Voice Networks and Data Networks: From Analog Telephone Circuits to Modern IP Communication

Voice Networks and Data Networks: From Analog Telephone Circuits to Modern IP Communication

From AI tools as IS.

For much of the history of telecommunications, a voice network and a data network were genuinely different kinds of networks.

Telephone networks were built primarily to carry human conversations. Computer networks were built primarily to exchange data between machines.

Today, that distinction has become much less clear.

A modern telephone conversation may be converted into digital data, divided into packets, carried over fiber and IP networks, processed by software, transmitted over 4G or 5G radio, and finally converted back into sound at the receiving telephone.

Yet traditional telephone infrastructure has not disappeared everywhere. As of September 2026, legacy circuit-switched, copper-based, and other specialized voice systems continue to operate in several parts of the world while telecommunications companies migrate customers toward digital and IP-based services.

Understanding what changed requires looking at what voice networks and data networks actually mean.


What Is a Voice Network?

A useful definition is:

A voice network is a communication network designed primarily to provide voice communication services. Traditional telephone voice networks were generally circuit-switched networks specifically engineered for telephone communication.

Historically, telephone networks primarily carried human speech.

When someone spoke into an old telephone, the microphone converted changes in air pressure into a continuously varying electrical signal.

The conceptual process was:

Human Voice

↓

Continuous sound wave

↓

Telephone microphone

↓

Continuous analog electrical signal

↓

Telephone network

↓

Receiving telephone

↓

Sound

This is why traditional telephone networks are often described as analog voice networks.

However, this needs an important qualification.

Telephone networks did not remain completely analog.

They became substantially digital long before the Internet became dominant.


What Was a Traditional Telephone Signal?

Human speech is naturally analog.

Air pressure varies continuously as we speak.

An early telephone microphone converted these continuous variations into a corresponding continuously changing electrical signal.

Therefore:

Sound pressure

→ continuous analog electrical signal

The receiving telephone performed approximately the reverse operation:

Analog electrical signal

→ speaker movement

→ sound pressure

So it is reasonable to say:

Early telephone voice was represented primarily by continuous analog electrical signals, and traditional voice networks were designed primarily to transport those telephone voice signals.

It is more accurate to say voice signal rather than simply telephone signal, because a telephone network also carries signaling information associated with dialing, ringing, call establishment, supervision, and disconnection.


Traditional Telephone Networks Used Circuit Switching

One of the defining characteristics of the traditional telephone network was circuit switching.

Suppose Alice called Bob.

The telephone network established a communication path through the switching system:

Alice’s Telephone

↓

Local Telephone Exchange

↓

Telephone Trunks

↓

Remote Telephone Exchange

↓

Bob’s Telephone

Network resources were allocated to that conversation while the call was in progress.

That is fundamentally different from the way ordinary Internet packets are handled.

In a packet-switched network, packets belonging to many users normally share network links.

In a traditional circuit-switched telephone system, resources were associated with an established call.


A Dedicated Circuit Did Not Mean a Dedicated Physical Wire

There is an important misconception here.

A circuit-switched telephone call did not necessarily mean that one individual copper wire ran all the way from one caller to another.

The network could multiplex many calls over shared transmission facilities.

What was dedicated or reserved was a logical communication channel or network capacity associated with the call.

So:

Dedicated circuit

does not necessarily mean:

Dedicated physical cable from caller A to caller B

The physical infrastructure could be shared while the switching system maintained a logical circuit for each conversation.


What Is a Data Network?

A useful modern definition is:

A data network is a network designed to exchange digital data between devices using communication protocols. The data may represent text, numbers, files, images, audio, voice, video, sensor measurements, or other information.

Examples of devices participating in data networks include:

  • desktop computers;
  • laptops;
  • smartphones;
  • servers;
  • routers;
  • sensors;
  • industrial controllers;
  • cameras;
  • IoT devices.

Examples of data-network activities include:

  • loading a webpage;
  • sending email;
  • transferring files;
  • querying a database;
  • streaming video;
  • sending sensor measurements;
  • making a VoIP call.

That last example illustrates why the old distinction between voice and data has become increasingly difficult to maintain.


Isn’t Voice Also Data?

Today, yes.

In the broad technical meaning of the term, digitally represented voice is data.

Consider a modern telephone call.

Human speech can go through:

Voice

↓

Microphone

↓

Analog electrical representation

↓

Analog-to-digital conversion

↓

Digital audio samples

↓

Voice codec

↓

Compressed digital data

↓

Packets

↓

Communication network

Once voice has been sampled, digitally encoded, and packetized, the network is moving digital data representing speech.

The same principle applies to images and video.

Image

→ pixel data → encoded file → bits

Video

→ image/audio samples → compression → digital stream → packets

Text

→ character encoding → numbers → bits

Therefore:

Voice, images, video, and text can all become data when represented digitally.


Why, Then, Do We Still Say “Voice and Data”?

This terminology comes largely from telecommunications history.

Traditionally:

Voice traffic

meant telephone conversations.

Data traffic

usually meant non-voice information exchanged by computers.

So engineers commonly distinguished:

Voice network

from

Data network

because these could genuinely be different networks using different technologies.

Today the expression “voice and data” is still widely used, but technically voice can itself be digital data.

The word data is therefore being used in two slightly different ways.

Broad technical meaning

Data includes digitally represented:

  • voice;
  • text;
  • images;
  • video;
  • files;
  • measurements.

Traditional telecommunications meaning

“Data” often meant:

computer/non-voice traffic

This historical usage explains much of the terminology that remains today.


Telephone Networks Did Not Jump Directly From Analog to the Internet

The evolution of telephony occurred in several important stages.

A simplified progression is:

Analog circuit switching

↓

Digital circuit switching

↓

Hybrid telephone/IP networks

↓

Packet-switched IP voice networks

Understanding the middle stage is particularly important.


Stage 1: Analog Telephone Network

Early telephone systems could be simplified as:

Voice

↓

Analog telephone

↓

Analog local line

↓

Circuit-switched telephone network

↓

Analog local line

↓

Telephone

↓

Voice

Much of the communication path was analog.


Stage 2: The Telephone Network Became Digital

Telephone companies gradually digitized their internal networks.

The customer might still have an ordinary analog telephone:

Analog Telephone

↓

Copper Telephone Pair

but the telephone exchange could convert the voice into digital form.

The path then became approximately:

Analog Telephone

↓

Analog Local Loop

↓

Telephone Exchange

↓

Analog-to-Digital Conversion

↓

Digital Telephone Network

↓

Digital-to-Analog Conversion

↓

Analog Local Loop

↓

Analog Telephone

This was a major technological change.

But the network could still remain circuit switched.


Digital Does Not Automatically Mean Internet

This distinction is critical.

A network can be:

digital + circuit switched

or:

digital + packet switched

Traditional digital telephone systems commonly used technologies such as PCM and Time Division Multiplexing (TDM).

Multiple telephone conversations could be digitized and carried together across high-capacity digital transmission systems.

Yet each call still behaved as a circuit-switched telephone connection.

Therefore:

Telephone networks became digital long before they became packet-switched IP networks.


Stage 3: IP Entered the Middle of the Telephone Network

The next major change was the use of packet networks to carry telephone calls.

A customer could still use a traditional telephone interface while the carrier converted the voice to IP internally.

For example:

Traditional Telephone

↓

Telephone Network

↓

Media Gateway

↓

IP Packets

↓

Carrier IP Network

↓

Media Gateway

↓

Telephone Network

↓

Traditional Telephone

The caller might never know that part of the conversation travelled as IP packets.

The U.S. Federal Communications Commission has used the expression “IP-in-the-middle” for arrangements in which traditional telephone service uses IP technology within portions of the network.

This demonstrates an important principle:

A traditional-looking telephone service can use modern packet networking internally without changing the user’s telephone experience.


IP Network Does Not Necessarily Mean the Public Internet

Another common misconception is:

If telephone calls use IP, they must travel over the public Internet.

That is not necessarily true.

A telecommunications company can operate its own managed IP network.

The carrier might use:

  • private IP backbones;
  • MPLS networks;
  • fiber networks;
  • managed Ethernet networks;
  • IMS infrastructure;
  • private data centres.

Therefore:

IP network ≠ public Internet

The Internet uses IP, but IP technology can also be used inside completely private networks.

A telephone call may consequently travel as IP packets without being routed over the ordinary public Internet.


Stage 4: Modern Packet-Based Voice

Modern telephone systems increasingly treat voice as packetized digital information.

A simplified modern communication path is:

Human Voice

↓

Microphone

↓

Digital Samples

↓

Voice Codec

↓

Packets

↓

IP Network

↓

Packets

↓

Voice Decoder

↓

Speaker

↓

Human Voice

The network does not need to transport one continuous analog waveform from one telephone all the way to another.

Instead, it transports digital information representing the voice.


Modern Landline Phones Can Still Look Completely Traditional

An interesting aspect of modern telecommunications is that the telephone itself does not necessarily have to be modern.

Imagine an ordinary analog telephone plugged into a residential gateway.

The architecture can be:

Analog Telephone

↓

Telephone Port on Gateway/ONT

↓

Analog-to-Digital Conversion

↓

Voice Encoding

↓

IP Packets

↓

Fiber/Cable/Broadband Network

↓

Carrier Voice System

The gateway handles the technological conversion.

The telephone itself may know nothing about:

  • IP;
  • Ethernet;
  • fiber;
  • packet switching;
  • Internet protocols.

To the person using it, it is simply a telephone.


The Same Fiber Can Carry Internet, Television, and Telephone Services

Modern broadband infrastructure illustrates network convergence.

A single fiber connection entering a home may support:

Internet

Telephone

Television

The services can still be logically separated and managed differently, but they can share substantial portions of the same physical infrastructure.

This contrasts sharply with older networks in which separate infrastructures were often constructed for separate services.


Cellular Voice Went Through a Similar Transformation

Mobile telephone networks experienced their own transition.

Earlier cellular systems were strongly oriented toward circuit-switched telephone calls.

Later mobile generations supported both:

Circuit-Switched Domain → Voice

and

Packet-Switched Domain → Data

A simplified 3G architecture could therefore have separate mechanisms for ordinary voice and Internet data.

LTE changed the model significantly.

LTE was designed as a packet-oriented system.

Voice increasingly moved to technologies such as:

VoLTE — Voice over LTE

and, with 5G:

VoNR — Voice over New Radio

Now the voice itself can be handled as an application/service on top of a sophisticated packet-based telecommunications infrastructure.


A Modern Mobile Call

A modern mobile voice call can conceptually look like:

Human Voice

↓

Smartphone

↓

Voice Codec

↓

Digital Packets

↓

4G LTE or 5G Radio

↓

Base Station

↓

Mobile Packet Core

↓

IMS / Voice Platform

↓

Remote Network

↓

Recipient’s Phone

This is quite different from the traditional analog telephone model.


The Telephone Network Has Become Increasingly Software-Based

The old telephone network depended heavily on specialized switching equipment.

Modern telephone systems increasingly depend on software.

Examples include:

  • SIP signaling;
  • IMS;
  • software-controlled call routing;
  • subscriber databases;
  • authentication systems;
  • virtual network functions;
  • cloud infrastructure;
  • software-defined networking;
  • IP routers;
  • application servers.

The physical network remains essential.

It still requires:

  • fiber;
  • radio towers;
  • antennas;
  • switches;
  • routers;
  • data centres;
  • submarine cables;
  • satellites.

But much of the intelligence that decides how calls are established, routed, authenticated, billed, and terminated is now implemented in software.


Voice Networks and Data Networks Have Converged

Historically, we might have drawn:

Telephone → Voice Network → Telephone

and separately:

Computer → Data Network → Computer

Today, a more realistic picture is:

Voice

Video

Images
→ Digital Data → Packet Network
/
Text
/
Applications

The same network infrastructure can support many types of information.

This process is generally called network convergence.


Does a Dedicated Telephone Network Still Exist Today?

Yes—but increasingly as legacy or specialized infrastructure, rather than as the dominant architecture.

It is important to distinguish between:

  1. a network built primarily for telephone service;
  2. a copper telephone access line;
  3. circuit-switched PSTN infrastructure;
  4. a network that literally carries only voice.

The fourth category is now relatively uncommon because even traditional telephone infrastructure has frequently been adapted to carry additional services.

Nevertheless, several concrete examples show that legacy telephone-specific infrastructure remains operational in 2026.


United Kingdom: BT’s PSTN Still Exists Until January 2027

As of September 2026, the United Kingdom is an unusually clear example of a country in the final stage of PSTN retirement.

BT plans to retire its traditional Public Switched Telephone Network on:

January 31, 2027.

UK regulator Ofcom stated in January 2026 that BT’s PSTN remains in service while customers are migrated from analog landlines to digital/VoIP services. Ofcom describes the technology as beyond its intended lifespan and increasingly unreliable.

BT reported in March 2026 that approximately 80% of its voice customers had already moved to All-IP services as of January 2026, but thousands of organizations continued to depend on PSTN-based services.

