to speed computing
tasks.

nameserver for the next level, which would be one of the
“.com” nameservers in our example. The
“.com” nameserver can then find one of the yahoo.com
nameservers. The yahoo.com nameserver can
respond to the resolver with the IP address for www.yahoo.com,
and the resolver passes that informa-
tion back to your computer. Once your computer knows
Yahoo!’s IP address, it’s then ready to com-
municate directly with www.yahoo.com. The yahoo.com
nameserver includes IP addresses for all Ya-
hoo!’s public sites: www.yahoo.com, games.yahoo.com,
sports.yahoo.com, finance.yahoo.com, and so
on.

The system also remembers what it’s done so the next time you

need the IP address of a host
you’ve already looked up, your computer can pull this out of a
storage space called a cache, avoiding
all those nameserver visits. Caches are periodically cleared and
refreshed to ensure that data referenced
via the DNS stays accurate.

Distributing IP address lookups this way makes sense. It avoids
having one huge, hard-to-main-
tain, and ever-changing list. Firms add and remove hosts on
their own networks just by updating
entries in their nameserver. And it allows host IP addresses to
change easily, too. Moving your Web
server off-site to a hosting provider? Just update your
nameserver with the new IP address at the host-
ing provider, and the world will invisibly find that new IP
address on the new network by using the
same old, familiar host/domain name combination. The DNS is
also fault-tolerant—meaning that if
one nameserver goes down, the rest of the service can function.
There are exact copies at each level,
and the system is smart enough to move on to another
nameserver if its first choice isn’t responding.

But What If the DNS Gets Hacked?

A hacked DNS would be a disaster! Think about it. If bad guys
could change which Web sites load when you
type in a host and domain name, they could redirect you to
impostor Web sites that look like a bank or e-com-
merce retailer but are really set up to harvest passwords and
credit card data.

This exact scenario played out when the DNS of NET Virtua, a
Brazilian Internet service provider, was hacked via
a technique called DNS cache poisoning. Cache poisoning

exploits a hole in DNS software, redirecting users to
sites they didn’t request. The Brazilian DNS hack redirected
NET Virtua users wishing to visit the Brazilian bank
Bradesco to fraudulent Web sites that attempted to steal
passwords and install malware. The hack impacted
about 1 percent of the bank’s customers before the attack was
discovered.[14]

The exploit showed the importance of paying attention to
security updates. A few months earlier, a group that
Wired magazine referred to as “A Secret Geek A-Team”[15] had
developed a software update that would have
prevented the DNS poisoning exploit used against NET Virtua,
but administrators at the Brazilian Internet ser-
vice provider failed to update their software so the hackers got
in. An additional upgrade to a DNS system,
known as DNSSEC (domain name service security extensions),
promises to further limit the likelihood of cache
poisoning, but it may take years for the new standards to be
rolled out everywhere.[16]

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http://www.yahoo.com
http://games.yahoo.com
http://sports.yahoo.com
http://finance.yahoo.com


K E Y T A K E A W A Y S

< The Internet is a network of networks. Internet service
providers connect with one another to share traffic,
enabling any Internet-connected device to communicate with
any other.

< URLs may list the application protocol, host name, domain
name, path name, and file name, in that order.
Path and file names are case sensitive.

< A domain name represents an organization. Hosts are public
services offered by that organization. Hosts
are often thought of as a single computer, although many
computers can operate under a single host
name and many hosts can also be run off a single computer.

< You don’t buy a domain name but can register it, paying for a
renewable right to use that domain name.
Domains need to be registered within a generic top-level
domain such as “.com” or “.org” or within a two-
character country code top-level domain such as “.uk,” “.ly,” or
“.md.”

< Registering a domain that uses someone else’s trademark in
an attempt to extract financial gain is
considered cybersquatting. The United States and other nations
have anticybersquatting laws, and ICANN
has a dispute resolution system that can overturn domain name
claims if a registrant is considered to be
cybersquatting.

< Every device connected to the Internet has an IP address.
These addresses are assigned by the
organization that connects the user to the Internet. An IP
address may be assigned temporarily, for use
only during that online session.

< We’re running out of IP addresses. The current scheme (IPv4)
is being replaced by IPv6, a scheme that will
give us many more addresses and additional feature benefits but
is not backward compatible with the
IPv4 standard. Transitioning to IPv6 will be costly, take time,
and introduce delay when traffic transfers
between IPv4 and IPv6 networks.

< The domain name system is a distributed, fault-tolerant
system that uses nameservers to map host/
domain name combinations to IP addresses.

Q U E S T I O N S A N D E X E R C I S E S

1. Find the Web page for your school’s information systems
department. What is the URL that gets you to
this page? Label the host name, domain name, path, and file for
this URL. Are there additional
subdomains? If so, indicate them, as well.

2. Go to a registrar and see if someone has registered your first
or last name as a domain name. If so, what’s
hosted at that domain? If not, would you consider registering
your name as a domain name? Why or why
not?

3. Investigate cases of domain name disputes. Examine a case
that you find especially interesting. Who were
the parties involved? How was the issue resolved? Do you agree
with the decision?

4. Describe how the DNS is fault-tolerant and promotes load
balancing. Give examples of other types of
information systems that might need to be fault-tolerant and
offer load balancing. Why?

5. Research DNS poisoning online. List a case, other than the
one mentioned in this chapter, where DNS
poisoning took place. Which network was poisoned, who were
the victims, and how did hackers exploit
the poisoned system? Could this exploit have been stopped?
How? Whose responsibility is it to stop these
kinds of attacks?

6. Why is the switch from IPv4 to IPv6 so difficult? What key
principles, discussed in prior chapters, are
slowing migration to the new standard?

7. Test to see if networks that you frequently use (home, school,
work, mobile) are ready for IPv6 by visiting
http://test-ipv6.com/ (or a similar site). Search online to see if
your service provider has posted details
outlining their IPv6 transition strategy and be prepared to share
your results with the class. Do you use
other products not tested by the Web site mentioned above (e.g.,
network-enabled video games or other
software)? Search online to see if your favorite products and
services are IPv6 ready.

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http://test-ipv6.com/


3. GETTING WHERE YOU’RE GOING

L E A R N I N G O B J E C T I V E S

1. Understand the layers that make up the Internet—application
protocol, transmission control
protocol, and Internet protocol—and describe why each is
important.

2. Discuss the benefits of Internet architecture in general and
TCP/IP in particular.
3. Name applications that should use TCP and others that might
use UDP.
4. Understand what a router does and the role these devices play
in networking.
5. Conduct a traceroute and discuss the output, demonstrating
how Internet interconnections

work in getting messages from point to point.
6. Understand why mastery of Internet infrastructure is critical
to modern finance and be able to

discuss the risks in automated trading systems.
7. Describe VoIP, and contrast circuit versus packet switching,
along with organizational benefits

and limitations of each.

3.1 TCP/IP: The Internet’s Secret Sauce
OK, we know how to read a Web address, we know that every
device connected to the Net needs an IP
address, and we know that the DNS can look at a Web address
and find the IP address of the machine
that you want to communicate with. But how does a Web page,
an e-mail, or an iTunes download actu-
ally get from a remote computer to your desktop?

For our next part of the Internet journey, we’ll learn about two
additional protocols: TCP and IP.
These protocols are often written as TCP/IP and pronounced by

reading all five letters in a row, “T-C-
P-I-P” (sometimes they’re also referred to as the Internet
protocol suite). TCP and IP are built into any
device that a user would use to connect to the Internet—from
handhelds to desktops to supercom-
puters—and together TCP/IP make Internet working happen.

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TCP (transmission control
protocol)

Works at both ends of most
Internet communication to
ensure a perfect copy of a
message is sent.

packet (or datagram)

A unit of data forwarded by a
network. All Internet
transmissions—URLs, Web
pages, e-mails—are divided
into one or more packets.

IP (Internet protocol)

Routing protocol that is in
charge of forwarding packets

on the Internet.

router

A computing device that
connects networks and
exchanges data between
them.

F I G U R E 1 2 . 4 TCP/IP in Action

In this example, a server on the left sends a Web page to the
user on the right. The application (the Web server)
passes the contents of the page to TCP (which is built into the
server’s operating system). TCP slices the Web page
into packets. Then IP takes over, forwarding packets from
router to router across the Internet until it arrives at the
user’s PC. Packets sometimes take different routes, and
occasionally arrive out of order. TCP running on the
receiving system on the right checks that all packets have
arrived, requests that damaged or lost packets be resent,
puts them in the right order, and sends a perfect, exact copy of
the Web page to your browser.

