e-commerce (electronic commerce)

Introduction
• Commerce, exchange of goods and services, usually for
money
• Example: when buy something from store, we are actually
participating in the process of commerce
• For participating commerce in different ways, we have
different roles:
– Buyers
– Sellers
– Producers
Introduction
• Buyers are those people with money who want to
purchase a goods or services
• Sellers are those people who offers goods and
services to buyers. Sellers are generally recognized
in two different forms:
– Retailers, who sell directly to consumers
– Wholesalers or distributers, who sell to retailers and other
businesses
•Producers are those people who create the
products and
services that offers to buyers
The producer sells the products produced to
wholesalers, retailers or directly to consumers
Introduction
• Electronic Commerce (EC) is where business
transactions take place via telecommunications
networks, especially the Internet
• Electronic commerce describes the buying and selling
of products, services, and information via computer
networks including the Internet
• Electronic commerce is about doing business
electronically
• E-commerce, ecommerce, or electronic commerce is
defined as the conduct of a financial transaction by
electronic means.
• Electronic commerce is doing commerce with the use
of computers, networks and commerce-enabled
software (more than just online shopping)
Emergence of E-commerce
With the advent of the Internet, the term e-commerce began to
include:
• Electronic trading of physical goods and of intangibles such as
information.
• All the steps involved in trade, such as on-line marketing,
ordering payment and support for delivery.
• The electronic provision of services such as after sales support
or on-line legal advice.
• Electronic support for collaboration between companies such
as collaborative on-line design and engineering or virtual
business consultancy teams.
• Electronic commerce, commonly known as E-commerce,
ecommerce or e-comm.
• The buying and selling of products and services by businesses and
consumers through an electronic medium such as the Internet and
other computer networks, without using any paper documents.
• E-commerce is associated with buying and selling of products,
information and services by an electronic medium such as the
Internet and other computer networks and in future make up the
Information Superhighway (I-way) .
• E-commerce is widely considered the buying and selling of
products over the internet, but any transaction that is completed
solely through electronic measures can be considered e-
commerce.
• E-commerce refer to more than just buying
and selling products online.
• E-commerce is the buying and selling of goods
and services on the Internet, especially the
World Wide Web.
• In practice, this term and a newer term, e-
business, are often used interchangeably.
For online retail selling, the term e-tailing is
sometimes used.
• E-commerce encompasses any product or
service that is sold over the internet.
• E-commerce includes the entire online process
of developing, marketing, selling, delivering,
servicing and paying for products and services.
E-Business
• Process of using electronic technology to do
business
• E-business is the conduct of business on the
Internet, not only buying and selling but also
servicing customers and collaborating with
business partners.
• E-business includes customer service (e-service)
and intra-business tasks.
• E-business is the transformation of key business
processes through the use of Internet
technologies.
• An e-business is a company that can adapt to
constant and continual change
E-Business
E-business covers online transactions, but also
extends to all Internet based interactions with
business partners, suppliers and customers such
as:
 selling direct to consumers, manufacturers and
suppliers;
 monitoring and exchanging information;
 auctioning surplus inventory; and collaborative
product design.
These online interactions are aimed at improving
or transforming business processes and
efficiency.
E-business: benefits
• Improved accuracy, quality and time required for
updating and delivering information on products
and/or services.
• Access for customers to catalogues and prices -
24 hours x 7 days.
• Improved ease, speed and immediacy of
customer ordering.
• Enhanced market, industry or competitor
intelligence acquired through information
gathering and research activities.
E-business: benefits
• New distribution channels via the electronic
delivery of some products and services, for
example, product design collaboration,
publications, software, translation services,
banking, etc.
• Expansion of customer base and growth in export
opportunities.
• Reduces routine administrative tasks (invoices
and order records) freeing staff to focus on more
strategic activities.
E-commerce vs. E-Business
• E-commerce subset of e-business

• Involvement of monetary transaction is e-

commerce

• To sell online is e-commerce but to bring and

retain customers and educate about the product
or service is e-business

• E-commerce relates with macro-environment

while e-business relates more the micro-level of
the firm
E-commerce vs. E-Business
• The amount of trade conducted electronically
has grown extraordinarily with widespread
Internet usage.
• The use of commerce is conducted in this way,
prompt and drawing on innovations in
1. Electronic Funds Transfer,
2. Supply Chain Management,
3. Internet Marketing,
4. Online Transaction Processing,
5. Electronic Data Interchange (EDI),
6. Inventory Management Systems,
7. Automated Data Collection Systems.
 EFT
• Electronic Funds Transfer (EFT) is the
electronic exchange, transfer of money from
one account to another, either within a single
financial institution or across multiple
institutions, through computer-based systems.
 SCM
• Supply Chain Management (SCM) is the
management of a network of interconnected
businesses involved in the provision of product
and service packages required by the end
customers in a supply chain.
• Supply chain management extends all
movement and storage of raw materials, work-
in-process, inventory, and finished goods from
point of origin to point of consumption.
 Internet Marketing
• Internet marketing, or online marketing, refers to advertising and marketing
efforts that use the Web and e-mail to drive direct sales via e-commerce as
well as sales leads from Web sites or emails.
• Internet marketing and online advertising efforts are typically used in
conjunction with traditional types of advertising like radio, television,
newspapers and magazines.
• Internet marketing can also be broken down into more specialized areas
such as:
– Web marketing includes e-commerce Web sites, affiliate marketing
Web sites, promotional or informative Web sites, online advertising on
search engines, and organic search engine results via search engine
optimization (SEO)
– Email marketing involves both advertising and promotional marketing
efforts via e-mail messages to current and prospective customers
– Social media marketing involves both advertising and marketing
(including viral marketing) efforts via social networking sites like
Facebook, Twitter, YouTube
 OLTP
• Online Transaction Processing, or OLTP,
refers to a class of systems / programs that
facilitate and manage transaction-oriented
applications, typically for data entry and retrieval
transaction processing in a number of industries,
including banking, airlines, mail-order,
supermarkets, and manufacturers. .
 EDI
• Electronic Data Interchange (EDI) is the structured
transmission of data between organizations by
electronic means, which is used to transfer electronic
documents or business data from one computer
system to another computer system, i.e. from one
trading partner to another trading partner without
human intervention.
• It is more than mere e-mail;
– for instance, organizations might replace bills of lading
and even cheque with appropriate EDI messages. It also
refers specifically to a family of standards.
E-commerce can be divided into:
• E-tailing on Web sites with online catalogs,
sometimes gathered into a "virtual mall"
• The gathering and use of demographic (statistical
characteristics) data through Web contacts.
• Electronic Data Interchange (EDI), the business-to-
business exchange of data.
• E-mail and fax and their use as media for reaching
prospects and established customers.
• Business-to-Business buying and selling.
• The security of business transactions.
 E-tailing or The Virtual Storefront
and the Virtual Mall