So in September 2026:

Traditional PSTN infrastructure still exists in the UK, but it is scheduled for retirement on January 31, 2027.

The migration is:

Traditional PSTN

↓

Digital landline

↓

VoIP / All-IP infrastructure

Ofcom also notes that other UK operators, including Virgin Media O2 and KCOM, operate legacy networks and intend to retire them, although their final shutdown dates are not necessarily identical to BT’s.


Australia: Telstra Still Supports Copper PSTN Voice

Australia provides another particularly interesting example.

Telstra currently states that although it is retiring certain older access services, it is not exiting copper PSTN voice services in the affected context. Customers who want to retain copper PSTN telephone service can purchase a standalone Home or Business Phone service.

Telstra also operates a specialized Customer Access Network Radio (CAN Radio) voice service for people in remote areas.

These systems use radio links connecting customers in isolated locations to telephone infrastructure.

Telstra plans to exit CAN Radio by:

November 16, 2027.

This is an excellent real-world example of a specialized network that remains primarily associated with traditional voice service.

So, even in a country with highly developed modern broadband infrastructure, legacy voice-specific systems can continue because of geography, existing equipment, and the needs of remote customers.


France: Orange Is Retiring Its Historic Copper Network Through 2030

France illustrates a slower nationwide transition.

France’s telecom regulator, Arcep, describes Orange’s copper infrastructure as the historic network used for fixed telephone service and later broadband technologies such as ADSL, SDSL, and VDSL.

Orange is progressively shutting down this network, with full technical closure planned by the end of 2030.

The retirement is happening area by area.

Technical shutdown began in some locations in 2025, while successive groups of communities will migrate until the nationwide shutdown is completed.

France also demonstrates why copper network and voice-only network should not be treated as synonyms.

The same copper infrastructure that historically carried telephone service was later also used for DSL Internet access.

So it is legacy telecommunications infrastructure, but not necessarily a network carrying only voice.


United States: Legacy Copper Telephone Infrastructure Is Still Being Retired

The United States is also still undergoing its transition away from legacy telephone infrastructure.

In March 2026, the Federal Communications Commission adopted measures intended to accelerate migration from aging copper telephone networks toward modern IP-based services.

The FCC explicitly described the transition as moving away from:

legacy copper telephone networks

toward:

IP-based services.

The fact that this regulatory transition remains active in 2026 demonstrates that traditional copper-based telephone infrastructure has not vanished across the United States.

Migration happens unevenly because the country contains:

  • dense urban networks;
  • suburban systems;
  • rural telephone companies;
  • remote communities;
  • specialized business services;
  • legacy alarm and emergency systems.

Canada: Legacy Fixed Infrastructure and 3G Are Also Being Retired

Canada is undergoing the same general technological transition.

A 2026 CRTC decision concerning Bell Canada notes that legacy copper infrastructure is being replaced by newer fiber-based infrastructure.

Bell Canada is also withdrawing or destandardizing several older services as the equipment becomes difficult to maintain. For example, a July 2026 CRTC decision describes Bell’s Megalink service as increasingly obsolete and preserves it for existing customers while supporting migration to alternatives.

The transition is equally visible in Canadian mobile networks.

Bell continues to operate its national 3G/HSPA network in most of Canada as of September 2026, but plans to discontinue it nationally on:

March 1, 2027.

Manitoba’s Bell 3G/HSPA service was already discontinued on December 31, 2025.

Bell specifically warns that devices dependent on 3G may lose:

  • voice;
  • text;
  • data;
  • 9-1-1 access.

Devices must move toward LTE/VoLTE or newer technologies.

This is another important distinction: 3G is not a dedicated voice-only network. It carries voice, text, and data. But older mobile voice architectures are nevertheless being replaced by packet-based LTE/5G and VoLTE systems.


The UK Has Already Shut Down 3G Mobile Networks

The transition is occurring at different speeds in different countries.

As of May 2026, Ofcom reports that all four major UK mobile operators—

  • Vodafone;
  • EE;
  • Three;
  • O2—

have completed their 3G shutdowns.

The UK is now progressively retiring 2G as well.

This shows that there is no single worldwide date when traditional voice technologies disappear.

Different countries and operators are at different points in the migration.


The Meaning of “Voice Network” Is Changing

Historically, a voice network meant something close to:

A dedicated circuit-switched telecommunications network designed primarily for telephone voice communication.

Today the term may instead describe:

The systems, applications, signaling platforms, and network resources used to deliver voice services, even when the underlying transport is a shared packet-switched IP network.

This distinction is important.

A modern organization can speak of its “voice network” even if that network consists of:

  • IP phones;
  • Ethernet switches;
  • SIP servers;
  • routers;
  • fiber;
  • cloud PBXs;
  • Internet connections.

The service is still voice, but the underlying infrastructure is a data network.


A Better Modern Definition of Voice Network

A modern definition would be:

Voice network — a communication network or system designed primarily to provide voice communication services. Traditional voice networks were generally circuit-switched, while modern voice services are increasingly digitized, packetized, and transported over shared IP-based networks.

This preserves both the historical and current meanings.


A Better Modern Definition of Data Network

A corresponding definition is:

Data network — a network designed to exchange digital data between devices using communication protocols. The data may represent text, files, images, audio/voice, video, sensor information, or other digital content.

And the relationship between them has changed.

Historically:

Voice network ≠ Data network

Today:

Voice service → frequently carried over a data network


How Voice Works on a Modern Data Network

Suppose someone makes a modern VoIP or VoLTE telephone call.

The process can be simplified as:

1. Speech is produced

The person creates an analog sound wave.

2. The microphone captures it

The microphone converts sound pressure into an electrical signal.

3. The signal is digitized

An analog-to-digital converter samples the waveform and creates numerical values.

4. A codec compresses the voice

A voice codec encodes the speech efficiently.

5. Voice becomes packet data

The encoded information is placed into packets.

6. Packets travel through the network

Those packets may travel over:

  • Ethernet;
  • Wi-Fi;
  • LTE;
  • 5G;
  • fiber;
  • cable;
  • carrier IP networks;
  • private networks;
  • portions of the Internet.

7. The receiver reconstructs the voice

The destination device:

receives packets

↓

extracts encoded audio

↓

decodes the audio

↓

creates a speaker signal

↓

produces sound

The recipient hears the conversation.


The Physical Signal Can Change Several Times

The voice information may also change physical representation during its journey.

For example:

Human voice

↓

electrical signal inside smartphone

↓

digital data

↓

5G radio wave

↓

electrical representation at base station

↓

optical signal through fiber

↓

electrical signal in router

↓

optical signal

↓

radio signal

↓

receiving smartphone

↓

sound

The information remains the conversation.

The data representation allows computers and network devices to process it.

The physical signal changes according to the medium.


The Network No Longer Needs to Know That the Payload Is “A Telephone Call”

This is one of the profound consequences of packet networking.

At many parts of a modern IP network, routers are primarily concerned with things such as:

  • source and destination IP addresses;
  • routing tables;
  • packet headers;
  • traffic policies;
  • quality-of-service markings.

A router does not need to understand the meaning of every spoken word.

To much of the network, voice is simply:

packets that must be delivered.

This allows a shared infrastructure to carry:

Voice

Video

Web

Email

Files

Cloud Applications

IoT Data

simultaneously.


Why Keep Separate Voice Services at All?

If voice is now data, one might ask why telecommunications companies still treat telephone service separately.

There are several reasons.

Telephone services have special requirements involving:

Reliability

People expect telephone calls to work consistently.

Quality of Service

Real-time voice is sensitive to:

  • delay;
  • jitter;
  • packet loss.

Emergency Calling

Telephone networks must support services such as:

9-1-1 / 112 / 999

depending on the country.

Telephone Numbers

The global telephone numbering system must still work.

Interconnection

Calls need to move between different carriers and different technologies.

Regulatory Requirements

Telephone providers may have obligations that ordinary Internet applications do not.

Power and Resilience

Traditional copper telephone systems sometimes supplied power from the telephone exchange.

Digital phones connected through home broadband equipment may depend on electricity at the customer’s premises, which creates additional requirements for backup power and vulnerable customers.

This issue is one reason regulators such as Ofcom are closely supervising the migration from traditional PSTN lines to digital telephony.


Voice Has Become an Application on the Network

Perhaps the simplest way to understand the modern transformation is this:

Historically:

The network was built specifically for telephone voice.

Today:

Voice is increasingly one service or application running over a general-purpose digital packet network.

Compare:

Traditional model

Telephone

↓

Voice Network

↓

Telephone

Modern model

Telephone/Smartphone

↓

Voice Application/Service

↓

IP Packet Network

↓

Voice Application/Service

↓

Telephone/Smartphone

That is a fundamental architectural change.


From Separate Networks to Converged Networks

Historically, an organization might have needed different infrastructure for:

Telephone

Computer networking

Television/video

Today, the same Ethernet and IP infrastructure can potentially support all three.

For example:

Ethernet/IP Network

├── Computers

├── IP Phones

├── Wi-Fi

├── Video conferencing

├── Security cameras

├── Servers

└── Internet access

This is generally called a converged network.


Voice Networks Are Disappearing as Separate Transport Networks, Not as Voice Services

This distinction is worth emphasizing.

Voice communication is certainly not disappearing.

People still make billions of telephone and Internet voice calls.

What is disappearing is the need for a completely separate physical network whose primary job is transporting telephone voice.

Instead:

Voice service remains

while:

Dedicated legacy transport infrastructure gradually disappears.

Voice increasingly uses the same:

  • fiber;
  • Ethernet;
  • IP;
  • radio;
  • routing;
  • data-centre infrastructure

used by other digital services.


Where Things Stand in September 2026

The worldwide transition can be summarized approximately as follows:

TechnologyStatus in 2026
Analog circuit-switched PSTNStill exists, but rapidly declining
Copper telephone accessStill widely present in some countries, being retired
Digital TDM telephone networksLegacy/declining
2G circuit-switched mobile voiceStill exists in some countries; retirement underway
3G voice/dataBeing retired rapidly
VoIPMainstream
VoLTEMainstream mobile voice technology
5G/VoNRGrowing
Fiber-based voiceIncreasing
Cloud/IP PBXMainstream business technology
Shared IP transportDominant direction

The timelines differ significantly by operator and country.

For example:

UK / BT: PSTN retirement planned for January 31, 2027.

France / Orange: historic copper network planned for full technical retirement by the end of 2030.

Australia / Telstra: some standalone copper PSTN voice remains available; CAN Radio voice service retirement is planned for November 16, 2027.

Canada / Bell: nationwide 3G/HSPA shutdown planned for March 1, 2027.

United States: the FCC was still actively changing rules in March 2026 to accelerate migration away from legacy copper telephone networks to IP-based services.

The direction is clear even though the transition is not complete everywhere:

Dedicated legacy telephone infrastructure

↓

Digital converged infrastructure

↓

All-IP telecommunications


Final Definitions

After considering both historical and modern systems, these definitions are useful.

Voice Network

A voice network is a communication network or system designed primarily to provide voice communication services. Traditional voice networks were typically circuit-switched and originally carried analog telephone voice signals; modern voice services are increasingly digital, packet-switched, and transported over shared IP-based infrastructure.

Data Network

A data network is a network designed to exchange digital data between devices using communication protocols. The data may represent text, numbers, files, images, audio/voice, video, sensor measurements, or other digital information.

Converged Network

A converged network is a common digital network infrastructure capable of carrying multiple types of services, such as voice, video, and computer/application data.


Final Thought

The phrase “voice network” once described a fundamentally different infrastructure from a computer data network.

That was a world in which:

Telephone → telephone network

and:

Computer → computer network

were largely separate.

That world has changed.

Telephone voice first moved from analog transmission toward digital circuit switching.

Then telephone carriers adopted packet networks and IP transport.

Mobile networks progressed from circuit-switched cellular voice toward VoLTE and 5G packet-based communication.

Fiber, broadband, carrier IP networks, data centres, and software platforms increasingly replaced infrastructure dedicated solely to carrying telephone calls.

Yet the transition is still happening.

Legacy PSTN, copper telephone, TDM, 2G/3G, and specialized voice systems continue to operate in some places in 2026, including parts of the United Kingdom, France, Australia, Canada, and the United States.

The most accurate way to describe the transformation is therefore not:

“Voice networks no longer exist.”

Instead:

Traditional dedicated voice networks are gradually being retired, while voice itself is becoming a digital service carried over converged packet-switched IP networks.

The conversation is still voice.

What changed is the network underneath it.

