FREE online courses on Information Technology - Chapter 8 NETWORK &
COMMUNICATIONS IN I T - Why Develop Private Networks
In the early days of communications among computers, firms
typically designed a network for each application. A bank might have a network
for demand deposit balances a network for inquiring about loan balances and so
on. The bank branch would be served by a number of separate data networks plus
the public telephone system.
More and more companies are building communications network
that carry, data, voice, and video signals over the same communications lines
with today's technology and the deregulation of the communications industry, a
firm can develop a network that includes common carriers or excludes them
completely. A company might lease lines and use the local telephone company for
the local distribution of voice and data at the ends of the leased lines.
Alternatively, the firm could bypass the telephone system completely by using
satellite distribution.