chapter 11 : infrastructure for e-commerce
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INFRASTRUCTURE
FOR ELECTRONICCOMMERCE
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IT TAKES MORE THAN
TECHNOLOGY
Regardless of their basic purpose-B2C or
B2B-virtually all EC sites rest on the same
network structure,communication protocols,web standards, and security systems. This
chapter focuses on the basic hardware and
software infrastructure underlying the millionsof sites used to, sell to service,and chat with
both customers and business partners.
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Tracking United Parcel
Service Shipments The ProblemSince 1907 United Parcel Service (UPS) has been in the
package distribution business It is the worlds largest package distribution company,
transporting over 3 billion parcels and documents eachyear in over 200 countries.
UPS provides the means for customers to track theirshipments to determine the status and whereabouts of a
particular package
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Tracking United Parcel
Service Shipments (cont.) In the past, this was done primarily over the telephone
Customers would call UPS with the tracking number of
their shipmentAn operator would look up the status of the shipment in
the UPS database and relay the information to thecustomer
Servicing these calls cost an estimated $2 per call
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Tracking United Parcel
Service Shipments (cont.) The Solution
UPS created a Web site (ups.com) that enabled
customers to: track their shipments online
determine the cost and transit time for delivery of a package
schedule a package for pickup
locate the nearest drop-off facility
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Tracking United Parcel
Service Shipments (cont.)These online facilities are accessed from the UPS
homepage The customer clicks the Tracking tab at the top of the
homepage
This takes the customer to an online form where the customersimply enters the tracking number and then hits the Trackbutton
The customer receives precise information about the locationof the designated shipment
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Tracking United Parcel
Service Shipments (cont.) The front end of the UPS Web site is simple, but the
back-end processing used to handle a tracking
request is more complicatedRequests are handed off to one of a handful of Web
servers
This server passes the request to the appropriateapplication serve
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Tracking United Parcel
Service Shipments (cont.)The application server passes the request to an IBM
AS/400 computer attached to the UPS trackingdatabase (the largest transaction database in theworld20 terabytes of data
The mainframe performs the database search for thestatus information
Then it is passed back up the line through the variousservers to the customers browser
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Tracking United Parcel
Service Shipments (cont.) The Results
The UPS site services over 4 million online tracking
requests per day It keeps UPS competitive with other shipping companies
that also offer online tracking services and customerinformation (FedEx)
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Tracking United Parcel
Service Shipments (cont.)UPS now offers customers the option of tracking their
packages through wireless devices (cell phones, PDAs,and Web-enabled pagers )
Web pages have been modified to support the particularwireless device being used
Specialized servers are used to deliver the pages over
the wireless communication networks
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Tracking United Parcel
Service Shipments (cont.)UPS (ec.ups.com) offers a set of e-commerce solutions
and a technology infrastructure that enables other
companies to incorporate UPS online: order entry
Shipping
tracking capabilities
Example:Amazon.com
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Tracking United Parcel
Service Shipments (cont.)The company also offers e-commerce tools and
services for managing an enterprises overall supply
chain
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Tracking United Parcel
Service Shipments (cont.) What we can learn
There is more to an EC Web site than meets the eye
Behind the scenes of virtually every e-commerce site, anumber of hardware and software components aresupporting these applications
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A N t k f N t k
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A Network of Network
The internet is a network of thousands of inter connected
networks .Included among the interconnected networks are: The interconnected backbones that have international reach.
A multitude of access/delivery subnetworks are provided bythe local and regional Internet service providers(ISPs).
Infact, the request and response are each broken intopackets, and the packets can follow different paths.
The paths traversed by the packets are determined by
special computers called routers. The routers haveupdateable maps of the networks on the internet that enablethem to determine the paths for the packets.
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ISP
NAP
ISP ISP
NAP
NAP NAP
ISP
ISP
ISP
ISPISPISP
ISP
INTERNET NETWORK ARCHITECTUREwww.prestonians.webnode.com
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INTERNET PROTOCOL
A protocol is a set of rules that determines howtwo computers communicate with one another over
a network.The protocols around which the internet
was designed embody a series of design principles.