References and Further Reading

  1. Ofcom — PSTN switch-off and migration to Voice over IP (VoIP), January 29, 2026. Ofcom states that BT plans to retire its PSTN by January 31, 2027 and discusses the migration of analog telephone customers to digital services.
  2. BT — Digital Switchover / All-IP. BT describes the replacement of its traditional analog telephone network by digital Voice over IP services.
  3. BT Business — Final phase of the PSTN switchover, March 20, 2026. BT reported that around 80% of its voice customers had moved to All-IP services as of January 2026 while thousands of organizations remained on PSTN-based services.
  4. Ofcom — The future of landline calls. Information about BT, Openreach, Virgin Media O2, KCOM, digital landlines, and the transition away from legacy networks.
  5. Australian Telstra — CAN Radio and ADSL Service Exit. Telstra describes remote CAN Radio voice systems, their planned November 16, 2027 retirement, and continued availability of standalone copper PSTN voice services in relevant areas.
  6. Arcep — Closure of the French copper network. France’s regulator describes Orange’s historic copper telecommunications network and the transition toward fiber.
  7. Orange Wholesale France — Copper Network. Orange describes the progressive closure of its nationwide copper network, with technical shutdown expected to be completed by the end of 2030.
  8. Federal Communications Commission — Accelerating Network and Service Modernization, March 26, 2026. The FCC discusses the continuing U.S. transition from aging legacy copper telephone networks to IP-based services.
  9. Bell Canada — 3G/HSPA Network Discontinuation. Bell states that its 3G/HSPA network is scheduled to cease nationally on March 1, 2027, following the December 31, 2025 shutdown in Manitoba.
  10. CRTC — Telecom Order 2026-28. The CRTC discusses Bell Canada’s declining legacy landline services and the replacement of legacy copper infrastructure with fiber-based infrastructure.
  11. Ofcom — 2G and 3G switch-off. Ofcom confirms that all four major UK mobile operators have completed their 3G shutdowns and that 2G retirement is progressing.

PAN, LAN, CAN, MAN, and WAN: Understanding Network Types by Geographic Scope

PAN, LAN, CAN, MAN, and WAN: Understanding Network Types by Geographic Scope REf: AI Tools as IS

Computer networks are often classified according to the geographic area they cover.

The most common categories are:

  • PAN — Personal Area Network
  • LAN — Local Area Network
  • CAN — Campus Area Network
  • MAN — Metropolitan Area Network
  • WAN — Wide Area Network

At first glance, these categories may look like they are defined simply by distance.

However, that is only partly true.

There are no universal rules such as:

0–1 km = LAN
1–30 km = MAN
more than 30 km = WAN

Those kinds of distance ranges may be useful as rough examples, but modern networks are better understood by their scope, purpose, ownership, and architecture.


1. Personal Area Network — PAN

A Personal Area Network, or PAN, is a small network formed around an individual.

It usually connects personal electronic devices that are physically close to one another.

Examples include:

  • smartphone connected to wireless earbuds;
  • smartwatch connected to a phone;
  • laptop connected to a Bluetooth mouse;
  • phone connected to a car entertainment system;
  • computer connected to a wireless keyboard.

Common PAN technologies include:

  • Bluetooth;
  • USB;
  • NFC;
  • other short-range wireless technologies.

A PAN is usually very small compared with other network types.

However, it is better not to define it by saying that it must cover exactly “a few metres.”

The important idea is:

A PAN connects devices associated with an individual or a very small personal workspace.

A typical example is:

Smartphone ↔ Bluetooth Earbuds

or:

Laptop ↔ Bluetooth Mouse


2. Local Area Network — LAN

A Local Area Network, or LAN, covers a relatively small geographic area.

Typical examples include:

  • a room;
  • a home;
  • an office;
  • a floor of a building;
  • an entire building;
  • sometimes a group of nearby buildings.

Common LAN technologies include:

  • Ethernet;
  • Wi-Fi.

A typical home LAN might look like this:

Laptop → Wi-Fi Access Point/Router → Internet

An office LAN might look like:

PC → Ethernet Switch → Server

The defining idea is that the network operates within a local environment or premises.


Does a LAN Have a Fixed Radius?

No.

A LAN does not have a universal maximum radius.

One common source of confusion is the 100-metre limit associated with copper Ethernet.

For example, a typical twisted-pair Ethernet connection may have a maximum cable length of approximately:

100 metres

But that is the maximum length of one Ethernet cable segment, not the maximum size of the entire LAN.

For example:

PC — 100 m — Switch — 100 m — Switch — 100 m — Server

The devices may be hundreds of metres apart even though each Ethernet link follows its own distance limitation.

Using fiber-optic Ethernet, individual links can extend much farther.

Depending on the technology, fibre Ethernet links can extend:

  • hundreds of metres;
  • several kilometres;
  • tens of kilometres.

Therefore:

The physical size of a LAN is not determined by one Ethernet cable length.


Can a LAN Contain a Router?

Yes.

A common misunderstanding is:

LANs contain switches, while MANs and WANs contain routers.

That is not correct.

A LAN can absolutely contain routers.

For example, one building may contain several IP networks:

  • 192.168.10.0/24 — employees
  • 192.168.20.0/24 — guests
  • 192.168.30.0/24 — servers
  • 192.168.40.0/24 — IoT devices

Traffic between these IP networks must be routed.

The routing may be performed by:

  • a router;
  • a Layer-3 switch;
  • a firewall with routing capabilities.

Therefore, one local network environment can contain many routers or Layer-3 devices.

The presence of a router does not automatically make a network a MAN or WAN.


Can a LAN Have Multiple Network Addresses?

Yes.

This is another important distinction.

A LAN is not the same thing as an IP subnet.

A LAN describes a local network environment.

An IP subnet describes a logical Layer-3 addressing domain.

A single office building could contain all of these:

10.10.10.0/24

10.10.20.0/24

10.10.30.0/24

10.10.40.0/24

and the entire environment may still reasonably be described as a LAN.

Routers or Layer-3 switches route traffic between those subnets.

Therefore:

One LAN can contain multiple IP networks or subnets.


3. Campus Area Network — CAN

A Campus Area Network, or CAN, connects multiple LANs across several nearby buildings.

The word “campus” should not be understood only in the educational sense.

A CAN can exist in:

  • a university;
  • a college;
  • a hospital complex;
  • a large corporate campus;
  • a research facility;
  • an industrial complex.

For example:

Building A LAN
↓
Campus Fiber Backbone
↓
Building B LAN
↓
Campus Fiber Backbone
↓
Building C LAN

All of these buildings may belong to the same organization.

A CAN is therefore larger than the typical individual building LAN, but smaller than a city-scale network.

A useful way to remember it is:

LAN = local building or premises
CAN = multiple nearby buildings within one campus

Fiber is commonly used to connect campus buildings because it supports high speeds and long distances.


4. Metropolitan Area Network — MAN

A Metropolitan Area Network, or MAN, spans a metropolitan or city-scale region.

It typically connects multiple:

  • offices;
  • buildings;
  • campuses;
  • branches;
  • data centres;
  • LANs.

For example, an organization may have several locations around a city:

Office A
↓
Metropolitan Network
↓
Office B
↓
Metropolitan Network
↓
Office C

These sites may be several kilometres or tens of kilometres apart.

Traditionally, some textbooks describe a MAN as covering something like:

1 to 30 miles

or approximately the size of a city.

That can be useful as a rough mental picture.

However, it should not be treated as a strict definition.

A 29-mile network is not automatically a MAN while a 31-mile network suddenly becomes a WAN.

The better definition is:

A MAN interconnects networks or sites across a metropolitan or city-scale area.


Does a MAN Need Routers?

Routers are very common in MANs, but they are not what defines a MAN.

Suppose three offices use different IP subnets:

Office A: 10.1.0.0/16

Office B: 10.2.0.0/16

Office C: 10.3.0.0/16

Traffic between them must be routed.

So a MAN will often include:

  • routers;
  • Layer-3 switches;
  • carrier equipment;
  • firewalls.

However, some metropolitan services can operate mainly at Layer 2.

Metro Ethernet is a good example.

Therefore:

MAN does not mean “a network containing routers.”

It means a network with metropolitan geographic scope.


Can a MAN Use the Same IP Network Address at Multiple Sites?

Technically, yes in some designs, but this requires careful explanation.

In a normal routed design, different sites should normally use different IP subnets.

For example:

Site A: 192.168.10.0/24

Site B: 192.168.20.0/24

This is straightforward because routers know where each network is located.

Using exactly the same subnet independently at multiple routed sites would create ambiguity.

For example, if two sites both use:

192.168.10.0/24

a router may not know which site contains:

192.168.10.50

unless special technologies or network separation methods are used.

Therefore, in a normal routed MAN:

Each routed subnet should normally have a unique IP prefix.


Layer-2 Extension Across a Metropolitan Area

There is an important exception.

A provider can sometimes extend the same Layer-2 Ethernet network across geographically separated locations.

For example:

Building A
192.168.10.0/24

↓

Metro Ethernet

↓

Building B
192.168.10.0/24

From the customer’s perspective, both buildings may appear to belong to the same Ethernet LAN or VLAN.

This can be useful, but extending one large Layer-2 domain over long distances can also create management and reliability challenges.

Large modern networks therefore often prefer routed designs rather than one enormous broadcast domain.


What Is Metro Ethernet?

Metro Ethernet is an Ethernet-based networking service delivered across a metropolitan area.

Ordinary Ethernet is usually associated with a local network:

PC → Ethernet Switch → Server

Metro Ethernet extends Ethernet connectivity between geographically separated locations.

For example:

Office A → Metro Ethernet → Office B

The offices may be many kilometres apart.

From the customer’s perspective, the service may look like a very long Ethernet connection.

Internally, however, the service provider may use:

  • fibre;
  • carrier Ethernet switches;
  • MPLS;
  • optical transport;
  • other telecommunications technologies.

The customer does not necessarily see those internal details.


How Large Can a Metro Ethernet Network Be?

There is no single universal distance limit.

A Metro Ethernet network may span:

  • several kilometres;
  • tens of kilometres;
  • an entire metropolitan region.

Some telecommunications providers offer Ethernet services that extend between cities or even across countries.

At that point, the service may still use Ethernet technology, but geographically it would normally be considered a WAN service rather than a MAN.

This is an important distinction:

Ethernet describes a networking technology.

while:

LAN, MAN, and WAN describe network scope.

Ethernet itself does not impose a city boundary.


What Is Metro Fiber?

Metro fiber refers primarily to the physical fiber-optic infrastructure installed across a metropolitan region.

For example, a telecom provider may install fiber through:

  • city streets;
  • underground conduits;
  • utility infrastructure;
  • commercial buildings;
  • data centres;
  • campuses.

That physical infrastructure is a metro fiber network.

A provider can then use that fibre to deliver different services.

One possible service is Metro Ethernet.

Therefore:

Metro fiber = physical infrastructure

while:

Metro Ethernet = networking service delivered over metropolitan infrastructure

A simple analogy is:

Metro fiber = the road

Metro Ethernet = a transportation service operating on that road

The physical medium and the networking service are related, but they are not the same thing.


5. Wide Area Network — WAN

A Wide Area Network, or WAN, spans a large geographic region.

A WAN may connect:

  • cities;
  • provinces or states;
  • countries;
  • continents.

A company with offices in Toronto, Vancouver, New York, London, and Singapore may operate a WAN connecting all of those locations.

A simplified architecture might be:

Toronto LAN
↓
WAN
↓
Vancouver LAN
↓
WAN
↓
London LAN

WANs commonly use services from telecommunications providers.

Possible technologies include:

  • leased lines;
  • MPLS;
  • carrier Ethernet;
  • Internet VPNs;
  • SD-WAN;
  • fiber networks;
  • satellite communication.

The Internet itself is the largest example of interconnected wide-area networking.


Geographic Scope: The Simplest Comparison

A useful way to remember the network categories is:

TypeTypical ScopeExample
PANAround an individualPhone and smartwatch
LANRoom, home, office, buildingOffice Ethernet network
CANMultiple nearby buildingsUniversity campus
MANCity or metropolitan areaOffices across one city
WANRegional, national, globalCorporate network across countries

The progression can be remembered as:

PAN → LAN → CAN → MAN → WAN

or conceptually:

Person → Building → Campus → City → Country/World


Geographic Size Is Not the Same as Network Layer

It is important not to mix up two different concepts:

Geographic classification

  • PAN
  • LAN
  • CAN
  • MAN
  • WAN

These describe the scope of the network.

Logical IP organization

  • IP address
  • network address
  • subnet
  • routing table

These describe the logical Layer-3 structure of the network.

For example, a single LAN may contain:

  • one subnet;
  • ten subnets;
  • hundreds of VLANs and subnets.

Likewise, a MAN may connect dozens or hundreds of IP networks.

Therefore:

LAN does not mean one subnet.

and:

MAN does not mean multiple subnets by definition.

They describe different aspects of networking.


Ethernet Does Not Mean LAN Only

Ethernet is often introduced as a LAN technology.

That is a good starting point, but Ethernet is not restricted to one building.

Modern Ethernet can operate over:

  • copper;
  • multimode fibre;
  • single-mode fibre.

Depending on the Ethernet standard and optical equipment, individual Ethernet links may extend from:

  • tens of metres;
  • hundreds of metres;
  • several kilometres;
  • tens of kilometres.

