The defining characteristics of LANs, in contrast to WANs (wide area networks), include their higher data transfer rates, smaller geographic range, and lack of a need for leased telecommunication lines. Current Ethernet or other IEEE 802.3 LAN technologies operate at speeds up to 10 Gbit/s. This is the data transfer rate. IEEE has projects investigating the standardization of 100 Gbit/s, and possibly 40 Gbit/s.

All interconnected devices must understand the network layer (layer 3), because they are handling multiple subnets (the different colors). Those inside the library, which have only 10/100 Mbit/s Ethernet connections to the user device and a Gigabit Ethernet connection to the central router, could be called “layer 3 switches” because they only have Ethernet interfaces and must understand IP. It would be more correct to call them access routers, where the router at the top is a distribution router that connects to the Internet and academic networks’ customer access routers.