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PSTN For Internet Access

Modems are nowadays most commonly used for dial-in Internet access, connecting to a dial-in router, a technology used by retail Internet Service Providers (see later) to deliver Internet access to isolated computer systems.
Dial-in router system components
The usual configuration of a dial-in router is that hosts which connect via modem appear[2] to be directly connected to the ISP's own LAN.
 
[2] That is, their network (and subnet) numbers are the same as those of the computers on the ISP's internal LAN.

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