• E-tailing (or electronic retailing) is the selling of retail goods

on the Internet.
• It is the most common form of business-to-consumer (B2C)
transaction.
• As a place for direct retail shopping,
• With its 24-hour availability,
• A global reach,
• The ability to interact and
• Provide custom information and ordering, and
• Multimedia prospects, the Web is rapidly becoming a
multibillion dollar source of revenue for the world's
businesses.
 Electronic Data Interchange (EDI)
• EDI is the exchange of business data using an
understood data format.
• EDI predates today's Internet.
• EDI involves data exchange among parties that
know each other well and make arrangements for
one-to-one (or point-to-point) connection, usually
dial-up.
• EDI is expected to be replaced by one or more
standard XML formats and ebXML (electronic
business xml).
 E-Mail, Fax, and Internet Telephony
• E-commerce is also conducted through the more limited
electronic forms of communication called e-mail, facsimile or
fax, and the emerging use of telephone calls over the Internet.
• Most of this is business-to-business, with some companies
attempting to use e-mail and fax for unsolicited ads (usually
viewed as online junk mail or spam) to consumers and other
business prospects.
• An increasing number of business Web sites offer e-mail
newsletters for subscribers.
• A new trend is opt-in e-mail in which Web users voluntarily
sign up to receive e-mail, usually sponsored or containing ads,
about product categories or other subjects they are interested
in.
Business-to-Business Buying and Selling
• Thousands of companies that sell products to
other companies have discovered that the Web
provides not only a 24-hour-a-day showcase
for their products but a quick way to reach the
right people in a company for more
information.
The Security of Business Transactions
• Security includes authenticating business
transactions,
• Controlling access to resources such as Web pages
for registered or selected users,
• Encrypting communications, and,
• in general, Ensuring the privacy and effectiveness
of transactions.
• Among the most widely-used security technologies
is the Secure Sockets Layer (SSL), which is built
into both of the leading Web browsers.
 Goals of E-com
• Reduced Cost
• Lower Product Cycle Time
• Faster Customer Response
• Improved Service Quality
• Reducing Paper Work
• Increase the Automation
 E-com Application
1. Electronic funds transfer.
2. Supply chain management.
3. Internet marketing & Shopping.
4. Online transaction processing.
5. Electronic data interchange (EDI).
6. Inventory management systems.
7. Automated data collection systems.
8. Remote Banking.
9. Online Marketing & Advertising .
10. Video on Demand.
11. Procurement & Purchasing.
 Elements of E com Application
• Consumer Device: Computer, PDA, Telephone,
Television, Printer
• Network Service Provider
• Internet (Information Delivery Infrastructure)
• Information Server with Variety of Content:
Video Server ,Game Server, Government Server,
E-Publishing, Library(Software) , Corporate
Server
 Opportunities of E Com
• Commercial Transaction:
 Property Transaction
 Sale Purchase of Goods
 Online share Trading
 Tourism & Hotel Industry
 Payment of Tax
 Payment of Service
 Renewal of License
 Delivery of Goods
 Electronic Payment
 Banking & Money Transfer
 Imports & Exports
 Insurance business
 Transportation
 International Finance
• Social Services:
 Online Education & Distance learning & Training
 Online Treatment
 Sharing Research
 Filing of Tax Return
 Statistics

• Entertainment:
 Ticketing for theatre, Cinema
 Online Game
 Scope of E Com

Internet
E- Market Commerce

EDI
 Drivers of E Com
• Increase in Access
• Connectivity to IT Infrastructure
• Any Time
• Any Where
• Any One
• Organizational Change
• Digital Revolution
• Increasing Demand for Service & Customized Product
• Reducing Operational Cost
• Increasing Profit
 Advantages of E-Commerce
• Business Hours: 24/7
• Global Location
• Lower Transaction Costs
• Easy layer Arrangement
• Convenient Shopping
• Larger Purchases per Transaction
• Improved Customer Interactions
• Transactions Recording
• Faster buying/selling procedure
• No geographic limitations.
• Low operational costs and better quality of services.
• Global Economy
• Better Customer Services
• Greater Profit Margin
• Knowledge Markets
• Swapping Goods & Services
• Information Sharing
• Teamwork
• Productivity Gains
• Customization
• Ensure Secrecy
• No need of physical company set-ups.
• Easy to start and manage a business.
• It increases sales and thus decreases costs of the goods.
• Advertising on the web can make a big or small firm's
promotional message reach out to potential customers all over the
world.
• A firm can reach narrow market segments that are widely
scattered throughout the world.
• Low cost medium disseminating information and processing
transactions.
• Provides the buyers a wider range of choices than traditional
commerce technology.
• Help protect against frauds and theft losses because electronic
payments can be easier to monitor than payments made by
cheques.
• Enables people to work from home and has an added benefit of
reduction in traffic and pollution caused by employees who
have to communicate to office.
 Disadvantages of E-Commerce
 Things like food, jewelry, antiques etc. can never turn to e-
commerce because it is not possible to check them from
remove locations.
 Many firms have had trouble recruiting and retaining
employees with the technological, design and business
process skills needed to create an effective electronic
commerce presence.
 Frauds are not completely eliminated in the e-commerce
transactions.
 Cyber laws are not properly pass and the existing ones are
not clearly defined.
• Shipping Takes Time
• Shipping Costs More
• Doubts and Fears
• Inability to Feel the Physical
• Too Many Competitors
• No guarantee of product quality
• Not Free
• High Risk of Internet based startup organizations
• Customer Relation Problem
 E COM Framework
• Common Business Service for Selling & Buying
• Messaging & Information distribution for Sending &
Retrieving Information
• Multimedia Content & Network publishing for creating a
product & communicate about it
• The Information Superhighway for providing the highway
system along which all e commerce must travel
• Public Policy for any issue as universal access, privacy,
information pricing
• Technical standards for dictate the nature of information
publishing, user interface and transport in the interest of
compatibility across the entire network (Network Protocol)
Architectural Framework for Electronic
Commerce
1) Application services
2) Brokerage and Data services, Data or transaction management
3) Interface and Support Layers
4) Secure Messaging, Security, and Electronic Document
Interchange
5) Middleware and Structured document interchange
6) Network infrastructure and basic communications services

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 6) Network Infrastructure
• E-commerce framework is being built on the WWW architecture.
• Wireline - coaxial, fiber optic
• Wireless

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 5) Middleware Services
• Needed to solve all the interface, translation, transformation,
and interpretation problems
• The ultimate mediator between diverse software programs that
enables them talk to one another
• As computing is shifting from application centric to data
centric, middleware services should focus on:
– transparency
– transaction security and management - authentication and
authorization
– distributed object management and services. Objects are
defined as the combination of data and instructions acting
on the data.
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 4) Secure Messaging, Security, and
Electronic Document Interchange
• Messaging can be defined as:
– the software that sits between the network infrastructure and
the clients or e-commerce applications.
– a framework for the total implementation of portable
applications
• They offer solutions for communicating non-formatted
(unstructured) data, letters, memos, reports, as well as formatted
(structured) data such as invoices, PO.
• With messaging tools, people can communicate and work
together more effectively, no matter where they are located.

