Get to Know the Communications Industry
Learning Objectives
After completing this unit, you’ll be able to:
- Define the term communications industry.
- Identify key terms used in the communications industry.
What Is the Communications Industry?
Think of the last time you interacted with the communications industry. You’re probably doing it right now, with communications apps, hardware, and internet services. The communications industry is an integral part of our lives. Its scope expands as people and businesses find new ways to use technology to connect with each other. The North American Industry Classification System provides the following definition for the industry.
Establishments primarily engaged in providing telecommunications and/or video entertainment services over their own networks, or over networks operated by others. The establishments of this subsector are grouped into industries on the basis of the nature of services provided (fixed or mobile), the type of network used to deliver those services (wireline or wireless), and the business model they employ (facilities-based or resale).
Communication service providers (CSPs) make large-scale communication possible through a range of products and services. CSPs include wireless and cable infrastructure providers, telephone operators, internet service providers, satellite companies, cable companies, and equipment suppliers. Think of all the different types of communications products and services you use at home and at work—and that’s only the beginning!
How do you think your interactions with the communications industry compare to previous generations? Perhaps folks previously would have had a landline telephone and TV, and stayed with the same service provider for their lifetime. It’s also likely that a substantial amount of their communication would have been done face-to-face or by letter.
Things are very different now! The way we communicate has evolved as the internet and mobile devices have become commonplace. For example:
- The use of voice services has declined as we use more communications apps and social media.
- Bundled TV channel services are less significant now since customers watch videos on their phone or stream on smart TVs.
Before we take a deeper dive into the history of telecommunications and what’s possibly coming next, let’s review some key industry terms.
Key Industry Terms
| Term |
Definition |
|---|---|
|
Asymmetric digital subscriber line |
ADSL uses copper cabling from a local exchange to a cabinet near the building. Prioritizes downloading over uploading data. |
|
Analog |
An older technology still in use today that uses a waveform generated from a sound or light source across a cable to transmit data. |
|
Bandwidth |
The rate data can be transmitted across a medium, measured in bits per second, such as Gb/s. |
|
Broadband |
A method of transmitting larger amounts of data than traditional telephony networks can support, such as voice and video data. |
|
Carrier |
A company that owns a transmission medium, such as cable infrastructure, and rents, leases, or sells portions for a fee. |
|
Hosted/cloud system |
Internet-based VoIP and data communications hosted off the customer’s site in the cloud. |
|
Local area network |
LAN connects devices in a small area, such as an office building. |
|
Leased line |
A dedicated line, particularly useful for businesses that share a lot of data. |
|
Network infrastructure |
All the hardware and software used to manage data, voice, communications, and networks. |
|
Plain old telephone service |
POTS refers to the traditional, analog voice transmission phone system implemented over physical copper wires (think dial tone!). |
|
Protocol |
A set of rules and procedures for establishing and controlling transmission. |
|
Voice over Internet Protocol |
VoIP is technology that allows voice and media communication over the internet. |
|
Virtual private network |
VPN creates a closed, secure tunnel for data transmission between two or more networks |
|
Wide area network |
WAN is a series of networks connected over a wide geographical area. The internet is the world’s biggest WAN! |