Interoperable
Layered
Simple
Endto-End
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TCP/IP The protocol that solves the global internetworking
problem is the Transmission Control Protocol/InternetProtocol(TCP/IP).
The TCP ensures that two computers can communicate
with one another in a reliable fashion.Each TCP
communication must be acknowledged in a reasonabletime, then the sending computer must transmit the data.
In order for one computer to send a request or a
response to another computer on the internet, the
request or response must be divided into packets that
are labeled with the addresses of the sending and
receiving computers.This is where IP comes into play.
The IP formats the packets and assign addresses.www.prestonians.webnode.com
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Application Layer
FTP,HTTP,Telnet,NNTP
Transport Layer
Transmission
Control Protocol
User Data gram
Protocol (UDP)
Internet Protocol
(IP)
Network Interface Layer
Physical Layer
FIG:TCP/IP
A
R
C
H
IT
E
C
TU
R
E
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DOMAIN NAMES
Names like www.microsoft.com, which referenceparticular computers on the internet, are calledDomain Names. Domain Names are divided intosegments separated by periods.
When users wishes to access a particularcomputer, they usually do so either explicitly orimplicitly through the domain name not the
numerical address. The domain name is converted to the associated
numerical address by a special server called thedomain name server.
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INTERNET CLIENT/SERVER
APPLICATION As the name suggests, in a client/server application there
are two major classes of software:
Client software, usually residing on an end users desktop
and providing navigation and display. Server software, usually residing on a workstation or
server-class machine and providing back-end data accessservices (where the data can be something simple like a
file or complex like a relational database.
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NEW WORLD NETWORK: INTERNET2 AND
NEXT GENERATION INTERNET(NGI)
The current data infra structure and protocols theintranetare capable of handling todays internettraffic but not for so long. Two consortiums, as wellas various telecoms and commercial companies likeCisco, are in the process of constructing the newworld network. It will be capable of dealing with the
next generation of internet applications, which willbe multimedia laden.
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NEW WORLD NETWORK: INTERNET2 AND
NEXT GENERATION INTERNET(NGI) Just as the original internet came from efforts
sponsored by NSF and DARPA ,it is assumed
that the research being done to create bothInternet 2 and the NGI will ultimately benefit thepublic internet. While they will certainly impactthe bandwidth among the ISPs,IAPs, and
NAPs,it still does not eliminate the barriersacross the last mile to business and homes.
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WEB-BASED CLIENT/SERVER
The vast majority of EC applications are web based. Insuch applications, the clients are called web browsersand the servers are simply called web servers, like otherclient/server application s,web browsers and servers
need a way To locate each other so they can send requests and
responses back and forth and
To communicate with one another . To fulfill these needs,
a new addressing schemethe URL and a newprotocol the HyperText Transport Protocol (HTTP)were introduced.
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WEB-BASED CLIENT/SERVER (cont.)
HYPERTEXT TRANSPORT PROTOCOL When users navigate from one page to the another by clicking on
hypertext links within a page.when a user does this, a series of
actions takes place behind the scenes.First, a connection is made
to the web server specified in the URL associated with the link.Next, the browser issues a request to the server, say to GET the
web page located in the directory specified by the associated
URL. The structure of the GET request is simply GET url(e.g.,
GET www.ge.com). The server retrieves the specified pageand returns it to the browser .
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http://www.ge.xn--com%29-yi0c.the/http://www.ge.xn--com%29-yi0c.the/http://www.ge.xn--com%29-yi0c.the/http://www.ge.xn--com%29-yi0c.the/ -
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WEB BROWSER
The earliest versions of the web browsers-Mosaic,Netscape1.0,and Internet Explorer 1.0 were truly
thin clients. Their primary function was to display
web documents containing text and simple graphics.
Today, the two major browsers in the market
Netscape communicator4.0 and Microsofts Internet
Explorer 5.0 (IE 5.0) are anything but thin , both
offering a suite of functions and features.
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WEB SERVER
A web server is not a hardware platform;it is a softwareprogram. In the UNIX world this program is called an http
daemon. In the windows NT world the program is known as an
http service. The primary function of all of these programs is to
service HTTP requests. In addition, they also perform the
following functions :
Provide access control on the web server.