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 3) Interface and Support Services
• Interfaces for e-commerce applications such as interactive
catalogs, the customized interface to consumer applications
such as home shopping.
• Support directory services, functions necessary for
information search and access, which operate behind the
scenes and attempt to organize the enormous amount of
information and transactions generated to facilitate e-
commerce.
• The difference - interactive catalogs deal with people,
directory support services interact directly with software
application.

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 2) Information Brokerage and Management
• It provides service integration through the concept of
information brokerage, the development of which is necessitated
by the increasing information resource fragmentation.
• Information brokerage is intermediary who provides service
integration between customers and information providers, given
some constraint such as a low price, fast service, or profit
maximization for a client
• It also addresses the issue of adding value to the information that
is retrieved. E.g. FX company provides not only the latest
currency exchange rate, but also hedging and risk management
etc.

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E-Commerce Application services:
• Distinct Categories of e-Commerce
– Business to Consumer (B2C)
– Business to business (B2B)
– Consumer to Consumer (C2C)
– Consumer to Business (C2B)
– Intra-organizational e-commerce

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Four Categories of e-Commerce

Business originating from . . .

Business Consumers

Business B2B
B2B C2B
C2B

And selling
to . . .

Consumers B2C
B2C C2C
C2C

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 Categories
E-commerce is subdivided into three categories:
• Business to business or B2B (Cisco),
• Business to consumer or B2C (Amazon),
• Consumer to consumer or C2C (eBay).
also called electronic commerce.
Convergence of e-Commerce Categories

Business originating from . . .

Business Consumers

Publishers
Publishersorder
orderpaper
paper
supplies
supplies frompaper
from paper Consumers
Consumersaggregate
aggregate
Business companies
companies to
to bulk
bulkpurchase
purchase from
from
Amazon Amazon
Amazon
Amazonorders
orders from
from
publishers
publishers
And selling
to . . .
Consumers
Consumersbuy buy
thousands
thousands of
ofHarry
Harry Consumers
Consumers resell
resell
Consumers
Potter
Potter books
books from
from copies
copieson
oneBay
eBay
Amazon
Amazon

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Categories of E-Commerce
BUSINE
SS

CONSUM CONSUM
ER ER

BUSINE
SS
 Categories of E-Commerce
Supplier Opportunity Customer Benefits

•Global Presence •Global Choice

•Improved Competitiveness •Quality of Service
•Mass Customization & •Personalized Products &
“Customerization” Services
•Shorten & eradicate supply •Rapid response to
chains needs
•Cost savings
•Novel business •Price reductions
opportunities •New products &
services
 Global Supplier

Classic EDI

Procurement, distribution and logistics

Engineering Manufacturing Accounting,

and research and production finance and
Internal management
Private
Commerce publishing

Advertising Sales Customer service

Consumer-oriented
e-commerce
Different types of
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Customers e-commerce applications
 Business-to-business (b2b) Transactions
• We call this category market-link transaction.
• Also known as Inter organization e-commerce.
• It refers to the full spectrum of e-commerce that can occur
between two organizations.
• This includes purchasing and procurement, supplier
management, inventory management, channel management,
sales activities, payment management &service and support.
• Businesses, governments, and other organizations depend on
computer-to-computer communication as a fast, economical,
and a dependable way to conduct business transactions.
• B-to-B transactions include the use of EDI and electronic mail
for purchasing goods and services, buying information and
consulting services, submitting requests for proposals, and
receiving proposals.
 b2b and EDI
• EDI developed in 1960s as a means of accelerating
the movement of documents pertaining to
shipments and transportation.
• In mid-1980s, the technique was used in may
industries - automotive, retail, international trade
etc.
• It is still growing now and is set to become the
standard by which organizations will communicate
formally with each other in e-commerce
• Might be replaced by XML in the future

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 Some Definition of Electronic Data Interchange
(EDI)
• The transmission, in a standard syntax, of unambiguous
information of business or strategic significance between
computers of independent organizations.
• The interchange of standard formatted data between
computer application systems of trading partners with
minimal manual intervention.
• The electronic transfer, from computer to computer, of
commercial and administrative data using an agreed
standard to structure an EDI message.
• The electronic transfer from one computer to another of
computer processable data using an agreed standard to
structure the data.

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 EDI in Action
• EDI takes what has been a manually prepared form or a
form from a business application, translates that data into
a standard electronic format, and transmit it.
• At the receiving end, the standard format is “un-
translated” into a format that can be read by the
recipient’s application.
• Hence, output from one application becomes input to
another through the computer-to-computer exchange of
information.
• Result is elimination of delays and errors inherent in
paper-based transaction.

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 Buyer Seller
Purchase request Finance Finance
initiated in the department department
organization Bill

Payment

Paper-based Sales
Purchasing Paper-based
mailroom department
department mailroom
Order Order
delivery confirmation

Inventory and Receiving Shipping Manufacturing

warehousing department department department
Product delivery

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Information flow without EDI
 Buyer Seller
Purchase request Finance Finance
initiated in the Billing
department department
organization details
Purchase-order
Payment
delivery
EDI-capable Sales
Purchasing EDI-capable
computer department
department computer
Automated- Order
confirmation

Inventory and Receiving Shipping Manufacturing

warehousing department department department
Product delivery

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Information flow with EDI
Tangible Benefits of EDI
• EDI can be a cost- and time-saving system because:
– automatic transfer of information from computer to computer
reduce errors
– EDI produce acknowledgement of receipt of data - invoice is not
necessary, and thus save efforts and reduce cost
• for companies dealing with thousands of suppliers and tens
of thousands of purchase order a year, the saving from EDI
are significant. e.g. RJR Nabisco cut the processing of
purchase order from about $100 to 93 cents
• saving accrue from the following improvements:
– reduced paper-based systems
– improved problem resolution and customer service
– expanded customer/supplier base

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 Inter-organisational electronic commerce
(b2b)
• Supplier management
– Electronic applications enhance business
partnerships by reducing purchase order (PO)
processing costs and cycle times, and by
increasing the number of POs processed with
fewer people.

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 Inter-organisational electronic commerce (b2b)

• Inventory management
– Electronic applications helps to reduce inventory levels,
improve inventory turns, and eliminate out-of-stock
problems.
– EC can shorten the order-shop-bill cycle and can also track
their documents to ensure that they were received.