TCP and IP operate below http and the other application
transfer protocols mentioned earlier. TCP
(transmission control protocol) works its magic at the start and
endpoint of the trip—on both your
computer and on the destination computer you’re
communicating with. Let’s say a Web server wants
to send you a large Web page. The Web server application
hands the Web page it wants to send to its
own version of TCP. TCP then slices up the Web page into
smaller chunks of data called packets (or
datagrams). The packets are like little envelopes containing part
of the entire transmission—they’re

labeled with a destination address (where it’s going) and a
source address (where it came from). Now
we’ll leave TCP for a second, because TCP on the Web server
then hands those packets off to the
second half of our dynamic duo, IP.

It’s the job of IP (Internet protocol) to route the packets to their
final destination, and those
packets might have to travel over several networks to get to
where they’re going. The relay work is done
via special computers called routers, and these routers speak to
each other and to other computers us-
ing IP (since routers are connected to the Internet, they have IP
addresses, too. Some are even named).
Every computer on the Internet is connected to a router, and all
routers are connected to at least one
(and usually more than one) other router, linking up the
networks that make up the Internet.

Routers don’t have perfect, end-to-end information on all points
in the Internet, but they do talk
to each other all the time, so a router has a pretty good idea of
where to send a packet to get it closer to
where it needs to end up. This chatter between the routers also
keeps the Internet decentralized and
fault-tolerant. Even if one path out of a router goes down (a
networking cable gets cut, a router breaks,
the power to a router goes out), as long as there’s another
connection out of that router, then your
packet will get forwarded. Networks fail, so good, fault-tolerant
network design involves having altern-
ate paths into and out of a network.

Once packets are received by the destination computer (your
computer in our example), that ma-
chine’s version of TCP kicks in. TCP checks that it has all the

packets, makes sure that no packets were
damaged or corrupted, requests replacement packets (if needed),
and then puts the packets in the cor-
rect order, passing a perfect copy of your transmission to the
program you’re communicating with (an
e-mail server, Web server, etc.).

This progression—application at the source to TCP at the source
(slice up the data being sent), to
IP (for forwarding among routers), to TCP at the destination
(put the transmission back together and
make sure it’s perfect), to application at the destination—takes
place in both directions, starting at the

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UDP (user datagram
protocol)

Protocol that operates
instead of TCP in applications
where delivery speed is
important and quality can be
sacrificed.

voice over Internet
protocol (VoIP)

Transmission technologies
that enable voice

communications (phone
calls) to take place over the
Internet as well as private
packet-switched networks.

server for messages coming to you, and starting on your
computer when you’re sending messages to
another computer.

UDP: TCP’s Faster, Less Reliable Sibling

TCP is a perfectionist and that’s what you want for Web
transmissions, e-mail, and application downloads. But
sometimes we’re willing to sacrifice perfection for speed.
You’d make this sacrifice for streaming media applic-
ations like Windows Media Player, Real Player, Internet voice
chat, and video conferencing. Having to wait to
make sure each packet is perfectly sent would otherwise lead to
awkward pauses that interrupt real-time
listening. It’d be better to just grab the packets as they come
and play them, even if they have minor errors.
Packets are small enough that if one packet doesn’t arrive, you
can ignore it and move on to the next without
too much quality disruption. A protocol called UDP (user
datagram protocol) does exactly this, working
as a TCP stand-in when you’ve got the need for speed, and are
willing to sacrifice quality. If you’ve ever
watched a Web video or had a Web-based phone call and the
quality got sketchy, it’s probably because there
were packet problems, but UDP kept on chugging, making the
“get it fast” instead of “get it perfect” trade-off.

VoIP: When Phone Calls Are Just Another Internet Application

The increasing speed and reliability of the Internet means that
applications such as Internet phone calls

(referred to as VoIP, or voice over Internet protocol) are
becoming more reliable. That doesn’t just mean
that Skype becomes a more viable alternative for consumer
landline and mobile phone calls; it’s also good
news for many businesses, governments, and nonprofits.

Many large organizations maintain two networks—one for data
and another for POTS (plain old telephone ser-
vice). Maintaining two networks is expensive, and while
conventional phone calls are usually of a higher qual-
ity than their Internet counterparts, POTS equipment is also
inefficient. Old phone systems use a technology
called circuit switching. A “circuit” is a dedicated connection
between two entities. When you have a POTS
phone call, a circuit is open, dedicating a specific amount of
capacity between you and the party on the other
end. You’re using that “circuit” regardless of whether you’re
talking. Pause between words or put someone on
hold, and the circuit is still in use. Anyone who has ever tried to
make a phone call at a busy time (say, early
morning on Mother’s Day or at midnight on New Year’s Eve)
and received an “all circuits are busy” recording
has experienced congestion on an inefficient circuit-switched
phone network.

But unlike circuit-switched counterparts, Internet networks are
packet-switched networks, which can be more
efficient. Since we can slice conversations up into packets, we
can squeeze them into smaller spaces. If there
are pauses in a conversation or someone’s on hold, applications
don’t hold up the network. And that creates
an opportunity to use the network’s available capacity for other
users. The trade-off is one that swaps circuit
switching’s quality of service (QoS) with packet switching’s
efficiency and cost savings. Try to have a VoIP call
when there’s too much traffic on a portion of the network and

your call quality will drop. But packet switching
quality is getting much better. Networking standards are now
offering special features, such as “packet priorit-
ization,” that can allow voice packets to gain delivery priority
over packets for applications like e-mail, where a
slight delay is OK.

When voice is digitized, “telephone service” simply becomes
another application that sits on top of the Inter-
net, like the Web, e-mail, or FTP. VoIP calls between remote
offices can save long distance charges. And when
the phone system becomes a computer application, you can do a
lot more. Well-implemented VoIP systems
allow users’ browsers access to their voice mail inbox, one-
click video conferencing and call forwarding, point-
and-click conference call setup, and other features, but you’ll
still have a phone number, just like with POTS.

What Connects the Routers and Computers?

Routers are connected together, either via cables or wirelessly.
A cable connecting a computer in a
home or office is probably copper (likely what’s usually called
an Ethernet cable), with transmissions
sent through the copper via electricity. Long-haul cables, those
that carry lots of data over long dis-
tances, are usually fiber-optic lines—glass lined cables that
transmit light (light is faster and travels
farther distances than electricity, but fiber-optic networking
equipment is more expensive than the
copper-electricity kind). Wireless transmission can happen via
Wi-Fi (for shorter distances), or cell
phone tower or satellite over longer distances. But the beauty of
the Internet protocol suite (TCP/IP) is
that it doesn’t matter what the actual transmission media are. As
long as your routing equipment can

connect any two networks, and as long as that equipment
“speaks” IP, then you can be part of the
Internet.

In reality, your messages likely transfer via lots of different
transmission media to get to their final
destination. If you use a laptop connected via Wi-Fi, then that
wireless connection finds a base station,

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peering

When separate ISPs link their
networks to swap traffic on
the Internet.

colocation facility

Sometimes called a “colo,” or
carrier hotel; provides a place
where the gear from multiple
firms can come together and
where the peering of Internet
traffic can take place.
Equipment connecting in
colos could be high-speed
lines from ISPs, telecom lines
from large private data

centers, or even servers
hosted in a colo to be closer
to high-speed Internet
connections.

usually within about three hundred feet. That base station is
probably connected to a local area net-
work (LAN) via a copper cable. And your firm or college may
connect to fast, long-haul portions of the
Internet via fiber-optic cables provided by that firm’s Internet
service provider (ISP).

Most big organizations have multiple ISPs for redundancy,
providing multiple paths in and out of
a network. This is so that if a network connection provided by
one firm goes down, say an errant back-
hoe cuts a cable, other connections can route around the
problem (see Figure 12.1).

In the United States (and in most deregulated
telecommunications markets), Internet service pro-
viders come in all sizes, from smaller regional players to
sprawling international firms. When different
ISPs connect their networking equipment together to share
traffic, it’s called peering. Peering usually
takes place at neutral sites called Internet exchange points
(IXPs), although some firms also have private
peering points. Carriers usually don’t charge one another for
peering. Instead, “the money is made” in
the ISP business by charging the end-points in a network—the
customer organizations and end users
that an ISP connects to the Internet. Competition among carriers
helps keep prices down, quality high,
and innovation moving forward.

