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Broadband and dialup Internet access is largely unregulated. Service providers have wide latitude to control how customers use the service. What is legal is whatever the ISP wants to allow, what is illegal is whatever the ISP wants to prohibit. Service is a contract between customer and provider, the contract defines legality. If the providers acceptable use policy (AUP) does not meet your needs speak with your wallet and find another service provider. ISP networking policies range from: support, non-support, to prohibit.

When I investigated broadband service I contacted the local Cable Company. They stated networks were not permitted. Then I contacted the local Telco they stated networks were not supported. My dialup supplier has no written policy pertaining to use of networks.

Much confusion exists between the term "not supported" and "not permitted." ISPs want to minimize support cost. One way they accomplish this is to refuse to support networks. This does not mean you cannot connect a network but if you do the ISP is under no obligation to resolve problems.

So far this discussion is about setting up a network that does not involve the ISP. This commonly uses a technique call Network Address Translation (NAT) to share a single IP address. As far as the service provider is concerned only a single customer device is connected to the service. There are many hardware and software packages on the market that allow a single connection to be shared. Whether it is legal to do so is solely a function of ISP policy.

An alternative, especially if you want to run multiple servers, is to have the ISP assign multiple IP addresses. ISPs typically market this as an optional service at additional monthly cost.