What is Ethernet?
Ethernet is the foundational wired networking technology for LANs, used to connect devices over local and campus environments via twisted‑pair or fibre cabling. It enables reliable, high-speed data transfer using a standardised protocol (IEEE 802.3) and MAC addressing for accurate packet delivery.
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Explore Orixcom Dedicated Internet AccessWhy Have Enterprises Relied on Ethernet?
When Ethernet emerged in the 1970s, it revolutionised how organisations connected devices across local environments. Before Ethernet, data transfer between computers was slow, complex, and often proprietary. Ethernet introduced a standardised, cost-effective, and scalable method for local area networking, becoming the backbone of enterprise communication. Since its introduction, businesses relied on Ethernet for:
- Consistent Speed and Low Latency
Wired Ethernet delivered far more stable and predictable performance compared to early wireless or dial-up alternatives. It became the preferred choice for VoIP, video conferencing, large file transfers, and real-time data applications. - Reliable Physical Security
Since Ethernet networks rely on physical cabling, it significantly reduced the risk of unauthorised interception, offering better control over network security and access—especially important in regulated industries. - Long-Term Compatibility and Standardisation
Ethernet's adherence to open standards (IEEE 802.3) ensured interoperability between vendors and devices, allowing businesses to scale networks incrementally without full system overhauls.
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How Ethernet Works?
Ethernet enables devices on a local network to communicate by sending data in structured units called frames. It uses MAC addressing, switching, and built-in negotiation to ensure reliable and efficient data delivery. Here's how the core components of Ethernet communication function:
- Frame-Based Communication Ethernet transmits data in frames, each containing source and destination MAC addresses along with error-checking codes. This ensures accurate and efficient delivery between devices on the network.
- Collision Management
Modern Ethernet networks use switches (not hubs), which eliminate data collisions by directing traffic only to the intended recipient. This results in smoother and faster communication, even in heavy traffic environments. - Autonegotiation
When devices connect, they automatically detect and agree on the highest possible speed and communication mode supported by both ends. This simplifies setup and maintains compatibility across mixed hardware generations. - MAC Address Lookup
Every device has a unique MAC address. Switches use MAC lookup tables to track where devices are connected, forwarding frames intelligently without flooding the entire network. - Error Detection
Each Ethernet frame includes a cyclic redundancy check (CRC) that helps detect transmission errors. If a frame is corrupted in transit, it’s discarded, ensuring data integrity across the network.
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Key Benefits of Ethernet
Ethernet continues to play a vital role in modern enterprise networks due to its speed, stability, and ability to adapt to evolving performance requirements. From data-intensive applications to energy-conscious operations, Ethernet offers a dependable foundation for wired connectivity.
- High Throughput & Low Latency
Ethernet supports data rates from 10 Mbps to 400 Gbps and beyond, making it ideal for high-performance tasks such as video conferencing, cloud access, and real-time applications. Its low latency ensures minimal delays in data transmission. - Energy Efficiency
With standards like IEEE 802.3az (Energy-Efficient Ethernet), devices can reduce power consumption during periods of inactivity—without compromising performance. This helps lower overall network energy costs in large environments. - Noise Resistance
Ethernet cabling, whether twisted-pair or fibre optic is designed to resist electromagnetic interference. This ensures clean, uninterrupted signal transmission, especially in electrically noisy or industrial environments.
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Limitations of Ethernet
While Ethernet remains a dependable and high-performance networking choice, it does come with practical limitations, especially in dynamic or large-scale environments. These factors often influence how and where Ethernet is deployed within modern enterprise infrastructures.
- Distance Constraints
Standard copper-based Ethernet cabling has a range limit of around 100 metres. For longer distances, especially across buildings or campuses, fibre-optic cabling or active repeaters are required to maintain signal integrity. - Mobility Trade-Off
Unlike wireless connectivity, Ethernet relies on physical cabling. This lack of mobility can be restrictive in environments where devices need to move frequently, such as warehouses or flexible office spaces. - Installation Complexity
Laying Ethernet cabling especially in existing infrastructure can be time-consuming and expensive. It may involve physical alterations, structured cabling plans, and coordination with building management.
Explore the future of enterprise connectivity.
Scale across sites or move workloads to the cloud with DIA.
Explore DIATraditional enterprise networks often combine Ethernet LANs in the office with MPLS or other fixed-line connections for the wider network (WAN). While this setup worked well in the past, today’s cloud-based applications, hybrid work environments, and increasing bandwidth needs require more flexible and scalable connectivity options. For organisations with multiple sites, remote teams, or heavy reliance on cloud platforms, Dedicated Internet Access (DIA) offers a more scalable and efficient solution.
Orixcom Dedicated Internet Access (DIA) solution meets these evolving demands by offering high-performance internet connectivity with reliability. Unlike standard public internet, DIA provides a private, uncontended connection with guaranteed speed, low latency, and direct access to major cloud platforms like AWS, Azure, and Oracle.
With Orixcom DIA, businesses benefit from:
- Consistent performance even during peak hours
- Secure and predictable data routing
- Quick deployment across office locations
- Integration with cloud and hybrid environments
Contributors:

Anthony Grower
Topic Specialist

Kelly Brighton
Topic Specialist

Richard Peace
Topic Specialist
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