Finance Has a Need for Speed

When many folks think of Wall Street trading, they think of the
open outcry pit at the New York Stock Ex-
change (NYSE). But human traders are just too slow for many
of the most active trading firms. Over half of all
U.S. stock trades and a quarter of worldwide currency trades
now happen via programs that make trading de-
cisions without any human intervention.[17] There are many
names for this automated, data-driven frontier of
finance—algorithmic trading, black-box trading, or high-
frequency trading. And while firms specializing in
automated, high-frequency trading represent only about 2
percent of the trading firms operating in the Un-
ited States, they account for about three quarters of all U.S.
equity trading volume.[18]

Programmers lie at the heart of modern finance. “A geek who
writes code—those guys are now the valuable
guys” says the former head of markets systems at Fidelity
Investments, and that rare breed of top programmer
can make “tens of millions of dollars” developing these
systems.[19] Such systems leverage data mining and
other model-building techniques to crunch massive volumes of
data and discover exploitable market pat-
terns. Models are then run against real-time data and executed
the instant a trading opportunity is detected.
(For more details on how data is gathered and models are built,
see Chapter 11.)

Winning with these systems means being quick—very quick.
Suffer delay (what techies call latency) and you
may have missed your opportunity to pounce on a signal or
market imperfection. To cut latency, many trading
firms are moving their servers out of their own data centers and
into colocation facility. These facilities act
as storage places where a firm’s servers get superfast

connections as close to the action as possible. And by
renting space in a “colo,” a firm gets someone else to manage
the electrical and cooling issues, often providing
more robust power backup and lower energy costs than a firm
might get on its own.

Equinix, a major publicly traded IXP and colocation firm with
facilities worldwide, has added a growing num-
ber of high-frequency trading firms to a roster of customers that
includes e-commerce, Internet, software, and
telecom companies. In northern New Jersey alone (the location
of many of the servers where “Wall Street”
trading takes place), Equinix hosts some eighteen exchanges
and trading platforms as well as the NYSE Secure
Financial Transaction Infrastructure (SFTI) access node.

Less than a decade ago, eighty milliseconds was acceptably low
latency, but now trading firms are pushing
below one millisecond into microseconds.[20] So it’s pretty
clear that understanding how the Internet works,
and how to best exploit it, is of fundamental and strategic
importance to those in finance. But also recognize
that this kind of automated trading comes with risks. Systems
that run on their own can move many billions in
the blink of an eye, and the actions of one system may cascade,
triggering actions by others.

The spring 2010 “Flash Crash” resulted in a nearly 1,000-point
freefall in the Dow Jones Industrial Index, it’s
biggest intraday drop ever. Those black boxes can be
mysterious—months after the May 6th event, experts
were still parsing through trading records, trying to unearth how
the flash crash happened.[21] Regulators and
lawmakers recognize they now need to understand technology,
telecommunications, and its broader impact
on society so that they can create platforms that fuel growth

without putting the economy at risk.

Watching the Packet Path via Traceroute

Want to see how packets bounce from router to router as they
travel around the Internet? Check out a tool
called traceroute. Traceroute repeatedly sends a cluster of three
packets starting at the first router connected
to a computer, then the next, and so on, building out the path
that packets take to their destination.

Traceroute is built into all major desktop operating systems
(Windows, Macs, Linux), and several Web sites will
run traceroute between locations (traceroute.org and
visualroute.visualware.com are great places to explore).

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The message below shows a traceroute performed between Irish
firm VistaTEC and Boston College. At first, it
looks like a bunch of gibberish, but if we look closely, we can
decipher what’s going on.

The table above shows ten hops, starting at a domain in
vistatec.ie and ending in 136.167.9.226 (the table
doesn’t say this, but all IP addresses starting with 136.167 are
Boston College addresses). The three groups of
numbers at the end of three lines shows the time (in
milliseconds) of three packets sent out to test that hop of
our journey. These numbers might be interesting for network

administrators trying to diagnose speed issues,
but we’ll ignore them and focus on how packets get from point
to point.

At the start of each line is the name of the computer or router
that is relaying packets for that leg of the jour-
ney. Sometimes routers are named, and sometimes they’re just
IP addresses. When routers are named, we can
tell what network a packet is on by looking at the domain name.
By looking at the router names to the left of
each line in the traceroute above, we see that the first two hops
are within the vistatec.ie network. Hop 3
shows the first router outside the vistatec.ie network. It’s at a
domain named tinet.net, so this must be the
name of VistaTEC’s Internet service provider since it’s the first
connection outside the vistatec.ie network.

Sometimes routers names suggest their locations (oftentimes
they use the same three character abbreviations
you’d see in airports). Look closely at the hosts in hops 3
through 7. The subdomains dub20, lon11, lon01,
jfk02, and bos01 suggest the packets are going from Dublin,
then east to London, then west to New York City
(John F. Kennedy International Airport), then north to Boston.
That’s a long way to travel in a fraction of a
second!

Hop 4 is at tinet.net, but hop 5 is at cogentco.com (look them up
online and you’ll find out that cogentco.com,
like tinet.net, is also an ISP). That suggests that between those
hops peering is taking place and traffic is
handed off from carrier to carrier.

Hop 8 is still cogentco.com, but it’s not clear who the unnamed
router in hop 9, 38.104.218.10, belongs to. We
can use the Internet to sleuth that out, too. Search the Internet

for the phrase “IP address lookup” and you’ll
find a bunch of tools to track down the organization that “owns”
an IP address. Using the tool at whatis-
myip.com, I found that this number is registered to PSI Net,
which is now part of cogentco.com.

Routing paths, ISPs, and peering all revealed via traceroute.
You’ve just performed a sort of network “CAT scan”
and looked into the veins and arteries that make up a portion of
the Internet. Pretty cool!

If you try out traceroute on your own, be aware that not all
routers and networks are traceroute friendly. It’s
possible that as your trace hits some hops along the way
(particularly at the start or end of your journey), three
“*” characters will show up at the end of each line instead of
the numbers indicating packet speed. This indic-
ates that traceroute has timed out on that hop. Some networks
block traceroute because hackers have used
the tool to probe a network to figure out how to attack an
organization. Most of the time, though, the hops
between the source and destination of the traceroute (the steps
involving all the ISPs and their routers) are
visible.

Traceroute can be a neat way to explore how the Internet works
and reinforce the topics we’ve just learned.
Search for traceroute tools online or browse the Internet for
details on how to use the traceroute command
built into your computer.

There’s Another Internet?

If you’re a student at a large research university, there’s a good
chance that your school is part of Internet2. In-
ternet2 is a research network created by a consortium of

research, academic, industry, and government firms.
These organizations have collectively set up a high-performance
network running at speeds of up to one hun-
dred gigabits per second to support and experiment with
demanding applications. Examples include high-
quality video conferencing; high-reliability, high-bandwidth
imaging for the medical field; and applications
that share huge data sets among researchers.

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If your university is an Internet2 member and you’re
communicating with another computer that’s part of the
Internet2 consortium, then your organization’s routers are smart
enough to route traffic through the superfast
Internet2 backbone. If that’s the case, you’re likely already
using Internet2 without even knowing it!

K E Y T A K E A W A Y S

< TCP/IP, or the Internet protocol suite, helps get perfect copies
of Internet transmissions from one location
to another. TCP works on the ends of transmission, breaking up
transmissions up into manageable packets
at the start and putting them back together while checking
quality at the end. IP works in the middle,
routing packets to their destination.

< Routers are special computing devices that forward packets

from one location to the next. Routers are
typically connected with more than one outbound path, so in
case one path becomes unavailable, an
alternate path can be used.

< UDP is a replacement for TCP, used when it makes sense to
sacrifice packet quality for delivery speed. It’s
often used for media streaming.

< TCP/IP doesn’t care about the transition media. This allows
networks of different types—copper, fiber, and
wireless—to connect to and participate in the Internet.

< The ability to swap in new applications, protocols, and media
files gives the network tremendous flexibility.

< Decentralization, fault tolerance, and redundancy help keep
the network open and reliable.

