Unit 4.5: Types of Computer Networks
Introduction
In the modern business environment, connectivity is the backbone of operations. From a single-person startup to a multinational corporation, networks are essential for communication, data sharing, and process automation. However, not all networks are created equal. The choice of network type depends entirely on the geographical scope, scale, and specific needs of the business.
Understanding the different types of computer networks—Personal Area Network (PAN), Local Area Network (LAN), Campus Area Network (CAN), Metropolitan Area Network (MAN), and Wide Area Network (WAN)—is crucial for business professionals. This knowledge enables better decision-making regarding IT infrastructure, cost management, security, and operational efficiency. This section explores these network types and their direct applications across various business functions.
Detailed Breakdown of Network Types
Networks are primarily classified based on the geographical area they cover.
1. Personal Area Network (PAN)
A PAN is the smallest and most basic type of network. It is a network that revolves around an individual person, connecting devices within a range of a few meters.
- Definition: A network for interconnecting electronic devices within an individual’s workspace.
- Geographical Scope: A few meters (e.g., 10 meters).
- Key Technologies: Bluetooth, Wi-Fi Direct, Infrared.
- Ownership: Private (owned by the individual).
- Speed: Generally moderate.
Business Applications
A PAN is crucial for personal productivity and connectivity in a business setting.
- Operations: A salesperson connecting their smartphone to a laptop to tether internet during a client visit. A warehouse manager using a Bluetooth headset connected to their mobile device for hands-free communication.
- Marketing: A presenter using a wireless clicker (connected via Bluetooth) to control a presentation on their laptop.
- General: Connecting a wireless keyboard, mouse, and headset to a desktop computer to create a clutter-free and efficient workspace.
2. Local Area Network (LAN)
A LAN connects computers and devices within a limited geographical area, such as a single office building, a home, or a school.
- Definition: A private network that connects devices in a single, geographically limited location.
- Geographical Scope: A room, a building, or a group of adjacent buildings (up to a few kilometers).
- Key Technologies: Ethernet (wired), Wi-Fi (wireless).
- Ownership: Private (owned and managed by the organization it serves).
- Speed: High speed (typically 100 Mbps to 10 Gbps) due to the short distance.
Business Applications
The LAN is the most common type of network found in any business office and is the foundation of internal operations.
- Finance: The accounting department uses a LAN to connect their computers to a central server that hosts the company’s financial software (e.g., Tally, SAP). This ensures data is secure, centralized, and can be backed up easily.
- Human Resources (HR): The HR team shares a network printer and accesses a secure internal server via the LAN to manage confidential employee records and payroll information.
- Operations: In a manufacturing plant, a LAN connects computers, production machinery, and inventory scanners, allowing for real-time monitoring and control of the production line.
- Marketing: A creative team uses a LAN to share large design files and videos quickly between workstations without relying on slow internet speeds.
3. Campus Area Network (CAN)
A CAN is a network that spans a limited geographical area, like a university campus or a corporate park. It is essentially a collection of interconnected LANs.
- Definition: A network that interconnects multiple LANs within a specific geographical area like a university campus, industrial complex, or military base.
- Geographical Scope: A few kilometers (larger than a LAN, smaller than a MAN).
- Key Technologies: High-speed Fiber Optic cables are often used as a backbone to connect the different LANs.
- Ownership: Private (owned and managed by a single organization, like a university or corporation).
- Speed: Very high speed within the backbone connections.
Business Applications
CANs are vital for large organizations with multiple buildings in one location.
- Operations: A large corporate headquarters with separate buildings for Administration, R&D, and Production can use a CAN to ensure seamless connectivity and data sharing between all departments.
- HR: An HR department in the main administrative building can manage employee access cards and attendance systems located in other buildings across the campus.
- Finance: A university’s finance office can connect to the library’s LAN and the student affairs’ LAN to manage student fees, library fines, and scholarship data centrally.
4. Metropolitan Area Network (MAN)
A MAN is a network designed to cover an entire city or a large town. It is larger than a CAN but smaller than a WAN.
- Definition: A high-speed network that connects various LANs and other networks within a city into a single larger network.
- Geographical Scope: A city or a large town (5 to 50 km).