Service providers can also carry Ethernet traffic over metropolitan and wide-area networks.

That is why terms such as:

  • Metro Ethernet;
  • Carrier Ethernet;
  • Ethernet WAN

exist.

Therefore:

Ethernet is a networking technology, not a geographic classification.


Switches and Routers Also Do Not Define LAN, MAN, or WAN

A switch usually forwards Ethernet frames based primarily on MAC addresses.

A router forwards packets between IP networks based on IP addresses and routing information.

Both devices can exist in a LAN.

Both can also appear in larger networks.

For example:

LAN

PC → Switch → Router → Server Subnet

MAN

Office Router → Metro Network → Office Router

WAN

Branch Router → Carrier Network → Headquarters Router

The devices help implement the network.

They do not determine whether the network is a LAN, MAN, or WAN.


One Network Can Contain Many Smaller Networks

The categories can also be hierarchical.

For example, a university may have:

  • several PANs belonging to individual users;
  • many LANs inside different buildings;
  • a CAN connecting those buildings;
  • a MAN connection to another city campus;
  • a WAN connection to cloud services or remote offices.

So these terms are not always mutually exclusive descriptions of every physical component.

A larger network may contain many smaller network environments.


A Practical Example

Consider an organization with three offices.

Office A

Inside the building:

  • staff PCs;
  • Wi-Fi;
  • servers;
  • switches;
  • routers.

This is a LAN environment.

Office B

Located five kilometres away.

It has another LAN.

Office C

Located fifteen kilometres away.

It also has a LAN.

The organization purchases Metro Ethernet from a telecom provider to connect all three offices.

Now the overall city-scale network can be considered a MAN.

Each location may use a separate subnet:

Office A: 10.10.1.0/24

Office B: 10.10.2.0/24

Office C: 10.10.3.0/24

Routing moves packets between these networks.

If the organization then connects another office in a different province or country, that larger interconnection becomes part of a WAN.

The hierarchy becomes:

Individual devices → LANs → MAN → WAN


The Most Important Idea

The easiest mistake is to treat PAN, LAN, CAN, MAN, and WAN as rigid distance categories.

They are better understood as descriptions of network scope.

A useful summary is:

PAN — network around an individual.

LAN — network within a local premises or building.

CAN — network connecting nearby buildings within a campus.

MAN — network connecting sites across a metropolitan area.

WAN — network connecting sites across large geographic regions.

There are no universal distance boundaries that separate one category from another.

Likewise:

  • a LAN can contain routers;
  • a LAN can contain multiple IP subnets;
  • a MAN can use Layer-2 or Layer-3 networking;
  • Metro Ethernet can extend Ethernet across a city;
  • metro fiber describes physical fibre infrastructure;
  • Ethernet itself does not define geographic size.

Final Thought

Network classification becomes much easier once geographic scope is separated from networking technology.

LAN, CAN, MAN, and WAN tell us approximately where and how broadly the network operates.

Ethernet, Wi-Fi, fiber, and Metro Ethernet tell us something about how connectivity is implemented.

IP addresses, subnets, and routing tell us how devices and networks are organized logically.

Keeping those three ideas separate makes it much easier to understand how modern networks are designed:

Geographic scope + transmission/networking technology + logical IP architecture.

Understanding the Electromagnetic Spectrum, Radio Frequencies, and Wi-Fi

Understanding the Electromagnetic Spectrum, Radio Frequencies, and Wi-Fi Ref: AI Tools as is

When we talk about Wi-Fi, cellular networks, radio, Bluetooth, satellite communication, infrared, visible light, X-rays, or gamma rays, we are talking about different parts of the same broad phenomenon: the electromagnetic spectrum.

The main difference between these forms of electromagnetic radiation is their frequency and wavelength.

Understanding the spectrum makes it much easier to understand how wireless communication works.

What Is the Electromagnetic Spectrum?

The electromagnetic spectrum is the full range of electromagnetic waves.

These waves can travel through space and carry energy.

They include:

  • radio waves;
  • microwaves;
  • infrared;
  • visible light;
  • ultraviolet;
  • X-rays;
  • gamma rays.

A simplified spectrum looks like this:

Low frequency → High frequency

Radio → Microwave → Infrared → Visible Light → Ultraviolet → X-ray → Gamma Ray

As frequency increases, wavelength decreases.

That relationship is expressed by:c=fλc = f\lambda

where:

  • cc = speed of light;
  • ff = frequency;
  • λ\lambda = wavelength.

Because the speed of light is approximately constant, frequency and wavelength move in opposite directions.

Higher frequency means shorter wavelength.

Lower frequency means longer wavelength.


What Does Frequency Mean?

Frequency tells us how many wave cycles occur every second.

The unit is the hertz, abbreviated Hz.

For example:

  • 1 Hz = 1 cycle per second
  • 1 kHz = 1,000 cycles per second
  • 1 MHz = 1,000,000 cycles per second
  • 1 GHz = 1,000,000,000 cycles per second
  • 1 THz = 1,000,000,000,000 cycles per second

Therefore, a Wi-Fi signal at approximately 2.4 GHz oscillates about:

2.4 billion times per second.

A 5 GHz signal oscillates approximately:

5 billion times per second.

This does not mean that 5 GHz Wi-Fi necessarily transfers exactly twice as much data as 2.4 GHz Wi-Fi. Frequency is only one part of the communication system.

Bandwidth, modulation, channel width, signal quality, interference, antenna design, coding, and protocol design also matter.


The Overall Electromagnetic Spectrum

The electromagnetic spectrum is much larger than the radio spectrum.

Approximate ranges are:

RegionApproximate Frequency
Radioabout 3 kHz – 300 GHz
Infraredabout 300 GHz – 400 THz
Visible lightabout 400 – 790 THz
Ultravioletabout 790 THz and above
X-raysmuch higher frequencies
Gamma raysextremely high frequencies

The exact boundaries are not perfectly fixed. Different scientific and engineering references may define them slightly differently.

The important point is that radio is only one portion of the complete electromagnetic spectrum.


What Is the Radio Spectrum?

For communications engineering, the conventional radio-frequency spectrum is approximately:

3 kHz to 300 GHz

This is an enormous range.

Radio frequencies are divided into bands.

BandFrequency Range
VLF – Very Low Frequency3–30 kHz
LF – Low Frequency30–300 kHz
MF – Medium Frequency300 kHz–3 MHz
HF – High Frequency3–30 MHz
VHF – Very High Frequency30–300 MHz
UHF – Ultra High Frequency300 MHz–3 GHz
SHF – Super High Frequency3–30 GHz
EHF – Extremely High Frequency30–300 GHz

Different technologies use different portions of this spectrum.


Examples of Technologies Across the Radio Spectrum

Different radio frequencies are suitable for different purposes.

Examples include:

  • AM radio
  • FM radio
  • television broadcasting
  • maritime communication
  • aviation communication
  • cellular networks
  • GPS
  • Wi-Fi
  • Bluetooth
  • satellite communication
  • radar

For example:

AM radio uses relatively low radio frequencies.

FM radio uses higher frequencies.

Cellular networks use many frequencies ranging from hundreds of MHz into several GHz.

Wi-Fi commonly operates around 2.4 GHz, 5 GHz, and 6 GHz.


Where Does Wi-Fi Fit?

Wi-Fi uses radio waves.

Modern Wi-Fi primarily operates in three frequency regions:

  • 2.4 GHz
  • 5 GHz
  • 6 GHz

These are all within the radio-frequency spectrum.

A simplified view is:

Radio spectrum: 3 kHz ——————————————————— 300 GHz

Within that enormous range:

Wi-Fi occupies relatively small bands around 2.4, 5, and 6 GHz.

So Wi-Fi does not have access to the entire radio spectrum.

It uses only specific ranges allocated for wireless networking.


2.4 GHz Wi-Fi

The 2.4 GHz band is one of the most familiar Wi-Fi frequency ranges.

A typical Wi-Fi allocation is roughly around:

2.4 GHz to 2.4835 GHz

This band is also used by many other devices.

Examples include:

  • Bluetooth;
  • wireless keyboards;
  • wireless mice;
  • some smart-home devices;
  • microwave ovens;
  • some cordless equipment.

Because so many technologies share this part of the spectrum, congestion and interference can occur.

Advantages of 2.4 GHz

Lower frequencies generally have longer wavelengths.

This often gives 2.4 GHz Wi-Fi:

  • better wall penetration;
  • somewhat longer practical range;
  • better coverage through obstacles.

Disadvantages

It also tends to have:

  • fewer non-overlapping Wi-Fi channels;
  • more interference;
  • more congestion.

5 GHz Wi-Fi

Wi-Fi can also operate in several portions of the 5 GHz range.

Compared with 2.4 GHz, 5 GHz generally provides:

  • more available channels;
  • wider channels;
  • less congestion in many environments;
  • potentially higher data rates.

However, higher frequencies generally experience more attenuation through walls and obstacles.

Therefore:

5 GHz may provide better speed, but often shorter practical range than 2.4 GHz.

This is not an absolute rule, because actual performance depends heavily on:

  • antenna placement;
  • transmit power;
  • building materials;
  • interference;
  • access-point design;
  • device capabilities.

6 GHz Wi-Fi

Newer Wi-Fi technologies can also use spectrum around 6 GHz.

This is associated particularly with:

  • Wi-Fi 6E;
  • Wi-Fi 7.

The 6 GHz band provides substantially more spectrum for wireless LAN operation in regions where regulators permit it.

More spectrum means the possibility of:

  • more channels;
  • wider channels;
  • less congestion;
  • higher throughput.

However, like 5 GHz, 6 GHz signals generally do not penetrate obstacles as well as lower-frequency 2.4 GHz signals.


Why Does Wi-Fi Need Different Frequency Bands?

There is a basic engineering trade-off.

Lower frequencies often provide:

better propagation and greater coverage

while higher frequencies can provide access to:

more bandwidth and potentially greater capacity.

A simplified comparison is:

Wi-Fi BandRangeCapacityWall Penetration
2.4 GHzGenerally betterLowerGenerally better
5 GHzModerateHigherModerate
6 GHzGenerally shorterVery high potentialGenerally lower

These are general tendencies, not fixed guarantees.


Frequency Is Not the Same as Bandwidth

This is one of the most important distinctions.

Frequency tells us where a signal is located in the spectrum.

Bandwidth tells us how much spectrum a signal occupies.

For example, suppose a Wi-Fi channel is centred somewhere near 5 GHz.

That does not mean the channel has 5 GHz of bandwidth.

It may use a channel width such as:

  • 20 MHz;
  • 40 MHz;
  • 80 MHz;
  • 160 MHz;
  • or even wider channels in newer standards.

So:

5 GHz = approximate operating frequency

while:

80 MHz = possible channel bandwidth.

These are very different concepts.


An Analogy: Radio Spectrum as a Highway

The spectrum can be imagined as a very large highway.

The frequency tells you where on the highway you are.

The bandwidth tells you how many lanes you are using.

For example:

A wireless system might operate near:

5 GHz

and use:

80 MHz of bandwidth.

The 5 GHz number tells us the location.

The 80 MHz number tells us how wide a portion of spectrum the communication occupies.

A wider channel can potentially carry more information, just as a wider highway can potentially carry more traffic.


Why Can’t Wi-Fi Use Any Frequency It Wants?

Because the radio spectrum is a shared resource.

If every device transmitted at any frequency and power level it wanted, wireless communications would interfere with one another.

Governments and international organizations therefore regulate the use of spectrum.

Different bands may be allocated for:

  • broadcasting;
  • cellular communication;
  • satellite communication;
  • aviation;
  • public safety;
  • navigation;
  • military systems;
  • amateur radio;
  • Wi-Fi and other unlicensed technologies.

Some spectrum is licensed.

For example, mobile network operators commonly pay for rights to use particular frequency bands.

Other spectrum is made available for unlicensed use, subject to technical rules.

Wi-Fi primarily operates in unlicensed spectrum.

“Unlicensed” does not mean unregulated.

It means users generally do not need an individual radio licence to operate compliant equipment.


Wi-Fi and Cellular Networks Both Use Radio Waves

It is easy to think of Wi-Fi and cellular networks as fundamentally different physical technologies.

At the radio level, however, both use electromagnetic radio waves.

The difference is largely in:

  • frequencies;
  • channel organization;
  • modulation;
  • power;
  • network architecture;
  • access control;
  • spectrum licensing;
  • mobility management.

A Wi-Fi connection may look like:

Phone → Wi-Fi Access Point → Router → Internet

A cellular connection may look like:

Phone → Cellular Base Station → Mobile Core Network → Internet

Both begin with radio communication.


What About Bluetooth?

Bluetooth also uses radio waves.

Most conventional Bluetooth communication operates in the approximately 2.4 GHz ISM band.

That means Wi-Fi and Bluetooth may sometimes operate within overlapping portions of the spectrum.