• Distribution management
– Electronic applications facilitates the transmission of shipping
documents such as bills of lading, purchase orders, advanced
ship notices, and claims and enable better resource
management by ensuring the documents themselves contain
more accurate data. 62
 Inter-organisational electronic commerce (b2b)
• Channel management
– Electronic applications can quickly distribute information
about changing operational conditions to trading partners.
Technical, product, and pricing information that once required
repeated telephone calls and countless labor hours can now be
posted to electronic bulletin board.
• Payment management
– Electronic applications link companies with suppliers and
distributors so that payments can be sent and received
electronically.
– Electronic payment reduces human error, increases the speed
at which companies compute invoices, and lower transaction
costs.
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 Intra organizational Transactions
• We call this category market-driven transactions
• A company becomes market driven by
– dispersing throughout the firm information about its customers
and competitors
– spreading strategic and tactical decision making so that all units
can participate
– continuously monitoring their customer commitment by making
improved customer satisfaction an ongoing objective
• Three major components of market-driven transactions
are:
– customer orientation through product and service customization
– cross-functional coordination through enterprise integration
– advertising, marketing, and customer service
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 Intra-organizational electronic commerce
• Workgroup communications
– These applications enable managers to communicate with
employees using e-mail, videoconferencing, and bulletin boards.
– The purpose is to improve the internal communication
effectiveness especially for international companies.
• Electronic publishing
– Electronic publishing applications enable companies to organize
publication, and distribute human resources manuals, product
specifications, meeting minutes and company announcements.
– The benefits are clear:
• reduction of printing cost and
• speed up internal communication.

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 Intra-organizational E-commerce
• Sales Force productivity
– These applications improve the information flow
between the production and sales forces
(Employee).
– Internal parties can get the most updated market
intelligence information which can be used to
formulate the most effective company strategy.

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Business-to-consumer (b2c) Transactions
• It refers to exchanges between business and consumers,
like the ones managed by Amazon.com, Yahoo
• We call this category marketplace transaction.
• The activities tracked are consumer search, frequently
asked questions and service and support.
• Customers learn about products differently through electronic
publishing
• Buy them differently using electronic cash and secure payment
systems
• have them delivered differently
• loyalty may also be different

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Example:
Personal Finance and Home Banking Management
-Basic Services, from ATM to Internet
-Intermediate Services, customers can use internet to pay bills, move money
between investments, etc.
-Advanced Services, such as on-line life, home, auto insurance, mutual funds,
pension plans and other financial products.
-Home banking allows customers to avoid long line and give them flexibility to
do banking any time.
-For bankers - no need to build more branches and cut office expenses.
Home Shopping
-TV based Shopping to on-line catalog-based shopping
-TV base shopping has revenues of US$1.2bil in 1993. Shoppers can use
remote control to shop different channels.
-Shoppers select products from on-line catalog
Home Entertainment
-customers browse through an on-line movie archive guide containing
thousands of movies, music videos, documentaries, concerts, sporting events
etc. and select. They then send their credit cards number using encryption to
the distributors, who validate the credit card and transfer the movie to
customers’ TV.
 Consumer-Oriented (b2c) E-Commerce
• Consumer-oriented application can be broadly classified into
– entertainment, such as movies on demand, multiuser
games, on-line discussions
– financial services, such as home banking, financial services,
financial news
– information, such as on-line databases
– essential services, such as home shopping, electronic
catalogs, telemedicine
– education and training, such as interactive education,
multiuser games, video conferencing, on-line databases

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 Operational rule of consumer-oriented e-
commerce is simple:
• whenever the physical transfer of information is replaced with
digital transmission, a winner might emerge if
– the cost is comparable or less
– use is more convenient or faster
– the ability to underwrite technology investments, along with
a vision to understand the demands of these new media

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Mercantile Process Models from the Consumer’s Perspective
Product/service search and
discovery in the information space
Comparison shopping and product Pre purchase
selection based on various attributes preparation
Negotiation of terms, e.g., price,
delivery times

Placement of order

Authorization of payment Purchase

consummation
Receipt of product

Customer service and support (if not

satisfied in X days, return product) Post purchase
interaction

Steps taken by customers in product/service purchasing

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Mercantile Process Models from the Merchant’s Perspective
Customer inquiry and order
planning generation Presales
Cost estimation and pricing of interaction
product services

Order receipt and entry

Order selection and prioritization

Product/service
Order scheduling production and
delivery
Order fulfillment and delivery

Order billing and account/payment

management
Post-sales
Customer service and support interaction

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Order management cycle in e-commerce
 Consumer to Consumer (C2C)
• exchanges involve transactions between and
among consumers. These can include third
party involvement

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 Consumer-to-Business (c2b)
• c2b is when consumers band together to present
themselves as a buyer in group.
• Social Interaction: electronic Application enable
consumers to communicate with each other through e-
mail, videoconferencing.
• Personal Finance Management: electronic
Application enable consumers to manage investments
and personal finance using on line banking.
• Purchasing Products & Information: electronic
Application enable consumers to find online
information about existing & new products/Services.
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 Element of Internet, Intranet & Extranet
Commerce
Element Internet Extranet Intranet
E-Com Type B2C B2B Internal Procurement
(Mail Order via Web) (Procurement & & Processing
Fulfillment)

Access Unrestricted Restricted to Restricted to

(anyone can access a company employee, company employee,
URL Address) staff, business staff, & Customer
partner

Security Minimal Firewalls Firewalls to eliminate

Except for verifying &Restricted access non company
credit cards & Financial to Data & employee.
transaction Application