< VoIP allows voice and phone systems to become an
application traveling over the Internet. This is allowing
many firms to save money on phone calls and through the
elimination of old, inefficient circuit-switched
networks. As Internet applications, VoIP phone systems can
also have additional features that circuit-
switched networks lack. The primary limitation of many VoIP
systems is quality of service.

< Many firms in the finance industry have developed automated
trading models that analyze data and
execute trades without human intervention. Speeds substantially
less than one second may be vital to
capitalizing on market opportunities, so firms are increasingly
moving equipment into collocation facilities
that provide high-speed connectivity to other trading systems.

Q U E S T I O N S A N D E X E R C I S E S

1. How can the Internet consist of networks of such physically
different transmission media—cable, fiber,
and wireless?

2. What is the difference between TCP and UDP? Why would
you use one over the other?

3. Would you recommend a VoIP phone system to your firm or
University? Why or why not? What are the
advantages? What are the disadvantages? Can you think of
possible concerns or benefits not mentioned
in this section? Research these concerns online and share your
finding with your instructor.

4. What are the risks in the kinds of automated trading systems
described in this section? Conduct research
and find an example of where these systems have caused
problems for firms and/or the broader market.
What can be done to prevent such problems? Whose
responsibility is this?

5. Search the Internet for a traceroute tool, or look online to
figure out how to use the traceroute command
built into your PC. Run three or more traceroutes to different
firms at different locations around the world.
List the number of ISPs that show up in the trace. Circle the
areas where peering occurs. Do some of the
“hops” time out with “*” values returned? If so, why do you
think that happened?

6. Find out if your school or employer is an Internet2 member.
If it is, run traceroutes to schools that are and
are not members of Internet2. What differences do you see in
the results?

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Internet backbone

High-speed data lines
provided by many firms all
across the world that
interconnect and collectively
form the core of the Internet.

Amdahl’s Law

A system’s speed is
determined by its slowest
component.

last-mile technologies

Technologies that connect
end users to the Internet. The
last-mile problem refers to
the fact that these
connections are usually the
slowest part of the network.

broadband (broadband
Internet access)

Broadly refers to high-speed

Internet connections and is
often applied to “last-mile”
technologies.

bandwidth

Network transmission speeds,
typically expressed in some
form of bits per second (bps).

4. LAST MILE: FASTER SPEED, BROADER ACCESS

L E A R N I N G O B J E C T I V E S

1. Understand the last-mile problem and be able to discuss the
pros and cons of various broad-
band technologies, including DSL, cable, fiber, and various
wireless offerings.

2. Describe 3G and 4G systems, listing major technologies and
their backers.
3. Understand the issue of Net neutrality and put forth
arguments supporting or criticizing the

concept.

The Internet backbone is made of fiber-optic lines that carry
data traffic over long distances. Those
lines are pretty speedy. In fact, several backbone providers,
including AT&T and Verizon, are rolling
out infrastructure with 100 Gbps transmission speeds (that’s
enough to transmit a two-hour high-
definition [HD] movie in about eight seconds).[22] But when
considering overall network speed, re-
member Amdahl’s Law: a system’s speed is determined by its
slowest component.[23] More often than

not, the bottleneck isn’t the backbone but the so-called last
mile, or the connections that customers
use to get online.

High-speed last-mile technologies are often referred to as
broadband Internet access (or just
broadband). What qualifies as broadband varies. In 2009, the
Federal Communications Commission
(FCC) redefined broadband as having a minimum speed of 768
Kbps (roughly fourteen times the speed
of those old 56 Kbps modems). Other agencies worldwide may
have different definitions. But one thing
is clear: a new generation of bandwidth-demanding services
requires more capacity. As we increasingly
consume Internet services like HD streaming, real-time gaming,
video conferencing, and music down-
loads, we are in fact becoming a bunch of voracious, bit-craving
gluttons.

With the pivotal role the United States has played in the
creation of the Internet, and in pioneering
software, hardware, and telecommunications industries, you
might expect the United States to lead the
world in last-mile broadband access. Not even close. A recent
study ranked the United States twenty-
sixth in download speeds,[24] while others have ranked the
United States far behind in speed, availabil-
ity, and price.[25]

Sounds grim, but help is on the way. A range of technologies
and firms are upgrading infrastruc-
ture and developing new systems that will increase capacity not
just in the United States but also
worldwide. Here’s an overview of some of the major
technologies that can be used to speed the Inter-
net’s last mile.

Understanding Bandwidth

When folks talk about bandwidth, they’re referring to data
transmission speeds. Bandwidth is often ex-
pressed in bits per second, or bps. Prefix letters associated with
multiples of bps are the same as the prefixes
we mentioned in Chapter 5 when discussing storage capacity in
bytes: Kbps = thousand bits (or kilobits) per
second, Mbps = million bits (or megabits) per second, Gbps =
billion bits (or gigabits) per second (or terabit),
and Tbps = trillion bits (or terabits) per second.

Remember, there are eight bits in a byte, and one byte is a
single character. One megabyte is roughly equival-
ent to one digital book, forty-five seconds of music, or twenty
seconds of medium-quality video.[26] But you
can’t just divide the amount of bytes by eight to estimate how
many bits you’ll need to transfer. When a file or
other transmission is sliced into packets (usually of no more
than about 1,500 bytes), there’s some overhead
added. Those packets “wrap” data chunks in an envelope
surrounded by source and destination addressing
and other important information.

Here are some rough demand requirements for streaming media.
For streaming audio like Pandora, you’d
need at least 150 Kbps for acceptable regular quality, and at
least 300 Kbps for high quality.[27] For streaming
video (via Netflix), at a minimum you’d need 1.5 Mbps, but 3.0
Mbps will ensure decent video and audio. For
what Netflix calls HD streaming, you’ll need a minimum of 5
Mbps, but would likely want 8 Mbps or more to
ensure the highest quality video and audio.[28]

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coaxial cable (or coax)

Insulated copper cable
commonly used by cable
television providers.

digital subscriber line (DSL)

Broadband technology that
uses the wires of a local
telephone network.

fiber to the home (FTTH)

Broadband service provided
via light-transmitting
fiber-optic cables.

4.1 Cable Broadband
Roughly 90 percent of U.S. homes are serviced by a cable
provider, each capable of using a thick copper
wire to offer broadband access. That wire (called a coaxial
cable or coax) has shielding that reduces
electrical interference, allowing cable signals to travel longer
distances without degrading and with less
chance of interference than conventional telephone equipment.

One potential weakness of cable technology lies in the fact that

most residential providers use a
system that requires customers to share bandwidth with
neighbors. If the guy next door is a
BitTorrent-using bandwidth hog, your traffic could suffer.[29]

Cable is fast and it’s getting faster. Many cable firms are rolling
out a new technology called
DOCSIS 3.0 that offers speeds up to and exceeding 50 Mbps
(previous high-end speeds were about 16
Mbps and often much less than that). Cable firms are also
creating so-called fiber-copper hybrids that
run higher-speed fiber-optic lines into neighborhoods, then use
lower-cost, but still relatively high-
speed, copper infrastructure over short distances to homes.[30]
Those are fast networks, but they are
also very expensive to build, since cable firms are laying
entirely new lines into neighborhoods instead
of leveraging the infrastructure that they’ve already got in
place.

4.2 DSL: Phone Company Copper
Digital subscriber line (DSL) technology uses the copper wire
the phone company has already run
into most homes. Even as customers worldwide are dropping
their landline phone numbers, the wires
used to provide this infrastructure can still be used for
broadband.

DSL speeds vary depending on the technology deployed.
Worldwide speeds may range from 7
Mbps to as much as 100 Mbps (albeit over very short
distances).[31] The Achilles heel of the technology
lies in the fact that DSL uses standard copper telephone wiring.
These lines lack the shielding used by
cable, so signals begin to degrade the further you are from the
connecting equipment in telephone

company offices. Speeds drop off significantly at less than two
miles from a central office or DSL hub. If
you go four miles out, the technology becomes unusable. Some
DSL providers are also using a hybrid
fiber-copper system, but as with cable’s copper hybrids, this is
expensive to build.