Modern systems use various techniques to reduce interference.

This is another example of why spectrum management matters.


What Is a Wavelength?

Frequency can also be understood through wavelength.

The approximate wavelength is:λ=cf\lambda = \frac{c}{f}

where cc is approximately:3×108 metres per second3 \times 10^8 \text{ metres per second}

For 2.4 GHz:λ≈3×1082.4×109\lambda \approx \frac{3\times10^8}{2.4\times10^9}

which is about:

12.5 cm

For 5 GHz:λ≈6 cm\lambda \approx 6 \text{ cm}

For 6 GHz:λ≈5 cm\lambda \approx 5 \text{ cm}

So higher-frequency radio signals have shorter wavelengths.

This affects:

  • antenna size;
  • propagation;
  • diffraction;
  • penetration;
  • reflection;
  • radio-system design.

Why Do Lower Frequencies Often Travel Farther?

Lower-frequency signals generally have longer wavelengths.

Longer wavelengths can often:

  • diffract around obstacles more effectively;
  • penetrate some materials better;
  • experience different propagation losses.

This is one reason lower-frequency cellular spectrum can be valuable for wide-area coverage.

Higher-frequency spectrum can offer much more bandwidth, but often requires denser infrastructure.

This trade-off is seen in both cellular and Wi-Fi networks.


Is Microwave Different From Radio?

The terminology can sometimes be confusing.

Microwaves are generally considered a subset of radio waves.

A commonly used microwave range is approximately:

300 MHz to 300 GHz

Therefore:

  • 2.4 GHz Wi-Fi is microwave radio;
  • 5 GHz Wi-Fi is microwave radio;
  • 6 GHz Wi-Fi is microwave radio.

Calling something a microwave signal does not mean it is fundamentally different from radio.

It simply refers to a particular part of the radio spectrum.


What Is Millimeter Wave?

Millimeter wave generally refers to very high radio frequencies with wavelengths measured in millimetres.

A commonly used range is approximately:

30 GHz to 300 GHz

These frequencies can support very large bandwidths.

They are used or investigated for applications such as:

  • high-capacity wireless communication;
  • radar;
  • satellite systems;
  • some 5G deployments.

Their disadvantage is that propagation becomes more difficult.

Buildings, walls, foliage, and even atmospheric effects can have greater impact.


The Big Picture

The easiest way to understand wireless communication is to see Wi-Fi as one tiny part of a much larger spectrum.

The full electromagnetic spectrum includes:

Radio → Infrared → Visible Light → Ultraviolet → X-rays → Gamma Rays

The radio portion is approximately:

3 kHz to 300 GHz

Within that radio spectrum are many services:

Broadcasting → Cellular → GPS → Wi-Fi → Bluetooth → Satellite → Radar

Wi-Fi itself mainly uses:

2.4 GHz + 5 GHz + 6 GHz

These numbers describe the frequency of the electromagnetic waves carrying the information.

They do not directly tell us the Internet speed.

The actual data rate depends on many additional factors, including bandwidth, modulation, signal quality, channel conditions, number of antennas, coding, and the Wi-Fi standard being used.

Final Thought

When a phone or laptop sends information over Wi-Fi, there is no invisible cable connecting it to the access point.

Instead, electronic circuits convert digital information into a carefully controlled radio-frequency signal.

That signal travels through the surrounding electromagnetic field as radio waves.

The receiving device detects those waves, extracts the encoded information, and reconstructs the digital data.

So when we say:

“My laptop is connected through Wi-Fi,”

what is physically happening is:

digital information → radio-frequency electromagnetic signal → radio waves through space → receiver → digital information.

Wi-Fi is therefore not separate from radio technology.

Wi-Fi is one specialized way of using a small portion of the radio spectrum to create a computer network.

How Do Cell Phones Become Part of Computer Networks?

How Do Cell Phones Become Part of Computer Networks? Ref: AI Tools as is

Most people think of a computer network as a collection of laptops, desktops, servers, switches, and routers connected together through cables or Wi-Fi. But modern cell phones are also full-fledged networked computers.

A smartphone becomes part of a computer network whenever it connects to other devices and exchanges digital information through a communication network. This can happen through cellular networks such as 4G LTE or 5G, through Wi-Fi, through Bluetooth, or through other short-range wireless technologies.

A Smartphone Is Really a Small Computer

A modern smartphone contains many of the same basic components found in a computer:

  • a processor;
  • memory;
  • storage;
  • an operating system;
  • applications;
  • network interfaces.

It can run software, store files, communicate with servers, browse websites, stream video, send messages, make video calls, and access cloud services.

From a networking point of view, a smartphone is therefore an end device, also called a host.

A laptop connected to the Internet is a host. A desktop computer is a host. A web server is a host. A smartphone can also be a host.

The main difference is often simply how the device connects to the network.

Connecting Through Wi-Fi

When a smartphone connects to Wi-Fi, its networking path is very similar to that of a laptop.

A simplified path looks like this:

Smartphone → Wi-Fi Access Point → Router → Internet Service Provider → Internet → Destination Server

For example, suppose someone connects a phone to home Wi-Fi and opens a website.

The phone sends a request through the wireless access point. The request then travels through the home router, through the Internet service provider, across the Internet, and finally reaches the web server.

The server sends information back through the network to the smartphone.

In this situation, the smartphone is simply another device on the local computer network.

Connecting Through a Cellular Network

A smartphone can also connect to the Internet without Wi-Fi.

In this case, it uses a cellular technology such as 4G LTE or 5G.

A simplified path might look like this:

Smartphone → Cellular Base Station → Mobile Operator Network → Internet → Destination Server

The cellular base station is the equipment that communicates wirelessly with phones in its coverage area.

The mobile operator then carries the phone’s data through its own network infrastructure and eventually connects it to other networks, including the Internet.

Once connected, the smartphone can communicate with websites, cloud platforms, messaging systems, streaming services, and other Internet-connected devices.

The Phone Uses an IP Address

One of the most important ideas in computer networking is the IP address.

When a smartphone gains network connectivity, it normally receives or uses an IP address.

That IP address allows the network to identify where packets should be sent.

The phone can then exchange IP packets with other devices.

For example:

Phone → IP packets → Internet → Web Server

and the reply follows the reverse general direction:

Web Server → IP packets → Internet → Phone

This is fundamentally the same networking concept used by ordinary computers.

What Happens When You Open a Website?

Suppose a person opens a browser on a smartphone and visits a website.

Several networking activities occur behind the scenes.

First, the phone must already have a network connection through Wi-Fi or the cellular network.

Next, it normally needs to determine the IP address associated with the website’s domain name. This is commonly done using the Domain Name System, or DNS.

The phone then communicates with the remote server using Internet protocols.

A simplified view might be:

Web Browser → HTTP/HTTPS → Transport Protocol → IP → Wireless Network

The data is divided into packets and transmitted across multiple network devices before reaching the destination.

The web server responds, and the information travels back to the smartphone.

The browser then displays the webpage.

What appears to the user as a simple tap on a screen may involve many different networking technologies and protocols.

Cell Towers Are Part of the Access Network

When a phone uses cellular data, the connection between the phone and the cellular base station is part of what can be called the access network.

The access network provides the device with a way to enter the larger communication infrastructure.

For a home computer, the access technology could be:

Ethernet or Wi-Fi

For a smartphone, it might be:

4G LTE or 5G

After entering the network, the data can be routed toward its destination.

This helps explain an important concept: the Internet is not one single network.

It is a huge collection of interconnected networks.

A mobile carrier operates one network. An Internet service provider operates another. A university may operate another. A cloud provider may operate enormous networks of its own.

Routers and other networking systems allow traffic to move between them.

Smartphones Can Belong to Different Types of Networks

A smartphone is especially interesting because it can participate in several types of networks.

Cellular Network

Through 4G or 5G, the phone participates in a wide-area mobile communication network.

The coverage may extend across a city, province, state, country, or even internationally through agreements between network operators.

Wi-Fi Network

When connected to Wi-Fi, the smartphone becomes part of a wireless local area network.

This might be:

  • a home network;
  • an office network;
  • a university network;
  • a hotel network;
  • a public hotspot.

Bluetooth Network

Bluetooth allows a phone to communicate directly with nearby devices such as:

  • headphones;
  • keyboards;
  • smartwatches;
  • fitness devices;
  • cars;
  • speakers.

This is often considered a form of personal area networking.

Near-Field Communication

Phones can also communicate over extremely short distances using technologies such as NFC.

Common applications include contactless payment and device-to-device information exchange.

A single smartphone can therefore participate in several networks at almost the same time.

What About Phone Calls?

Historically, telephone networks and computer data networks were viewed as relatively separate systems.

Traditional telephone systems were primarily designed to carry voice.

Modern mobile networks are much more data-oriented.

Technologies such as LTE and 5G are based heavily on packet networking. Even voice services can be transported using digital packet-based technologies.

Examples include:

  • VoLTE — Voice over LTE
  • VoNR — Voice over New Radio, associated with 5G

Applications such as WhatsApp, FaceTime, Messenger, Teams, Zoom, and similar services also carry voice and video through data networks.

This is an example of network convergence.

Instead of maintaining completely separate networks for voice, video, and computer data, modern communication systems can carry many different types of information over shared digital network infrastructure.

A Phone Is Both a Communication Device and a Computer

The phrase “cell phone” can actually hide how sophisticated the device has become.

Modern smartphones perform roles that once required many separate devices:

  • telephone;
  • computer;
  • camera;
  • GPS receiver;
  • media player;
  • web browser;
  • video-conferencing system;
  • payment device;
  • navigation device;
  • network terminal.

From a networking perspective, the smartphone should therefore not be thought of as something separate from computer networks.

It is one of the most common types of networked computers in the world.

A Simple Comparison

A laptop using Wi-Fi might communicate like this:

Laptop → Wi-Fi Access Point → Router → Internet

A smartphone using cellular data might communicate like this:

Smartphone → Cellular Base Station → Mobile Network → Internet

The technologies used for the first connection are different, but the basic goal is the same:

connect an end device to a network so it can exchange digital information with other devices.

Final Thought

Cell phones become part of computer networks because modern cellular systems do much more than carry traditional telephone calls.

A smartphone connects to networking infrastructure, obtains network connectivity, sends and receives packets, uses Internet protocols, communicates with servers, and accesses applications and services distributed around the world.

In other words, a modern smartphone is not merely a telephone connected to a telephone network.

It is a powerful mobile computer connected to one or more computer networks.

10 Ontario Condos Under $100,000 With Positive Cash-Flow Potential

10 Ontario Condos Under $100,000 With Positive Cash-Flow Potential Ref: AI Tools as is

Current listings and rental comparisons reviewed August 30, 2026

Finding real estate in Ontario for less than $100,000 sounds almost impossible. In Toronto, the price would not ordinarily buy even a conventional residential condo parking space in many buildings.

Yet a small segment of the market still exists below the $100,000 threshold.

The catch is that investors have to look beyond conventional GTA residential condos. Current opportunities fall primarily into two categories:

Residential condos in lower-cost Ontario cities, particularly Chatham and Elliot Lake; and small titled commercial condominium units, often located inside indoor shopping centres.

This ranking excludes businesses-for-sale, leased businesses, parking spaces, mobile homes, land-lease cottages, timeshares and fractional resort interests. The buyer must acquire an actual condominium real-estate interest.

How the rankings were calculated

For comparison, the following simplified all-cash screening calculation is used:

Annual rental surplus = annual rent − annual condo fees − annual property tax

Screening return = annual rental surplus ÷ asking price

This is deliberately not called a cap rate, because it does not account for every operating expense.

Insurance, repairs, vacancy, leasing costs, legal costs, utilities payable by the owner, income tax, HST, closing costs and special assessments can reduce the actual return.

Where an exact current or recent rent for the particular unit was available, it was used. Otherwise, rent was estimated from current nearby or same-building rental listings.

