Coaxial cable is widely used in urban areas to distribute television signals. Network access is available from many cable television providers. This allows for greater bandwidth than the conventional telephone local loop.

Cable modems provide an always-on connection and a simple installation. A subscriber connects a computer or LAN router to the cable modem, which translates the digital signals into the broadband frequencies used for transmitting on a cable television network. The local cable TV office, which is called the cable headend, contains the computer system and databases needed to provide Internet access. The most important component located at the headend is the cable modem termination system (CMTS), which sends and receives digital cable modem signals on a cable network and is necessary for providing Internet services to cable subscribers.

Cable modem subscribers must use the ISP associated with the service provider. All the local subscribers share the same cable bandwidth. As more users join the service, available bandwidth may be below the expected rate.

The topology in the figure displays a sample cable WAN connection.