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digital electronics in the telecommunications

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    Perhaps the most fundamental change, both in terms of technology and its implications for industry structure, has occurred in the architecture of telecommunications networks. Architecture in this context refers to the functional description of the general structure of the system as a whole and how the different parts of the system relate to each other. Previously the PSTN, cable, and data networks coexisted as separately owned and operated networks carrying different types of communications, although they often shared a common technology base (such as point-to-point digital communications) and some facilities (e.g., high-speed digital pipes shared by different networks).

    How are the new networks different? First, they are integrated, meaning that all media— be they voice, audio, video, or data—are increasingly communicated over a single common network. This integration offers economies of scope and scale in both capital expenditures and operational costs, and also allows different media to be mixed within common applications. As a result, both technology suppliers and service providers are increasingly in the business of providing telecommunications in all media simultaneously rather than specializing in a particular type such as voice, video, or data.

    Second, the networks are built in layers, from the physical layer, which is concerned with the mechanical, electrical and optical, and functional and procedural means for managing network connections to the data, network, and transport layers, which are concerned with transferring data, routing data across networks between addresses, and ensuring end-to-end
    In this era of globalization, many companies are multinational, with operations—including R&D—conducted across the globe. For example, IBM, HP, Qualcomm, and Microsoft all have research facilities in other countries, and many European and Asian companies have research laboratories in the United States. Increasing numbers of businesses compete globally. Every company and every industry must assess the segments and niches in which it operates to remain globally competitive.

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