Top 10 Ontario Condo Cash-Flow Candidates Under $100,000

RankPropertyTypeAsking PriceSizeApprox. RentCondo FeeProperty TaxApprox. Annual Surplus*Screening Return*
1212-276 Merritt Ave, ChathamResidential apartment condo$84,900600–699 sq. ft., 1-bed~$1,250/mo$426.91/mo$910/yr~$8,967~10.6%
2306-276 Merritt Ave, ChathamResidential apartment condo$99,900600–699 sq. ft., 1-bed~$1,250/mo$422.84/mo$933/yr~$8,993~9.0%
39-102 Hutchison Ave, Elliot LakeResidential apartment condo$79,9002-bed~$1,200/mo$562/mo$922/yr~$6,734~8.4%
42C6-4675 Steeles Ave E, TorontoCommercial condo inside Splendid China Mall$45,900136 sq. ft.~$750/mo$408/mo$939/yr~$3,165~6.9%
52C8-4675 Steeles Ave E, TorontoCommercial condo inside Splendid China Mall$49,900136 sq. ft.~$750/mo$408/mo$963/yr~$3,141~6.3%
62A13 & 2A15-4675 Steeles Ave E, TorontoCombined commercial condos inside mall$50,000256 sq. ft.$1,250/mo asking$828.76/mo$2,311/yr~$2,744~5.5%
7M8-8 Glen Watford Dr, TorontoCommercial condo inside Dynasty Centre$49,000203 total / ~144 retail sq. ft.$650/mo exact recent asking rent$360.82/mo$1,296/yr~$2,174~4.4%
8104-199 Front St, BellevilleGround-floor commercial condo$69,900966 sq. ft.$24,150/yr existing lease$15,408/yr common fees$6,369/yr~$2,373~3.4%
93103-4438 Sheppard Ave E, TorontoCommercial condo inside Oriental Centre$50,000368 sq. ft.$650/mo exact asking rent$387/mo$1,970/yr~$1,186~2.4%
102D22/23-4675 Steeles Ave E, TorontoCombined commercial condo inside mall$60,000184 sq. ft.~$800/mo estimated$595/mo$1,500/yr~$960~1.6%

*Before insurance, vacancy, repairs, utilities not included in fees, leasing expenses, income tax, financing and transaction costs.


#1 — 212-276 Merritt Avenue, Chatham

Asking price: $84,900

This may be the most interesting conventional residential condo currently available below $100,000.

The unit is a genuine one-bedroom condo apartment, approximately 600–699 square feet, with one parking space. The listing reports a monthly maintenance fee of approximately $426.91 and annual property tax of approximately $910.

Current one-bedroom apartment listings in Chatham include examples around $1,249, $1,250, $1,265, $1,295, $1,330 and higher. Using $1,250/month as a conservative screening rent therefore appears reasonable, although the actual achievable rent for this particular unit must be verified.

Estimated calculation:

Rental income: $15,000/year
Condo fees: −$5,123
Property tax: −$910
Surplus: approximately $8,967/year

That represents approximately 10.6% of the $84,900 purchase price before the other costs mentioned above.

Why it ranks first

Unlike many properties on this list, this is a normal residential apartment rather than specialized commercial space. That potentially means a much larger tenant pool and more conventional resale market.

The major due-diligence items would be the condominium’s financial condition, reserve fund, special-assessment history and whether the corporation has any restrictions affecting rentals.


#2 — 306-276 Merritt Avenue, Chatham

Asking price: $99,900

This unit is in the same building as the #1 property.

It is another one-bedroom, 600–699-square-foot residential apartment condo, with approximately $422.84–$423/month in maintenance fees and roughly $933/year in property tax.

Using the same conservative $1,250/month rent estimate:

Rental income: $15,000
Condo fees: −$5,074
Property tax: −$933
Surplus: approximately $8,993/year

That produces an estimated 9.0% screening return.

Interestingly, the annual surplus is slightly higher than Unit 212 because of its marginally lower condo fee. However, the purchase price is $15,000 higher, which pushes its percentage return below Unit 212.


#3 — 9-102 Hutchison Avenue, Elliot Lake

Asking price: $79,900

This is another true residential condominium and offers two bedrooms rather than one.

The listing states that its $562 monthly condominium fee includes heat, city water and sewer, assigned parking and private storage. Annual 2026 property tax is approximately $922.

Current Elliot Lake two-bedroom rentals include approximately:

$1,125/month for an 800-square-foot apartment and $1,295/month for another 800-square-foot apartment.

Using $1,200/month for screening:

Rental income: $14,400
Condo fees: −$6,744
Property tax: −$922
Surplus: approximately $6,734

Estimated screening return:

8.4%

One advantage is that several significant utilities are already included in the condominium fee. The downside is that Elliot Lake is a much smaller rental and resale market than southern Ontario cities.


#4 — 2C6, 4675 Steeles Avenue East, Toronto

Asking price: $45,900

This is where the list changes from residential condominiums to commercial condominium ownership.

Unit 2C6 is a 136-square-foot commercial condo inside Splendid China Mall, near Kennedy Road and Steeles Avenue and close to Milliken GO and Pacific Mall.

It is actual commercial real estate, not the purchase of a business.

The property has:

Price: $45,900
Condo fee: $408/month
Property tax: $939/year
Size: 136 square feet
HST: listed as additional.

Current rental advertisements within the same mall vary considerably. A 127-square-foot unit has been advertised at $1,000/month, while an older 201-square-foot unit has been advertised at $538/month.

A conservative $750/month screening estimate gives:

$9,000 rent
− $4,896 condo fees
− $939 taxes
= $3,165

That equals approximately 6.9% of the asking price.

The rental estimate is not an existing lease on 2C6, so this return has considerably less certainty than the Chatham properties.


#5 — 2C8, 4675 Steeles Avenue East, Toronto

Asking price: $49,900

The neighbouring 2C8 is also 136 square feet.

Its major advantage is that the listing shows occupant type: tenant, and the unit has a water supply inside. The listing reports:

Condo fee: $408/month
Property tax: $963/year
Price: $49,900.

At an estimated $750/month rent:

$9,000 rental income
− $4,896 fees
− $963 tax
= $3,141

Estimated return: 6.3%

However, an investor should obtain the actual existing lease before relying on this calculation. If the current tenant is already paying significantly more or less than $750, the economics change immediately.

The existing tenant and in-unit plumbing arguably make 2C8 operationally more attractive than the slightly cheaper 2C6.


#6 — 2A13 & 2A15, 4675 Steeles Avenue East, Toronto

Asking price: $50,000

This is a combined 256-square-foot commercial condominium inside Splendid China Mall.

It demonstrates an important lesson about inexpensive commercial condos.

The exact unit has been advertised for lease at $1,250/month, which sounds excellent relative to a $50,000 purchase price.

But its recurring expenses are substantial:

Condo fee: $828.76/month
Property tax: approximately $2,311/year.

Calculation:

$15,000 rent
− $9,945 condo fees
− $2,311 property tax
= approximately $2,744

Estimated return:

5.5%

More than two-thirds of the advertised rent disappears into condo fees and property taxes.

This is why investors should never rank cheap commercial condos by purchase price or gross rent alone.


#7 — M8, 8 Glen Watford Drive, Toronto

Asking price: $49,000

M8 is inside Dynasty Centre near Midland and Sheppard in Scarborough.

The unit contains approximately 144 square feet of retail area and 203 square feet total, including associated space, and comes with use of a basement locker.

It has:

Condo fee: $360.82/month
Property tax: $1,296/year
No water supply inside the unit.

The particularly useful data point here is that the exact M8 unit has been advertised for $650/month rent. That rental listing states that the landlord pays the condo fee and property tax and the tenant pays hydro.

Calculation:

$7,800 rent
− $4,330 condo fees
− $1,296 tax
= $2,174

Estimated return:

4.4%

This is a lower return than the headline $49,000 price might suggest, but its figures are more credible than properties whose rent must be estimated.


#8 — Unit 104, 199 Front Street, Belleville

Asking price: $69,900

This property is interesting because much less estimation is required.

It is a 966-square-foot ground-floor commercial condominium in downtown Belleville, with direct access from Bridge Street.

More importantly, it already has a boutique restaurant tenant whose lease extends through the end of 2026.

The listing provides actual financial figures:

2026 rent: $24,150
2026 common fees: $15,408
2025 property taxes: $6,369.12.

Calculation:

$24,150
− $15,408
− $6,369
= approximately $2,373

Estimated return on $69,900:

3.4%

The percentage return is not spectacular, but having an existing tenant and known rental revenue makes this much easier to analyze than a vacant commercial condo.

The key issue is what happens when the current lease ends.


#9 — Unit 3103, 4438 Sheppard Avenue East, Toronto

Asking price: $50,000

This is a 368-square-foot commercial condo inside Oriental Centre at Sheppard and Brimley in Scarborough.

The sale listing reports:

Price: $50,000
Property tax: $1,970/year
Commercial condo fee: $387/month.

Conveniently, the exact same unit is also currently advertised for rent for $650/month.

Calculation:

$7,800 rent
− $4,644 condo fees
− $1,970 tax
= $1,186

Screening return:

2.4%

That return is thin.

Once vacancy and insurance are included, there is very little margin for error. The property may still appeal to an owner-user who wants to own rather than rent business premises, but it is considerably less compelling as a passive investment.


#10 — 2D22/23, 4675 Steeles Avenue East, Toronto

Asking price: $60,000

This is a combined 184-square-foot commercial condo in a corner location inside Splendid China Mall.

The unit is professionally finished with office furniture, shelving and built-in cabinets.

The listing reports:

Price: $60,000
Property tax: $1,500/year
Condo fee: $595/month.

Using approximately $800/month as a screening rental estimate based on the wide range of small-unit rents currently advertised in the complex:

$9,600 rent
− $7,140 condo fees
− $1,500 tax
= $960

Estimated return:

1.6%

This is technically positive under the simplified calculation but should be considered borderline rather than an attractive cash-flow property.

A small amount of vacancy, insurance expense or an unexpected repair could eliminate the annual profit.


The Residential-Condo Surprise

Perhaps the most interesting finding from this search is that the three residential condos rank above nearly all of the very inexpensive Toronto commercial condos.

That happens because a $50,000 commercial condo is not necessarily cheap to operate.

Consider these two examples:

Chatham residential condo

Purchase: $84,900
Rent: approximately $1,250
Condo fee: approximately $427
Property tax: approximately $76/month

The owner retains a substantial portion of gross rent.

Toronto mall commercial condo

Purchase: $50,000
Rent: $650
Condo fee: $387
Property tax: approximately $164/month

Almost the entire rent disappears before insurance or vacancy.

The purchase price alone therefore tells an investor very little.

Why There Aren’t 10 Normal Residential Condos Under $100,000

A current Ontario search does produce many apparent “condos” below $100,000, but a closer examination reveals numerous listings that are actually:

  • parking spaces;
  • fractional resort interests;
  • fixed-week timeshares;
  • mobile or trailer homes;
  • leased-land cottages;
  • co-ownership interests rather than standard condominium title.

For example, current searches under $100,000 contain numerous Collingwood and Muskoka fractional-resort listings rather than conventional apartments.

Those were deliberately excluded from this ranking.

This is why an apparently simple internet search for “Ontario condos under $100,000” can produce a misleading picture of the market.

What Positive Cash Flow Really Means

The table above uses a first-stage screening calculation. A property should not be declared a genuinely positive-cash-flow investment until the following are also considered:

Vacancy allowance. A residential apartment may have a relatively broad pool of prospective tenants. A 136-square-foot commercial unit inside a mall could remain empty much longer.

Insurance. Condo ownership still requires appropriate owner or commercial insurance.

Repairs and improvements. Commercial tenants in particular may expect improvements before moving in.

Special assessments. A $10,000 condominium special assessment is enormous relative to a $50,000 acquisition.

Leasing commissions and legal expenses. Commercial leasing can be more expensive than residential tenant turnover.

Utilities. The lease and condominium documents determine which party actually pays them.

HST. Several Toronto commercial listings specifically state that HST is additional to the purchase price. Commercial real-estate HST treatment should be reviewed with an accountant and real-estate lawyer.

Financing. These rankings assume cash purchases. Adding a mortgage reduces monthly cash flow and changes the cash-on-cash return.

Best Three From the Current Search

For an investor primarily seeking rental cash flow, the strongest initial candidates appear to be the two Chatham residential units and the Elliot Lake two-bedroom condo.

The $84,900 Chatham unit is particularly interesting because its projected rental economics are substantially stronger than most of the ultra-cheap Toronto commercial condos.

For investors specifically seeking Toronto real-estate ownership below $50,000, the small Splendid China Mall units remain unusual opportunities, particularly 2C6 at $45,900 and 2C8 at $49,900.

However, the residential units have a major structural advantage: people always need housing, while demand for tiny enclosed-mall commercial units can be much narrower.

Bottom Line

Yes, Ontario real estate below $100,000 still exists in 2026, and some listings appear capable of producing positive rental cash flow.

But the best opportunities are not necessarily the cheapest properties.

The current screen suggests approximately:

8%–11% preliminary returns are possible on a handful of low-cost residential condos;

4%–7% preliminary returns may be possible on selected small commercial condos;

while some ultra-cheap commercial units produce only 1%–3% before vacancy and insurance.

The lesson is simple:

Don’t buy a $50,000 property because it is cheap. Buy it only if the rent remains attractive after every recurring cost is deducted.

For investors evaluating this niche, the three numbers to obtain before making an offer are therefore realistic market rent, total condominium fees and annual property tax. After those figures are known, vacancy risk and the condominium corporation’s financial condition become the next major questions.

Disclaimer

Listings, asking prices and rental advertisements can change quickly. Information above was reviewed on August 30, 2026 and should be independently verified before making any investment decision.

Rental figures labelled as estimates are not guaranteed achievable rents. The calculated returns are simplified screening returns rather than complete net operating income, cap rates or guaranteed investment returns. Prospective purchasers should review the condominium status certificate, financial statements, reserve fund, permitted uses, lease documents, tenant history, insurance requirements, HST treatment and applicable landlord-tenant or commercial leasing rules with appropriate professionals before purchasing.