Providing real time access to databases and other dynamic
data.This is done through various application programming
interfaces . Enable management and administration of boththe server functions and the contents of the website .
Log transactions that the users make.
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COMMERCIAL WEB SERVER
While there are dozens of web servers on themarket, three servers predominate;
Apache server
Microsofts internet Information Server (IIS)
Netscapes Enterprise Server.
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WEB SERVER USAGE SERVEY
Since late 1995, a company called Netcraft
(www.netcraft.com) has been conducting monthly
surveys to determine the market share of the
various servers (by numbers connected to theinternet). This is done by polling known web sites
with an HTTP request for the name of the server
software.
Table shows the survey results for selectedmonths beginning in January 1996 and ending in
January 1999.
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Table: NETCRAFT SURVEY OF WEB SERVER
MARKET SHARE (Ns IN Millions)
server january1996 january1997 january1998 january1999
N=74 N=646 N= 1,835 N=4,062
Apache 19.7% 41. 4% 45. 4% 54. 2%
Microsoft IIS 0. 0% 7.7% 20.7% 23. 4%
Netscape 12. 4% 9. 9% 5. 5% 4. 2%
OReilly website 3. 8% 2. 3% 2. 2% 1.7%
NCSA 35. 7% 10. 8% 3. 8% 1. 2%
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INTERNET SECURITY CORNERSTONES OF SECURITY: Security is often cited as a major barrier to EC, prospective
buyers, for example, are leery of sending credit card
information over the Web. Prospective sellers worry that
hackers will compromise their systems.while the need for
security breaches. The National Computer SecurityAssociation (NCSA) has identified four cornerstones of secure
EC, Included are:
Authenticity
Privacy.
Integrity.
Non repudiation.
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ENCRYPTION One way to ensure the confidentiality and privacy of
messages is to make sure that even if they fall into thewrong hands they cannot be read. This is where
cryptography comes into play. All cryptography has four
basic parts:
Plaintext- the original message in human-readable. Cipher text- the plaintext message after it has been
encrypted into unreadable form.
Encryption algorithm- the mathematical formula used to
encrypt the plaintext into cipher text and vice versa. Key- The secret key used to encrypt and decrypt a message.
Different keys produce different cipher text when used with
the same algorithm.
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ENCRYPTION Cryptography enables not only text but also binary
information - video, sound,and executable softwaremodules- to be encrypted for secure transmission across
the internet.
Synchronous Private Key Encryption
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ENCRYPTION
Public key of recipient Private key of recipient
Public key Encryption
Message
textCiphered
text
Message
textencryption
decryption
Sender Receiver
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ENCRYPTIONSession Public Key
Key of Recipient
Digital Envelope
Session Key Session Key
Message
Text
Ciphered
TextMessage
TextEncryption
Decryption
Sender
Session
Key
Receiver
Private Key
of Recipient
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DIGITAL SIGNATURES: AUTHENTICITY Digital signatures are based on public key encryption. Theuse of a digital signature is illustrated in figure. The basic
idea is that messages encrypted with a private key can onlybe decrypted with a public key.
This phrase is then attached to the message and the
combined message is encrypted with the recipients publickey. Upon recipient, the message is first decrypted with therecipients private key. The signature phrase is decryptedwith the senders public key. If the phrase is successfullydecrypted, then the recipient knows that the message could
have only been sent by the holder of the senders privatekey. Of course, at this point there is no guarantee that thesender is actually the sender. It could be someone who hasstolen the private key. This is where digital certificates comeinto play.
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Private Key
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MESSAGETEXT
MESSAGETEXTCIPHER
TEXTSignature Signature
Private Key
of Sender
Public Key
of Sender
Encryption Decryption
ReceiverSender
Public Key
of Recipient
Private Key
of Recipient
Digital Signaturewww.prestonians.webnode.com
DIGITAL CERTIFICATES AND CERTIFICATE
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DIGITAL CERTIFICATES AND CERTIFICATE
AUTHORITIES (CAs) Digital certificates verify that the holder of a public and private
key is who they claim to be. The structure of a digital certificate
is governed by the IETFs X .509 standard.
Digital certificates are issued by third parties called certificate
authorities (CAs).