Payment Method Credit Cards & E –cash Predefined credit Within business
agreement between charges.
business
 Network Infrastructure for E Com
• Network Infrastructure is also known as
interactive or multimedia super highway or I-way.
• I-way would be defined as high capacity
(broadband) interactive (two way) electronic
pipeline to home or office which is capable of
simultaneously providing access to a large
number of e-com application and providing
interactive phone like connectivity between users
& Services and between users & other users.
 I-way Support
• Consumer, End User or business consuming & paying
for services, information & Products.
• Users who become information publisher by setting up
online servers
• Value Added information Provider include third party
brokers & other inter-mediator as well as originators of
services who add value by packaging or building on
services provided by other.
• Information Service Provider who are commercial,
government, private provider or publisher of information,
goods & services.
• User & enterprises play multiple role as consumer
& producer of information, goods & services.
• The boundaries among communication,
entertainment & information is disappearing.
• For example: video is part of communication,
entertainment & information.
• The boundaries among equipment are also
disappearing so fast.
• For example: at present, technology exist to allow
television sets & PCs interact or exchange any
sort of data.
• The Telco's want to make I-way that can
support a variety of applications:
 Online Demand publishing
 Real time video conferencing
 Distance Education & Training
 Tele-everything & telemedicine
 Telemarketing
 Tele commuting
 I-way Element
• Consumer Access Equipment
• Local On Ramps
• Global Information Distribution Network
 Consumer Access Equipment
• Represents a critical category, the absence or slow
progress of which is holding up other segments of I-
way.
– for example Interactive TV is uncommon, not because of a
lack of wiring but because of a lack of affordable
equipment on customer’s side for access & on provider’s
side for distribution.
• This segment of I-way include various h/w & s/w
vendors who provide the
– physical devices like router, switches & Access devices like
Computers, Set top Boxes,
– S/w platforms browsers & Operating system.
 Local or On Ramps or Access Roads
• Provide linkage between community, business,
schools, homes to the communication networks.
• provider of access ramps can be four category:
– Telecom based
– Cable TV based
– Wireless Based
– Computer based online information service that
include value added network (VANs).
Global Information Distribution Network
• Provide infrastructure criss crossing countries
& Continents.
• Most of infrastructure for I-way already exists
In vast networks of fiber optic strands, coaxial
cables, radio waves, satellite, Copper wire
spanning across global.
Infrastructure Network Access Equipment
• Customer Premises Equipment (CPE) is one of
important Component of I way.
• CPE or terminal equipment is a generic term
for privately own communication equipment
that is attached to information Network.
• There is three category
– Cable TV Set top Box
– Computer based Telephony
– Hubs, Routers & Digital Switches
 Cable TV Set Top Box
• It may be in form of cable Converter boxes known as set top
boxes, converter boxes, converter / descramblers.
• It provide the gateway for information services, commercial
transactions and multiple no. of digital compressed channels.
• A set-top box is a device that enables a television set to
become a user interface to the Internet and also enables a
television set to receive and decode digital television
(DTV)broadcasts.
• DTV set-top boxes are sometimes called receivers.
• A set-top box is necessary to television viewers who wish to
use their current analog television sets to receive digital
broadcasts.
• These boxes will have greater intelligence and more
features than the existing Converter box such as
– enabling the users to make phone calls,
– surf the Internet &
– even plan schedule for the week.
• These Set top box provide authentication service at the
customer side & Provide multiple service such as
– interactivity among devices,
– multiple interface and
– user defined features.
• The simplest set top boxes will feature on – screen text
menus enabling feature like
– parental lock out,
– favorite channel browsing
– time delay programming for unattended VCR recording.
• At high end might be box with a menu system based on
icons for navigating though various activity-
– to shop,
– access a bank account,
– play video game,
– watch a pay per view movie,
– examine an on screen TV Schedule
• Cable operator will be able to download software through
cable system into set top boxes.
• Set top box will have slots for add on cards that can be used
to change or add application, provide security or expand the
unit’s memory.
• it will also have a serial data port that can be connected to
the printer.
• The Main goal is to be flexible for application of tomorrows.
 Comparison Set Top Box & PC
Feature PC Set Top Box
Display 1. Latest high resolution 1. Low resolution video,
models easily display image But text display is
Video, text, image & extremely Limited.
graphics. 2. TV is a long way from
2. PC would not have to matching a Computer
adopt much to match TV monitor’s strengths.
strengths.
Control Full function keyboard, Use a hand held remote
mouse for pointing, clicking, Control possibly a joystick,
high lighting Other Devices track ball or other hand held
such as joystick, track ball , cursor control borrowed from
light pen, voice recognition video games – permits
System selections from menus.
Feature PC Set Top Box
Pipe line PC talk to each other over Existing cable TV System can
phone line, which have limited deliver a huge amount
capacity compared with cable. information rapidly one way –
But new modems & networks to home- but must be modified
let them to communicate over to allow a significant return
high capacity cable Line. flow.