Small Commercial Real Estate in Scarborough Under About $60,000: Ranked by Rental Return

REF: AI Tools as is.

Toronto real estate does not normally come to mind when discussing properties priced below $60,000. However, a small niche exists: individually titled commercial condominium units inside indoor shopping centres.

These are not businesses for sale or lease takeovers. The buyer owns the commercial real estate unit itself, similar conceptually to owning a residential condominium.

The following comparison focuses primarily on small commercial condos in three Scarborough shopping centres:

  • Oriental Centre — 4438 Sheppard Avenue East
  • Dynasty Centre — 8 Glen Watford Drive
  • Splendid China Mall — 4675 Steeles Avenue East

The rankings are based primarily on estimated rental return, carrying costs, price, rentability and certainty of the available information.

Ranked Comparison

RankPropertyAsking PriceSizeProperty Type / LocationApprox. Rent / MonthAnnual TaxCondo Fee / MonthApprox. Annual Income After Tax + Condo Fee*Approx. Cash Return*Comments
1#338 – 4438 Sheppard Ave E$49,000290 sq. ft.Inside Oriental Centre, commercial condo$700–$850; ~$775 midpoint$871~$300 estimated~$4,830~9.9%Most interesting combination of low price, 290 sq. ft., low tax and potential rent. Condo fee needs confirmation.
22C8 – 4675 Steeles Ave E$49,900136 sq. ft.Inside Splendid China Mall, commercial condo~$700–$850; ~$775 midpoint$963$408~$3,441~6.9%Corner unit, water inside unit and listing shows a tenant. Actual tenant rent is not disclosed.
32C6 – 4675 Steeles Ave E$45,900136 sq. ft.Inside Splendid China Mall, commercial condo~$650–$800; ~$725 midpoint$939$408~$2,865~6.2%Lower acquisition price than 2C8. Adjacent to 2C8 and can apparently be combined with it.
42A13 & 2A15 – 4675 Steeles Ave E$50,000256 sq. ft.Inside Splendid China Mall, combined commercial condo$1,250 asking rent$2,311$828.76~$2,744~5.5%Strong rent potential, but extremely high condo fees consume most of the rental income.
5M8 – 8 Glen Watford Dr$49,000203 total / ~144 retail sq. ft.Inside Dynasty Centre, commercial condo$650 exact recent asking rent$1,296$360.82~$2,174~4.4%Exact unit has been advertised at $650/month. Includes basement locker. No water inside the unit.
6#372 – 4438 Sheppard Ave E$22,000160 sq. ft.Inside Oriental Centre, commercial condo~$350–$450; ~$400 midpoint$2,000$162.35~$852~3.9%Extremely inexpensive purchase price, but property tax is unusually high relative to value. Currently shown sold/under contract rather than freely available.
73103 – 4438 Sheppard Ave E$50,000368 sq. ft.Inside Oriental Centre, commercial condo$650 exact current asking rent$1,970$387~$1,186~2.4%Large amount of space for $50K, but the exact unit is also offered for only $650/month, producing weak investment economics.
82D22/23 – 4675 Steeles Ave E$60,000184 sq. ft.Inside Splendid China Mall, combined corner commercial condo~$700–$900; ~$800 midpoint$1,500$595~$960~1.6%Professionally finished and attractive for an owner-user, but relatively high maintenance makes it weak as a pure rental investment.
92B1 – 4675 Steeles Ave E$59,900135 sq. ft.Inside Splendid China Mall, commercial condo~$650–$800$4,269 listed tax/TMI figureNot disclosedUncertain≤~5.9–8.9% before any separate condo feeCarrying-cost disclosure needs clarification before this can be evaluated reliably.
102B2 – 4675 Steeles Ave E$59,900135 sq. ft.Inside Splendid China Mall, commercial condo~$650–$800$4,269 listedNot disclosedUncertainUncertainSimilar to 2B1. The unusually large annual tax figure and missing condo-fee information require verification.
112A10 – 4675 Steeles Ave E$39,00099 sq. ft.Inside Splendid China Mall / food-court area, commercial condo~$350–$500; ~$425 midpoint$822$366.68~-$122 at $425 rent~−0.3%Cheap real estate, but the recurring condo fee is very large relative to likely rental income. Better suited as support/storage space for another mall business than as a standalone rental investment.

*Approximate return = annual rent minus listed/estimated condo fees and property taxes, divided by asking price. It does not deduct insurance, vacancy, repairs, legal/accounting expenses, income tax, closing costs or HST. It also does not include appreciation.

1. #338, 4438 Sheppard Avenue East — Best Overall Candidate

This 290-square-foot commercial condo inside the Oriental Centre is currently listed at $49,000, with annual property tax of only about $871. The unit is marketed for retail or professional-office uses.

Rental comparables in the same shopping centre are useful. A 368-square-foot unit is currently offered at $650/month, while a particularly well-located 282-square-foot ground-floor unit is offered at $950/month.

That suggests roughly $700–$850/month may be a reasonable preliminary rental range for #338, depending heavily on its precise location and visibility within the mall.

The listing does not clearly disclose its maintenance fee. Using other units in the same building suggests something around $300/month as a rough working estimate, but that number should be verified before relying on the projected return.

At approximately $775 rent and a $300 maintenance assumption:

Annual rent: $9,300
Estimated maintenance: −$3,600
Property tax: −$871
Approximate income: $4,829

On a $49,000 cash purchase, that equals approximately 9.9% before vacancy, insurance and other expenses.

That makes #338 the most interesting property in this group if the maintenance fee is confirmed near the estimated level.

2. 2C8, 4675 Steeles Avenue East

This 136-square-foot unit is listed at $49,900. Annual tax is approximately $963 and the commercial condo fee is $408/month. Importantly, the unit has a water supply and the listing identifies the occupant as a tenant.

That is valuable because plumbing can expand the pool of potential commercial tenants.

At approximately $775/month:

Annual rent: $9,300
Condo fees: −$4,896
Property tax: −$963
Approximate annual income: $3,441

Estimated return: 6.9%.

The most important unanswered question is the current tenant’s actual rent and lease expiry date.

3. 2C6, 4675 Steeles Avenue East

The neighbouring 2C6 unit is priced slightly lower at $45,900, with annual tax of $939 and the same $408 monthly condo fee.

At an estimated $725/month rent:

Annual rent: $8,700
Condo fees: −$4,896
Tax: −$939
Approximate annual income: $2,865

Estimated cash return: 6.2%.

Because 2C6 and 2C8 are owned by the same seller and can apparently be combined, an investor could also investigate whether purchasing both at a negotiated price improves the economics.

4. 2A13 & 2A15 — High Rent, but High Expenses

This combined 256-square-foot unit is asking $50,000. It carries approximately $2,311/year in property tax and a substantial $828.76 monthly condo fee.

The interesting part is that the same unit has also appeared for lease at approximately $1,250/month.

That sounds excellent until expenses are considered:

Annual rent: $15,000
Condo fees: −$9,945
Property tax: −$2,311
Approximate annual income: $2,744

Return on $50,000: approximately 5.5%.

This illustrates why commercial condos should never be compared based solely on purchase price and rent. The maintenance fee can radically change the investment.

5. M8, 8 Glen Watford Drive — A Useful Real-World Benchmark

M8 at Dynasty Centre has an unusually useful data point: the exact unit itself has been offered for lease for $650/month.

It is listed for sale at $49,000. The commercial condo fee is $360.82/month, annual tax is approximately $1,296, and the property includes about 144 square feet of retail area plus a basement locker. There is no water supply inside the unit.

At $650/month:

Annual rent: $7,800
Condo fees: −$4,330
Property tax: −$1,296
Approximate annual income: $2,174

Estimated return: 4.4%.

This is useful as a reality check. A $49,000 Toronto commercial property can sound extraordinarily cheap, but recurring expenses can reduce the actual yield to a fairly ordinary level.

6. Unit 372 — An Actual $22,000 Toronto Commercial Condo

Unit 372 at 4438 Sheppard is particularly noteworthy because its asking price is only $22,000.

It is approximately 160 square feet, with a $162.35 monthly maintenance fee and approximately $2,000 annual property tax. The listing describes it as a corner retail unit suitable for retail or professional-office use.

The problem is the unusually high property tax relative to the purchase price.

Using a hypothetical $400 monthly rent:

Annual rent: $4,800
Maintenance: −$1,948
Tax: −$2,000
Approximate annual income: $852

Return: approximately 3.9%.

It is also currently shown as conditionally sold, so this is more useful as evidence of how inexpensive these commercial condos can become than as an immediately actionable listing.

7. Unit 3103 — Large Unit, Weak Yield

Unit 3103 at Oriental Centre is particularly easy to evaluate because it is simultaneously advertised:

  • For sale: $50,000
  • For rent: $650/month

It measures approximately 368 square feet, has annual property tax of approximately $1,970, and a commercial condo fee of $387/month.

Annual rent: $7,800
Condo fee: −$4,644
Tax: −$1,970
Approximate annual income: $1,186

Estimated return: 2.4%.

That is not particularly compelling for an illiquid commercial property carrying vacancy risk.

8. 2D22/23 — Attractive Space, Weak Investment Mathematics

The combined 184-square-foot 2D22/23 unit is listed for $60,000. Annual tax is approximately $1,500, while the commercial condo fee is approximately $595/month.

The property is professionally finished and includes furniture and built-in storage.

Assuming approximately $800/month rent:

Annual rent: $9,600
Condo fees: −$7,140
Tax: −$1,500
Approximate annual income: $960

Estimated return: only 1.6%.

It may therefore make considerably more sense for an owner-operated professional office than as a passive rental investment.

9–10. 2B1 and 2B2 — More Information Needed

Both units are approximately 135 square feet and listed for $59,900 each. They are inside Splendid China Mall and are close to Milliken GO and Pacific Mall.

However, each listing shows approximately $4,269 annually in tax/TMI-related costs, while a separate commercial condo fee is not clearly disclosed.

That makes a reliable return calculation impossible without reviewing the condominium status certificate and obtaining a breakdown from the seller.

If $4,269 represented the complete annual tax/TMI burden and there were no additional maintenance charge, approximately $700/month rent would produce:

$8,400 rent
− $4,269 costs
= $4,131

That would represent about 6.9%.

But if a substantial condo fee must also be paid, the true yield could be dramatically lower. These units therefore rank below properties with transparent carrying costs until the figures are clarified.

11. 2A10 — Cheap Does Not Necessarily Mean Profitable

At $39,000, 2A10 is one of the cheapest active commercial condos found.

The 99-square-foot unit is in the Splendid China Mall food-court area. Annual property tax is only approximately $822, but its condo fee is about $366.68/month.

At approximately $425/month rent:

Annual rent: $5,100
Condo fees: −$4,400
Tax: −$822
Approximate result: a small annual loss before insurance or vacancy.

The listing itself describes the unit as potentially useful as support or storage space for nearby food-court operations, which may explain why its economic value as a standalone rental property is limited.

What These Listings Show

The surprising lesson is that it is genuinely possible to own titled Toronto commercial real estate for $20,000–$60,000.

But purchase price is almost irrelevant without studying carrying costs.

A $39,000 unit with a $367 monthly condo fee may be a worse investment than a $49,000 unit with lower expenses and stronger tenant demand.

A useful screening formula is:

Estimated cash yield =
(Annual rent − annual condo fees − property tax) ÷ purchase price

For these very small commercial condos, a prospective buyer should ideally seek a sufficiently high return to compensate for:

  • periods of vacancy;
  • difficulty finding replacement tenants;
  • commercial insurance;
  • legal and leasing costs;
  • possible special assessments;
  • commercial-condominium fee increases;
  • HST implications;
  • low resale liquidity;
  • limited financing options.

A calculated 4% return before those costs is generally much less attractive than it initially appears.

A projected 8%–10%+ return before vacancy and insurance provides considerably more room for error.

Current Shortlist

Based on the presently available information, the strongest properties for further investigation are:

1. #338, 4438 Sheppard Avenue E — potentially the best return, provided its condo fee is reasonable.

2. 2C8, 4675 Steeles Avenue E — interesting because it already shows a tenant and has water inside the unit.

3. 2C6, 4675 Steeles Avenue E — inexpensive entry price with relatively transparent carrying costs.

4. 2A13/15, 4675 Steeles Avenue E — demonstrated high asking rent but also unusually high recurring fees.

5. M8, 8 Glen Watford Drive — easy to analyze because the exact unit’s recent asking rent is known, although the resulting yield is only moderate.

The strongest warning from this small sample is equally clear: low-priced commercial real estate should not be confused with high-return commercial real estate.

Methodology and Disclaimer

Figures are based on publicly advertised listings reviewed in August 2026. Rental figures marked as estimates use exact-unit asking rents where available and comparable units in the same shopping centre where exact rent was unavailable.

