- Integrated Services refers to ISDN's ability to deliver at minimum two simultaneous connections, in any combination of data, voice, video, and fax, over a single line. Multiple devices can be attached to the line, and used as needed. That means an ISDN line can take care of most people's complete communications needs at a much higher transmission rate, without forcing the purchase of multiple analog phone lines.
- Digital refers to its purely digital transmission, as opposed to the analog transmission of plain old telephone service (POTS). Use of an analog telephone modem for Internet access requires that the Internet service provider's (ISP) modem converts the digital content to analog signals before sending it and the user's modem then converts those signals back to digital when receiving. When connecting with ISDN there is no digital to analog conversion.
- Network refers to the fact that ISDN is not simply a point-to-point solution like a leased line. ISDN networks extend from the local telephone exchange to the remote user and includes all of the telecommunications and switching equipment in between.
The purpose of the ISDN is to provide fully integrated digital services to the users. These services fall under three categories: bearer services, supplementary services and teleservices.