What is the Difference Between Wide Area Networks and Local Area Networks?

The Evolution of Wi-Fi and Its Importance Today

Wi-Fi's origins trace back to the 1970s, and today, the internet has become an essential part of daily life. A 2020 survey by the ONS revealed that more than 92% of adults had recently used the internet. As a result, people are constantly on the lookout for Wi-Fi hotspots, always searching for ways to access free Wi-Fi wherever they go.

For businesses, understanding internet connections and network traffic basics can be incredibly beneficial. If you’re involved in digital marketing or offer Wi-Fi at your business, you’ve likely encountered the terms LAN and WAN. Knowing the difference between the two can save you both time and money when setting up connections for your devices and peripherals.

You may have noticed LAN and WAN labels on your router’s ports. That’s because the router acts as a bridge between your devices and your modem, enabling internet access. With a router, you can share a single internet connection with multiple devices. These devices can connect to the router either wirelessly or via a wired Ethernet connection.

Wired connections tend to offer more stability, security, and faster speeds, while wireless connections provide greater convenience, allowing for more connected devices and mobility, all without the need for extra hardware.

In simple terms, when a device like a smartphone or computer connects to your wireless router, it becomes part of your Local Area Network (LAN). Anything beyond that like the internet is part of the Wide Area Network (WAN).

For many, these terms might be unfamiliar. You may not fully understand their meaning or the difference between them unless you have an IT background. But don’t worry, we’ll break down everything you need to know below.

Understanding LAN (Local Area Networks)

You might be wondering, what exactly does LAN stand for? LAN stands for Local Area Network, which refers to a network of devices connected within a small, defined area, typically ranging from 100 to 1,000 meters. A LAN is particularly useful for sharing resources and files. For example, if you've ever connected a printer to your home or office computer, you've likely used a LAN port.

If you're seeking a wireless LAN connection, you can extend its range by adding additional wireless access points (WAPs). Many businesses, such as restaurants, colleges, hospitals, and offices, commonly use LAN ports for internet access.

Uses of Local Area Networks

Local Area Networks serve a variety of purposes, including:

• Allowing devices within a confined space (like a building) to communicate without needing an internet connection.

• Assigning a computer as the server to manage other devices within the network.

• Enabling all devices connected to the LAN to access software stored on a LAN server.

• Sharing resources, such as printers or scanners, between devices within the network.

Exploring WAN (Wide Area Networks)

A Wide Area Network (WAN) refers to a larger network that covers a broad geographical area, in contrast to the more localized LAN. One of the key benefits of WANs is that they are typically built using advanced telecommunication circuits. Unlike LANs, WAN equipment can be costly and is usually not owned by a single organization. Since WANs span larger areas, they often require leased telecommunication lines and utilize technologies such as Ethernet cables and frame relay for connectivity.

Uses of Wide Area Networks

WANs have many practical applications, such as:

• Sending and receiving emails.

• Transferring files across different locations.

• Remotely accessing and updating central databases.

• Facilitating reservations in industries like hospitality, railways, and airlines.

• Sharing data and resources across various business or educational settings.

For example, if you run a hospitality business and want to connect with potential customers, using a WAN would enable you to manage email marketing campaigns effectively, boosting your brand image. Email marketing can also help with tasks such as encouraging Google reviews.

Comparing LAN and WAN Networks

A WAN is a network that covers a large geographical area, while a LAN is typically a privately-owned network that operates within a smaller space, such as a home, office, or school. Networks like these enable direct digital communication. The internet, for example, is a massive network that links devices around the world.

When you come across terms like WAN or LAN, remember that they refer to computer networks provided by internet service providers. A network is essentially a collection of computers and devices that can connect with each other, such as smartphones, gaming consoles, smart TVs, and routers.

Another distinction between LANs and WANs is their rule systems, as they exist to facilitate communication between devices. A LAN is generally a smaller network, commonly found in homes or businesses, and often used to connect devices to the internet, though it allows for faster communication within the network.

For instance, if you send a file to a printer within the same LAN, it doesn't need to travel through the public internet. Instead, it can be transferred directly over the LAN using wireless or wired connections, making the process faster.

If you're curious about speed, you might ask, "What’s the difference between 2.4 GHz and 5 GHz Wi-Fi?" The difference lies in the coverage area and the broadband speeds each frequency supports.

Examples of Wide Area Networks

WANs often connect multiple geographical locations. For example, if a large organization has offices and data centers in different regions, a WAN is needed to connect them. The most recognizable example of a WAN is the internet itself. Additionally, a Metropolitan Area Network (MAN) is a network confined to a specific city or town, covering several buildings, whereas a WAN is not limited to a specific area.

Comparing LAN and WAN: Key Differences

Speed
LAN networks typically provide faster data transfer speeds, reaching up to 1,000 Mbps. On the other hand, WAN networks generally have slower speeds, averaging around 150 Mbps.

Congestion
Since LANs involve fewer devices, there is little congestion in the network. WANs, however, connect more devices and tend to experience higher levels of congestion due to the larger network.

Bandwidth Capacity
LANs support higher bandwidths for data transmission. WANs, in comparison, offer lower bandwidths for transmitting data.

Data Transfer Rates
LANs have faster data transfer rates, which allows quicker transmission of data packets. WANs, however, typically have slower data transfer rates.

Connection
LANs use radio waves and telephone lines to cover longer distances. WANs connect devices through public networks such as telephone lines, satellites, or leased lines.

Faults
LANs have fewer faults since they involve fewer systems and generally offer more fault tolerance. Due to the large number of systems involved, WANs have lower fault tolerance.

Costs of LAN vs WAN

The setup costs of a LAN are relatively low, as it involves fewer devices, and its maintenance is simpler.

Setting up a WAN using public networks is cost-effective with the right software, but building private networks and connecting to remote areas can be expensive. WAN maintenance and optimization are more complex and costly due to the extensive geographical area they cover.

Advantages of LAN and WAN

To offer Wi-Fi access to your customers, understanding the distinctions between LAN and WAN connections is crucial. You can benefit from both by using LAN for local device connectivity and WAN for broader internet access.

When you connect a device, such as a smartphone or computer, to a wireless router, it becomes part of the LAN. The WAN encompasses everything outside this network. LANs enable easy sharing of software across multiple devices connected to a computer. If you're setting up Wi-Fi for your restaurant, hotel, or café, knowing how to leverage both LAN and WAN will improve your guest experience. You can also explore other ways to enhance customer satisfaction, such as creating a captive portal or sending personalized emails to your guests.

One simple way to ensure your business has secure and user-friendly Wi-Fi is with Voqado. Voqado helps you establish a guest network (up to 100 active users) in just 60 seconds, and supports brand promotion through Wi-Fi marketing. For easy setup and installation, check out Voqado’s plug-and-play solutions.