Brains PC are very flexibility; It is really a special purpose

interactive application are computer with powerful
only small part of what they graphics & communication
can do. They are powerful in feature but limited flexibility;
their own right & not User can do nothing else with
dependent on system’s central it.
computer with which they The box is largely a slave to
communicate. central computer of interactive
System.
Feature PC Set Top Box
Accessibility PC are rapidly gaining Every household have a TV
acceptance in home & & familiar & Comfortable
selling, especially those with using it. Video games,
that are easiest & the closest anolog to set top
comfortable to use. Box’s interface with user,
People most likely to use are commonplace & more
interactive system may be than half of all household
the same one s most receive cable service.
attracted to Computers.
 Computer based Telephony
• The largest CPE product sectors are private
branch exchanges (PBXs), telephone,
modems, voice processing equipment and
video communication equipment.
• These devices combine voice, data, facsimile
functions & enables user to send, store, &
receive information over either wire-line or
wireless networks.
 Digital switches, Routers & Hubs
• A digital switch is a device that handles digital signals generated
at or passed through a telephone company central office and
forwards them across the company's backbone network.
• It receives the digital signals from the office's channel banks that
have been converted from users' analog signals and switches
them with other incoming signals out to the wide area network.
• Digital switches are described in terms of classes based on the
number of lines and features that are provided.
• A private branch exchange (PBX) is a digital switch owned by a
private company.
• A Centrex is a digital switch at the central office that manages
switching for the private company from the central office.
• Router is a device that forwards data packets
along networks.
• A router is connected to at least two networks,
commonly two LANs or WANs or a LAN and its
ISPs network.
• Routers are located at gateways, the places where
two or more networks connect.
• Routers use headers and forwarding tables to
determine the best path for forwarding the packets,
and they use protocols such as ICMP (Internet
Control Message Protocol) to communicate with
each other and configure the best route between
any two hosts.
• Hubs: An Ethernet hub, active hub, network hub,
repeater hub or hub is a device for connecting multiple
Ethernet devices together and making them act as a single
network segment.
• A hub works at the physical layer (layer 1) of the OSI
model.
• The device is a form of multiport repeater.
• Repeater hubs also participate in collision detection,
forwarding a jam signal to all ports if it detects a collision.
• A common connection point for devices in a network.
• Hubs are commonly used to connect segments of a LAN.
• A hub contains multiple ports.
• When a packet arrives at one port, it is copied to the other
ports so that all segments of the LAN can see all packets.
• A Repeater is an electronic device that receives a
signal and retransmits it at a higher level and/or
higher power, or onto the other side of an
obstruction, so that the signal can cover longer
distances.
• A network device used to regenerate or replicate a
signal.
• Repeaters are used in transmission systems to
regenerate analog or digital signals distorted by
transmission loss.
• Analog repeaters frequently can only amplify the
signal while digital repeaters can reconstruct a
signal to near its original quality.
 Local Roads & Access Ramps
• I-way infrastructure is the “last mile” wiring linking homes
with the backbone.
• Consumer may get two or three upgraded link into homes.
1. One from telcos
2. One from the cable TV connections
3. Last one is Electricity power
• Four Type of “last mile” connection are currently in
existence
Plain old Telephone System (POTS) wires
Cable TV Coaxial cable
Electricity wire
Wireless (Radio based cellular or satellite connection)
 Radio based Wireless last mile
• Cellular Network Infrastructure
• Specialized Mobile Radio
• Mobile data Network
A cellular network or mobile network
• Cellular networks were designed for maximum coverage at
minimum cost.
• A cellular network is a radio network distributed over land areas
called cells, each served by at least one fixed-location transceiver,
known as a cell site or base station.
• In a cellular network, each cell uses a different set of frequencies
from neighboring cells, to avoid interference and provide
guaranteed bandwidth within each cell.
• When joined together these cells provide radio coverage over a
wide geographic area.
• This enables a large number of portable transceivers (e.g., mobile
phones, pagers, etc.) to communicate with each other and with
fixed transceivers and telephones anywhere in the network, via
base stations, even if some of the transceivers are moving through
more than one cell during transmission.
• Cellular networks offer a number of advantages over
alternative solutions:
– flexible enough to use the features and functions of
almost all public and private networks
– increased capacity
– reduced power use
– larger coverage area
– reduced interference from other signals
Cellular Network Infrastructure
 Specialized Mobile Radio
• SMR is conventional two way radio system that can be
configured in a manner that provides so-called “interconnect”
service which is functionally very similar to cellular.
• Specialized Mobile Radio (SMR) may be an analog or digital
trunked two-way radio system, operated by a service in the
VHF, 220, UHF, 700, 800 or 900 MHz bands.
• Some systems with advanced features are referred to as an
Enhanced Specialized Mobile Radio, (ESMR).
• Specialized Mobile Radio is a term defined in US Federal
Communications Commission (FCC) regulations.
• The term is of US regulatory origin but may be used in other
regions to describe similar commercial systems which offer a
radio communications service to businesses.
Global Information Distribution Network
• Two major technologies underpinning high
speed Global Information Distribution
Network are
Fiber optic long distance network
Satellite
 Fiber Optic Long Distance Network
• Fiber-optic communication is a method of transmitting
information from one place to another by sending pulses
of light through an optical fiber.
• The light forms an electromagnetic carrier wave that is
modulated to carry information.
• The process of communicating using fiber-optics involves
the following basic steps:
– Creating the optical signal involving the use of a transmitter,
– Relaying the signal along the fiber,
– Ensuring that the signal does not become too distorted or weak,
– Receiving the optical signal, and
– Converting it into an electrical signal.
 Satellite Communication
• A communications satellite or comsat is an
artificial satellite sent to space for the purpose of
tele-communications.
• For fixed (point-to-point) services, communications
satellites provide a microwave radio relay
technology complementary to that of
communication cables.
• They are also used for mobile applications such as
communications to ships, vehicles, planes and hand-
held terminals, and for TV and radio broadcasting.
 Public Issue for I-way
• Cost
• Allocation of scare(start) resources
• Subsidies
• Regulation
• Universal Access
• Information Privacy Issue
• Social & religious Barriers
 Global Connectivity & Public Policy
• Access to distribution (Local infrastructure &
Access points) with in countries
• Usage policy
• Technology standards
 BROADBAND
• The term broadband refers to a telecommunications signal or
device of greater bandwidth.
• In general, broadband refers to telecommunication in which a
wide band of frequencies is available to transmit information.
• Broadband in telecommunications refers to a signalling method
that includes or handles a relatively wide range (or band) of
frequencies.
• The wider (or broader) the bandwidth of a channel, the greater the
information-carrying capacity, given the same channel quality.
• A Television antenna described as "broadband" may be capable
of receiving a wide range of channels;
• While a single-frequency or Lo-VHF antenna is "narrowband"
since it receives only 1 to 5 channels.
• The US federal standard FS-1037C defines "broadband" just
as a synonym for wideband.
• In radio, for example, a very narrow-band signal will carry
 Morse code (Morse code is a method of transmitting textual
information as a series of on-off tones, lights, or clicks that can be
directly understood by a skilled listener or observer without
special equipment);
 A broader band will carry speech.
 A still broader band is required to carry music without losing the
high audio frequencies required for realistic sound reproduction.
• This broad band is often divided into channels or frequency
bins using pass band techniques to allow frequency-division
multiplexing, instead of sending one higher-quality signal.
• A wide band of frequencies is available,
information can be multiplexed and sent on many
different frequencies or channels within the band
concurrently, allowing more information to be
transmitted in a given amount of time (much as
more lanes on a highway allow more channel to
travel on it at the same time).
• Related terms are
wideband (a synonym),
baseband (a one-channel band),
narrowband(sometimes meaning just wide enough to
carry voice, or simply "not broadband," and sometimes
meaning specifically between 50 cps and 64 Kpbs).
 Switching Technique
• Large messages broken up into smaller packets
• Datagram
– Each packet sent independently of the others
– No call setup
– More reliable (can route around failed nodes or congestion)
• Virtual circuit
– Fixed route established before any packets sent
– No need for routing decision for each packet at each node
 Packet Switching
• Refers to protocols in which messages are divided into packets
before they are sent.
• Each packet is then transmitted individually and can even follow
different routes to its destination.
• Once all the packets forming a message arrive at the destination,
they are recompiled into the original message.
• Most modern Wide Area Network (WAN) protocols, including
TCP/IP, X.25, & Frame Relay, are based on packet-switching
technologies.

– Data transmitted in short blocks, or packets

– Packet length < 1000 octets
– Each packet contains user data plus control info (routing)
– Store and forward
 Circuit-Switching
• In contrast, normal telephone service is based on a circuit-switching
technology, in which a dedicated line is allocated for transmission
between two parties.
• Circuit-switching is ideal when data must be transmitted quickly and
must arrive in the same order in which it's sent.
• This is the case with most real-time data, such as live audio and video.
• Packet switching is more efficient and robust for data that can
withstand some delays in transmission, such as e-mail messages and
Web pages.