The superspeedy DSL implementations that are popular in
Europe and Asia work because foreign
cities are densely populated and so many high-value customers
can be accessed over short distances. In
South Korea, for example, half the population lives in
apartments, and most of those customers live in
and around Seoul. This density also impacts costs—since so
many people live in apartments, foreign
carriers run fewer lines to reach customers, digging up less
ground or stringing wires across fewer tele-
phone poles. Their U.S. counterparts by contrast need to reach a
customer base sprawled across the
suburbs, so U.S. firms have much higher infrastructure costs.
[32]

There’s another company with copper, electricity-carrying
cables coming into your home—the
electrical utility. BPL, or broadband over power line,
technology has been available for years. However,
there are few deployments because it is considered to be pricier
and less practical than alternatives.[33]

4.3 Fiber: A Light-Filled Glass Pipe to Your Doorstep
Fiber to the home (FTTH) is the fastest last-mile technology
around. It also works over long dis-
tances. Verizon’s FiOS technology boasts 50 Mbps download
speeds but has tested network upgrades
that increase speeds by over six times that.[34] The problem
with fiber is that unlike cable or DSL cop-

per, fiber to the home networks weren’t already in place. That
means firms had to build their own fiber
networks from scratch.

The cost of this build out can be enormous. Verizon, for
example, has spent over $23 billion on its
FTTH infrastructure. However, most experts think the upgrade
was critical. Verizon has copper into
millions of homes, but U.S. DSL is uncompetitive. Verizon’s
residential landline business was dying as
users switch to mobile phone numbers, and while mobile is
growing, Verizon Wireless is a joint ven-
ture with the United Kingdom’s Vodaphone, not a wholly owned
firm. This means it shares wireless
unit profits with its partner. With FiOS, Verizon now offers pay
television, competing with cable’s core
product. It also offers some of the fastest home broadband
services anywhere, and it gets to keep
everything it earns.

Google is also in the process of bringing high-speed fiber to the
home in several U.S. communities,
including Kansas City, Kansas, and Kansas City, Missouri.
Google deems its effort an experiment—it’s
more interested in learning how developers and users take
advantage of ultrahigh-speed fiber to the
home (e.g., what kinds of apps are created and used, how do
usage and time spent online change),
rather than becoming a nationwide ISP itself. Google says it
will investigate ways to build and operate
networks less expensively and plans to share findings with
others. The Google network will be “open,”

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wireless spectrum

Frequencies used for
communication. Most mobile
cell phone services have to
license spectrum. Some
technologies (such as Wi-Fi)
use unlicensed public
spectrum.

allowing other service providers to use Google’s infrastructure
to resell services to consumers. The firm
has pledged to bring speeds of 1 Gbps at competitive prices to
at least 50,000 and potentially as many as
500,000 homes. Over 1,100 U.S. communities applied to be part
of the Google experimental fiber net-
work.[35]

4.4 Wireless
Mobile wireless service from cell phone access providers is
delivered via cell towers. While these pro-
viders don’t need to build a residential wired infrastructure,
they still need to secure space for cell
towers, build the towers, connect the towers to a backbone
network, and license the wireless spec-
trum (or airwave frequency space) for transmission.

We need more bandwidth for mobile devices, too. AT&T now
finds that the top 3 percent of its
mobile network users gulp up 40 percent of the network’s
capacity (thanks, iPhone users), and network

strain will only increase as more people adopt smartphones.
These users are streaming Major League
Baseball games, exploring the planet with Google Earth,
watching YouTube and Netflix, streaming mu-
sic through Pandora, and more. Get a bunch of iPhone users in a
crowded space, like in a college foot-
ball stadium on game day, and the result is a network-choking
data traffic jam. AT&T estimates that it’s
not uncommon for 80 percent of game-day iPhone users to take
out their phones and surf the Web for
stats, snap and upload photos, and more. But cell towers often
can’t handle the load.[36] If you’ve ever
lost coverage in a crowd, you’ve witnessed mobile network
congestion firsthand. Trying to have
enough capacity to avoid congestion traffic jams will cost some
serious coin. In the midst of customer
complaints, AT&T committed to spending $18 billion on
network upgrades to address its wireless ca-
pacity problem.[37]

T A B L E 1 2 . 1 Average Demand Usage by Function

Usage Demand

Voice Calls 4 MB/hr.

iPhone Browsing 40–60 MB/hr.

Net Radio 60 MB/hr.

YouTube 200–400 MB/hr.

Conventional mobile phones use an estimated 100 MB/month,
iPhones 560 MB/month, and iPads almost
1 GB/month.

Source: R. Farzad, “The Truth about Bandwidth,”
BusinessWeek, February 3, 2010.

We’re in the midst of transitioning from third generation (3G)
to fourth generation (4G) wireless net-
works. 3G systems offer access speeds usually less than 2 Mbps
(often a lot less).[38] While variants of
3G wireless might employ an alphabet soup of technologies—
EV-DO (evolution data optimized),
UMTS (universal mobile telecommunications systems), and
HSDPA (high-speed downlink packet link
access) among them—3G standards can be narrowed down to
two camps: those based on the dominant
worldwide standard called GSM (global system for mobile
communications) and the runner-up stand-
ards based on CDMA (code division multiple access). Most of
Europe and a good chunk of the rest of
the world use GSM. In the United States, AT&T and T-Mobile
use GSM-based 3G. Verizon Wireless
and Sprint use the CDMA 3G standard. Typically, handsets
designed for one network can’t be used on
networks supporting the other standard. CDMA has an
additional limitation in not being able to use
voice and data at the same time.

But 3G is being replaced by high-bandwidth 4G (fourth-
generation) mobile networks. 4G techno-
logies also fall into two standards camps: LTE (Long Term
Evolution) and WiMAX (Worldwide Inter-
operability for Microwave Access).

LTE looks like the global winner. In the United States, every
major wireless firm, except for Sprint,
is betting on LTE victory. Bandwidth for the service rivals what
we’d consider fast cable a few years
back. Average speeds range from 5 to 12 Mbps for downloads

and 2 to 5 Mbps for upload, although
Verizon tests in Boston and Seattle showed download speeds as
high as 50 Mbps and upload speeds
reaching 25 Mbps.[39]

Competing with LTE is WiMAX; don’t confuse it with Wi-Fi.
As with other 3G and 4G technolo-
gies, WiMAX needs cell towers and operators need to have
licensed spectrum from their respective
governments (often paying multibillion-dollar fees to do so).
Average download and upload speeds
should start out at 3–6 Mbps and 1 Mbps, respectively, although
this may go much higher.[40]

WiMAX looks like a particularly attractive option for cable
firms, offering them an opportunity to
get into the mobile phone business and offer a “quadruple play”
of services: pay television, broadband
Internet, home phone, and mobile. Comcast and Time Warner
have both partnered with Clearwire (a
firm majority-owned by Sprint), to gain access to WiMAX-
based 4G mobile.

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Wi-Fi

A term used to brand wireless
local-area networking

devices. Devices typically
connect to an
antenna-equipped base
station or hotspot, which is
then connected to the
Internet. Wi-Fi devices use
standards known as IEEE
802.11, and various version of
this standard (e.g., b, g, n)
may operate in different
frequency bands and have
access ranges.

4G could also rewrite the landscape for home broadband
competition. If speeds increase, it may be
possible for PCs, laptops, and set-top boxes (STB) to connect to
the Internet wirelessly via 4G, cutting
into DSL, cable, and fiber markets.

4.5 Satellite Wireless
Wireless systems provided by earth-bound base stations like
cell phone towers are referred to as ter-
restrial wireless, but it is possible to provide
telecommunications services via satellite. Early services
struggled due to a number of problems. For example, the first
residential satellite services were only
used for downloads, which still needed a modem or some other
connection to send any messages from
the computer to the Internet. Many early systems also required
large antennas and were quite expens-
ive. Finally, some services were based on satellites in
geosynchronous earth orbit (GEO). GEO satellites
circle the earth in a fixed, or stationary, orbit above a given
spot on the globe, but to do so they must be
positioned at a distance that is roughly equivalent to the
planet’s circumference. That means signals

travel the equivalent of an around-the-world trip to reach the
satellite and then the same distance to get
to the user. The “last mile” became the last 44,000 miles at best.
And if you used a service that also
provided satellite upload as well as download, double that to
about 88,000 miles. All that distance
means higher latency (more delay).[41]

A firm named O3b Networks thinks it might have solved the
challenges that plagued early pion-
eers. O3b has an impressive list of big-name backers that
include HSBC bank, cable magnate John
Malone, European aerospace firm SES, and Google.