Individuals or companies apply for digital certificates by
sending the CA their public key and identifying information.
The CA uses their private key to encrypt the certificate and
sends the signed certificate to the applicant.
The sender uses the CAS public key to decrypt the certificate.
In this way the sender can be more confident of the true identity
of the recipient .
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DIGITAL CERTIFICATES AND CERTIFICATEAUTHORITIES (CAs)
After decrypting the certificate, the sender uses the embedded
public key to encrypt the message. In this way, the only public
key that the sender really has to know ahead of time is the CA
public key.
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SECURE SOCKET LAYER
Secure socket layer is a protocol that operates at the TCP/IP
layer. This means that any application that relies on TCP/ IP
SUCH AS THE Web (HTTP) , Use Net newsgroups (NNTP), and e-
mail (SMTP) can be secured by SSL. Secure socket layersupports a variety of encryption algorithms and authentication
methods . The combination of algorithms and methods is called
a cipher suite. When a client contacts a server, the two negotiate
a cipher suite, selecting the strongest suite the two have incommon.
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SECURE ELECTRONIC TRANSACTION A Cryptographic protocol that is designed to handle the
complete transaction is secure electronic transaction (SET),which was jointly developed by visa.
The SET protocol provides authentication,confidentiality, message integrity,and linkage, and it relies on public and private keys for the consumer andthe merchant and supports the following features.
Cardholder registration. Debit card transactions.
Credit reversal.
Merchant registration.
Purchase requests.
Payment authorizations. Payment capture.
Charge backs.
Credits.
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Firewall: ACCESS CONTROL
A firewall is a network node consisting of both hardware and software that
isolates a private network. There are two basic types of firewalls: dual-
homed gateway and screen-host gateway.
In a dual-homed gateway a special server called the bastion gateway
connects a private internal network to the outside internet.
With a screen-host gateway a network router is used to control access to
the bastion gateway. The router ensures that all inbound traffic must pass
through the bastion gateway. A popular variant of the screened-host is the
screened subnet gateway in which the bastion gateway offers access to asmall segment of the internal network. The open subnet is known as the
demilitarized zone. The idea behind the screened subnet is that there is no
way for outside traffic to gain access to any of the other hosts on the
internal network.
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LOCAL
NETWORK
BASTIONHOST
Internet
ProxiesFTP,HTTP,
NNTP,Telnet
FIGURE: Bastion Host Gatewaywww.prestonians.webnode.com
Web server
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INTERNET
Router Router
Bastion host
Local
Network
FTP Server
ProxiesFTP,HTTP,NNT
P,Telnet
FIGURE: Screened Subnet Gatewaywww.prestonians.webnode.com
VIRTUAL PRIVATE NETWORKS
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VIRTUAL PRIVATE NETWORKS Suppose an enterprise wishes to provide mobile or remote
workers with secure access to enterprise data that is normally
accessed over a LAN.Traditionally, remote and mobile workersaccess this data through a bank of modems or a remoteaccess server (RAS) that allows them to dial in over phonelines to the LAN. The chance of caves dropping on thetransmission is nil, but it is an expensive way to do businessbecause of the long distance phone charges that are incurred.A less expensive alternative is a virtual private network(VPN).
VPN combines encryption, authentication, and protocoltunneling to provide secure transport of private
communications over the public Internet. It is as if the Internetbecomes part of a larger enterprise WAN. In this way,transmission costs are drastically reduced because workerscan access enterprise data by making a local call into an ISPrather than a long- distance call.
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Selling on the WEB Functional requirements
The TCP/IP, web browsers, commercial web
servers, encryption, and firewalls provide anopen foundation for creating web site that caneasily support marketing and service activities.
They provide an infrastructure for conductingbusiness online.
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Selling on the WEB
Just like their physical counter parts, online store must provide themeans: Discover, search for, and compare products for purchase;
Select a product to be purchase and determine its total price; Place an order for products; Confirm order, or ensuring that the desire product is available; To pay for products; To verify credit To process order To verify shipment; Provide feedback to the seller
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ELECTRONIC COMMERCE SOLUTIONS:
OUTSOURCING VERSUS INSOURCING
Like traditional merchants, web merchants
have a number of options for creating andoperating their electronic storefronts. Thereare threes types of providers who offer
services for creating and operating anelectronic storefront.