– Long-haul telecom network designed for voice

– Network resources dedicated to one call
– Shortcomings when used for data:
• Inefficient (high idle time)
• Constant data rate
The Use of Packets
Packet Switching: Datagram Approach
Packet Switching: Virtual-Circuit Approach
 Advantages with compared to Circuit-
Switching
• Greater line efficiency (many packets can go
over shared link)
• Data rate conversions
• Non-blocking under heavy traffic (but
increased delays). When traffic becomes heavy
on a circuit-switching network, some calls are
blocked.
• Priorities can be used.
Disadvantages relative to Circuit-Switching

• Packets incur additional delay with every node

they pass through
• Jitter: variation in packet delay
• Data overhead in every packet for routing
information, etc
• Processing overhead for every packet at every
node traversed
 Frame Relay
• Frame Relay (FR) is a high-performance WAN protocol that
operates at the physical and data link layers of the OSI
reference model.
• FR originally was designed for use across Integrated Service
Digital Network (ISDN) interfaces.
• Today, it is used over a variety of other network interfaces as
well.
• FR is an example of a packet-switched technology.
• Packet-switched networks enable end stations to dynamically
share the network medium and the available bandwidth.
• “A packet-switching protocol for connecting devices on a
Wide Area Network (WAN)”
• FR networks in the U.S. support data transfer rates at T-1
(1.544 Mb/s) and T-3 (45 Mb/s) speeds.
Frame Relay layers
 Frame Relay Devices
• Devices attached to a Frame Relay WAN fall into the
following two general categories:
– Data terminal equipment (DTE)
• DTEs generally are considered to be terminating equipment
for a specific network and typically are located on the
premises of a customer.
• Example of DTE devices are terminals, personal computers,
routers, and bridges.
– Data circuit-terminating equipment (DCE)
• DCEs are carrier-owned internetworking devices.
• The purpose of DCE equipments is to provide clocking and
switching services in a network, which are the devices that
actually transmit data through the WAN.
• The connection between a DTE device and a
DCE device consists of both a physical layer
component (L1) and a link layer component
(L2).
 Frame Relay Architecture
• Frame Relay has 2 layers: physical and data
link (or LAPF, Link Access Procedure for
Frame Mode Bearer Services)
• LAPF core: minimal data link control
– Preservation of order for frames
– Small probability of frame loss
• LAPF control: additional data link or network
layer end-to-end functions
Frame Relay frame
 Frame Relay Virtual Circuits
• Frame Relay provides connection-oriented data link
layer communications. This means that a defined
communication exists between each pair of devices and
that these connections are associated with a connection
identifier (ID).
• This service is implemented by using a FR virtual
circuit, which is a logical connection created between
two DTE devices across a Frame Relay packet-
switched network (PSN).
• Virtual circuits provide a bidirectional communication
path from one DTE device to another and are uniquely
identified by a data-link connection identifier (DLCI).
Frame Relay Virtual Circuits (cont.)
• A number of virtual circuits can be multiplexed into a
single physical circuit for transmission across the
network.
• This capability often can reduce the equipment and
network complexity required to connect multiple DTE
devices.
• A virtual circuit can pass through any number of
intermediate DCE devices (switches) located within the
Frame Relay PSN.
• Frame Relay virtual circuits fall into two categories:
switched virtual circuits (SVCs) and permanent virtual
circuits (PVCs).
 Switched Virtual Circuits (SVCs)
• Switched virtual circuits (SVCs) are temporary connections
used in situations requiring only sporadic (irregular) data
transfer between DTE devices across the Frame Relay network.
• A communication session across an SVC consists of the
following four operational states:
– Call setup—The virtual circuit between two Frame Relay
DTE devices is established.
– Data transfer—Data is transmitted between the DTE
devices over the virtual circuit.
– Idle—The connection between DTE devices is still active,
but no data is transferred. If an SVC remains in an idle state
for a defined period of time, the call can be terminated.
– Call termination—The virtual circuit between DTE devices
is terminated.
Permanent Virtual Circuits (PVCs)
• Permanent virtual circuits (PVCs) are permanently
established connections that are used for frequent and
consistent data transfers between DTE devices across the
Frame Relay network.
• Communication across a PVC does not require the call setup
and termination states that are used with SVCs.
• PVCs always operate in one of the following two operational
states:
• Data transfer—Data is transmitted between the DTE devices
over the virtual circuit.
• Idle—The connection between DTE devices is active, but no
data is transferred. Unlike SVCs, PVCs will not be terminated
under any circumstances when in an idle state.
• DTE devices can begin transferring data whenever they are
ready because the circuit is permanently established.
 Data-Link Connection Identifier
• Frame Relay virtual circuits are identified by data-link
connection identifiers (DLCIs). DLCI values typically are
assigned by the Frame Relay service provider (for example,
the telephone company).
• Frame Relay DLCIs have local significance, which means that
their values are unique in the LAN, but not necessarily in the
Frame Relay WAN.
 An Introduction to X.25
• The first commercial packet-switching network interface standard
was X.25.
• X.25 is now seldom used in developed countries but is still
available in many parts of the world.
• A popular standard for packet-switching networks.
• The X.25 standard was approved by the CCITT (now the ITU-T)
in 1976.
• It defines layers 1, 2, and 3 in the OSI Reference Model.
• 3 levels
• Physical level (X.21)
• Link level: LAPB (Link Access Protocol-Balanced), a subset of
HDLC (High-level Data Link Control)
• Packet level (provides virtual circuit service)
 User Data and X.25 Protocol Control
Information

User data

Layer 3
X.25 packet
header

LAPB LAPB
LAPB frame
header trailer
 Comparison of X.25 and Frame Relay
Protocol Stacks

Implemented by
X.25 packet Implemented by end system but
level end system but not network
not network
Implemented by
end system and LAPF control LAPF control
network LAPB Implemented by LAPF core
LAPF core
Implemented end system and
by end system network
PHY layer and network PHY layer PHY layer

(a) X.25 (b) Frame relay (c) Frame switching

 ATM
• Asynchronous Transfer Mode (ATM) is a standard
switching technique designed to unify telecommunication
and computer networks.
• Asynchronous Transfer Mode (ATM) is the cell relay
protocol designed by the ATM Forum and adopted by the
ITU-T.
• It uses asynchronous time-division multiplexing, it
encodes data into small, fixed-sized cells.
• This differs from approaches such as the Internet Protocol
or Ethernet that use variable sized packets or frames.
• ATM provides data link layer services that run over a
wide range of OSI physical Layer links.
• ATM (asynchronous transfer mode) is a dedicated-connection
switching technology that organizes digital data into 53-byte
cell units and transmits them over a physical medium using
digital signal technology.
• Individually, a cell is processed asynchronously relative to
other related cells and is queued before being multiplexed over
the transmission path.
• ATM has functional similarity with both circuit switched
networking and small packet switched networking.
• It was designed for a network that must handle both
traditional high-throughput data traffic (e.g., file transfers), and
real-time, low-latency content such as voice and video.
• The pre specified bit rates are either 155.520 Mbps or 622.080
Mbps.
• Speeds on ATM networks can reach 10 Gbps.
• ATM uses a connection-oriented model in which a
virtual circuit must be established between two
endpoints before the actual data exchange begins.
• ATM is designed to be easily implemented by
hardware (rather than software), faster processing and
switch speeds are possible.
• Along with Synchronous Optical Network (SONET)
and several other technologies, ATM is a key
component of broadband ISDN (BISDN).
• ATM is a core protocol used over the SONET/SDH
backbone of the public switched telephone network
(PSTN) and Integrated Services Digital Network
(ISDN), but its use is declining in favour of All IP.
 Structure of an ATM cell
• An ATM cell consists of a 5-byte header and a
48-byte payload. The payload size of 48 bytes.
• ATM defines two different cell formats:
 UNI (User-Network Interface)
 NNI (Network-Network Interface).
• Most ATM links use UNI cell format.
UNI ATM Cell
NNI ATM Cell
ISDN
 Dial Up - LAN

