WAN stands for Wide Area Network and is comprised of at least two
LANs or local area networks. A WAN can consist of point to point lines,
frame relay lines, internet lines or ISDN lines. Any type of dedicated
lines can be the backbone for a WAN.
You can also create a VPN connection to work as a WAN. The traditional
setup of a WAN is this: The host location, commonly referred to as
location A, is the main hub for all the lines. Location A has an internet
line for everyone to use. The branch locations, referred to as the
Z location, have dedicated point to point lines that connect to the
A location. So if you are in location Z, you surf the internet through
location A. See the below diagram. In the example, the WAN is displayed
in Red.

All connected, a WAN can reach an expansive geographical area. The
Internet is the largest WAN.
The benefit of a WAN is that you can easily control costs and access
all through one main location. Also, despite great advances in security,
a point to point line is the safest way for companies to communicate
with their branches because the line runs directly from a company to
its branches.
Costs of a WAN can vary greatly based on several factors. But here
is a general overview of what you need to get started:
- A Dedicated Phone line (Frame Relay, ISDN, T-1, etc.)
- A CSU/DSU – A CSU/DSU is similar to a modem. It allows communications
to take place between the two locations.
- A Router – A router is like a traffic cop, and it directs
network traffic over the WAN.