The name O3b stands for the “Other 3 Billion,” of the world’s
population who lack broadband In-
ternet access, and the firm hopes to provide “fiber-quality”
wireless service to more than 150 countries,
specifically targeting underserved portions of the developing
world. These “middle earth orbit” satel-
lites will circle closer to the earth to reduce latency (only about
5,000 miles up, less than one-fourth the
distance of GEO systems). To maintain the lower orbit, O3b’s
satellites orbit faster than the planet
spins, but with plans to launch as many as twenty satellites, the
system will constantly blanket regions
served. If one satellite circles to the other side of the globe,
another one will circle around to take its
place, ensuring there’s always an O3b “bird” overhead.

Only about 3 percent of the sub-Saharan African population
uses the Internet, compared to about
70 percent in the United States. But data rates in the few places
served can cost as much as one hundred
times the rates of comparable systems in the industrialized
world.[42] O3b hopes to change that equa-

tion and significantly lower access rates. O3b customers will be
local telecommunication firms, not end
users. The plan is for local firms to buy O3b’s services
wholesale and then resell it to customers along-
side rivals who can do the same thing, collectively providing
more consumer access, higher quality, and
lower prices through competition. O3b is a big, bold, and
admittedly risky plan, but if it works, its im-
pact could be tremendous.

4.6 Wi-Fi and Other Hotspots
Many users access the Internet via Wi-Fi (which stands for
wireless fidelity). Computer and mobile
devices have Wi-Fi antennas built into their chipsets, but to
connect to the Internet, a device needs to
be within range of a base station or hotspot. The base station
range is usually around three hundred feet
(you might get a longer range outdoors and with special
equipment; and less range indoors when sig-
nals need to pass through solid objects like walls, ceilings, and
floors). Wi-Fi base stations used in the
home are usually bought by end users, then connected to a
cable, DSL, or fiber provider.

And now a sort of mobile phone hotspot is being used to
overcome limitations in those services, as
well. Mobile providers can also be susceptible to poor coverage
indoors. That’s because the spectrum
used by most mobile phone firms doesn’t travel well through
solid objects. Cell coverage is also often
limited in the United States because of a lack of towers, which
is a result of the NIMBY problem (not in
my backyard). People don’t want an eighty-foot to four-
hundred-foot unsightly tower clouding their
local landscape, even if it will give their neighborhood better
cell phone coverage.[43] To overcome re-

ception and availability problems, mobile telecom services
firms have begun offering femtocells. These
devices are usually smaller than a box of cereal and can sell for
$150 or less (some are free with specific
service contracts). Plug a femtocell into a high-speed Internet
connection like an in-home cable or fiber
service and you can get “five-bar” coverage in a roughly 5,000-
square-foot footprint.[44] That can be a
great solution for someone who has an in-home, high-speed
Internet connection, but wants to get
phone and mobile data service indoors, too.

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4.7 Net Neutrality: What’s Fair?
Across the world, battle lines are being drawn regarding the
topic of Net neutrality. Net neutrality is
the principle that all Internet traffic should be treated
equally.[45] Sometimes access providers have
wanted to offer varying (some say “discriminatory”) coverage,
depending on the service used and
bandwidth consumed. But where regulation stands is currently
in flux. In a pivotal U.S. case, the FCC
ordered Comcast to stop throttling (blocking or slowing down)
subscriber access to the peer-to-peer
file sharing service BitTorrent. BitTorrent users can consume a
huge amount of bandwidth—the ser-
vice is often used to transfer large files, both legitimate (like
version of the Linux operating system) and
pirated (HD movies). Then in spring 2010, a federal appeals

court moved against the FCC’s position,
unanimously ruling that the agency did not have the legal
authority to dictate terms to Comcast.[46]

On one side of the debate are Internet service firms, with
Google being one of the strongest Net
neutrality supporters. In an advocacy paper, Google states, “Just
as telephone companies are not per-
mitted to tell consumers who they can call or what they can say,
broadband carriers should not be al-
lowed to use their market power to control activity online.”[47]
Many Internet firms also worry that if
network providers move away from flat-rate pricing toward
usage-based (or metered) schemes, this
may limit innovation. Says Google’s Vint Cerf (who is
considered one of the “fathers of the Internet”
for his work on the original Internet protocol suite) “You are
less likely to try things out. No one wants
a surprise bill at the end of the month.”[48] Metered billing may
limit the use of everything from iTunes
to Netflix; after all, if you have to pay for per-bit bandwidth
consumption as well as for the download
service, then it’s as if you’re paying twice.

The counterargument is that if firms are restricted from
charging more for their investment in in-
frastructure and services, then they’ll have little incentive to
continue to make the kinds of multibillion-
dollar investments that innovations like 4G and fiber networks
require. Telecom industry executives
have railed against Google, Microsoft, Yahoo! and others,
calling them free riders who earn huge
profits by piggybacking off ISP networks, all while funneling
no profits back to the firms that provide
the infrastructure. One Verizon vice president said, “The
network builders are spending a fortune con-

structing and maintaining the networks that Google intends to
ride on with nothing but cheap serv-
ers.…It is enjoying a free lunch that should, by any rational
account, be the lunch of the facilities pro-
viders.”[49] AT&T’s previous CEO has suggested that Google,
Yahoo! and other services firms should
pay for “preferred access” to the firm’s customers. The CEO of
Spain’s Telefonica has also said the firm
is considering charging Google and other Internet service firms
for network use.[50]

ISPs also lament the relentlessly increasingly bandwidth
demands placed on their networks. Back
in 2007, YouTube streamed as much data in three months as the
world’s radio, cable, and broadcast
television channels combined stream in one year,[51] and
YouTube has only continued to grow since
then. Should ISPs be required to support the strain of this kind
of bandwidth hog? And what if this one
application clogs network use for other traffic, such as e-mail or
Web surfing? Similarly, shouldn’t firms
have the right to prioritize some services to better serve
customers? Some network providers argue that
services like video chat and streaming audio should get priority
over, say, e-mail which can afford slight
delay without major impact. In that case, there’s a pretty good
argument that providers should be able
to discriminate against services. But improving efficiency and
throttling usage are two different things.

Internet service firms say they create demand for broadband
business, broadband firms say Google
and allies are ungrateful parasites that aren’t sharing the wealth.
The battle lines on the Net neutrality
frontier continue to be drawn, and the eventual outcome will
impact consumers, investors, and will

likely influence the continued expansion and innovation of the
Internet.

4.8 Summing Up
Hopefully, this chapter helped reveal the mysteries of the
Internet. It’s interesting to know how “the
cloud” works but it can also be vital. As we’ve seen, the
executive office in financial services firms con-
siders mastery of the Internet infrastructure to be critically
important to their competitive advantage.
Media firms find the Internet both threatening and empowering.
The advancement of last-mile techno-
logies and issues of Net neutrality will expose threats and create
opportunity. And a manager who
knows how the Internet works will be in a better position to
make decisions about how to keep the firm
and its customers safe and secure, and be better prepared to
brainstorm ideas for winning in a world
where access is faster and cheaper, and firms, rivals, partners,
and customers are more connected.

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K E Y T A K E A W A Y S

< The slowest part of the Internet is typically the last mile, not
the backbone. While several technologies can
offer broadband service over the last mile, the United States
continues to rank below many other nations

in terms of access speed, availability, and price.

< Cable firms and phone companies can leverage existing
wiring for cable broadband and DSL service,
respectively. Cable services are often criticized for shared
bandwidth. DSL’s primary limitation is that it only
works within a short distance of telephone office equipment.

< Fiber to the home can be very fast but very expensive to
build.

< An explosion of high-bandwidth mobile applications is
straining 3G networks. 4G systems may alleviate
congestion by increasing capacities to near-cable speeds.
Fentocells are another technology that can
improve service by providing a personal mobile phone hotspot
that can plug into in-home broadband
access.

< The two major 3G standards (popularly referred to as GSM
and CDMA) will be replaced by two unrelated
4G standards (LTE and WiMAX). GSM has been the dominant
3G technology worldwide. LTE looks like it
will be the leading 4G technology.

< Satellite systems show promise in providing high-speed
access to underserved parts of the world, but few
satellite broadband providers have been successful so far.

< Net neutrality is the principle that all Internet traffic should
be treated equally. Google and other firms say
it is vital to maintain the openness of the Internet.
Telecommunications firms say they should be able to
limit access to services that overtax their networks, and some
have suggested charging Google and other
Internet firms for providing access to their customers.