Internet

ISDN Access Server

LAN

ISDN connection
Telephone
Network

ISDN connection
ISDN router
 Fundamentals
• Types of channels
– Bearer channel (B-channel=64 kb/s) clear pipe for
data
– Delta channel (D-channel, 16 kb/s or 64 kb/s) call
signaling information:
• who is calling
• type of call
• calling what number
 Fundamentals
• Service types
– Basic Rate Interface (2 B channels + 1 D channel
(16 kb/s))
– Primary Rate Interface (30 B channels + 1 D
channel (64 kb/s))
 ISDN
• During the 1980s, a new technology called ISDN or Integrated
Services Digital Network was developed by BT.
• ISDN makes use of DIGITAL technology.
• Integrated Services Digital Network (ISDN) is a set of
communications standards for simultaneous digital transmission
of voice, video, data, and other network services over the
traditional circuits of the public switched telephone network.
• It was first defined in 1988 in the CCITT red book.
• Prior to ISDN, the telephone system was viewed as a way to
transport voice, with some special services available for data.
• The key feature of ISDN is that it integrates speech and data on
the same lines, adding features that were not available in the
classic telephone system.
 ISDN Devices
• Terminal Adapter (TA) - Converter device that converts
standard electrical signals into the form used by ISDN - allows
non-ISDN devices to operate on an ISDN network.
• Terminal Equipment Type 1 (TE1) - Compatible with the ISDN
network. Example: Telephones, personal computers, fax machine
or videoconferencing machine.
• Terminal Equipment Type 2 (TE2) - Not compatible with the
ISDN network. Example: Analog phone or modem, requires a TA
(TE2 connects to TA).
• Network termination type 1 & 2 (NT1 and NT2) - A small
connection box that physically connects the customer site to the
Telco local loop, provides a four-wire connection to the customer
site and a two-wire connection to the network (PRI – CSU/DSU).
ISDN Components and Reference Points
• The interface specifies the following network interfaces:
 The U interface is a two-wire interface between the
exchange and a network terminating unit, which is usually
the demarcation point in non-North American networks.
 The T interface is a serial interface between a computing
device and a terminal adapter, which is the digital
equivalent of a modem.
 The S interface is a four-wire bus that ISDN consumer
devices plug into;
 The S & T reference points are commonly implemented as
a single interface labelled 'S/T' on an Network termination
1 (NT1).
 The R interface defines the point between a non-ISDN
device and a terminal adapter (TA) which provides
translation to and from such a device.
 ISDN Reference Points
• U - Two wire cable that connects the customer’s
equipment to the telecommunications
provider
• R - Point between non-ISDN equipment (TE2)
and the TA
• S - Four-wire cable from TE1 or TA to the NT1
or NT2
• T - Point between NT1 and NT2
 Analogies
• NT-1 (Network Terminator-1)
– An NT-1 is an interface box that converts ISDN data into
something a PC can understand (and vice versa). It works
a little like a cable TV descrambler for ISDN signals, and
is often built into ISDN adapters.
• TA (Terminal Adapter)
– This chunk of hardware converts the data it receives over
ISDN to a form your computer can understand.
Sometimes mistakenly called an ISDN modem or a digital
modem, a terminal adapter handles data digitally and does
not need to modulate or demodulate an analog signal.
Terminal adapters can be an internal board or an external
board that connects to the computer through the serial port.
ISDN Components and Reference Points
#2
ISDN Reference Points
• There are several kinds of access interfaces to ISDN
defined as
Basic Rate Interface (BRI)
Primary Rate Interface (PRI)
Broadband ISDN (B-ISDN)
• ISDN is a circuit-switched telephone network system,
which also provides access to packet switched
networks, designed to allow digital transmission of
voice and data over ordinary telephone copper wires,
resulting in potentially better voice quality than an
analog phone can provide.
• It offers circuit-switched connections (for either voice
or data), and packet-switched connections (for data),
in increments of 64 kilobit/s.
 Basic Rate Interface (BRI)
• The entry level interface to ISDN is the Basic(s)
Rate Interface (BRI),
• a 128 k bit /s service delivered over a pair of
standard telephone copper wires.
• The 144 Kbit/s payload rate is broken down into
two 64 Kbit/s bearer channels ('B' channels) and
one 16 Kbit/s signalling channel ('D' channel or
delta channel).
• This is sometimes referred to as 2B+D.
 ISDN Services – BRI
• Basic Rate Interface (BRI)
– Two 64 Kbps B channels, one 16 Kbps D channel, and 48
Kbps worth of framing and synchronization.
– Available data bandwidth: 128 Kbps (2 x 64 Kbps)
– User bandwidth: 144 Kbps (128 Kbps + a 16 Kbps D
channel)
– Total line capacity: 192 Kbps (144 Kbps + 48 Kbps framing)
• Each B channel can be used for separate applications
– Such as Internet and Voice
• Allows individual B channels to be aggregated together into a
Multilink channel
 Primary Rate Interface
• The other ISDN access available is the
Primary Rate Interface (PRI), which is carried
over an E1 (2048 Kbit/s) in most parts of the
world.
• An E1 (E-carriers) is 30 'B' channels of 64
Kbit/s, one 'D' channel of 64 Kbit/s and a
timing and alarm channel of 64 Kbit/s.
• A PRI has 23 'B' channels and 1 'D' channel for
signalling (Japan uses a circuit called a J1,
which is similar to a T1).
• Inter-changeably but incorrectly, a PRI is referred
to as T1 because it uses the T1 carrier format.
• A true T1 or commonly called 'Analog T1' to avoid
confusion uses 24 channels of 64 Kbit/s of in-band
signalling.
• Each channel uses 56 kb for data and voice and 8
kb for signalling and messaging.
• PRI uses out of band signalling which provides the
23 B channels with clear 64 kb for voice and data
and one 64 kb 'D' channel for signalling and
messaging.
• PRI-ISDN is popular throughout the world,
especially for connecting PBXs to PSTN.
Data channel
• The bearer channel (B) is a standard 64 Kbit/s voice
channel of 8 bits sampled at 8 kHz with G.711
encoding.
• B-Channels can also be used to carry data, since they
are nothing more than digital channels.
• Each one of these channels is known as a DS0.
• Most B channels can carry a 64 Kbit/s signal, but
some were limited to 56K because they travelled
over RBS lines.
Signalling channel
• The signalling channel (D) uses Q.931 for signalling
with the other side of the link.
ISDN Frame Structure