A standard way for a network to ask you to prove who you are before letting you onto Wi-Fi or a wired port.
Like a front-door intercom that can accept different kinds of ID: a badge, a passcode or a passport.
A nine-person office used one Wi-Fi password for everyone. When a staff member left, the password had to be changed on every laptop and phone, and nobody got around to it for months.
Network covers the managed firewall and switches that sit behind your provider's modem.
Do I need to understand this?
Rarely. It is a setting on your Wi-Fi and firewall, and the useful question for your provider is whether each person has their own login.

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