272 INFORMATION SYSTEMS VERSION 1.4


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]



Q U E S T I O N S A N D E X E R C I S E S

1. Research online for the latest country rankings for broadband
service. Where does the United States
currently rank? Why?

2. Which broadband providers can service your home? Which
would you choose? Why?

3. Research the status of Google’s experimental fiber network.
Report updated findings to your class. Why do
you suppose Google would run this “experiment”? What other
Internet access experiments has the firm
been involved in?

4. Show your understanding of the economics and competitive
forces of the telecom industry. Discuss why
Verizon chose to go with fiber. Do you think this was a wise
decision or not? Why? Feel free to do
additional research to back up your argument.

5. Why have other nations enjoyed faster broadband speeds,
greater availability, and lower prices?

6. The iPhone has been called both a blessing and a curse for
AT&T. Why do you suppose this is so?

7. Investigate the status of mobile wireless offerings (3G and
4G). Which firm would you choose? Why?
Which factors are most important in your decision?

8. Name the two dominant 3G standards. What are the
differences between the two? Which firms in your
nation support each standard?

9. Name the two dominant 4G standards. Which firms in your
nation will support the respective standards?

10. Have you ever lost communication access—wirelessly or via
wired connection? What caused the loss or
outage?

11. What factors shape the profitability of the mobile wireless
provider industry? How do these economics
compare with the cable and wire line industry? Who are the
major players and which would you invest in?
Why?

12. Last-mile providers often advertise very fast speeds, but
users rarely see speeds as high as advertised rates.
Search online to find a network speed test and try it from your
home, office, mobile device, or dorm. How
fast is the network? If you’re able to test from home, what
bandwidth rates does your ISP advertise? Does
this differ from what you experienced? What could account for
this discrepancy?

13. How can 4G technology help cable firms? Why might it hurt
them?

14. What’s the difference between LEO satellite systems and the
type of system used by O3b? What are the
pros and cons of these efforts? Conduct some additional

research. What is the status of O3b and other
satellite broadband efforts?

15. What advantages could broadband offer to underserved
areas of the world? Is Internet access important
for economic development? Why or why not?

16. Does your carrier offer a fentocell? Would you use one?
Why or why not?

17. Be prepared to debate the issue of Net neutrality in class.
Prepare positions both supporting and opposing
Net neutrality. Which do you support and why?

18. Investigate the status of Net neutrality laws in your nation
and report your findings to your instructor. Do
you agree with the stance currently taken by your government?
Why or why not?

CHAPTER 12 A MANAGER’S GUIDE TO THE INTERNET
AND TELECOMMUNICATIONS 273


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]



1.

2.

3.

4.
5.

6.
7.
8.

9.

10.
11.

12.

13.
14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.
27.
28.

29.

30.

31.

32.

33.
34.

35.

36.
37.

38.
39.
40.
41.
42.

43.

44.
45.
46.
47.

48.

49.

50.

51.

ENDNOTES

K. Maney, “Tuvalu’s Sinking, But Its Domain Is on Solid
Ground,” USA Today, April 27,
2004.

B. Bosker, “The 11 Most Expensive Domain Names Ever,” The
Huffington Post, March
10, 2010.

D. Streitfeld, “Web Site Feuding Enters Constitutional
Domain,” The Washington Post,
September 11, 2000.

D. McCullagh, “Ethical Treatment of PETA Domain,” Wired,
August 25, 2001.

R. Konrad and E. Hansen, “Madonna.com Embroiled in Domain
Ownership Spat,”
CNET, August 21, 2000.

D. Morson, “Apple VP Ive Loses Domain Name Bid,”
MacWorld, May 12, 2009.

M. Kotadia, “MikeRoweSoft Settles for an Xbox,” CNET,
January 26, 2004.

J. Biggs, “Everybody Panic: Why We’re Running Out of IP
Addresses and What’s Going
to Happen Now,” CrunchGear, February 2, 2011.

S. Shankland, “Google Tries to Break IPv6 Logjam by Own
Example,” CNET, March 27,
2009.

V. Kopytoff, “Happy IPv6 Day,” New York Times, June 8,
2011.

M. Peckham, “World IPv6 Launch: Only The Biggest Change to
the Internet Since In-
ception,” Time, June 6, 2012.

S. Shankland, “Google Tries to Break IPv6 Logjam by Own
Example,” CNET, March 27,
2009.

B. Arnoldy, “IP Address Shortage to Limit Internet Access,”
USA Today, August 3, 2007.

D. Godin, “Cache-Poisoning Attack Snares Top Brazilian
Bank,” The Register, April 22,
2009.

J. Davis, “Secret Geek A-Team Hacks Back, Defends
Worldwide Web,” Wired, Nov. 24,
2008.

J. Hutchinson, “ICANN, Verisign Place Last Puzzle Pieces in
DNSSEC Saga,” Net-
workWorld, May 2, 2010.

H. Timmons, “A London Hedge Fund that Opts for Engineers,
Not M.B.A.’s,” New York
Times, August 18, 2006.

R. Iati, “The Real Story of Trading Software Espionage,”

Advanced Trading, July 10,
2009.

A. Berenson, “Arrest Over Software Illuminates Wall St.
Secret,” New York Times,
August 23, 2009.

I. Schmerken, “High-Frequency Trading Shops Play the
Colocation Game,” Advanced
Trading, October 5, 2009.

E. Daimler and G. Davis, “‘Flash Crash’ Proves Diversity
Needed in Market Mechan-
isms,” Pittsburgh Post-Gazette, May 29, 2010; H. Moore,
“‘Flash Crash’ Anniversary
Leaves Unanswered Questions,” Marketplace Radio, May 5,
2011.

T. Spangler, “Cisco Clarifies 100-Gig AT&T Backbone Claim,”
Multichannel News, March
9, 2010; Zacks.com, “AT&T Tests 100 Gb Ethernet in Move
toward Faster Internet,”
SeekingAlpha, March 10, 2010.

G. Gilder, Telecosm: How Infinite Bandwidth Will
Revolutionize Our World (New York:
Free Press, 2000).

S. Lawson, “US Ranks 26th in New Broadband Index,”
Computerworld, May 25, 2010.

S. Hansell, “The Broadband Gap: Why Is Theirs Faster?” New
York Times, March 10,
2009.

R. Farzad, “The Truth about Bandwidth,” BusinessWeek,

February 3, 2010.

Pandora, “Frequently Asked Questions,”
http://blog.pandora.com.

LG Knowledge Base, “Bandwidth Needed for Instant
Streaming,”
http://lgknowledgebase.com/kb/index.php?View=entry&EntryID
=6241.

R. Thompson, “DSL Internet vs. Cable Internet,” High Speed
Internet Access Guide,
March 23, 2010.

S. Hansell, “The Broadband Gap: Why Is Theirs Faster?” New
York Times, March 10,
2009.

S. Hansell, “The Broadband Gap: Why Is Theirs Faster?” New
York Times, March 10,
2009.

S. Hansell, “The Broadband Gap: Why Is Theirs Faster?” New
York Times, March 10,
2009.

R. King, “Telecom Companies Scramble for Funding,”
BusinessWeek, August 3, 2009.

S. Higginbotham, “Verizon Tests 10 Gbps to the Home. Yeah,
You’ll Have to Share,”
GigaOM, December 17, 2009.

M. Ingersoll and J. Kelly, “Think Big with a Gig: Our
Experimental Fiber Network,” The
Google Blog, February 2, 2010; L. Rao, “The Final Tally: More

Than 1100 Cities Apply
for Google’s Fiber Network,” TechCrunch, March 27, 2010.

R. Farzad, “AT&T’s iPhone Mess,” BusinessWeek, February 3,
2010.

C. Edwards and O. Kharif, “Sprint’s Bold Play on a 4G
Network,” BusinessWeek, March
30, 2010.

K. German, “On Call: Welcome to 4G,” CNET, March 9, 2010.

K. German, “On Call: Welcome to 4G,” CNET, March 9, 2010.

N. Lee, “Sprint’s 4G Plans Explained,” CNET, May 19, 2010.

G. Ou, “Why Satellite Service Is So Slow,” ZDNet, February
23, 2008.

G. Lamb, “O3b Networks: A Far-Out Plan to Deliver the Web,”
Christian Science Monit-
or, September 24, 2008.

G. Dechter and O. Kharif, “How Craig McCaw Built a 4G
Network on the Cheap,” Busi-
nessWeek, May 24, 2010.

C. Mims, “A Personal Cell Phone Tower,” Technology Review,
April 7, 2010.

M. Honan, “Inside Net Neutrality,” MacWorld, February 12,
2008.

“What Is Net Neutrality?” The Week, April 7, 2010.