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ELECTRONIC COMMERCE SOLUTIONS:
OUTSOURCING VERSUS INSOURCING1. Internet malls:
There are 3,000 or more malls on the web, like a real worldmall.
An internet mall consist of a single storefront entry to acollection of electronic storefront.
Internet malls come in a variety of shapes and size. There areregional malls like South Florida's (www.sf-mall.com), speciallymalls like the Golf Mall (www.golf-mall.com), and generalpurpose malls like Choice Mall (www.choicemall.com) .
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ELECTRONIC COMMERCE SOLUTIONS:
OUTSOURCING VERSUS INSOURCING
2. Internet service providers:
In addition to providing internet access to companies andindividual users, a large number of ISPs offer host services forEC.
For the most parts of ISPs are focused on operating a securetransaction environment.
This task can be outsourced by third party.
A listing of top site designers can be found at
www.internetworld.com . Some of the national ISPs like UUNet have begun offering more
complete EC solution.
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ELECTRONIC COMMERCE SOLUTIONS:
OUTSOURCING VERSUS INSOURCING
3. Telecommunication companies: Increasingly the large telecommunication companies have
expanded their hosting services to include the full range of EC
solutions. Network service provider NSP, one of the private companies
maintaining and servicing the Internets high-speed backbones.
Include among the companies are MCI, sprint, UUNET/MIS,
PSINet, and BBN planet
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Electronic Catalogs and merchant
servers. Electronic catalogs presentation of information about
products (services) that traditionally were in paper catalogs. However, electronic catalogs include multimedia such as
voice clips. An electronic catalog contain
written descriptionsphotos of products along with information about various
promotions, discounts,payment methods and methods of delivery.
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Electronic Catalogs and merchant
servers. Electronic catalogs and merchant server allow businesses to
create simple, straight forward electronic storefronts. For morecomplex operations, a number of vendors offer EC suite that
support most stages of the supply and buying chains. Electronic commerce suites offer merchants
Greater flexibility
Specialization
Customization Integration in supporting complete front and back-office
functionality.
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Chatting on the web.
Online forum and chat group technologies offer a variety ofbusiness opportunities.
Chat groups involving customers and helpline staff are one
way of offering enhanced customer services. Communication centers:
Virtual meeting places can be created and fees charged forparticipation.
One example is Match. COM (www.match.com) , web chat broadcasting system (www.wbs.com) , contain 200 chat rooms.
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Chatting on the web.
Customer services:
A number of customer services site now offer online
support where customers can converse with help linestaff and other customer.
Most online support center are organized as forums
rather than chat groups.
There are some exceptions Merchant
(www.intersolv.com/csupport/index.asp) .
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Multimedia delivery. The way in which audio, video and other multimedia content are
being delivered over the internet are Web casting:
Web casting is a term used to describe internet-based broadcasting of audio and video content.
One of the leading arena is Real Networks.& Web casting ranges from simple text streams; to periodic
transmission of webcam images; to low quality audio andanimation; to high end CD quality audio; and full motion, fullscreen video.
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Bandwidth
The major barrier to widespread participation in in Web cast isbandwidth.
Bandwidth refers to the speed with which content can be delivered.
Most consumer connect to the internet over the telephone throughmodems whose speed range from 14.4 kbps to 56 kbps (kilo byte persecond).
Most consumer connect to the internet using lower speed modems. Soon this will change as the cable television and telephone
companies battle for the privilege of wiring homes with internetconnections.
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Internet telephones:
Internet phones are not a real telephones they areprogram that let you talk with other people using theinternet.
The main attraction of internet telephones is cost,depending on the type of internet phone connections.
Internet phones comes in three versions---PC-to-PC, PC-to-Phone, and Phone-to-Phone.
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Internet telephones:
With PC-to-PCinternet phones call, the caller and recipient areboth required to have the same internet phones software on theircomputers.
PC-to-Phone system only require the caller to have the internetphone software. The recipient answer the call with a regulartelephone.
Phone-to-Phone, the caller and the recipient use a regular
telephone.
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