- Key Technologies: Fiber Optics, Microwave links.
- Ownership: Can be public or private. Often, a telecommunications company or ISP (Internet Service Provider) owns and operates the MAN, offering services to businesses.
- Speed: High speed.
Business Applications
A MAN is ideal for businesses with multiple branches or locations within the same city.
- Finance: A bank can use a MAN to connect all its branches within Kathmandu Valley. This allows tellers at the Jawalakhel branch to see a customer’s real-time transaction history from the Thamel branch.
- Operations: A retail chain like Bhat-Bhateni can use a MAN to connect its various supermarkets across a city. This enables centralized inventory management, where the head office can monitor stock levels at each store in real-time.
- Marketing: A media company could use a MAN to transmit large, high-quality video files from its production studio in one part of the city to its broadcasting station in another.
5. Wide Area Network (WAN)
A WAN spans a very large geographical area, such as a country, a continent, or even the entire world. The most famous example of a WAN is the Internet itself.
- Definition: A network that extends over a large geographical distance, connecting multiple LANs, CANs, and MANs.
- Geographical Scope: A country, continent, or the entire globe.
- Key Technologies: Leased Lines, Fiber Optics, Satellite links, VPN (Virtual Private Network) over the internet.
- Ownership: Typically not owned by a single organization. Businesses often lease telecommunication lines from providers (like Nepal Telecom, Ncell) to create their private WAN.
- Speed: Varies greatly but is generally slower than a LAN due to the vast distances involved.
Business Applications
WANs are indispensable for national and multinational corporations.
- Finance: A multinational bank uses a WAN to connect its headquarters in New York with its branches in London, Tokyo, and Kathmandu, enabling global financial transactions and data consolidation.
- Operations: A company like Daraz uses a WAN to connect its central order processing servers with its warehouses and delivery hubs located in different cities across Nepal, from Biratnagar to Nepalgunj.
- HR: The central HR department of a global company can use a WAN to manage payroll, benefits, and recruitment for employees located in offices all around the world.
- Marketing: A global marketing team can use a WAN (often via the Internet and a VPN) to collaborate on a worldwide advertising campaign, sharing assets and strategies across different regional offices.
Real-World Examples from Nepal
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LAN in a Bank Branch: The internal network within a single branch of Nabil Bank in Birgunj is a perfect example of a LAN. All the computers for tellers, the branch manager’s office, printers, and the local server are connected via Ethernet cables. This allows for fast, secure internal operations without relying on the public internet for core banking functions within the branch.
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MAN by an ISP: The fiber network provided by an ISP like WorldLink or Vianet across the Kathmandu Valley is a MAN. They connect thousands of homes and business LANs (like offices, restaurants, and shops) to their city-wide network, which then provides a gateway to the global internet (the WAN). A business with offices in Patan and Boudha could use this MAN to create a high-speed connection between their two locations.
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WAN for Digital Payments: eSewa and Khalti operate on a sophisticated WAN. Their central servers in Kathmandu are connected to thousands of partner banks, merchants, utility providers (like NEA), and agent locations all across Nepal. When you pay your electricity bill from Dhangadhi using eSewa, your transaction travels over a WAN to eSewa’s servers, which then securely communicates with the bank’s server and the Nepal Electricity Authority’s server to complete the payment in real-time. This network spans the entire country.
Key Takeaways
- Networks are classified primarily by their geographical scope.
- PAN is for an individual’s personal workspace (a few meters).
- LAN is for a single building or office, offering high speed and private ownership. It is the foundation of most business operations.
- CAN connects multiple LANs within a campus or corporate park.
- MAN connects locations across a single city, ideal for businesses with multiple branches in one metropolitan area.
- WAN connects networks over large geographical areas (country-wide or globally) and is essential for businesses with geographically dispersed operations.
- The choice of network type directly impacts a business’s cost, performance, security, and ability to scale.
Review Questions
- What are the key differences between a LAN and a WAN in terms of ownership, speed, and geographical scope?
- Provide a specific business scenario for a retail company where a MAN would be the most appropriate network type.
- How does a Campus Area Network (CAN) differ from a standard LAN?
- Explain how a PAN can enhance the productivity of an employee in a modern business setting. Give two examples.