Google, “A Guide to Net Neutrality for Google Users,” 2008,

http://www.docstoc.com/docs/1064274/
A-Guide-to-Net-Neutrality-for-Google-Users.

M. Jesdanun, “As the Internet Turns 40, Barriers Threaten
Growth,” Technology Review,
August 31, 2009.

A. Mohammed, “Verizon Executive Calls for End to Google’s
‘Free Lunch,’” Washing-
ton Post, February 7, 2006.

I. Lunden, “Broadband Content Bits: Web Drama Investment,
PPL Video Store, Tele-
fonica to Charge?” paidContent:UK, February 11, 2010.

B. Swanson, “The Coming Exaflood,” Wall Street Journal,
January 20, 2007.

274 INFORMATION SYSTEMS VERSI ON 1.4


© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]

http://blog.pandora.com
http://lgknowledgebase.com/kb/index.php?View=entry&EntryID
=6241
http://www.docstoc.com/docs/1064274/A-Guide-to-Net-
Neutrality-for-Google-Users
http://www.docstoc.com/docs/1064274/A-Guide-to-Net-
Neutrality-for-Google-UsersChapter 12: A Manager’s Guide to
the Internet and TelecommunicationsIntroductionInternet 101:
Understanding How the Internet WorksThe URL: “What Are
You Looking For?”Hosts and Domain NamesPath Name and File
NameIP Addresses and the Domain Name System: “Where Is It?
And How Do We Get There?”The IP AddressThe DNS: The

Internet’s PhonebookGetting Where You’re GoingTCP/IP: The
Internet’s Secret SauceWhat Connects the Routers and
Computers?Last Mile: Faster Speed, Broader AccessCable
BroadbandDSL: Phone Company CopperFiber: A Light-Filled
Glass Pipe to Your DoorstepWirelessSatellite WirelessWi-Fi
and Other HotspotsNet Neutrality: What’s Fair?Summing
UpEndnotes



CM220: Unit 8 Discussion Sample Kaplan, 2015


SAMPLE DISCUSSION POST:
UNIT 8

Please note that this is a sample Discussion post to help inspire
and guide your own original
writing of the assignment. Your assignment does not need to
look exactly like the sample, as
this sample is just a possible response to the assignment prompt.
Be sure to review the reading
and grading rubric, complete each task in the instructions, and
contact the instructor with any
questions.

DISCUSSION POST:

Introduction:
Despite being one of the largest school districts in one of the
nation’s largest cities, the San
Antonio Independent School District received only an
“academically acceptable” rating in 2011,
which was actually an improvement for the district since it
received “academically unacceptable”
ratings in 2009 and 20010 (“SAISD Progresses, Earns

Acceptable State Rating,” 2011; “Texas
Education Agency,” 2012). In order to improve academic
performance, the district needs to
provide every high school student with a tablet; this will
encourage more learning outside of the
classroom and increase mastery of skills.

Approach:
I know from this unit’s reading on introductions and
conclusions that an introduction is crucial
for setting the stage and getting my readers’ attention
(Clements, 2011). I am never very sure
about how I should open my paper, so I thought I might try the
“attention-grabbing statement”
approach. I really want the audience to be aware of the district’s
deficient performance, so
mentioning the low ratings the district has received in recent
years might be a way to do that.


References

Clements, K. (2011, December). Crafting effective
introductions and conclusions. Retrieved

from
https://kucampus.kaplan.edu/DocumentStore/Docs11/pdf/WC/In
troductions_Conclusi
ons_v2.pdf


SAISD progresses, earns acceptable state rating [Press release].
(2011, July 29). Retrieved

from
http://www.saisd.net/main/index.php?option=com_content&vie

w=article&id=1840:sai
sd-progresses-earns-acceptable-state-
rating&catid=3:news&Itemid=151


Texas Education Agency. (2012). Testing & accountability.
Retrieved from

http://www.tea.state.tx.us/index.aspx?id=2147495410&menu_id
=660&menu_id2=795
&cid=2147483660



Please note that this is a sample Discussion response to help
inspire and guide your own
responses to classmates. Your response does not need to look
exactly like the sample, as this
sample is just a possible response to the assignment prompt. Be
sure to review the reading and



CM220: Unit 8 Discussion Sample Kaplan, 2015

grading rubric, complete each task in the instructions, and to
contact the instructor with any
questions.

RESPONSE POST:


Hi Steve,

I like the approach you selected for your introduction
paragraph. Right now, though, the

introduction seems a bit brief. Might you explain the Texas
ranking system in more depth? As
Clements (2011) notes in the “Writing a Good Introduction”
podcast, you want to give readers
enough context to follow your argument. “Academically
Acceptable” doesn’t sound like a bad
rating, but if readers knew that was the next-to-lowest rating
available and “Academically
Unacceptable” was the lowest, that might be a more compelling
way to set up your argument.
Also, I know when our family was about to move to another
state that we spent a lot of time
reviewing a “Great Schools” web site to learn more about the
area’s schools. Their ratings system
was on a ten-point scale, so if their score for the SAISD is
really low, that might be helpful to
include. You can find their web site at
http://www.greatschools.org.

Another tip from this week’s reading that might be helpful is to
vary sentence length (Clements,
“Writing Powerful Sentences,” 2011). Your sentences tend to be
pretty long, and sometimes
readers can get lost. How about breaking up your opening
sentence this way:

San Antonio Independent School District is one of the largest
school districts in one of the
nation’s largest cities. Students in this district, though, struggle
on state-mandated tests, leading
to low ratings. The district’s “academically acceptable” rating
in 2011 was actually an
improvement for the district since it received “academically
unacceptable” ratings in 2009 and
20010 (“SAISD Progresses, Earns Acceptable State Rating,”
2011; “Texas Education Agency,”

2012).

Good luck on your final project! I know you will do a great job.

Kelly



References

Clements, K. (2011, December 16). Writing a good
introduction [Podcast]. Effective Writing

Podcast Series. Retrieved from
http://www.screencast.com/users/KUWC/folders/Effective%20
Writing%20Podcasts%2
0(2011)/media/79bd32b1-84fb-4b29-8121-d7989f70de59


Clements, K. (2011, October 6). Writing powerful sentences
[Podcast]. Effective Writing

Podcast Series. Retrieved from
http://www.screencast.com/users/KUWC/folders/Effective%20
Writing%20Podcasts%2
0(2011)/media/4ac4b8aa-eb9a-4340-8bb8-5fb23656115a





CM220: Unit 8 Discussion Sample Kaplan, 2015

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http://technology.timesonline.co.uk/tol/news/tech_and_web/arti
cle4742147.ece
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cle4742147.ece
http://www.whitehouse.gov/the_press_office/Remarks-by-the-
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President-to-the-Annual-Conference-of-the-American-Medical-
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President-to-the-Annual-Conference-of-the-American-Medical-
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:7-43469
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© 2013 Flat World Knowledge, Inc. All rights reserved. 

Created exclusively for [email protected]
Chapter 11: The Data Asset: Databases, Business Intelligence,
and Competitive AdvantageIntroductionData, Information, and
KnowledgeUnderstanding How Data Is Organized: Key Terms
and TechnologiesWhere Does Data Come From?Transaction
Processing SystemsEnterprise Software (CRM, SCM, and
ERP)SurveysExternal SourcesData Rich, Information
PoorIncompatible SystemsOperational Data Can’t Always Be
QueriedData Warehouses and Data MartsHadoop: Big Insights
from Unstructured “Big Data”The Business Intelligence
ToolkitQuery and Reporting ToolsData MiningData Asset in
Action: Technology and the Rise of Wal-MartA Data-Driven
Value ChainData Mining ProwessSharing Data, Keeping
SecretsChallenges AboundData Asset in Action: Caesars’ Solid
Gold CRM for the Service SectorCollecting DataWho Are the
Most Valuable Customers?Data-Driven Service: Get Close (but
Not Too Close) to Your
CustomersInnovationStrategyChallengesEndnotes
Tags