TELECOMMUNICATIONS

Telecommunications is long-distance communications in
which a conglomeration of information-sharing networks
is tied together. The word tele in Latin means distance;
thus, telecommunication is distance communication. It is
the merger of communications and computers. The term
telecommunications refers to devices and systems that
transmit electronic or optical signals across long distances.
It is a process by which people around the world contact
one another to access information instantly and to communicate
from remote areas. It involves a sender of information
and a recipient linked by technology, such as a
telephone system. It is a medium for delivering news,
data, information, and entertainment—locally, nationally,
and internationally.
Communication began as early as the existence of
humankind. The evolution of communication systems
has included primitive sign language, pounding drums,
smoke signals, fire signals, the telegraph, the telephone,
wireless communication, and satellite communication. To
succeed in this world, communication has become a vital
tool in everyday living. With telecommunications systems,
individuals access information, bank, and shop
online; and professionals are linked together by very complex
computer networks. Communications technology
has reshaped the world. Radio, television, computers, the
Internet, and wireless networks have made it easier and
more affordable to stay in touch. Communication has
become a way of life. Communications technology has
revolutionized the way people stay connected.
Telecommunication messages are transmitted in a
variety of ways. Messages are sent from one sender to a
single receiver (point-to-point) or from one sender to
many receivers (point-to-multipoint). Point-to-point
transmission includes personal communications such as a
telephone conversation or a facsimile (fax).
Telegraphs, phones, radios, and television modify
electronic signals; this form of transmission is known as
analog transmission, used to transmit electrical voltages
representing variations in sound levels. Computers and
other electronic equipment transmit digital information.
This means that the transmission is sent over wires, cables,
or radio waves and then decoded by a digital receiver.
Personal computers (PCs) communicate with each
other via networks using the phone network, such as the
Internet. Computers rely on broadband networks provided
by telephone and cable companies to send music,
text, photography, and video over the Internet at high
speeds. Different types of transmission media are
employed, including copper wires, fiber-optic cables,
communication satellites, and microwave radio. Telecommunications
media use wire-based or wire-line communications
to link phones and phone networks to transmit
messages, or use wireless communication that employs
technologies such as cordless phones, cell phones, pagers,
and satellites.
TELECOMMUNICATIONS
RESOURCES
The most widely used resource is the Internet. The Internet
enables students and teachers to participate in discussions,
conduct research, and access electronic libraries and
databases. This tool has been referred to as the “virtual
classroom.” One major component of the Internet, the
World Wide Web, has gained popularity through the use
of Web browsers, enabling the end user to access information
on a variety of subjects.
The trend of distance learning is growing. The
instructor and students participate in an interactive setting
separated geographically by time and place. The
objective of distance learning is providing equitable access
to quality education and yet meets the unique differentieobf_