Returns assume an all-cash purchase and exclude financing. They also exclude vacancy, insurance, repairs, renovations, leasing commissions, legal fees, accounting costs, income taxes, land-transfer tax, closing costs, HST and capital appreciation.

Asking rent is not necessarily achieved rent, and asking price is not necessarily market value. Commercial condominium fees, permitted uses, existing leases, special assessments and HST treatment should be independently verified before purchasing.

Scrum master vs Product owner

Both are Scrum accountabilities, but they focus on different things.

Product OwnerScrum Master
Focuses on what should be builtFocuses on how the team works effectively
Maximizes product valueImproves Scrum effectiveness
Manages and orders the Product BacklogCoaches the team in Scrum and Agile practices
Clarifies user stories and acceptance criteriaFacilitates events and removes impediments
Makes priority and scope decisionsProtects the team from process problems and disruption
Represents customer and business needsSupports the team, Product Owner, and organization
Accepts completed stories based on agreed criteriaDoes not normally accept or prioritize stories

Product Owner responsibilities

The Product Owner:

  • defines and communicates the Product Goal;
  • creates or clarifies Product Backlog items;
  • orders the backlog by value, risk, and dependency;
  • explains user stories and acceptance criteria;
  • decides what is most important;
  • works with customers and stakeholders;
  • reviews whether completed work meets expectations.

The Product Owner does not assign individual tasks to developers or tell them how to implement the solution.

Scrum Master responsibilities

The Scrum Master:

  • helps everyone understand and apply Scrum;
  • facilitates Scrum events when needed;
  • helps remove blockers;
  • coaches the team toward self-management;
  • helps the Product Owner manage the backlog effectively;
  • protects transparency and continuous improvement;
  • helps resolve collaboration and process problems.

The Scrum Master is not the team’s traditional manager and does not normally assign work.

During Sprint Planning

Product OwnerScrum Master
Explains priorities and desired outcomesEnsures the planning process is effective
Clarifies stories and acceptance criteriaHelps the team understand capacity and focus
Discusses the proposed Sprint GoalFacilitates discussion and collaboration
Answers business questionsHelps remove planning obstacles

Developers decide how much work they can take and how they will perform it.

Simple distinction

Product Owner: Are we building the right product?
Scrum Master: Are we using Scrum effectively to build it?

Teaching line

The Product Owner leads product value and priority. The Scrum Master leads process improvement, facilitation, and team effectiveness.

Scrum versus Kanban at scale

Yes—basic Scrum is primarily a team-level framework.

Scrum

Scrum explains how one cross-functional team manages work through:

  • Product Backlog
  • Sprint Planning
  • Sprints
  • Daily Scrum
  • Sprint Review
  • Retrospective
  • Product Owner, Scrum Master, and Developers

Scrum itself gives only limited detail about coordinating many teams.

Multiple Scrum teams can work on the same product, but they normally need additional coordination arrangements, such as:

  • a shared Product Goal and Product Backlog;
  • common integration standards;
  • cross-team dependency management;
  • synchronized Sprints;
  • Scrum of Scrums;
  • or a scaling framework such as SAFe, Nexus, LeSS, or Scrum@Scale.

Kanban

Kanban can be used at several levels:

  • one individual;
  • one Agile team;
  • multiple teams;
  • a department;
  • a program or value stream;
  • a portfolio.

For example, a multi-team Kanban board might show:

Requested → Analysis → Team Development → Integration → Validation → Released

Different teams may be responsible for different parts of that flow.

However:

A Kanban board alone does not automatically coordinate multiple teams.

The organization still needs:

  • shared workflow policies;
  • dependency visibility;
  • WIP limits;
  • clear ownership;
  • integration agreements;
  • escalation mechanisms;
  • regular coordination meetings.

Scrum versus Kanban at scale

QuestionScrumKanban
Primary focusTeam delivery within SprintsFlow of work through a system
Usually starts atTeam levelTeam or workflow level
Can involve multiple teams?Yes, with additional coordinationYes, through a shared end-to-end workflow
Main control mechanismSprint timebox and Sprint GoalPull system and WIP limits
Common metricsVelocity, Sprint burndownLead time, cycle time, throughput, WIP
Does it fully solve enterprise coordination?NoNo

In SAFe

SAFe provides the layer for coordinating multiple teams.

Each team may use:

  • SAFe Scrum, or
  • SAFe Team Kanban.

Then the Agile Release Train coordinates them through:

  • PI Planning;
  • PI Objectives;
  • Program Board;
  • cross-team dependencies;
  • ART Sync;
  • System Demo;
  • shared cadence;
  • RTE facilitation;
  • program-level risk management.

GlobalZipCart example

Each GlobalZipCart feature group can operate as a Scrum team:

  • Team 1: User Accounts
  • Team 2: Catalog and Search
  • Team 3: Cart and Checkout
  • Team 4: Payments and Fraud
  • Team 5: Orders and Fulfilment
  • Team 6: Reviews and Recommendations

Their individual Sprint Planning is Scrum.

When all six teams coordinate their four-sprint plans, dependencies, risks, and PI Objectives, that is the SAFe multi-team layer.

Teaching line

Scrum mainly manages one team. Kanban manages flow and can span one or many teams. SAFe provides structured coordination across multiple Scrum or Kanban teams.

REF: AI Tools/ChatGPT as is

LPM — Lean Portfolio Management

LPM — Lean Portfolio Management

Lean Portfolio Management is the SAFe approach for connecting an organization’s strategy and funding to the work performed by value streams and Agile Release Trains.

Team level asks: What stories should we complete?
ART level asks: What features should the teams deliver during the PI?
Portfolio level asks: Which major initiatives should the organization fund, and why?

LPM operates at the portfolio level, above individual Scrum teams and ARTs.

Three main responsibilities

LPM areaWhat it does
Strategy and investment fundingDefines portfolio vision, strategic themes, priorities, and budget allocation
Agile portfolio operationsCoordinates value streams, ARTs, dependencies, and portfolio execution
Lean governanceMonitors spending, outcomes, risks, compliance, and performance without excessive bureaucracy

Your SAFe material presents these as the three central areas of LPM.

Traditional funding vs Lean funding

Traditional approach

An organization may fund temporary projects:

“Approve $3 million for the WWShopCart international-shipping project.”

When the project ends, people may be reassigned and another approval process begins.

Lean portfolio approach

LPM commonly funds a long-lived value stream:

“Allocate capacity and funding to the WWShopCart Customer Purchase Value Stream.”

That value stream can continuously prioritize the most valuable epics and features instead of requesting a new project budget for every change.

Portfolio Kanban

LPM can use a Portfolio Kanban to manage large initiatives called epics.

Typical flow:

Funnel → Reviewing/Analyzing → Portfolio Backlog → Implementing → Done

StageMeaning
FunnelNew ideas and opportunities are captured
AnalyzingBusiness value, cost, risk, feasibility, and strategic alignment are examined
Portfolio BacklogApproved epics wait for available capacity
ImplementingValue streams and ARTs are actively delivering the initiative
DoneThe epic has produced and validated its intended outcome

WWShopCart example

Suppose the organization is considering these portfolio epics:

  1. Launch WWShopCart in Canada
  2. Add international shipping
  3. Introduce AI-based recommendations
  4. Add cryptocurrency payments
  5. Meet new privacy and security requirements

LPM would ask:

  • Which epics support the company’s strategy?
  • What customer or business value will they create?
  • What are their costs and risks?
  • Which value streams and ARTs will deliver them?
  • Is sufficient capacity available?
  • What should be funded now, postponed, or rejected?
  • How will success be measured?

LPM might decide:

International shipping and privacy compliance are funded first because they are necessary for the global launch. Cryptocurrency payment is deferred because it has lower immediate value and higher risk.

LPM versus PI Planning

Lean Portfolio ManagementPI Planning
Portfolio-level decision-makingART-level planning
Chooses and funds major initiativesPlans features and objectives for the next PI
Longer-term strategic perspectiveUsually covers the upcoming PI
Focuses on value streams and epicsFocuses on teams, features, dependencies, and risks
Asks, “Are we investing in the right things?”Asks, “How will the teams deliver them together?”

Teaching line

LPM decides where the organization should invest. PI Planning decides how the ART will coordinate delivery of that investment.

LPM: Strategy, Investment, and Portfolio Governance

This phrase summarizes what Lean Portfolio Management does at the organizational level.

1. Strategy

LPM ensures that major initiatives support the organization’s goals.

It asks:

  • What outcomes does the organization want?
  • Which customer needs or market opportunities matter most?
  • Which epics support the strategic themes?
  • What should be prioritized or postponed?

WWShipCart example:

The strategy may be:

Launch a secure international e-commerce platform supporting multiple currencies, languages, and shipping regions.

Therefore, international payments and shipping may receive higher priority than optional cosmetic enhancements.


2. Investment

LPM decides where money, people, and capacity should be allocated.

It asks:

  • Which value streams should receive funding?
  • How much capacity should be assigned to features, technical work, compliance, and innovation?
  • Which initiatives provide the greatest value?
  • Should an epic be funded, delayed, or stopped?

WWShipCart example:

The organization might allocate investment to:

  • customer purchasing capabilities;
  • payments and fraud prevention;
  • order fulfilment;
  • platform security and infrastructure.

LPM normally focuses on funding long-lived value streams, rather than approving every small project separately.


3. Portfolio governance

Portfolio governance ensures that investments are controlled responsibly and produce the expected outcomes.

It includes:

  • monitoring spending;
  • reviewing business outcomes;
  • managing portfolio-level risks;
  • ensuring security and regulatory compliance;
  • measuring progress;
  • stopping or changing initiatives that are not producing value.

Governance does not mean heavy bureaucracy. In Lean management, governance should be:

Lightweight, evidence-based, and focused on outcomes.

WWShipCart example:

Leadership may review:

  • whether the international launch remains on schedule;
  • whether payment-security requirements are satisfied;
  • whether investment is producing customer value;
  • whether major risks require funding or scope changes.

Simple comparison

LPM responsibilityMain question
StrategyAre we pursuing the right goals?
InvestmentAre we funding the right work?
Portfolio governanceAre we controlling investment and achieving the expected outcomes?

Teaching line

Strategy decides where the organization wants to go. Investment provides the resources to get there. Portfolio governance ensures the organization remains responsible, compliant, and focused on results.

Story points: Fibonacci, Poker, Agile

Story points

Story points estimate the relative size of a user story.

They consider:

  • effort,
  • complexity,
  • uncertainty,
  • technical risk,
  • dependencies.

Story points do not directly mean hours or days.

A 5-point story is expected to be larger or more uncertain than a 3-point story, but it does not necessarily take exactly five hours or five days.

Fibonacci scale

use the Fibonacci-style sequence:

1, 2, 3, 5, 8, 13

The gaps become larger because uncertainty increases with larger work.

PointsTypical interpretation
1Very small, clear, little risk
2Small and well understood
3Moderate effort
5Larger, some complexity or uncertainty
8Complex, risky, or dependent on other work
13Very large or unclear; may need to be split

Example

For the Cart and Checkout feature:

User storyPossible estimateReason
Remove an item from the cart2Small, clear behavior
Update item quantity3Includes validation and total recalculation
Apply a promo code5Requires business rules and error handling
Complete checkout8Multiple steps and cross-team dependencies
Build the complete cart-and-checkout flow13Too broad; should probably be split

Planning poker

Planning poker is a collaborative estimation technique.

Each team member privately chooses a Fibonacci card for the story. Everyone reveals their estimate at the same time.

Process

  1. The Product Owner explains the user story and acceptance criteria.
  2. Team members ask questions.
  3. The team discusses effort, complexity, uncertainty, and dependencies.
  4. Each member privately selects a point value.
  5. Everyone reveals their value simultaneously.
  6. The highest and lowest estimators explain their reasoning.
  7. The team discusses the differences.
  8. Everyone estimates again.
  9. The process continues until the team reaches consensus or close agreement.
  10. The final estimate is recorded in Jira.

Example planning-poker discussion

Story:

As a customer, I want to apply a promotional code so that I can receive a discount.

Initial estimates:

  • User A: 3
  • User B: 5
  • User C: 8
  • User D: 5

Discussion:

  • The User choosing 3 assumed only one simple code.
  • The User choosing 8 considered expiration dates, usage limits, invalid codes, and payment integration.
  • After reviewing the acceptance criteria, the team agrees that the story has more complexity than first assumed.

Final estimate:

5 story points

Important teaching points

  • Story points are assigned by the team, not only by the Product Owner.
  • Planning poker is not a simple average.
  • The goal is shared understanding, not mathematical precision.
  • A large disagreement often reveals hidden assumptions.
  • A 13-point story should usually be reviewed and possibly divided into smaller stories.
  • Teams should not compare their story-point scale with another team’s scale.

Teaching line

Fibonacci gives the team an estimation scale. Planning poker gives the team a method for reaching a shared estimate.

REF: AI Tools/ChatGPT