722 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION
Telecommunications
ated learning styles and needs of individual students.
Technologies used for distance education include satellite
delivery, television broadcast, compressed video, computer
conferencing, multimedia, audio conferencing,
radio, and videotapes. Remote education and training
activities in one’s home will continue to become increasingly
common.
The telephone has become a self-service informationaccess
device. Individuals use a phone and/or the Internet
to check bank balances, transfer funds, pay bills, check
interest rates, obtain stock quotes, and place trades. One
can locate retailers, purchase goods and services, and make
flight arrangements—confirming flight information and
seat assignments without speaking with an airline agent.
Computers have become an integral part of twentyfirst
century lives through a variety of ways. The Internet
enables users to communicate with friends and colleagues
in an efficient manner. It provides the opportunity to provide
education and conduct research in innovative and
individual ways that are constantly changing.
Electronic business (e-business) is any type of transaction,
banking, or investing that occurs online. Consumers
can conduct their banking and use credit cards to
make purchases, and vendors can accept payments online.
Consumers can shop around, investigate and explore,
research products and services, and make intelligent buying
decisions.
Selling products directly to consumers via the Internet
has grown significantly, with telecommunications
being used as a sales channel for marketing goods and
services. With telemarketing advancing, customer service
has increased in importance as a competitive tool for telemarketing
companies to provide quick service.
NEW WAYS OF LOOKING AT
TELECOMMUNICATIONS
Since the 1990s, government-sanctioned telecommunications
monopolies have given way to markets opened to
competition yet subject to heavy regulations. Technological
advances are causing fragmented markets to converge.
Firms face increased competition in their traditional markets
even as technology simultaneously offers them new
business opportunities. The industry is responding with
consolidation, while regulators struggle to keep up the
pace.
Growth opportunities in telecommunications have
shifted to customized services, such as asynchronous
transfer and packet-based on demand. New technologies
have transformed the telecommunications business from
horizontal services and carrier control of networks to
become customer- rather than carrier-centric.
In the coming years the borderless enterprise, using
such technologies as real-time Internet applications and
data sharing, will be turning business inside out in an
effort to improve efficiency and customer service—and
changing the rules for the telecommunications industry.
To accomplish this, businesses will be using Internet protocol
(IP) and broadband. IP powers the consumer Internet,
the corporate extranet, and wide area networks of
service providers. Moving out of the data world, it has
now become a cornerstone of the converged networks,
offering combined data and voice over IP implementations.
Borderless enterprises are the mobile enterprises,
conducting business through mobile personnel using a
wide variety of devices to access and process information.
In the communications market, mobile and data are the
fastest-growing segments.
IMPLICATIONS OF
TELECOMMUNICATIONS FOR THE
FUTURE
The complex world of telecommunications will continue
to be full of challenges and provide one of the most exciting
occupational fields in modern society. Development
of new technology is constant, and its use in the technical
systems that make up a telecommunications network create
opportunities for further development of services for
the consumer. The telecommunications industry is often
referred to as an enabling industry.
The telephone, PC, and television will continue to
exist and develop in parallel. The PC is used as a generalpurpose
office terminal for desktop conferences, data
communication, electronic mail (e-mail), and information
retrieval. Cordless and mobile telephones will complement
the use of the PC.
The U.S. Bureau of Labor Statistics has stated that
the telecommunications industry encompasses voice,
video, and Internet communication services. Overcapacity,
technological advances, mergers, and outsourcing will
effect change in the job growth in this industry. The rapid
technological changes in telecommunications will
demand up-to-date technical skills and education; the
individuals possessing these skills will have the best job
opportunities.
The expansion of communications networks and the
need for telecommunications providers to invest in
research and development will create opportunities for
electrical and electronics engineers. The use of increasingly
sophisticated computer technology, however, will
increase the employment of computer professionals,
which includes computer software engineers, computer
support specialists, and computer systems analysts, thus
creating employment for engineering and computer and
information systems managers. Rising demands for

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 723
Telecommuting
telecommunication services will result in a resumption of
job growth in the industry.
Residential and business demands for high-capacity
communications will lead to upgrades of telecommunications
networks. Wireless demands and construction of a
new generation of wireless systems will help the wireless
portion of the industry. Individuals with up-to-date technical
skills and communication degrees will have the best
employment opportunities.
Implementing universal personal telecommunications
requires access to network intelligence. Advanced
computer support and coordination of the fixed mobile
and paging networks is essential for the network operator
to have in place. Universal personal telecommunication
means calling a person directly instead of a terminal. Subscribers
are assigned a personal number on which they can
be reached regardless of their whereabouts.
CONCLUSION
Telecommunications is a technology on which every business
depends. It is more than just phones. Technology
convergence has advanced, enabling consumers to use
phones, browse Web sites, talk to their families over the
Internet, buy goods and services via TV, and carry music
collections on a flash drive.
Electronic communication such as telephone calls, email,
cable TV, and satellite broadcasts is a vital part of
personal life and is important to business. Businesses are a
part of the telecommunications industry. They are concerned
with communications as they build and install
communication equipment such as fax equipment, video
cameras, compact disk players, PCs, and telephones.
Companies that create messages or content that the technologies
carry, such as movies, books, and software, are
also concerned with telecommunications; they need to
communicate and coordinate their products and services
to inform others outside their business. They are a part of
the media or telecommunications industries. Telecommunications
in operations of any business provides effective
services and products to customers. It gives individuals
access to worldwide information and services.
The Internet and the proliferation of mobile devices
such as the mobile phone and personal digital assistants
have changed the way businesses communicate. Key challenges
that face business enterprises are mobility, customer
satisfaction and cost optimization. With emerging technologies—
such as Session Initiation Protocol, Voice
eXtensible Markup Language, Web services, and speech
recognition—a new generation of multimedia applications
and services enables business enterprises to face these
challenges. New technologies bring new services and business
opportunities. Collaboration and communications
have become the cornerstones of successful competition
and effective customer service. These changes reshape the
requirements for enterprise communications and networking.
SEE ALSO Communications in Business; Electronic Mail;
Telecommuting
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nationalacademies.org/cstb/project_telecomrnd_
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